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# Green Brick Profit Falls 24% As Home Prices Drop 12% And Incentives Hit 11%
- URL: https://www.bullished.co/green-brick-profit-falls-24-as-home-prices-drop-12-and-incentives-hit-11-a59487f1/
- Published: 2026-10-28T21:23:27.000Z
- Updated: 2026-10-28T21:23:27.000Z
- Description: The Texas-focused homebuilder delivered more homes at lower prices, and its gross margin narrowed to 28.0% from 32.1% a year earlier.
- Author: Matteo Parrino
- Tags: SEC Filings, GRBK, Industry: Consumer Discretionary

[Green Brick Partners](https://www.bullished.co/tag/grbk/), which builds and sells homes in Texas, Georgia and Florida, said third-quarter net income attributable to the company fell 24% to [$59.2 million, or $1.35 per diluted share](https://www.sec.gov/Archives/edgar/data/0001373670/000162828026067938/a2q32026ex99earningsrelease.htm?ref=bullished.co), from $77.9 million, or $1.77, a year earlier. Buyers paid less per home while incentives on new orders reached 11%, the company said Wednesday.

## More homes, lower prices

Deliveries rose 2.6% to [978 homes](https://www.businesswire.com/news/home/20261028045386/en/Green-Brick-Partners-Inc.-Reports-Third-Quarter-2026-Results?ref=bullished.co), but the average sales price of homes delivered fell 12.1% to $446.7 thousand from $508.1 thousand. Homebuilding revenue slipped 9.7% to $437 million.

Homebuilding gross margin [narrowed to 28.0%](https://www.businesswire.com/news/home/20261028045386/en/Green-Brick-Partners-Inc.-Reports-Third-Quarter-2026-Results?ref=bullished.co) from 32.1%. Income before taxes dropped 26.9% to $78.0 million.

Co-CEO Jim Brickman said the company continues to "respond to deteriorating market conditions to maintain sales pace." He called the 28.0% margin industry-leading, and said demand stayed resilient as buyers responded to incentives, particularly on Trophy Signature Homes.

For the first nine months, net income attributable to Green Brick fell 17.3% to $194.3 million, or $4.44 per diluted share.

## Orders up, backlog down

Net new home orders rose 3.1% to 926, but the average selling price of those orders fell 4.1% to $463.2 thousand. The cancellation rate rose to 8.2% from 6.7%.

Backlog fell 17.0% in dollar value to $379 million, with units down 6.8% to 629\. Sales pace slipped to 2.8 per community, Brickman said.

Financial services operating income climbed 68.9% to $5.6 million, which co-CEO Jed Dolson tied to Green Brick Mortgage gaining more of its buyers in core Texas markets.

## Land buying through the downturn

Green Brick, a homebuilding and land development company, builds through seven builder brands in Dallas-Fort Worth, Austin, Houston, Atlanta and Florida's Treasure Coast. It owned 40,869 lots at September 30, up 11.4% from a year earlier. Dolson said that owning and developing land early has largely locked in its lot costs.

The company retired $50 million of 4.00% senior notes and repurchased about $17.9 million of stock. It ended the quarter with $325 million of liquidity, including $100 million of cash, and homebuilding debt at 13.1% of total capital.

In a separate item, it said holders of its Series A preferred depositary shares on December 1 will receive a quarterly dividend of $0.35938 per depositary share, payable December 15.

Brickman and Dolson host the earnings call Thursday at 12:00 p.m. Eastern.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — Green Brick Partners, Inc. (GRBK)](https://www.sec.gov/Archives/edgar/data/0001373670/000162828026067938/grbk-20261028.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit a2q32026ex99earningsrelease.htm — Green Brick Partners, Inc. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001373670/000162828026067938/a2q32026ex99earningsrelease.htm?ref=bullished.co) — SEC EDGAR
- [Green Brick Partners, Inc. Reports Third Quarter 2026 Results](https://www.businesswire.com/news/home/20261028045386/en/Green-Brick-Partners-Inc.-Reports-Third-Quarter-2026-Results?ref=bullished.co) — businesswire.com

### More on Green Brick Partners

- [Green Brick Partners Puts Co-CEO Jed Dolson On Its Board, Now Seven Directors](https://www.bullished.co/green-brick-partners-puts-co-ceo-jed-dolson-on-its-board-now-seven-directors-6e342f5e/)

[All Green Brick Partners (GRBK) coverage →](https://www.bullished.co/tag/grbk/)