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Smith Douglas Homes Corp
NYSE:SDHC

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Smith Douglas Homes Corp
NYSE:SDHC
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Price: 17.57 USD -2.33%
Market Cap: 904m USD

Smith Douglas Homes Corp
Investor Relations

Smith Douglas Homes Corp. builds its narrative on a foundational commitment to providing quality, affordable housing with a focus on efficiency and customer satisfaction. The company began its journey by identifying a niche within the construction sector—catering to first-time homeowners or those seeking value-driven alternatives in the booming real estate market. By strategically selecting land in high-demand yet cost-effective areas across the southeastern United States, Smith Douglas Homes has crafted a business model that balances affordability with quality. This strategic approach keeps the company's operations tightly aligned with local market demands, while also streamlining construction processes to reduce costs without sacrificing the integrity or appeal of the final product.

The corporation's revenue stream is driven by its ability to churn out homes with rapid precision. By owning substantial control over its supply chain—from land acquisition and development to the physical construction of homes—Smith Douglas effectively minimizes unnecessary expenditures, thereby enhancing its operating margins. The company enhances its customer-centric approach by providing potential homeowners with a straightforward buying experience, coupled with solid after-sales service, which in turn bolsters its market reputation and brand loyalty. Ultimately, Smith Douglas Homes successfully makes money by blending operational efficiency with a sharp focus on delivering value to a specific market segment, which allows it to thrive in a competitive industry.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Nov 5, 2025
AI Summary
Q3 2025

Revenue & Earnings: Q3 home sales revenue was $262 million with net income of $16.2 million and EPS of $0.24, reflecting declines versus the prior year as volume and margins softened.

Margins: Gross margin fell to 21%, down from 26.5% last year, driven by higher lot costs and increased incentives.

Demand & Orders: Net orders rose 15% year-over-year to 690 homes, but management stressed that overall demand remained soft due to weak buyer confidence.

Incentives & Pricing: Financing incentives and price discounts increased further to spur sales, with forward commitments and rate buydowns remaining a key strategy.

Q4 Outlook: The company expects to close 725–775 homes at an average price of $330,000–$335,000, with gross margins pressured further to 18.5%–19.5%.

Community Growth: Smith Douglas ended the quarter with 98 active communities, and expects community count to be flat in Q4, but sees potential for 10%–20% community growth next year.

Cost Discipline: SG&A was up due to new market openings, but management expects to leverage fixed overhead as community count grows.

Market Conditions: Persistent macro uncertainty, permitting delays, and ongoing reliance on sales incentives continue to challenge operations.

Key Financials
Home Sales Revenue
$262 million
Net Income
$16.2 million
Earnings Per Share
$0.24
Home Closings
788
Average Selling Price
$333,000
Gross Margin
21%
SG&A as % of Revenue
13.8%
Net Orders
690
Backlog (Units)
760
Backlog Average Selling Price
$340,000
Backlog Expected Gross Margin
approximately 20%
Cycle Times (excluding Houston)
54 days
Active Communities
98
Debt-to-Book Capitalization
11.2%
Net Debt-to-Book Capitalization
8.4%
Cash Balance
$14.8 million
Outstanding on Revolver
$49 million
Available on Revolver
$201 million
Closing Cost Incentives per Home
$9,500
Pricing Discounts as % of Revenue
1.8%
Forward Commitments Costs
$3.9 million
Average Monthly Sales per Community (July)
2.5
Average Monthly Sales per Community (August)
2.8
Average Monthly Sales per Community (September/October)
2.0
Earnings Call Recording
Other Earnings Calls

Management

Mr. Thomas L. Bradbury
Founder & Executive Chairman
No Bio Available
Mr. Gregory S. Bennett
President, CEO & Vice Chairman
No Bio Available
Mr. Russell Devendorf
Executive VP & CFO
No Bio Available
Mr. Brett A. Steele
VP, General Counsel & Secretary
No Bio Available
Mr. Joe Thomas
SVP of Accounting & Finance
No Bio Available
Mr. Eddy Kleid
President of Central Georgia Division
No Bio Available

Contacts

Address
GEORGIA
Woodstock
110 Village Trail, Suite 215
Contacts