ATLANTA - Smith Douglas Homes Corp. (NYSE:SDHC) reported first quarter earnings that fell short of analyst expectations on Wednesday.
The company’s shares were down 1.30% in pre-market trading following the release.
The homebuilder posted earnings of $0.30 per share for Q1 2025, missing the analyst consensus estimate of $0.40 per share. Revenue came in at $224.7 million, up 19% YoY from $189.2 million in Q1 2024.
Home closings increased 19% to 671 units compared to the prior year quarter. The average sales price of homes closed was $335,000, relatively flat YoY.
"Smith Douglas Homes turned in another quarter of strong profitability to start 2025, generating pretax income of $19.6 million, or earnings of $0.30 per diluted share," said Greg Bennett, Vice Chairman and CEO. "Home closing revenue grew 19% year-over-year on a similar increase in new home closings, while home closing gross margin came in at 23.8%, which was above our expectations for the quarter."
The company’s active community count increased 24% YoY to 87 at quarter end. Total controlled lots rose 45% to 20,442.
Smith Douglas Homes maintained a strong balance sheet, with a debt-to-book capitalization of 9.5% compared to 0.8% at the end of 2024.
While missing earnings estimates, management expressed confidence in executing strategic plans and achieving long-term growth goals despite macroeconomic uncertainty.
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