Smith Douglas Homes Reports Second Quarter 2026 Results

About this update from Smith Douglas Homes Corp.

Smith Douglas Homes Corp. (NYSE: SDHC) (“Smith Douglas” or the “Company”) today announced second quarter results for the three and six months ended June 30, 2026. Q2 2026 Results as compared to Q2 2025: Home closings increased 25% to 839 Home closing revenue increased 22% to $273.0 million Home closing gross margin of 17.6% compared to 23.2% Net new home orders increased 32% to 970 Backlog homes increased 17% to 1,000 Pretax income of $1.9 million, which includes $7.6 million of real estate inventory impairment and lot option contract abandonment charges, compared to $17.2 million Earnings of $0.03 per diluted share compared to $0.26 Debt-to-book capitalization of 13.2% compared to 9.0% at December 31, 2025 Active community count increased 20% to 110 at quarter end Total controlled lots of 23,527 Repurchased 312,351 shares of Class A common stock for $4.4 million “We delivered another quarter of solid operational execution, generating strong year-over-year growth in both net new home orders and home closings despite a market that remains uncertain and constantly evolving,” said Greg Bennett, Chief Executive Officer and Vice Chairman of Smith Douglas Homes. “Our teams continued to help buyers find the right combination of affordability, personalization, and value, while maintaining our disciplined operations and industry-leading build times. We believe this performance reflects the strength of our operating model and positions us well for continued long-term growth.” Mr. Bennett continued, “While the housing market continues to face affordability challenges and macroeconomic uncertainty, we remain encouraged by underlying demand and the resilience of today's homebuyer.” Russ Devendorf, Executive Vice President and Chief Financial Officer, added, “Our second quarter results demonstrate that we can continue growing while remaining disciplined in how we operate the business. We expanded our community count, increased sales, and continued to execute our land-light land strategy without compromising our underwriting standards. As we scale across the Southeastern and Southern United States, we remain focused on generating attractive returns, preserving balance sheet flexibility, and creating long-term value for our shareholders.” Conference Call & Webcast Information Management will host a conference call to discuss the Company’s results at 8:30 a.m. Eastern Time on August 6, 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: Local: (+1) 585-542-9983 Toll Free: (+1) 833-461-5787 Conference ID: 284 191 644 A replay of the call will be available on the Company’s website shortly after the call concludes. 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 #33 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 plans and opportunities, financial position, ability to navigate the changing homebuilding landscape in the macroeconomic environment, and the timing of any of the foregoing. 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, 2025, 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 June 30,   Six months ended June 30,   2026   2025   2026   2025 Home closing revenue $ 273,026     $ 223,924     $ 479,470     $ 448,646   Cost of home closings   225,105       171,985       391,098       343,177   Home closing gross profit   47,921       51,939       88,372       105,469                   Selling, general and administrative costs   41,914       34,702       77,826       67,701   Equity in income from unconsolidated entities   (786 )     (598 )     (1,313 )     (817 ) Interest expense   640       772       1,488       1,438   Other expense (income), net   4,285       (116 )     4,188       401   Income before income taxes   1,868       17,179       6,183       36,746   Provision for income taxes   100       744       353       1,601   Net income   1,768       16,435       5,830       35,145   Net income attributable to non-controlling interests   1,522       14,070       5,019       30,097   Net income attributable to Smith Douglas Homes Corp. $ 246     $ 2,365     $ 811     $ 5,048     Earnings per share:               Basic $ 0.03     $ 0.26     $ 0.09     $ 0.56   Diluted $ 0.03     $ 0.26     $ 0.09     $ 0.55   Weighted average shares of common stock outstanding:               Basic   8,380,647       8,998,470       8,698,043       8,983,328   Diluted   8,380,647       8,998,470       8,698,043       9,160,922     Smith Douglas Homes Condensed Consolidated Balance Sheets (In thousands, except share and per share amounts)     June 30, 2026   December 31, 2025   (Unaudited)     Assets       Cash and cash equivalents $ 14,200     $ 12,741 Real estate inventory   331,216       298,637 Deposits on real estate under option or contract   139,288       138,763 Real estate not owned   24,251       28,051 Property and equipment, net   9,206       9,720 Goodwill   25,726       25,726 Deferred tax asset, net   9,612       9,666 Other assets   38,603       34,289 Total assets $ 592,102     $ 557,593 Liabilities and Equity       Liabilities:       Accounts payable $ 26,943     $ 1,938 Customer deposits   6,027       3,108 Notes payable   66,026       44,075 Liabilities related to real estate not owned   24,251       28,051 Accrued expenses and other liabilities   26,517       26,428 Tax receivable agreement liability   9,382       9,857 Total liabilities   159,146       113,457 Commitments and contingencies       Equity:       Preferred stock, $0.0001 par value – 10,000,000 shares authorized; none issued and outstanding as of June 30, 2026 and December 31, 2025   —       — Class A common stock, $0.0001 par value – 250,000,000 shares authorized; 9,109,212 and 9,017,708 shares issued, 8,386,996 and 9,017,708 shares outstanding as of June 30, 2026 and December 31, 2025, respectively   1       1 Class B common stock, $0.0001 par value – 100,000,000 shares authorized; 42,435,897 shares issued and outstanding as of June 30, 2026 and December 31, 2025   4       4 Additional paid-in capital   62,122       60,610 Retained earnings   26,924       26,113 Treasury stock, at cost   (9,588 )     — Total stockholders’ equity attributable to Smith Douglas Homes Corp.   79,463       86,728 Non-controlling interests attributable to Smith Douglas Holdings LLC   353,493       357,408 Total equity   432,956       444,136 Total liabilities and equity $ 592,102     $ 557,593   Smith Douglas Homes Summary Cash Flow Information (Unaudited, dollars in thousands)   Six months ended June 30, 2026   2025 Net cash provided by (used in) operating activities $ 4,850     $ (63,847 ) Net cash used in investing activities   (1,152 )     (4,225 ) Net cash (used in) provided by financing activities   (2,239 )     62,486   Net increase (decrease) in cash and cash equivalents   1,459       (5,586 ) Cash and cash equivalents, beginning of period   12,741       22,363   Cash and cash equivalents, end of period $ 14,200     $ 16,777     Smith Douglas Homes Selected Other Operating Data (Unaudited, dollars in thousands)     Three months ended June 30,   Six months ended June 30,   2026   2025   2026   2025 Home closings   839     669     1,463     1,340 ASP of homes closed $ 325   $ 335   $ 328   $ 335 Net new home orders   970     736     1,951     1,504 Contract value of net new home orders $ 311,612   $ 247,421   $ 635,305   $ 506,139 ASP of net new home orders $ 321   $ 336   $ 326   $ 337 Cancellation rate (1)   12.7%     10.0%     11.0%     9.1% Backlog homes (period end) (2)   1,000     858     1,000     858 Contract value of backlog homes (period end) $ 322,147   $ 292,881   $ 322,147   $ 292,881 ASP of backlog homes (period end) $ 322   $ 341   $ 322   $ 341 Active communities (period end) (3)   110     92     110     92 Controlled lots (period end):               Homes under construction   1,208     1,091     1,208     1,091 Owned lots   664     834     664     834 Optioned lots   21,655     22,899     21,655     22,899 Total controlled lots   23,527     24,824     23,527     24,824 (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 June 30,   2026   2025   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   $ 168,995   509   $ 332   $ 141,267   407   $ 347   20 %   25 %   (4)% Central     104,031   330     315     82,657   262     315   26 %   26 %   — % Total   $ 273,026   839   $ 325   $ 223,924   669   $ 335   22 %   25 %   (3)%   Six months ended June 30,   2026   2025   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   $ 290,073   867   $ 335   $ 279,485   799   $ 350   4 %   9 %   (4)% Central     189,397   596     318     169,161   541     313   12 %   10 %   2 % Total   $ 479,470   1,463   $ 328   $ 448,646   1,340   $ 335   7 %   9 %   (2)% Backlog   As of June 30,   2026   2025   Period over period 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   591   $ 194,893   $ 330   511   $ 178,409   $ 349   16 %   9 %   (5)% Central   409     127,254     311   347     114,472     330   18 %   11 %   (6)% Total   1,000   $ 322,147   $ 322   858   $ 292,881   $ 341   17 %   10 %   (6)% Controlled Lots   As of June 30,   2026   2025   Period over period change     Owned (1)   Optioned   Total Controlled   Owned (1)   Optioned   Total Controlled   Owned (1)   Optioned   Total Controlled Southeast   1,023   14,007   15,030   986   16,005   16,991   4%   (12%)   (12%) Central   849   7,648   8,497   939   6,894   7,833   (10%)   11%   8% Total   1,872   21,655   23,527   1,925   22,899   24,824   (3%)   (5%)   (5%) (1) Includes homes under construction and owned lots. Net Income     Three months ended June 30,   Six months ended June 30,   2026   2025   Period over period change   2026   2025   Period over period change Southeast $ 10,574   $ 21,991   $ (11,417)   $ 23,054   $ 45,846   $ (22,792) Central   5,866     6,345     (479)     11,301     13,355     (2,054) Segment total   16,440     28,336     (11,896)     34,355     59,201     (24,846) Other (1)   (14,672)     (11,901)     (2,771)     (28,525)     (24,056)     (4,469) Total $ 1,768   $ 16,435   $ (14,667)   $ 5,830   $ 35,145   $ (29,315) (1) Other primarily includes homebuilding operations in non-reportable segments, 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 by Total 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 (in thousands, except percentages) June 30, 2026   December 31, 2025 Notes payable $ 66,026   $ 44,075 Equity   432,956     444,136 Total capitalization $ 498,982   $ 488,211 Debt-to-book capitalization   13.2%     9.0% Notes payable $ 66,026   $ 44,075 Less: cash and cash equivalents   14,200     12,741 Net debt   51,826     31,334 Equity   432,956     444,136 Total net capitalization $ 484,782   $ 475,470 Net debt-to-net book capitalization   10.7%     6.6% 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 an applicable 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 (in thousands):   Three months ended June 30,   Six months ended June 30,   2026   2025   2026   2025 Net income $ 1,768   $ 16,435   $ 5,830   $ 35,145 Provision for income taxes   100     744     353     1,601 Income before income taxes   1,868     17,179     6,183     36,746 Tax-effected adjustments (1)   502     4,278     1,662     9,150 Adjusted net income $ 1,366   $ 12,901   $ 4,521   $ 27,596 (1) For the three and six months ended June 30, 2026 and 2025, our tax expenses assume a 26.9% and 24.9% federal and state blended tax rate, respectively, (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).   View source version on businesswire.com: https://www.businesswire.com/news/home/20260805457682/en/

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