Q2 2026 Green Brick Partners Inc Earnings Call Transcript
Key Points
- Net new orders increased 19% year-over-year, driven by strong demand for affordable homes from Trophy Signature Homes.
- Homebuilding gross margins of 29.8% were the highest among homebuilding peers, supported by disciplined land cost control.
- GreenBrick Mortgage grew rapidly, with funded loans up 257% year-over-year and a 66% capture rate, targeting 70%+ by year-end.
- Balance sheet remains strong with low leverage (net homebuilding debt to capital of 6.1%) and $462 million in total liquidity.
- Return on assets of 11.8% and return on equity of 16% are among the best in the industry, reflecting disciplined capital allocation.
- Home closings revenue declined 11.4% year-over-year due to a higher mix of lower-priced Trophy homes.
- Discounts and incentives increased to 8.8% of home closings revenue, up 180 basis points year-over-year, pressuring margins.
- Backlog revenue decreased 24% year-over-year, with average sales price down 18% due to Trophy mix and elevated incentives.
- Market conditions remain challenging with elevated interest rates, affordability pressures, and spotty demand across regions like Atlanta.
- SG&A expenses as a percentage of residential units revenue increased 60 basis points to 11.3% due to lower revenue.
Good afternoon, and welcome to GreenBrick Partners' earnings call for the second quarter ended June 30, 2026.
Following today's remarks, we will hold a Q&A session.
As a reminder, this call is being recorded and will be available for playback.
In addition, a presentation will accompany today's webcast, which is available on the company's investor relations website at investors.greenbrickpartners.com.
On the call today is Jim Brickman, Co-Founder and Chief Executive Officer Jed Dolson, President and Chief Operating Officer and myself, Jeff Cox, Chief Financial Officer.
Some of the information discussed on this call is forward-looking, including a discussion of the company's financial and operational expectations for 2026 and beyond.
In yesterday's press release, the company detailed material risks that may cause its future results to differ from its expectations.
The company statements are as of today, July 30, 2026, and the company has no obligation to update any forward
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