Smith Douglas Homes Reports Fourth Quarter and Full Year 2025 Results

Smith Douglas Homes Reports Fourth Quarter and Full Year 2025 Results 03/11/2026 Smith Douglas Homes Corp. (NYSE: SDHC) (“Smith Douglas” or the “Company”) today announced results for the fourth quarter and year ended December 31, 2025. Q4 2025 Results as compared to Q4 2024: Home closings decreased 7% to 780Home closing revenue decreased 9% to $260.4 millionHome closing gross margin of 19.9% compared to 25.5%Net new home orders decreased 7% to 532Pre-tax income of $16.9 million compared to $30.0 millionEarnings of $0.39 per diluted share Full Year 2025 Results as compared to Full Year 2024: Home closings increased 1% to 2,908Home closing revenue decreased 0.4% to $971.1 millionHome closing gross margin of 21.8% compared to 26.2%Net new home orders increased 3% to 2,726Pre-tax income of $70.9 million compared to $116.9 millionEarnings of $1.19 per diluted shareDebt-to-book capitalization increased to 9.0% from 0.8%Active community count increased 28% to 100 at year endTotal controlled lots increased 14% to 22,268 “Smith Douglas Homes closed out 2025 on a strong note, delivering record full-year closings and finishing the fourth quarter with both deliveries and gross margin above our stated guidance range,” said Greg Bennett, Vice Chairman and Chief Executive Officer. “Despite a challenging selling environment marked by affordability pressures and aggressive competitive discounting, our teams remained disciplined in maintaining sales pace and operational efficiency while continuing to position the Company for long-term growth.” Russ Devendorf, Executive Vice President and Chief Financial Officer added, “Sales conditions remained somewhat inconsistent late in the year as affordability pressures continued to impact demand. That said, we have seen encouraging traffic and order activity in early 2026 as we enter the spring selling season. While week-to-week variability remains, we continue to manage pricing and incentives at the community level to support sales pace and maintain the efficiency of our operating platform.” Mr. Devendorf continued, “Our strategy remains centered on disciplined growth, affordable home offerings, and thoughtful capital deployment across both existing and new markets. We will continue to evaluate investments opportunistically while maintaining our conservative approach to land and leverage.” Conference Call & Webcast Information Management will host a conference call to discuss the Company’s results at 8:30 a.m. Eastern Time on March 11, 2026. Interested parties can dial in using the numbers below or access the call via a webcast link provided in the investor relations section of the company’s website. Dial-in Numbers: Toll Free - North America (+1) 800-715-9871 International: (+1) 646-307-1963 Conference ID: 8459388 Replay Numbers: Toll Free - North America: (+1) 800-770-2030 Playback Passcode: 8459388 Replay will expire 7 days following the event About Smith Douglas Homes Headquartered in Woodstock, Georgia, Smith Douglas Homes completed its initial public offering in January 2024. Since its inception, Smith Douglas has been entrusted by over 20,000 families to fulfill their new home dreams. Ranked a top 50 builder nationally for several years and with 2,908 closings in 2025, Smith Douglas currently holds the #32 position on the Builder Magazine Top 100 list. The Smith Douglas communities are primarily targeted to entry-level and empty-nest homebuyers looking to purchase a new home priced below the Federal Housing Administration loan limit in the metro areas of Atlanta, Birmingham, Central Georgia, Charlotte, Chattanooga, Dallas-Fort Worth, Greenville, Houston, Huntsville, Nashville, Raleigh, and the Alabama Gulf Coast. Smith Douglas offers its homebuyers a personalized, affordable buying experience at attractive prices, delivering exceptional value and quality. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the Company’s performance, growth, strategic opportunities, financial position, and ability to compete in the market environment. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. These forward-looking statements are based on management’s current estimates and expectations. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. Smith Douglas Homes Condensed Consolidated Statements of Income (Unaudited, in thousands, except share and per share amounts) Three months ended December 31, Year ended December 31, 2025 2024 2025 2024 Home closing revenue $ 260,429 $ 287,486 $ 971,116 $ 975,463 Cost of home closings 208,697 214,157 758,945 719,921 Home closing gross profit 51,732 73,329 212,171 255,542 Selling, general and administrative costs 35,991 42,895 139,780 136,382 Equity in income from unconsolidated entities (621 ) (361 ) (2,078 ) (1,161 ) Interest expense 858 586 3,194 2,489 Other (income) expense, net (1,415 ) 173 374 938 Income before income taxes 16,919 30,036 70,901 116,894 (Benefit) provision for income taxes (130 ) 1,251 2,492 5,065 Net income 17,049 28,785 68,409 111,829 Net income attributable to non-controlling interests and LLC members prior to IPO 13,529 24,680 57,715 95,759 Net income attributable to Smith Douglas Homes Corp. $ 3,520 $ 4,105 $ 10,694 $ 16,070 Three months ended December 31, 2025 2024 Year ended December 31, 2025 Period from January 11, 2024 to December 31, 2024 Earnings per share: Basic $ 0.39 $ 0.46 $ 1.19 $ 1.82 Diluted $ 0.39 $ 0.46 $ 1.19 $ 1.81 Weighted average shares of common stock outstanding: Basic 9,017,708 8,846,232 9,000,606 8,846,174 Diluted 9,062,751 9,120,592 9,213,200 9,062,368 Smith Douglas Homes Condensed Consolidated Balance Sheets December 31, 2025 2024 (Unaudited) Assets Cash and cash equivalents $ 12,741 $ 22,363 Real estate inventory 298,637 277,834 Deposits on real estate under option or contract 138,763 103,026 Real estate not owned 28,051 5,830 Property and equipment, net 9,720 3,775 Goodwill 25,726 25,726 Deferred tax asset, net 9,666 10,906 Other assets 34,289 26,441 Total assets $ 557,593 $ 475,901 Liabilities and Equity Liabilities: Accounts payable $ 1,938 $ 17,234 Customer deposits 3,108 5,301 Notes payable 44,075 3,060 Liabilities related to real estate not owned 28,051 5,830 Accrued expenses and other liabilities 26,428 32,348 Tax receivable agreement liability 9,857 10,401 Total liabilities 113,457 74,174 Commitments and contingencies Equity: Preferred stock, $0.0001 par value – 10,000,000 shares authorized; none issued and outstanding as of December 31, 2024 — — Class A common stock, $0.0001 par value – 250,000,000 shares authorized; 8,846,154 shares issued and outstanding as of December 31, 2024 1 1 Class B common stock, $0.0001 par value – 100,000,000 shares authorized; 42,435,897 shares issued and outstanding as of December 31, 2024 4 4 Additional paid-in capital 60,610 58,208 Retained earnings 26,113 15,419 Total stockholders’ equity attributable to Smith Douglas Homes Corp. 86,728 73,632 Non-controlling interests attributable to Smith Douglas Holdings LLC 357,408 328,095 Total equity 444,136 401,727 Total liabilities and equity $ 557,593 $ 475,901 Smith Douglas Homes Summary Cash Flow Information (Unaudited, dollars in thousands) Year ended December 31, 2025 2024 Net cash (used in) provided by operating activities $ (31,337 ) $ 19,132 Net cash used in investing activities (6,634 ) (4,706 ) Net cash provided by (used in) financing activities 28,349 (11,840 ) Net (decrease) increase in cash and cash equivalents (9,622 ) 2,586 Cash and cash equivalents, beginning of period 22,363 19,777 Cash and cash equivalents, end of period $ 12,741 $ 22,363 Smith Douglas Homes Selected Other Operating Data (Unaudited, dollars in thousands) Three months ended December 31, Year ended December 31, 2025 2024 2025 2024 Home closings 780 836 2,908 2,867 ASP of homes closed $ 334 $ 344 $ 334 $ 340 Net new home orders 532 569 2,726 2,649 Contract value of net new home orders $ 169,138 $ 191,140 $ 907,095 $ 899,586 ASP of net new home orders $ 318 $ 336 $ 333 $ 340 Cancellation rate(1) 16.1 % 14.8 % 11.1 % 12.1 % Backlog homes (period end)(2) 512 694 512 694 Contract value of backlog homes (period end) $ 172,523 $ 235,869 $ 172,523 $ 235,869 ASP of backlog homes (period end) $ 337 $ 340 $ 337 $ 340 Active communities (period end)(3) 100 78 100 78 Controlled lots (period end): Homes under construction 908 973 908 973 Owned lots 804 803 804 803 Optioned lots 20,556 17,746 20,556 17,746 Total controlled lots 22,268 19,522 22,268 19,522 (1) The cancellation rate is the total number of cancellations during the period divided by the total gross new home orders during the period. (2) Backlog homes (period end) is the number of homes in backlog from the previous period plus the number of net new home orders generated during the current period minus the number of homes closed during the current period. (3) A community becomes active once the model is completed or the community has its first sale. A community becomes inactive when it has fewer than two homes remaining to sell. Smith Douglas Homes Selected Financial Information by Segment (Unaudited, dollars in thousands) Home Closing Revenue Three months ended December 31, 2025 2024 Period over period change Home closing revenue Home closings ASP of homes closed Home closing revenue Home closings ASP of homes closed Home closing revenue Home closings ASP of homes closed Southeast(1) $ 164,663 480 $ 343 $ 192,609 537 $ 359 (15 %) (11 %) (4 %) Central(2) 95,766 300 319 94,877 299 317 1 % — % 1 % Total $ 260,429 780 $ 334 $ 287,486 836 $ 344 (9 %) (7 %) (3 %) (1) The Southeast segment consists of our Atlanta, Central Georgia, Charlotte, Greenville, and Raleigh divisions. (2) The Central segment consists of our Alabama, Houston, and Nashville, and divisions. Year ended December 31, 2025 2024 Year over year change Home closing revenue Home closings ASP of homes closed Home closing revenue Home closings ASP of homes closed Home closing revenue Home closings ASP of homes closed Southeast(1) $ 610,773 1,772 $ 345 $ 609,624 1,723 $ 354 — % 3 % (3 %) Central(2) 360,343 1,136 317 365,839 1,144 320 (2 %) (1 %) (1 )% Total $ 971,116 2,908 $ 334 $ 975,463 2,867 $ 340 — % 1 % (2 %) (1) The Southeast segment consists of our Atlanta, Central Georgia, Charlotte, Greenville, and Raleigh divisions. (2) The Central segment consists of our Alabama, Houston, and Nashville, and divisions. Backlog As of December 31, 2025 2024 Year over year change Backlog homes Contract value of backlog homes ASP of backlog homes Backlog homes Contract value of backlog homes ASP of backlog homes Backlog homes Contract value of backlog homes ASP of backlog homes Southeast(1) 265 $ 91,748 $ 346 410 $ 146,436 $ 357 (35 )% (37 )% (3 %) Central(2) 247 80,775 327 284 89,433 315 (13 )% (10 )% 4 % Total 512 $ 172,523 $ 337 694 $ 235,869 $ 340 (26 )% (27 )% (1 )% (1) The Southeast segment consists of our Atlanta, Central Georgia, Charlotte, Greenville, and Raleigh divisions. (2) The Central segment consists of our Alabama, Houston, and Nashville, and divisions. Controlled Lots As of December 31, 2025 2024 Year over year change Owned(1) Optioned Total Controlled Owned(1) Optioned Total Controlled Owned(1) Optioned Total Controlled Southeast(2) 932 13,938 14,870 881 12,210 13,091 6 % 14 % 14 % Central(3) 780 6,618 7,398 895 5,536 6,431 (13 %) 20 % 15 % Total 1,712 20,556 22,268 1,776 17,746 19,522 (4 %) 16 % 14 % (1) Includes homes under construction and owned lots. (2) The Southeast segment consists of our Atlanta, Central Georgia, Charlotte, Greenville, and Raleigh divisions. (3) The Central segment consists of our Alabama, Dallas-Fort Worth, Houston, Nashville, and Alabama Gulf Coast divisions. Net Income Three months ended December 31, Year ended December 31, 2025 2024 Period over period change 2025 2024 Year over year change Southeast(1) $ 19,541 $ 38,469 $ (18,928 ) $ 86,241 $ 124,837 $ (38,596 ) Central(2) 4,122 8,510 (4,388 ) 22,870 41,891 (19,021 ) Segment total 23,663 46,979 (23,316 ) 109,111 166,728 (57,617 ) Corporate(3) (6,614 ) (18,194 ) 11,580 (40,702 ) (54,899 ) 14,197 Total $ 17,049 $ 28,785 $ (11,736 ) $ 68,409 $ 111,829 $ (43,420 ) (1) The Southeast segment consists of our Atlanta, Central Georgia, Charlotte, Greenville, and Raleigh divisions. (2) The Central segment consists of our Alabama, Houston, and Nashville, and divisions. (3) Corporate primarily includes corporate overhead costs, such as payroll and benefits, business insurance, information technology, office costs, outside professional services and travel costs, and certain other amounts that are not allocated to the reportable segments. Non-GAAP Financial Measures In addition to our results determined in accordance with generally accepted accounting principles in the U.S. (“GAAP”), this press release includes net debt-to-net book capitalization and adjusted net income. Net debt-to-net book capitalization Net debt-to-net book capitalization is a supplemental measure of our leverage that is not required by, or presented in accordance with, GAAP and should not be considered as an alternative to debt-to-book capitalization or any other measure derived in accordance with GAAP. We caution investors that amounts presented in accordance with our definition of net debt-to-net book capitalization may not be comparable to similar measures disclosed by our competitors because not all companies and analysts calculate this non-GAAP financial measure in the same manner. We present this non-GAAP financial measure because we consider it to be an important supplemental measure of our leverage and believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. We define net debt-to-net book capitalization as: Total debt, less cash and cash equivalents, divided byTotal debt, less cash and cash equivalents, plus equity. This non-GAAP financial measure has limitations as an analytical tool in that it subtracts cash and cash equivalents and therefore may imply that the Company has less debt than the most comparable measure determined in accordance with GAAP. Because of this limitation, this non-GAAP financial measure should be considered along with other financial measures presented in accordance with GAAP. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. We have reconciled this non-GAAP financial measure with the most directly comparable GAAP financial measure in the following table: As of December 31, (in thousands, except percentages) 2025 2024 Notes payable $ 44,075 $ 3,060 Equity 444,136 401,727 Total capitalization $ 488,211 $ 404,787 Debt-to-book capitalization 9.0 % 0.8 % Notes payable $ 44,075 $ 3,060 Less: cash and cash equivalents 12,741 22,363 Net debt 31,334 (19,303 ) Equity 444,136 401,727 Total net capitalization $ 475,470 $ 382,424 Net debt-to-net book capitalization 6.6 % (5.0 %) Adjusted net income Adjusted net income is not a measure of net income or net income margin as determined by GAAP. Adjusted net income is a supplemental non-GAAP financial measure used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders, and rating agencies. We define adjusted net income as net income adjusted for the tax impact using a 24.6% federal and state blended tax rate (assuming 100% public ownership to adjust for the impact of taxes on earnings attributable to Smith Douglas Holdings LLC as if Smith Douglas Holdings LLC was a subchapter C corporation in the periods presented). Management believes adjusted net income is useful because it allows management to more effectively evaluate our operating performance and comparability to industry peers who record income tax expense on their income before tax as opposed to the income of Smith Douglas Holdings LLC not being taxed at the entity level and, therefore, not reflecting a charge against earnings for income tax expense. Adjusted net income should not be considered as an alternative to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. Our computation of adjusted net income may not be comparable to adjusted net income of other companies. We present adjusted net income because we believe it provides useful information regarding our comparability to peers. The following table presents a reconciliation of adjusted net income to the GAAP financial measure of net income for each of the periods indicated: Three months ended December 31, Year ended December 31, 2025 2024 2025 2024 Net income $ 17,049 $ 28,785 $ 68,409 $ 111,829 Provision for income taxes (130 ) 1,251 2,492 5,065 Income before income taxes 16,919 30,036 70,901 116,894 Tax-effected adjustments(1) 4,159 7,383 17,427 28,756 Adjusted net income $ 12,760 $ 22,653 $ 53,474 $ 88,138 (1) For the years ended December 31, 2025 and 2024, our tax expenses assumes a 24.6% federal and state blended tax rate (assuming 100% public ownership to adjust for the impact of taxes on earnings attributable to Smith Douglas Holdings LLC as if Smith Douglas Holdings LLC was a subchapter C corporation in the periods presented). Source: Smith Douglas Homes Corp.