Smith Douglas Homes Corp. is dedicated to the development, construction, and sale of individual residences throughout the southeastern United States. The company's ...
Smith Douglas Homes Corp. (NYSE: SDHC) is a prominent homebuilder in the southeastern United States, specializing in the design, construction, and sale of single-family homes. Founded in 2008 by a team of industry veterans with decades of experience, including founder Thomas L. Bradbury, the company has grown significantly, with 510 ...Smith Douglas Homes Corp. (NYSE: SDHC) is a prominent homebuilder in the southeastern United States, specializing in the design, construction, and sale of single-family homes. Founded in 2008 by a team of industry veterans with decades of experience, including founder Thomas L. Bradbury, the company has grown significantly, with 510 full-time employees as of recent data. The company's operations are centered in high-growth metropolitan areas, offering a range of home designs and communities to meet diverse buyer needs. SDHC provides vertically integrated services including closing, escrow, and title insurance, enhancing the homebuying experience. Financially, the company has demonstrated solid performance with a market cap of $120 million, and key metrics such as a gross profit margin of 19.5%, an EBITDA margin of 4.8%, and a strong current ratio of 12.82, indicating robust liquidity. The company maintains a low debt-to-asset ratio of 0.116, reflecting a conservative capital structure. With a focus on operational efficiency and customer satisfaction, SDHC is strategically positioned for continued growth in the competitive residential construction industry. Its leadership, now under CEO Gregory S. Bennett, who has been in role since 2019, emphasizes innovation, quality, and community development, aiming to create lasting value for homeowners and shareholders alike.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$971.1M
-0.4%
+32.3%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$10.7M
-33.5%
-56.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+21.8%
-16.6%
-10.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+7.5%
-39.0%
+0.1%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+1.1%
-33.2%
-67.1%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-36.9M
-341.8%
+2037.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-3.8%
-342.9%
+1564.7%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
85.5%
+421.4%
+0.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
18.64x
+112.9%
-8.4%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Hello, everyone. Thank you for joining us, and welcome to Smith Douglas Homes First Quarter 2026 Earnings Call and Webcast. [Operator Instructions] I will now hand the conference over to Joe Thomas, SVP of Accounting and Finance. Joe, please go ahead.
Joe Thomas: Good morning, and welcome to the earnings conference call for Smith Douglas Homes. We issued a press release this morning outlining our results for the first quarter of 2026, which we will discuss on today's call and which can be found on our website at investors.smithdouglas.com or by selecting the Investor Relations link at the bottom of our home page. Please note, this call will be simultaneously webcast on the Investor Relations section of our website. Before the call begins, I would like to remind everyone that certain statements made on this call, which are not historical facts, including statements concerning future financial and operating goals and performance are forward-looking statements. Actual results could differ materially from such statements due to known and unknown risks, uncertainties and other important factors as detailed in the company's SEC filings. Except as required by law, the company undertakes no duty to update these forward-looking statements. Additionally, reconciliations of non-GAAP financial measures discussed on this call to the most comparable GAAP measures can be found in our press release located on our website and our SEC filings. Hosting the call this morning are Greg Bennett, the company's CEO and Vice Chairman; and Russ Devendorf, our Executive Vice President and CFO. I'd now like to turn the call over to Greg.
Greg Bennett: Good morning, and thank you for joining us today to review our results for first quarter of 2026 and provide an update on our operations. Smith Douglas Homes generated $4.3 million in pretax income for the quarter, net income of $0.06 per share. We delivered 624 homes, which came in at the high end of our guidance range, while home closing gross margin exceeded expectations at 19.6% on a GAAP basis. For the quarter, we generated 981 net new orders, up 28% from a year ago and a new quarterly record for the company. While order activity remained choppy throughout the quarter, we experienced a sequential improvement in our sales pace each month of the quarter, culminating in a sales pace of 4 homes per community in the month of March. Financing incentives continue to be a key selling tool as buyers remain motivated to own a home, provided they can secure a monthly mortgage payment that fits their budget. We are encouraged by the price elasticity we experienced during the quarter as incremental adjustments in pricing led to an uptick in demand. We view this as an indicator that underlying demand remains intact across our markets despite broader macroeconomic uncertainty. From an operational standpoint, we remain focused on pace over price philosophy, which means maintaining a consistent cadence of starts, driving …
