GRBK-PA · Green Brick Partners, Inc.

Green Brick Partners delivered Q1 2026 results amid challenging market conditions with elevated mortgage rates and subdued consumer confidence, as noted by CEO Jim Brickman. Net income fell 18.8% year-over-year to $60.9 million with diluted EPS at $1.39, reflecting lower home closings revenue of $456 million (down 5.9%) from 908 deliveries versus 910 prior year, and reduced average sales price of $493.4 (down 6.9%). Homebuilding gross margin of 28.9% marked the highest among public peers but contracted 320 basis points due to pricing pressures and incentives. Net new orders of 1,037 supported a sales pace of 3.4 per month, slightly below prior year's 3.5, with backlog shrinking to 649 units and $381.3 million revenue. Starts rose 13% to 979 homes, signaling production discipline. Financial services segment grew robustly, with mortgage revenue up over 330% to $5.6 million from 365 loans funded. Balance sheet strength persisted with no revolver borrowings, low net debt to capital of 5.5%, and $7.2 million share repurchases. A key development is the restatement of prior periods' residential revenue to net closing cost incentives like rate buydowns against revenue rather than costs; this boosts reported gross margins without altering net income, EPS, or economics, with 10-K amendment forthcoming. Expansion into Houston and Green Brick Mortgage rollout to Texas builders, plus planned Atlanta entry, position for growth. Series A preferred dividend of $0.35938 per depositary share underscores capital return commitment.