Strong Operational Performance
Smith Douglas Homes reported a pretax income of $17.2 million and earnings of $0.26 per diluted share. Home sales revenue was $224 million for the quarter, with home closings of 669, exceeding the guidance range. Gross margin was at the high end of guidance at 23.2%.
Increase in Active Communities and Controlled Lot Count
The company ended the second quarter with 92 active communities, a 23% increase over the second quarter of 2024, and improved controlled lot count by 57% compared to a year ago to almost 25,000 lots.
Expansion into New Markets
Smith Douglas Homes announced entry into the Dallas-Fort Worth and Gulf Coast of Alabama markets through greenfield start-ups, with expectations to start selling by year-end in DFW.
Improvement in Construction Efficiency
Average cycle time, excluding Houston, was 54 days, down from 60 days in the second quarter of 2024.
Favorable Debt Position
Net debt to net book capitalization ratio was 12.1% at the end of the quarter, with flexibility to utilize a $50 million share repurchase authorization.