Green Brick Partners, Inc. Q1 FY2025 earnings call

• Jim Brickman congratulated Jeff Cox on his new role as Interim CFO and Bobby Samuel on his promotion to Executive Vice President of Land. - Despite affordability challenges, first quarter results were strong with record home closings revenue and net income. - Focus on infill and infill adjacent locations, self-development strategy, and low leverage balance sheet. - Homebuilding gross margin was 31.2%, still leading the industry. - Jed Dolson discussed supply chain engagement with suppliers, labor market health, and cost review for efficiency. - Trophy brand expansion in Houston, with first phase of finished lots in June and first community opening in fall. - Green Brick Mortgage had strong start, with plans to expand services to other markets.

In the first quarter, home closings revenue increased 11.8% year-over-year to $495 million, with 910 homes closed. Homebuilding gross margin was 31.2%. Trophy, the primary growth engine, represented 54% of total deliveries and 40% of total home closings revenue. Net new home orders were 1,106, a new record. Ending backlog value increased 29% sequentially to $594 million. The ending community count increased 5% year-over-year to 103, with 35 being Trophy communities. The cancellation rate was 6.1%, the lowest among public homebuilding peers.

• Board authorized $100 million in share buybacks, with $38.3 million repurchased through April. - Plan to invest approximately $300 million in land development during the year. - Trophy expected to deliver first phase of finished lots in Houston in June and open first community in fall. - Land pipeline has ~5 years of lot supply based on recent start pace.

• Externally, tariffs and immigration policies present potential supply chain disruptions. - Economic uncertainty and high interest rates impacting consumer confidence and affordability. - Volatile market conditions affecting land deals and lot pricing in certain locations.

Q: Could you talk about what's been seen in April regarding tariffs and incentives on Trophy Signature?

A: Jim Brickman said tariffs impact is a wildcard, and Jed Dolson noted Trophy's incentives are in line with overall company incentives. Jim added that incentives vary by market location.

Q: Any cracks or improvements in the land market in Dallas?

A: James Brickman said some builders have walked lot option contracts in perimeter deals, and Jed Dolson mentioned getting build-for-rent deals and a bulk buy contract.

Q: Thoughts on buybacks and capital use?

A: Jim Brickman explained stock repurchases are lumpy due to large, complicated land acquisitions like a $40 million deal, with potential for stronger repurchases in third quarter