Green Brick Partners Inc (GRBK, Financial) released its third quarter earnings report on October 31, 2023. The company reported a record high homebuilding gross margin of 33.3%, outperforming the market. The Q3 diluted EPS stood at $1.56, and $4.55 year-to-date. New home orders were up by 95.0% for the quarter and 72.7% year-to-date. The company's backlog increased by 10.4% YoY and 68.7% from the end of 2022.
Financial Highlights
Green Brick Partners Inc (GRBK, Financial) reported total revenues of $418,978,000 for Q3 2023, a 2.7% increase from Q3 2022. The total cost of revenues was $279,965,000, a 1.9% increase from the previous year. The company's net income attributable to Green Brick Partners Inc was $72,156,000, a 1.9% decrease from Q3 2022. The diluted net income attributable to Green Brick Partners Inc per common share was $1.56, a 0.6% decrease from the previous year.
For the nine months ended September 30, 2023, the company delivered 2,298 new homes, a 5.0% increase from the same period in 2022. The total revenues for this period were $1,327,328,000, showing no change from the previous year. The net income attributable to Green Brick Partners Inc was $211,606,000, a 10.5% decrease from the same period in 2022.
Company's Performance and Outlook
Green Brick Partners Inc (GRBK, Financial) CEO and Co-Founder, Jim Brickman, commented on the company's performance, stating,
Green Brick produced another outstanding quarter, highlighted by our $1.56 EPS and by gross margins and sales orders far outperforming the market. Benefiting from a more normalized supply chain, lower construction costs, and fewer incentives in our supply-constrained markets, homebuilding gross margin improved 90 bps year-over-year and 200 bps sequentially to 33.3%, the highest among public homebuilders and the best in company history."
Brickman also highlighted the company's strong financial position, stating,
Our balance sheet is stronger than ever. At the end of the quarter, we had $223 million of cash and $360 million in available borrowings in our lines of credit, with a net debt to total capital ratio of 9.0%. Virtually all our outstanding debt was long term and carried a weighted average interest rate of 3.3%."
Despite the challenges of a higher interest rate environment, Green Brick Partners Inc (GRBK, Financial) continues to lead its public homebuilding peers in year-to-date new order growth. The company anticipates continuing to start homes at a robust pace to meet demand in its high-performing markets in Texas, Georgia, and Florida.
Explore the complete 8-K earnings release (here) from Green Brick Partners Inc for further details.
