Green Brick Partners (NYSE: GRBK) Reports Record 2025 Results: Detailed Analysis for Investors

Key Financial and Operational Highlights

• Record Full-Year Earnings: Green Brick Partners reported record net income of \$313 million for 2025, or \$7.07 per diluted share. This marks the highest annual profit in the company’s history.
• Strong Q4 Performance: Fourth quarter net income was \$78 million, or \$1.78 per diluted share, on \$550 million in home closing revenue.
• New Home Deliveries: 3,943 new homes were delivered in 2025 (up 4.2% year-over-year), the highest ever for the company, with 1,038 homes delivered in Q4 (up 1.9% year-over-year).
• Record Home Closings Revenue: Full-year home closings revenue was \$2.091 billion, an all-time high.
• Peer-Leading Margins: Full-year homebuilding gross margin was 30.5% (down from 33.8% in 2024), still among the highest in the industry. Q4 gross margin was 29.4%.
• New Home Orders: 3,795 net new home orders in 2025 (up 3.1% year-over-year), with Q4 orders also a fourth-quarter record at 883 units.
• Strong Liquidity and Balance Sheet: Cash and cash equivalents increased to \$154.6 million with no outstanding borrowings on revolving credit. Total liquidity was approximately \$520 million at year-end. Homebuilding net debt-to-total capital improved to 6.3% (down from 10.7%), reflecting a “fortress balance sheet.”
• Shareholder Returns: 1.4 million shares were repurchased during the year for approximately \$83 million. The company adopted a new \$150 million share repurchase plan.
• Backlog and Orders: Backlog at year-end was 520 units (down 22.2%), with backlog revenue at \$354.3 million (down 28.5%).
• Incentives and Cancellations: Incentives on new orders averaged 10% in Q4, and the sales cancellation rate remained low at 7.6%.
• Land Position: As of year-end, Green Brick controlled 48,828 lots (owned and under contract) across Texas, Georgia, and Florida.

CEO Commentary and Strategic Insights

“We delivered strong fourth quarter results despite ongoing affordability challenges faced by many buyers and softening consumer confidence. In our pursuit to maximize shareholder value, our management team’s continued focus and operating discipline once again resulted in peer-leading gross margins and top-tier returns, including achieving the best year in company history with regards to new home deliveries and home closings revenue.”

– Jim Brickman, CEO and Co-founder

• The company’s disciplined sales strategy and strategic adjustment of incentives helped maintain sales pace and order growth during a challenging market environment.
• Green Brick’s focus on infill and infill-adjacent communities in high-demand, lower-competition areas is credited for its industry-leading margins and performance.
• Management emphasized its capital discipline, strong liquidity, and “fortress” balance sheet as key advantages for navigating future opportunities and challenges.

Potentially Price Sensitive Items for Shareholders

• Record Performance: Achieving all-time highs in home deliveries, new home orders, and revenue could positively impact investor sentiment and share price.
• Share Repurchase Program: The new \$150 million buyback authorization is a clear signal of management’s confidence in the company’s value and balance sheet strength.
• Industry-Leading Gross Margins: Peer-leading margins (30.5%)—despite some decline—reinforce the company’s competitive positioning and profitability.
• Balance Sheet Strength: Substantial liquidity and low leverage may position the company for strategic acquisitions, land purchases, or further capital returns to shareholders.
• Backlog and Order Trends: While backlog and average selling prices declined, the company maintained order growth and low cancellation rates, which may be viewed positively or negatively depending on market reaction to margin and backlog trends.
• Lot Position and Market Focus: The company’s large, controlled lot pipeline and geographic focus could be material for future growth and resilience.

Financial and Operating Details

Fourth Quarter 2025 vs. Fourth Quarter 2024

• New homes delivered: 1,038 (up 1.9%)
• Total revenues: \$552.6 million (down 2.6%)
• Net income: \$78.4 million (down 24.5%)
• Diluted EPS: \$1.78 (down 22.9%)
• Homebuilding gross margin: 29.4% (down from 34.3%)
• Average sales price of homes delivered: \$529,600 (down 3.1%)
• Backlog revenue: \$354.3 million (down 28.5%)
• Homes under construction: 2,048 (down 12.5%)

Full Year 2025 vs. Full Year 2024

• New homes delivered: 3,943 (up 4.2%)
• Total revenues: \$2.098 billion (flat)
• Net income: \$313.2 million (down 17.9%)
• Diluted EPS: \$7.07 (down 16.3%)
• Homebuilding gross margin: 30.5% (down from 33.8%)
• Average sales price of homes delivered: \$530,400 (down 3.1%)
• SG&A as a percentage of revenue: 11.1% (up from 10.9%)

Balance Sheet and Capitalization

• Cash and equivalents: \$154.6 million
• Total assets: \$2.53 billion
• Total liabilities: \$601.8 million
• Stockholders’ equity: \$1.86 billion
• Debt to total capitalization: 12.8% (improved from 17.2%)
• Net debt to total capitalization: 6.3% (improved from 10.7%)

Land and Lot Position

• Total lots owned and under contract: 48,828 (up from 44,254)
• Texas remains the primary market, with significant presence in Atlanta and Florida.
• 16.6% of total lots under contract had refundable deposits, and the company revised its definition of “lots controlled” to align with industry standards.

Forward-Looking Statements and Risks

Management discussed several forward-looking factors, including their ability to maintain margins, adapt to market conditions, continue growth, and expand financial services. However, risks remain, including general economic uncertainty, potential for rising rates or inflation, supply chain pressures, labor shortages, regulatory changes, and the possibility of declining home or land values.

Conclusion

Green Brick Partners delivered a record year in 2025, demonstrating strong operational execution, capital discipline, and industry-leading profitability. The company’s new share repurchase plan, strong liquidity, and focus on high-demand markets could further support the share price. Investors should monitor ongoing margin trends, backlog developments, and macroeconomic conditions, as these may impact future results and stock performance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Investors should conduct their own research and consider their own risk tolerance before making investment decisions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.

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