CORRECTED-Homebuilder Green Brick's Q2 revenue beats amid strong Texas demand

Corrects "Homebuilding Revenue" to "Revenue" in table, and corresponding reported figure to $493.84 mln, from $481.60 mln

Overview

• U.S. homebuilder's Q2 revenue beat analyst expectations, but net income and EPS fell yr/yr

• Net new home orders rose 19% yr/yr, while home closings revenue declined 11%

• Company repurchased 143,026 shares for about $9.4 mln in Q2

Outlook

• Company says strong demand in Texas markets continues despite affordability challenges and economic uncertainty

• Green Brick says sequential backlog growth positions company for second half of 2026

• Company expects strong liquidity and disciplined capital strategy to support future growth

Result Drivers

• ORDER GROWTH - Net new home orders rose 19% yr/yr, driven by targeted incentives and demand in Texas, especially for Trophy Signature Homes

• AFFORDABILITY PRESSURE - Average sales price of homes delivered fell 11.9% yr/yr as co used elevated incentives to maintain sales pace amid affordability challenges

• FINANCIAL SERVICES EXPANSION - Financial services operating income rose 91% yr/yr as Green Brick Mortgage expanded and customer adoption increased

Company press release: ID:nBw5ynVLba

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the homebuilding peer group is "hold"

• Wall Street's median 12-month price target for Green Brick Partners Inc is $67.00, about 9% below its July 28 closing price of $73.63

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• July 29 - M/I Homes Q2 net income drops on inventory charges

• July 28 - US single-family home prices increase in May, FHFA says

• July 29 - US mortgage rates climb again in latest week, many at year high

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)