Smith Douglas Homes Corp. announced its first quarter 2025 results on May 14, 2025. Home closing revenue increased by 19% year-over-year to $224.7 million. This growth was driven by a 19% increase in home closings, totaling 671 homes.
Despite revenue growth, home closing gross margin compressed to 23.8% from 26.1% in the prior year period. Net income decreased by 9% year-over-year to $18.7 million. Diluted earnings per share were $0.30, down from $0.33 in Q1 2024.
The company's operational metrics showed expansion, with active community count increasing 24% and total controlled lots rising 45% year-over-year. Net new home orders remained stable at 768, and the cancellation rate improved to 8.1%. These factors indicate continued market presence and operational efficiency.
Smith Douglas also finalized an amendment to its unsecured revolving credit facility, increasing its total size by $75 million to $325 million. The maturity was extended to four years, enhancing financial flexibility. This provides capital to fund ongoing operations and strategic growth initiatives.
For the second quarter of 2025, the company provided guidance projecting home closings between 620 and 650. The average sales price is expected to be between $335,000 and $340,000. Gross margin is anticipated in the range of 22.75% to 23.25%, reflecting continued pressure from incentives.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.