Smith Douglas Homes (SDHC) Reports Decline in Financial Performance

By Chris Stiles • Wednesday, March 11 13:52 • Permanent Link

Smith Douglas Homes Corp. (NYSE: SDHC) has released its financial results for the fourth quarter and full year ended December 31, 2025, showing a mix of performance indicators compared to the same periods in 2024.

In the fourth quarter of 2025: Home closings decreased by 7% to 780 Home closing revenue decreased by 9% to $260.4 million Home closing gross margin was 19.9%, a decrease from 25.5% Net new home orders decreased by 7% to 532 Pre-tax income was $16.9 million, down from $30.0 million Earnings were $0.39 per diluted share

For the full year 2025: Home closings increased by 1% to 2,908 Home closing revenue decreased by 0.4% to $971.1 million Home closing gross margin was 21.8%, a decrease from 26.2% Net new home orders increased by 3% to 2,726 Pre-tax income was $70.9 million, down from $116.9 million Earnings were $1.19 per diluted share Debt-to-book capitalization increased to 9.0% from 0.8% Active community count increased by 28% to 100 at year end * Total controlled lots increased by 14% to 22,268

Greg Bennett, Vice Chairman and CEO, commented on the company's performance, stating that despite challenges in the selling environment, Smith Douglas Homes delivered record full-year closings and ended the fourth quarter with deliveries and gross margin above their stated guidance range.

Looking forward, Russ Devendorf, Executive Vice President and CFO, noted that while sales conditions remained somewhat inconsistent, there has been encouraging traffic and order activity in early 2026 as the company enters the spring selling season.

Smith Douglas Homes is known for its focus on entry-level and empty-nest homebuyers, providing a personalized, affordable buying experience at attractive prices in multiple metro areas. Since its inception, the company has been trusted by over 20,000 families to fulfill their new home dreams.

Investors and interested parties can access further details on the company’s financial results through a conference call and webcast scheduled for March 11, 2026, at 8:30 a.m. Eastern Time. Today the company's shares have moved -5.21% to a price of $20.90. If you want to know more, read the company's complete 8-K report here.

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