Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Q4 2024 Earnings Presentation
23 slides from Green Brick Partners's earnings presentation, Feb 27, 2025
Slide 1: Investor Presentation 2024 Fourth Quarter
Normandy Homes | Painted Tree | McKinney TX IN V E S TO R P R E S E N TA TIO N 2024 Fourth Quarter
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning m
Slide 3: Management Presenters
Management Presenters Jim Brickman Jed Dolson Rick Costello C H I E F E X E C UT I V E O F F I C E R PRESIDENT AND CHIEF CHIEF FINANCIAL OFFICER A N D C O - F O UN D E R OPERATING OFFICER 3
Slide 4: Financial Highlights
Financial Highlights Quarterly Diluted EPS • 4Q24 Diluted EPS increased $2.50 46.2% to $2.31, highest for $2.00 $1.50 any fourth quarter in $1.00 company history. $0.50 $- 2020 2021 2022 2023 2024 • FY24 Diluted EPS increased 23.5% 23.1% 1Q 2Q 3Q 4Q 37.6% to $8.45, a record in 22.5% company history.
Slide 5: Financial Highlights
Financial Highlights Q4 Closings, 2021-2024 • 4Q24 closings increased 23.5% year 1,019 over year to 1,019 units, a record in 823 825 727 company history. • 4Q24 closings ASP increased 22.5% 0.6%23.5% 23.1% 4Q21 4Q22 4Q23 4Q24 year-over-year to $547K. Q4 Home Closings Revenues, 2021-2024 ($ in millio
Slide 6: Financial Highlights
Financial Highlights FY Home Closings, 2021-2024 CAGR +10% • FY24 closings increased 21.1% year 3,783 over year to 3,783 units, a record in 2,834 2,916 3,123 company history. 2021 2022 2023 2024 • FY24 closings ASP decreased 22.5% 3.4% 23.1% 23.5% year-over-year to $547K. FY Home Closings Revenues,
Slide 7: Financial Highlights
Financial Highlights Q4 Homebuilding Gross Margins, 2021-2024 • 4Q24 homebuilding gross margins 34.3% increased 290 bps year-over-year 26.2% 26.2% 31.4% to 34.3% (1). 27.8% 26.8% 26.8% 4Q21 26.4% 4Q22 4Q23 4Q24 • FY24 homebuilding gross 22.5% margins 23.1% 23.5% increased 290 bps year-over-year FY H
Slide 8: Financial Highlights
Financial Highlights Q4 Net New Home Orders, 2021-2024 • 4Q24 net new home orders increased 29.3% year-over-year to 878, the 878 highest for any fourth quarter in 679 company history. 476 423 27.8% 26.8% 26.8% 26.4% • 4Q24 absorption rate per average 23.1% 23.5% 4Q21 4Q22 4Q23 4Q24 22.5% active sell
Slide 9: Strong Land & Lot Position
Strong Land & Lot Position Lots Owned & Controlled, 2021-2024 Total 37,831 • Total lots owned and controlled Total 28,621 Total Total 28,681 5,115 increased 31.9% year-over-year to 8,382 25,527 4,046 4,880 37,831, with 86.5% owned on our 32,716 21,481 23,801 balance sheet. 20,239 27.8% 26.8% 26.8% 2
Slide 10: Industry-Leading Returns With Low Financial Leverage
Industry-Leading Returns With Low Financial Leverage • Our land model has consistently Return On Equity, 2020-2024 (1) produced high returns on equity (ROE), returns on assets (ROA) and homebuilding gross margins with one of 31.4% 26.8% 25.9% 24.9% the lowest leverage ratios among our 19.5% peers. •
Slide 11: Industry-Leading Gross Margins
Industry-Leading Gross Margins Green Brick maintained the best homebuilding gross margins amongst our peers Gross Margin Percentage (Most Recently Reported TTM) 33.8% 27.8% 26.8% 26.8% 26.4% 26.4% 28.9% 23.5% 22.5% 23.1% 26.1% 24.9% 24.8% 24.5% 23.7% 23.4% 23.3% 22.9% 22.7% 22.3% 21.5% 21.0% 18.7% 1
Slide 12: Selected Financial & Operational Data – Q4 2024
Selected Financial & Operational Data – Q4 2024 4Q24 4Q23 Change 4Q23 New homes delivered 1,019 825 23.5% Average sales price of homes delivered $547 $544 0.6% Residential units revenue $556,855 $448,525 24.2% Net new home orders 878 679 29.3% Net income attributable to GRBK $103,813 $73,020 42.2% D
Slide 13: Selected Financial & Operational Data – FY 2024
Selected Financial & Operational Data – FY 2024 FY 24 FY 23 Change New homes delivered 3,783 3,123 21.1% Average sales price of homes delivered $547 $566 -3.4% Residential units revenue $2,070,136 $1,769,255 17.0% Net new home orders 3,681 3,356 9.7% Net income attributable to GRBK $381,583 $284,626
Slide 14: Strategic Advantages
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Slide 15: Strategic Advantages
Strategic Advantages We believe our strategic advantages will continue to drive exceptional performance and returns • Footprint in two of the highest single family starts Debt-to-Total Capital (as of 12/31/24) markets of DFW and Atlanta, where we generated over 90% of revenues in 2024. • High exposu
Slide 16: Business Priorities
Business Priorities Cancellation Rate (Most Recently Reported Quarter) • Manage sales pace and incentives with industry- 18% 18% 19% 17% 17% leading gross margins and one of the lowest 17% 15% cancellation rates among homebuilding peers. 13% 14% 14% 10% • Closely manage pace of starts and closings,
Slide 17: Expected Lot Deliveries In 2025 – Dallas-Fort Worth
Expected Lot Deliveries In 2025 – Dallas-Fort Worth Majority of our DFW lots are being delivered in infill and adjacent “desirable areas” Lots Delivered / To Be Delivered in 2025 17
Slide 18: Expected Lot Deliveries In 2025 – Atlanta
Expected Lot Deliveries In 2025 – Atlanta Majority of our Atlanta lots are being delivered in infill and adjacent “desirable areas” Lots Delivered / To Be Delivered in 2025 18
Slide 19: Single-Family Inventory Remains Low
Single-Family Inventory Remains Low Existing single-family home inventory remains near historical lows across the country. 19
Slide 20: Appendix
IN V E S TO R P R E S E N TA TIO N Appendix
Slide 21: Appendix: Net Debt To Total Capitalization – 12/31/24
Appendix: Net Debt To Total Capitalization – 12/31/24 Less: Cash and Gross cash Net equivalents Total debt, net of debt issuance costs $336,606 $141,543 $195,063 Total Green Brick Partners, Inc. stockholders’ equity $1,625,415 $0 $1,625,415 Total capitalization $1,962,021 $141,543 $1,820,478 Debt to
Slide 22: Appendix: Net Income Return on Avg. GAAP Common Equity
Appendix: Net Income Return on Avg. GAAP Common Equity Dollars in Thousands 2020 2021 2022 2023 2024 Net Income Applicable To Common Shareholders $113,693 $190,139 $289,025 $281,751 $378,708 GRBK Common Equity Beginning $523,168 $640,242 $826,852 $1,014,211 $1,253,101 GRBK Common Equity Ending $640,
Slide 23: Appendix: Net Income Return on Avg. Total Assets
Appendix: Net Income Return on Avg. Total Assets Dollars in Thousands 2020 2021 2022 2023 2024 Net Income Applicable To Common Shareholders $113,693 $190,139 $289,025 $281,751 $378,708 Total Assets Beginning $875,539 $988,847 $1,421,867 $1,655,675 $1,902,832 Total Assets Ending $988,847 $1,421,867 $