Green Brick Profit Falls 24% As Home Prices Drop 12% And Incentives Hit 11%
The Texas-focused homebuilder delivered more homes at lower prices, and its gross margin narrowed to 28.0% from 32.1% a year earlier.
Green Brick Partners, 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, 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, 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% 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.
Sources
- 8-K Filing — Green Brick Partners, Inc. (GRBK) — SEC EDGAR
- Exhibit a2q32026ex99earningsrelease.htm — Green Brick Partners, Inc. 8-K exhibit — SEC EDGAR
- Green Brick Partners, Inc. Reports Third Quarter 2026 Results — businesswire.com
