Smith Douglas Homes Corp. (NYSE: SDHC) has reported its first quarter results for the three months ended March 31, 2025, and the numbers show significant growth and changes compared to the same period in 2024.
The key highlights of the earnings report are as follows: Home closings increased by 19% to 671 Home closing revenue saw a similar increase of 19% to $224.7 million Home closing gross margin decreased to 23.8% from 26.1% Net new home orders remained relatively stable at 768 compared to 765 Pretax income decreased to $19.6 million from $21.4 million Earnings per diluted share dropped to $0.30 from $0.33 Debt-to-book capitalization increased to 9.5% from 0.8% at December 31, 2024 Active community count surged by 24% to 87 at quarter end * Total controlled lots soared by 45% to 20,442
Greg Bennett, Vice Chairman and Chief Executive Officer, expressed his satisfaction with the strong profitability of the company, generating pretax income of $19.6 million and earnings of $0.30 per diluted share. He credited the entire team for executing with efficiency and precision.
Russ Devendorf, Executive Vice President and Chief Financial Officer, noted that order activity improved as the quarter progressed, but overall demand was somewhat inconsistent and still dependent on incentives. He highlighted the increase in active community count and total controlled lots, emphasizing the opportunity for market share growth and increasing the company's size and scale.
The press release also mentioned that the company completed its initial public offering in January 2024 and has been entrusted by over 17,500 families to fulfill their new home dreams. With 2,867 closings in 2024, Smith Douglas currently holds the #32 position on the Builder Magazine Top 100 list.
As a result of these announcements, the company's shares have moved 5.33% on the market, and are now trading at a price of $20.77. Check out the company's full 8-K submission here.
