The fourth quarter earnings period closed out with the two newest public home builders—Smith Douglas Homes and United Homes Group—reporting financial results for the quarter and the full fiscal year.
Both posted strong results, growing closings in both the fourth quarter and the full fiscal year, while noting many of the same trends cited by their peers—affordability and macroeconomic uncertainty—remain headwinds. Executives from Smith Douglas and United Homes Group maintained positive outlooks for 2025, noting demographic tailwinds as well as the positive start both companies have experienced to the spring selling season.
Smith Douglas Homes
Smith Douglas Homes increased closings 28% in the fourth quarter to a company-record 836 homes. For the full year, closings grew 25% to 2,867 homes. As a result, closing revenue grew by 32% and 28% in the fourth quarter and full fiscal year, respectively. The company reported profit per share of $0.46 in the fourth quarter and $1.81 for the full fiscal year.
The builder’s lot count at the end of the year—19,522—represents a 52% increase over the prior year period. Approximately 96% of the company’s unstarted controlled lots were controlled via an option agreement. Additionally, Smith Douglas grew community count by 13% to 78 in 2024.
“As we enter the heart of the 2025 spring selling season, we remain encouraged by the trends we are seeing in our markets,” executive vice president and chief financial officer Russ Devendorf said. “Traffic levels at our communities and online have been solid so far this year, though affordability issues continue to persist. Given the value proposition Smith Douglas offers to buyers through our affordable pricing and the customization we provide, we believe we can compete effectively in today’s market environment.”
United Homes Group
United Homes Group closed 414 homes in the fiscal fourth quarter resulting in revenue of $134.8 million, increases of 7% and 15% compared to the fourth quarter of 2023. Orders during the period increased 19% to 351.
“The fourth quarter was a challenging one in the home building industry, with all of our competition offering significant incentives to move completed homes before year end,” said president Jack Micenko. “We continue to manage our finished spec inventory levels and at the same time are encouraged by the early trends realized from our product redesign initiative.”
For the full fiscal year 2024, United Homes Group grew closings 3% to 1,431 and revenue 10% to $463.7 million. The builder generated a profit per share of $0.90 for the full fiscal year. The builder’s lot pipeline at the end of the year included approximately 7,700 lots owned or controlled.
“As for some preliminary commentary on the first quarter, our January net new orders were lower than last year partially due to the negative impact of unusual weather in our markets,” interim CEO Jamie Pirrello said. “February bounced back and our first week of March has continued to be consistent with February. Unfortunately, with our high backlog conversion rate each quarter, a softer January negatively impacted February and March closings.”
