Q2 2026 Green Brick Partners Inc Earnings Call

July 30, 2026

Speaker #1: Good afternoon, and welcome to Green Brick Partners earnings call for the second quarter ended June 30th, 2026. Following today's remarks, we will hold a Q&A session.

Jeffery Cox: Good afternoon. Welcome to Green Brick Partners' earnings call for Q2 ended 30 June 2026. Following today's remarks, we will hold a Q&A session. As a reminder, this call is being recorded and will be available for playback. A presentation will accompany today's webcast, which is available on the company's investor relations website at investors.greenbrickpartners.com. On the call today is James Brickman, Co-founder and Chief Executive Officer, Jed Dolson, President and Chief Operating Officer, and myself, Jeffery Cox, Chief Financial Officer. Some of the information discussed on this call is forward-looking, including a discussion of the company's financial and operational expectations for 2026 and beyond. In yesterday's press release, the company detailed material risks that may cause its future results to differ from its expectations.

Jeff Cox: Good afternoon. Welcome to Green Brick Partners' earnings call for Q2 ended 30 June 2026. Following today's remarks, we will hold a Q&A session. As a reminder, this call is being recorded and will be available for playback. A presentation will accompany today's webcast, which is available on the company's investor relations website at investors.greenbrickpartners.com. On the call today is James Brickman, Co-founder and Chief Executive Officer, Jed Dolson, President and Chief Operating Officer, and myself, Jeffery Cox, Chief Financial Officer. Some of the information discussed on this call is forward-looking, including a discussion of the company's financial and operational expectations for 2026 and beyond. In yesterday's press release, the company detailed material risks that may cause its future results to differ from its expectations.

Speaker #1: As a reminder, this call is being recorded and will be available for playback. In addition, a presentation will accompany today's webcast, which is available on the company's investor relations website at investors.greenbrickpartners.com.

Speaker #1: On the call today is Jim Brickman, co-founder and chief executive officer, Jed Dolson, president and chief operating officer, and myself, Jeff Cox, chief financial officer.

Speaker #1: Some of the information discussed on this call is forward-looking, including a discussion of the company's financial and operational expectations for 2026 and beyond. In yesterday's press release, the company detailed material risks that may cause its future results to differ from its expectations.

Speaker #1: The company's statements are as of today, July 30, 2026, and the company has no obligation to update any forward-looking statement it may make. Our comments today also include non-GAAP financial metrics. The reconciliation of these metrics, and the other information required by Regulation G, can be found in the earnings release that the company issued yesterday and in the aforementioned presentation.

Jeffery Cox: The company statements are as of today, 30 July 2026. The company has no obligation to update any forward-looking statement it may make. Our comments today also include non-GAAP financial metrics. The reconciliation of these metrics and the other information required by Regulation G can be found in the earnings release that the company issued yesterday and in the aforementioned presentation. With that, I will turn the call over to Jim.

Jeff Cox: The company statements are as of today, 30 July 2026. The company has no obligation to update any forward-looking statement it may make. Our comments today also include non-GAAP financial metrics. The reconciliation of these metrics and the other information required by Regulation G can be found in the earnings release that the company issued yesterday and in the aforementioned presentation. With that, I will turn the call over to Jim.

Speaker #1: With that, I will turn the call over to Jim.

Speaker #2: Thank you, Jeff. Before I talk about second quarter results, I wanted to speak to the press release that was issued this morning announcing the promotion of Jed Dolson to co-CEO to take place this October.

James Brickman: Thank you, Jeff. Before I talk about Q2 results, I wanted to speak to the press release that was issued this morning announcing the promotion of Jed Dolson to Co-CEO to take place this October. One of the most important responsibilities of a co-founder and CEO is attracting, developing, and retaining outstanding leaders. One of the greatest joys I have is recognizing talented people and sharing the credit for Green Brick's success. At Green Brick, we use the acronym HOME to describe the values we expect from all employees: honest, objective, mature, and efficient. Our current president, Jed Dolson, has been with us since before we became a public company and has been a primary driver of our success. Jed has consistently demonstrated the leadership, judgment, and values that have helped shape Green Brick into the company it is today.

Speaker #2: One of the most important responsibilities of a co-founder and CEO is attracting, developing, and retaining outstanding leaders. One of the greatest joys I have is recognizing talented people and sharing the credit for Green Brick's success.

Speaker #2: At Green Brick, we use the acronym HOME to describe the values we expect from all employees: honest, objective, mature, and efficient. Our current president, Jed Dolson, has been with us since before we became a public company and has been a primary driver of our success.

Speaker #2: Jed has consistently demonstrated the leadership, judgment, and values that have helped shape Green Brick into the company it is today. It is my profound pleasure to announce that effective October 15th, Jed will join me as co-CEO.

James Brickman: It is my profound pleasure to announce that effective 15 October, Jed will join me as Co-CEO. Jed, thank you for your partnership, leadership, and commitment to Green Brick. Congratulations on this well-deserved promotion. I am confident that Jed will help drive Green Brick's continued growth and will contribute to even greater success in the years ahead. Now turning to Q2, I am very pleased with the strong Q2 results achieved by the Green Brick team, even as affordability pressures and economic uncertainty continue to weigh on buyers. Interest rates remained elevated in Q2, with concerns about employment growth and the cost of living dampening consumer confidence. Despite these challenges, we achieved a 19% increase in net new orders year over year.

Speaker #2: Jed, thank you for your partnership, leadership, and commitment to Green Brick. Congratulations on this well-deserved promotion. I am confident that Jed will help drive Green Brick's continued growth and will contribute to even greater success in the years ahead.

Speaker #2: Now, turning to the second quarter, I am very pleased with the strong second quarter results achieved by the Green Brick team, even as affordability pressures and economic uncertainty continue to weigh on buyers.

Speaker #2: Interest rates remained elevated in the second quarter with concerns about employment growth, and the cost of living dampening consumer confidence. Despite these challenges, we achieved a 19% increase in net new orders year over year.

Speaker #2: Our average selling community count grew 6% year over year, to 108, and our monthly sales pace increased 10% year over year, to 3.3. The growth in orders was driven primarily by Trophy Signature Homes, as we continued to see strong demand for affordable homes targeting the first-time buyer, particularly in the DFW market, where Trophy is now the third largest builder by volume.

James Brickman: Our average selling community count grew 6% year over year to 108, and our monthly sales pace increased 10% year over year to 3.3. The growth in orders was driven primarily by Trophy Signature Homes as we continued to see strong demand for affordable homes targeting the first-time buyer, particularly in the DFW market, where Trophy is now the third-largest builder by volume. Sales for each month for the quarter were higher than in the same month in 2025. With this sales velocity, we were still able to attain homebuilding gross margins of 29.8%, the highest reported among our homebuilding peers. Net income attributed to Green Brick for Q2 was $74 million, or $1.70 per diluted share on total revenues of $494 million. We delivered 1,047 homes during the quarter, including our first deliveries in a Riviera Pines community in Houston.

Speaker #2: Sales for each month of the quarter were higher than in the same month in 2025. With this sales velocity, we were still able to attain home-building gross margins of 29.8%, the highest reported among our home-building peers.

Speaker #2: Net income attributed to Green Brick for the second quarter was $74 million, or $1.70 per diluted share, on total revenues of $494 million. We delivered 1,047 homes during the quarter, including our first deliveries in the Riviera Pines community in Houston.

Speaker #2: We believe our investment-grade balance sheet and low financial leverage provide us with the flexibility to navigate and take advantage of evolving market conditions, and seize on opportunities when prudent.

James Brickman: We believe our investment-grade balance sheet and low financial leverage provide us with the flexibility to navigate and take advantage of evolving market conditions and seize on opportunities when prudent. At the end of Q2, our homebuilding debt to total capital ratio was 11.2%, and our net homebuilding debt to total capital ratio was 6.1%, among the lowest of our homebuilding peers. We grew book value 16% year over year to $44.82. We remain highly disciplined in how we control and purchase land, which remains the primary driver of our industry-leading margins. One of the primary differentiators from many of our peers is that we do not engage in high-interest cost land banking relationships that can distort a builder's economic leverage and risk, and that can give a land banker indirect control over a builder's lot purchase timing.

Speaker #2: At the end of Q2, our homebuilding debt-to-total-capital ratio was 11.2%, and our net homebuilding debt-to-total-capital ratio was 6.1%, among the lowest of our homebuilding peers.

Speaker #2: We grew book value 16% year over year, to $44.82. We remained highly disciplined in how we control and purchase land, which remains the primary driver of our industry-leading margins.

Speaker #2: One of the primary differentiators for many of our peers is that we do not engage in high-interest cost land banking relationships that can distort a builder's economic leverage and risk, and that can give a land banker indirect control over a builder's lot purchase timing.

Speaker #2: At the end of the second quarter, 76% of our approximately 52,000 lots are owned, recurrently have 3,300 lots owned or under contract, and 4 joint ventures with other home builders, or landowners.

James Brickman: At the end of Q2, 76% of our approximately 52,000 lots are owned. We currently have 3,300 lots owned or under contract in four joint ventures with other home builders or landowners. These joint ventures account for 6% of our total lots owned and under contract and only 3% of our total assets. These joint venture arrangements are evaluated with the same underwriting criteria as our other land investments to ensure that we remain focused on attractive risk-adjusted returns and improving shareholder value. We have always believed that a self-development focused strategy provides us with better control in determining the pace of land and lot deliveries and higher margins and returns. We generated operating cash flows of $117 million over the last 12 months while continuing to invest significantly in land acquisition and development to position us for future growth.

Speaker #2: These joint ventures account for 6% of our total lots owned, and under contract, and only 3% of our total assets. These joint venture arrangements are evaluated with the same underwriting criteria as our other land investments to ensure that we remain focused on attractive, risk-adjusted returns and approving shareholder value.

Speaker #2: We have always believed that a self-development-focused strategy provides us with better control in determining the pace of land and lot deliveries, as well as higher margins and returns.

Speaker #2: We generated operating cash flows of $117 million over the last 12 months, while continuing to invest significantly in land acquisition and development to position us for future growth.

Speaker #2: We also returned $39 million to shareholders through stock repurchases. Even with our land-heavy balance sheet and macroeconomic headwinds, our return on assets for the second quarter was 11.8%, while the median return on assets of our home-building peers was 4.7%.

James Brickman: We also returned $39 million to shareholders through stock repurchases. Even with our land-heavy balance sheet and macroeconomic headwinds, our return on assets for Q2 was 11.8%, while the median return on assets of our home building peers was 4.7%. Our return on equity for the quarter was 16%, as our returns remain among the very best of our public home building peers. Our disciplined return focus approach and our experienced team of operators position us well for value creation. Green Brick Mortgage continues to grow rapidly with funded loans up 257% year-over-year and 43% sequentially. 65% of Green Brick Mortgage loans in Q2 were to first-time homebuyers. Q2 revenues in our financial services segment increased to $12 million compared to $6.3 million in Q2 of 2025.

Speaker #2: Our return on equity for the quarter was 16%, as our returns remain among the very best of our public home-building peers. Our disciplined, return-focused approach and our experienced team of operators position us well for value creation.

Speaker #2: Green Brick Mortgage continues to grow rapidly with funded loans up $257% year over year, and 43% sequentially. 65% of Green Brick Mortgage loans in the second quarter were to first-time home buyers.

Speaker #2: Second quarter revenues in our financial services segment increased to $12 million, compared to $6.3 million in the second quarter of 2025. And free-tax income from our financial services segment increased year over year by 91% in Q2 to $5.7 million.

James Brickman: Pre-tax income from our financial services segment increased year-over-year by 91% in Q2 to $5.7 million. One of our most important growth drivers remains Trophy Signature Homes. Trophy continues to strengthen its position in DFW while building momentum in Houston and Austin. Trophy's ability to deliver affordably priced homes, supported by an efficient land and construction platform, provides us with a runway for growth over the next few years. This expansion allows us to continue serving the critical first-time and first move-up buyer segments while further diversifying our revenue base and strengthening our presence in key Texas markets. Our strategy is built around disciplined capital allocation, local market expertise, operational excellence, and a long-term focus on returns. Our builders manage each community with discipline and diligence to ensure pace, price, and inventory levels meet our buyers' demand and maximize returns for our shareholders.

Speaker #2: One of our most important growth drivers remains Trophy Signature Homes. Trophy continues to strengthen its position in DFW, while building momentum in Houston and Austin.

Speaker #2: Trophy’s ability to deliver affordably priced homes, supported by an efficient land and construction platform, provides us with a runway for growth over the next few years.

Speaker #2: This expansion allows us to continue serving the critical first-time and first move-up buyer segments, while further diversifying our revenue base and strengthening our presence in key Texas markets.

Speaker #2: Our strategy is built around disciplined capital allocation, local market expertise, operational excellence, and a long-term focus on returns. Our builders manage each community with discipline and diligence to ensure pace, price, and inventory levels meet our buyers' demand and maximize returns for our shareholders.

Speaker #2: Although current market conditions remain challenging, those principles continue to guide our decision-making, generating sustainable returns and positioning us to capitalize on opportunities as they emerge.

James Brickman: Although current market conditions remain challenging, those principles continue to guide our decision-making, generating sustainable returns, and position us to capitalize on opportunities as they emerge. While near-term housing conditions present headwinds for the entire industry, we are encouraged by the resilience of demand in many of our communities and by the strength of our operating platform and land and lot positions in high-demand markets. Our focus remains unchanged: growing book value, generating attractive returns, and prudently investing capital where we see the greatest long-term opportunity. With this approach and our underlying financial strength, we also believe we remain able to pivot and adjust to market conditions as they evolve. With that, I now turn it over to Jeff to provide more detail regarding our financial results.

Speaker #2: While near-term housing conditions present headwinds for the entire industry, we are encouraged by the resilience of demand in many of our communities and by the strength of our operating platform and land and lot positions in high-demand markets.

Speaker #2: Our focus remains unchanged. Growing book value, generating attractive returns, and prudently investing capital where we see the greatest long-term opportunity. With this approach, and our underlying financial strength, we also believe we remain able to pivot and adjust to market conditions as they evolve.

Speaker #2: With that, I now turn it over to Jeff to provide more detail regarding our financial results.

Speaker #1: Thank you, Jim. Net income attributable to Green Brick for the second quarter decreased 9.5% year over year to $74 million, and diluted earnings per share decreased 8% year over year to $1.70 per share.

Jeffery Cox: Thank you, Jim. Net income attributable to Green Brick for Q2 decreased 9.5% year-over-year to $74 million, and diluted earnings per share decreased 8% year-over-year to $1.70 per share. We delivered 1,047 homes during the quarter and generated home closings revenue of $472 million, resulting in an average sales price of $450,000. While deliveries were essentially unchanged from the same period last year, home closings revenue declined 11.4% due primarily to a higher mix of deliveries from our Trophy Signature Homes brand. Notably, 55% of our Q2 closings were sold during the quarter, driven largely by the growth of Trophy. Discounts and incentives as a percentage of home closings revenue increased year-over-year by 180 basis points to 8.8% from 7%. As a result, our home building gross margins decreased 150 basis points year-over-year, but increased 90 basis points sequentially to 29.8%.

Jeff Cox: Thank you, Jim. Net income attributable to Green Brick for Q2 decreased 9.5% year-over-year to $74 million, and diluted earnings per share decreased 8% year-over-year to $1.70 per share. We delivered 1,047 homes during the quarter and generated home closings revenue of $472 million, resulting in an average sales price of $450,000. While deliveries were essentially unchanged from the same period last year, home closings revenue declined 11.4% due primarily to a higher mix of deliveries from our Trophy Signature Homes brand. Notably, 55% of our Q2 closings were sold during the quarter, driven largely by the growth of Trophy. Discounts and incentives as a percentage of home closings revenue increased year-over-year by 180 basis points to 8.8% from 7%. As a result, our home building gross margins decreased 150 basis points year-over-year, but increased 90 basis points sequentially to 29.8%.

Speaker #1: We delivered 1,047 homes during the quarter and generated home closings revenue of $472 million, resulting in an average sales price of $450,000. While deliveries were essentially unchanged from the same period last year, home closings revenue declined 11.4%, due primarily to a higher mix of deliveries from our Trophy Signature Homes brand.

Speaker #1: Notably, 55% of our Q2 closings were sold during the quarter, driven largely by the growth of trophy. Discounts and incentives, as a percentage of home closings revenue, increased year over year by 180 basis points to 8.8% from 7%.

Speaker #1: As a result, our home-building gross margins decreased 150 basis points year over year but increased 90 basis points sequentially to 29.8%. During the quarter, we reduced our warranty reserve by $2.7 million, which improved gross margins by 60 basis points for the quarter. Our actual warranty spend was less than expected, due to a continued focus on improving construction quality and maintaining a stable base of quality trade partners.

Jeffery Cox: During the quarter, we reduced our warranty reserve by $2.7 million, which improved gross margins by 60 basis points for the quarter. Our actual warranty spend was less than expected due to a continued focus on improving construction quality and maintaining a stable base of quality trade partners. Net new home orders during the quarter were 1,079, up 19% year-over-year. Order growth was driven by both higher community count and improved sales pace. Average active selling communities of 108 were up 6% year-over-year, and our sales pace for Q2 increased by 10% to 3.3 per month compared to 3 per month in the previous year. Backlog at the end of the quarter was 681 units, with backlog revenue of $387 million, a 24% decrease year-over-year.

Jeff Cox: During the quarter, we reduced our warranty reserve by $2.7 million, which improved gross margins by 60 basis points for the quarter. Our actual warranty spend was less than expected due to a continued focus on improving construction quality and maintaining a stable base of quality trade partners. Net new home orders during the quarter were 1,079, up 19% year-over-year. Order growth was driven by both higher community count and improved sales pace. Average active selling communities of 108 were up 6% year-over-year, and our sales pace for Q2 increased by 10% to 3.3 per month compared to 3 per month in the previous year. Backlog at the end of the quarter was 681 units, with backlog revenue of $387 million, a 24% decrease year-over-year.

Speaker #1: Net new home orders during the quarter were 1,079, up 19% year over year. Order growth was driven by both higher community count and improved sales pace.

Speaker #1: Average active selling communities of 108 were up 6% year over year, and our sales pace for the second quarter increased by 10% to 3.3 per month, compared to 3.0 per month in the previous year.

Speaker #1: Backlog at the end of the quarter was $681 units, with backlog revenue of $387 million, a 24% decrease year over year. Trophy signature homes continued to gain backlog share in the quarter, representing 44% of our backlog units compared to 26% in Q2 of 2025.

Jeffery Cox: Trophy Signature Homes continued to gain backlog share in the quarter, representing 44% of our backlog units compared to 26% in Q2 of 2025. As a result of the increased mix of trophy orders in our backlog, along with continued elevated discounts and incentives across all of our brands, the average sales price of our backlog decreased 18% to $569,000. Due to strong sales in the quarter, we started 1,133 new homes, an increase of 19% year-over-year and 16% sequentially. Units under construction at the end of the quarter were 2,205, flat year-over-year and up 4.1% sequentially as we increased starts to align with our sales pace. We ended the quarter with 410 completed specs, an average of 3.8 per community.

Jeff Cox: Trophy Signature Homes continued to gain backlog share in the quarter, representing 44% of our backlog units compared to 26% in Q2 of 2025. As a result of the increased mix of trophy orders in our backlog, along with continued elevated discounts and incentives across all of our brands, the average sales price of our backlog decreased 18% to $569,000. Due to strong sales in the quarter, we started 1,133 new homes, an increase of 19% year-over-year and 16% sequentially. Units under construction at the end of the quarter were 2,205, flat year-over-year and up 4.1% sequentially as we increased starts to align with our sales pace. We ended the quarter with 410 completed specs, an average of 3.8 per community.

Speaker #1: As a result of the increased mix of trophy orders in our backlog, along with continued elevated discounts and incentives across all of our brands, the average sales price of our backlog decreased 18% to $569,000.

Speaker #1: Due to strong sales in the quarter, we started 1,133 new homes, an increase of 19% year over year, and 16% sequentially, units under construction at the end of the quarter were 2,205, flat year over year, and up 4.1% sequentially as we increased starts to align with our sales pace.

Speaker #1: We ended the quarter with 410 completed specs and average of 3.8 per community, we will continue to monitor market conditions and seasonal trends and align our starts with our sales pace to appropriately manage our investment and spec inventory.

Jeffery Cox: We will continue to monitor market conditions and seasonal trends and align our starts with our sales pace to appropriately manage our investment in spec inventory. Our goal is to maintain approximately one to two months of supply of completed specs in our communities. Our SGA expenses declined 5% year-over-year during the quarter. However, as a percentage of residential units revenue, SGA increased 60 basis points to 11.3%, primarily due to lower home closings revenue. We repurchased approximately 143,000 shares of our common stock for $9.4 million during the quarter. With $151 million remaining in authorized share repurchases, we will continue to repurchase shares opportunistically as part of our disciplined capital allocation strategy and efforts to return value to our shareholders. At 30 June, we had total liquidity of $462 million, including cash of $132 million, with no outstanding borrowings on our $330 million unsecured revolving credit facility.

Jeff Cox: We will continue to monitor market conditions and seasonal trends and align our starts with our sales pace to appropriately manage our investment in spec inventory. Our goal is to maintain approximately one to two months of supply of completed specs in our communities. Our SGA expenses declined 5% year-over-year during the quarter. However, as a percentage of residential units revenue, SGA increased 60 basis points to 11.3%, primarily due to lower home closings revenue. We repurchased approximately 143,000 shares of our common stock for $9.4 million during the quarter. With $151 million remaining in authorized share repurchases, we will continue to repurchase shares opportunistically as part of our disciplined capital allocation strategy and efforts to return value to our shareholders. At 30 June, we had total liquidity of $462 million, including cash of $132 million, with no outstanding borrowings on our $330 million unsecured revolving credit facility.

Speaker #1: Our goal is to maintain approximately one to two months of supply of completed specs in our communities. Our SG&A expenses declined 5% year over year during the quarter. However, as a percentage of residential units revenue, SG&A increased 60 basis points to 11.3%, primarily due to lower home closings revenue.

Speaker #1: We repurchased approximately 143,000 shares of our common stock for $9.4 million during the quarter. With $151 million remaining in authorized share repurchases, we will continue to repurchase shares opportunistically as part of our disciplined capital allocation strategy and efforts to return value to our shareholders.

Speaker #1: At June 30th, we had total liquidity of $462 million, including cash of $132 million, with no outstanding borrowings on our $330 million unsecured revolving credit facility.

Speaker #1: Total debt, excluding our warehouse facilities, was $252 million, with $75 million of senior notes maturing in the next 12 months. Our low homebuilding debt-to-capital of 11.2% and net homebuilding debt-to-capital of 6.1% remain among the lowest of public home builders.

Jeffery Cox: Total debt, excluding our warehouse facilities, was $252 million, with $75 million of senior notes maturing in the next 12 months. Our low homebuilding debt to capital of 11.2% and net homebuilding debt to capital of 6.1% remain among the lowest of public homebuilders. We believe we are well-positioned to weather the challenging market conditions and ongoing volatility to opportunistically deploy capital to maximize shareholder returns and to accelerate growth as the housing market improves. With that, I will now turn it over to Jed.

Jeff Cox: Total debt, excluding our warehouse facilities, was $252 million, with $75 million of senior notes maturing in the next 12 months. Our low homebuilding debt to capital of 11.2% and net homebuilding debt to capital of 6.1% remain among the lowest of public homebuilders. We believe we are well-positioned to weather the challenging market conditions and ongoing volatility to opportunistically deploy capital to maximize shareholder returns and to accelerate growth as the housing market improves. With that, I will now turn it over to Jed.

Speaker #1: We believe we are well positioned to weather the challenging market conditions and ongoing volatility, to opportunistically deploy capital to maximize shareholder returns, and to accelerate growth as the housing market improves.

Speaker #1: With that, I will now turn it over to Jed.

Speaker #2: Thank you, Jeff. Before discussing our operational results, I want to take a moment to express my sincere appreciation to our board for the confidence reflected in my upcoming appointment as co-CEO. I would also specifically like to thank Jim for the opportunity to join Green Brick and for the mentorship, partnership, and guidance provided by him over the past several years.

Jed Dolson: Thank you, Jeff. Before discussing our operational results, I want to take a moment to express my sincere appreciation to our board for the confidence reflected in my upcoming appointment as co-CEO. I would also specifically like to thank Jim for the opportunity to join Green Brick and for the mentorship, partnership, and guidance provided by him over the past several years. Green Brick's success is built on the strength and commitment of an exceptional team and a disciplined long-term vision. I am honored to work alongside Jim and the entire Green Brick team as we continue to build on this strong foundation and create lasting value for our shareholders, homebuyers, and employees in the years to come.

Speaker #2: Green Brick's success is built on the strength and commitment of an exceptional team and a disciplined, long-term vision. I am honored to work alongside Jim and the entire Green Brick team as we continue to build on this strong foundation and create lasting value for our shareholders, home buyers, and employees in the years to come.

Speaker #2: We continue to see a challenging sales environment within all our consumer segments, but we are encouraged by the positive response we have seen from first-time homebuyers, who are most impacted by the affordability challenges.

Jed Dolson: We continue to see a challenging sales environment within all our consumer segments, but we are encouraged by the positive response we have seen from first-time homebuyers who are most impacted by the affordability challenges. Our team responded well to these conditions, as evidenced by our strong Q2 sales volume and low cancellation rate of 7.8% during the quarter, which continued to be one of the lowest cancellation rates among our public homebuilding peers. We believe it demonstrates the quality of our product, desirability of our communities, and creditworthiness of our buyers. Rate buydowns remained a necessary tool to drive traffic and sales, especially with the first-time homebuyers and quick move-in homes. We helped address the affordability challenges faced by many consumers by providing our homebuyers with price concessions, interest rate buydowns, and closing cost incentives.

Speaker #2: Our team responded well to these conditions, as evidenced by our strong second quarter sales volume and low cancellation rate of 7.8% during the quarter, which continued to be one of the lowest cancellation rates among our public home-building peers.

Speaker #2: We believe it demonstrates the quality of our product, desirability of our communities, and creditworthiness of our buyers. Rate buydowns remained a necessary tool to drive traffic and sales, especially with first-time homebuyers and quick move-in homes.

Speaker #2: We helped address the affordability challenges faced by many consumers by providing our homebuyers with price concessions, interest rate buydowns, and closing cost incentives.

Jed Dolson: Incentives were 9.1% on net new orders during the quarter, an increase of 120 basis points year over year, although a decrease of 20 basis points from the prior quarter. We remained focused on maximizing community-level returns by balancing pace, pricing, product mix, and inventory levels. The strength of our margins provides flexibility, but pricing decisions remain grounded in expected returns. We are also excited about the progress of our wholly owned mortgage company. During the Q2, Green Brick Mortgage closed and funded 521 loans. The average FICO score for the quarter was 736, and the average debt-to-income ratio was 40%, consistent with the previous quarter. Our capture rate was 66% for the quarter. We're focused on increasing our capture rate in our Texas communities, and we continue to expect to roll out Green Brick Mortgage to The Providence Group, our Atlanta builder, in the latter part of 2026.

Speaker #2: Incentives were 9.1% on net new orders during the quarter, an increase of 120 basis points year over year, although a decrease of 20 basis points from the prior quarter.

Speaker #2: We remained focused on maximizing community-level returns by balancing pace, pricing, product mix, and inventory levels. The strength of our margins provides flexibility, but pricing decisions remain grounded in expected returns.

Speaker #2: We are also excited about the progress of our wholly owned mortgage company. During the second quarter, Green Brick Mortgage closed and funded 521 loans. The average FICO score for the quarter was 736, and the average debt-to-income ratio was 40%, consistent with the previous quarter.

Speaker #2: Our capture rate was 66% for the quarter. We're focused on increasing our capture rate in our Texas communities, and we continue to expect to roll out Green Brick Mortgage to The Providence Group, our Atlanta builder, in the latter part of 2026.

Speaker #2: Our mortgage team continues to focus on maturing the platform with new technology initiatives to improve efficiency and enhance customer service. As Green Brick Mortgage continues to expand its service, we anticipate that by year-end its capture rate will exceed 70%, which should generate additional revenue as we increase the number of loans funded through our mortgage company.

Jed Dolson: Our mortgage team continues to focus on maturing the platform with new technology initiatives to improve efficiency and enhance customer service. As Green Brick Mortgage continues to expand its service, we anticipate by year-end its capture rate will exceed 70%, which should generate additional revenue as we increase the number of loans funded through our mortgage company. We continue to reduce our average construction cycle times, which are down 29 days from a year ago to 124 days. Trophy cycle time in Dallas-Fort Worth was 84 days compared to 103 days a year ago, the lowest in their history, and a testament to the efficiency and quality of our construction teams and trade partner base. While we continue to monitor potential impacts from recently announced Canadian tariffs and other trade actions, we have not experienced a material impact on our construction costs to date.

Speaker #2: We continue to reduce our average construction cycle times, which are down 29 days from a year ago to 124 days. Trophy cycle time in Dallas-Fort Worth was 84 days, compared to 103 days a year ago—the lowest in their history, and a testament to the efficiency and quality of our construction teams and trade partner base.

Speaker #2: While we continue to monitor potential impacts from recently announced Canadian tariffs and other trade actions, we have not experienced a material impact on our construction costs to date.

Speaker #2: We continue to invest in our land book to position ourselves for future growth. Year to date, our investments in land, lots, and development total $363 million, including $197 million for land development, excluding reimbursements, and $166 million for land and lot acquisition.

Jed Dolson: We continue to invest our land book to position ourselves for future growth. Year to date, our investments in land, lots, and development total $363 million, including $197 million for land development, excluding reimbursements, and $166 million for land and lot acquisition. For 2026, we expect land and lot acquisitions of approximately $400 million and land development outflows of approximately $450 million excluding reimbursements. We believe our superior land position provides the competitive advantage that will be the foundation for strong growth in future years. Approximately 40,000 more lots are owned, with approximately 12,000 under contract. Approximately 80% of our total lots owned and under contract are allocated to Trophy Signature Homes. Excluding approximately 30,000 lots expected in future phases within our long-term master plan communities, our lot supply is approximately five years.

Speaker #2: For 2026, we expect land and lot acquisitions of approximately $400 million, and land development outflows of approximately $450 million, excluding reimbursements. We believe our superior land position provides a competitive advantage that will be the foundation for strong growth in future years.

Speaker #2: Approximately 40,000 more lots are owned, with approximately 12,000 under contract. Approximately 80% of our total lots owned and under contract are allocated to Trophy Signature Homes, excluding approximately 30,000 lots expected in future phases within our long-term master-planned communities.

Speaker #2: Our lot supply is approximately five years. With approximately 52,000 lots owned and under contract, we remain patient and selective with future land opportunities without compromising the ability to grow our business in the near and intermediate term.

Jed Dolson: With approximately 52,000 lots owned and under contract, we remain patient and selective with future land opportunities without compromising the ability to grow our business in the near and intermediate term. With that, I will turn it over to Jim for closing remarks.

Speaker #2: With that, I will turn it over to Jim for closing remarks.

Speaker #3: Thank you, Jed. In closing, we remain confident in our long-term outlook and our ability to deliver excellent operational and financial results. Our land strategy, diversified product portfolio, and strong balance sheet continue to differentiate Green Brick from our peers and support attractive returns for our shareholders over the longer term.

James Brickman: Thank you, Jed. In closing, we remain confident in our long-term outlook and our ability to deliver excellent operational and financial results. Our land strategy, diversified product portfolio, and strong balance sheet continue to differentiate Green Brick from our peers and support attractive returns for our shareholders over the longer term. Like the rest of our industry, we continue to navigate a challenging environment, but I am hopeful that the market is starting to find more stable footing and normalization. I believe that 2026 will be a year that we lay a foundation so we can execute our strategy and accelerate our growth in the coming years. With all of these challenges, I would like to recognize our team for their disciplined execution and resilience, successfully navigating this market. Our results would not be possible without their focus, leadership, and commitment.

Speaker #3: Like the rest of our industry, we continue to navigate a challenging environment. But I am hopeful that the market is starting to find more stable footing and normalization.

Speaker #3: I believe 2026 will be a year that we lay a foundation so we can execute our strategy and accelerate our growth in the coming years.

Speaker #3: With all of these challenges, I would like to recognize our team for their disciplined execution and resilience in successfully navigating this market. Our results would not be possible without their focus, leadership, and commitment.

Speaker #3: This concludes our prepared remarks and I'll now open the line for questions.

James Brickman: This concludes our prepared remarks, and I will now open the line for questions.

Operator: Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and enter the queue. If you would like to withdraw your question, simply press star one again. For today's event, we kindly request everyone to please limit yourself to one question and one follow-up only. If you find yourself having additional questions, you may rejoin the queue. Thank you. Your first question comes from the line of Rohit Seth with B. Riley Securities. Your line is now open.

Speaker #1: Thank you. We will now begin the question-and-answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and enter the queue.

Speaker #1: If you would like to withdraw your question, simply press star one again. For today's event, we kindly request everyone to please limit yourself to one question and one follow-up only.

Speaker #1: If you find yourself having additional questions, you may rejoin the queue. Thank you. And your first question comes from the line of Rohit Seth with B. Riley Securities. Your line is now open.

Rohit Seth: Hey, thanks for taking my questions. Hey, Jeff. In prior quarters you broke out the ASP and margin move between the Normandy Homes and Trophy. Gross margin was up about 90 basis points sequentially. If you can give us the puts and takes on that improvement.

Speaker #4: Hey, thanks for taking my questions. Hey Jeff, in prior quarters you broke out the ASTMR, you moved between the 8 by Downs and Trophy.

Speaker #4: Gross margin was up about 90 basis points sequentially. If you can, please give us the puts and takes on that improvement.

Speaker #5: Hey Seth, this is Jeff. As far as average sales pace goes between the brands, Trophy did a tremendous job of executing this last quarter.

Jeffery Cox: Hey, Seth, this is Jeff. As far as average sales pace goes between the brands, Trophy did a tremendous job of executing this last quarter. Our average, as you know, was 3.3 during the quarter sales per month, Trophy was about double that. They were just over 6, in particular in the DFW market. We are still getting some traction in Houston, having had our first deliveries there this quarter, Austin is really starting to find its traction as well. We are really encouraged by what we are seeing with Trophy there. As far as the margin goes, I would say Trophy is right in line with the company average. They pretty much kind of define our average at this point. Collectively, across the three markets where we offer Trophy, they made up 60% of our deliveries. They are really just kind of the driving force behind margins.

Jeff Cox: Hey, Seth, this is Jeff. As far as average sales pace goes between the brands, Trophy did a tremendous job of executing this last quarter. Our average, as you know, was 3.3 during the quarter sales per month, Trophy was about double that. They were just over 6, in particular in the DFW market. We are still getting some traction in Houston, having had our first deliveries there this quarter, Austin is really starting to find its traction as well. We are really encouraged by what we are seeing with Trophy there. As far as the margin goes, I would say Trophy is right in line with the company average. They pretty much kind of define our average at this point. Collectively, across the three markets where we offer Trophy, they made up 60% of our deliveries. They are really just kind of the driving force behind margins.

Speaker #5: Our average was 3.3 during the quarter. Sales per month in Trophy were about double that, so they were just over six. In particular, in the DFW market, we're still getting some traction. In Houston, we had our first deliveries there this quarter.

Speaker #5: And Austin is really starting to find its traction as well, so we're really encouraged by what we're seeing with Trophy there. As far as the margin goes, I would say Trophy is right in line with the company average.

Speaker #5: They've pretty much kind of defined our average at this point. Collectively, across the three markets where we offer trophy, they made up 60% of our deliveries.

Speaker #5: And so, they're really just kind of the driving force behind margins.

Rohit Seth: Okay. On the capture rate, you're rolling out the financial services. It looks like in the Q2 it says capture rate is about 66%, and you want to get to 70% to 80%. Is that all coming through The Providence Group, or is Texas fully penetrated just in the corridor there?

Speaker #4: Good. And then on the capture rate, you're rolling out the financial services. It looks like in the queue it says the capture rate is about 66%.

Speaker #4: You want to get to 70 to 80. Is that all coming through the Providence Group, or is Texas fully penetrated? Just let me clarify there.

Speaker #5: Yeah, we were still in the process of rolling the mortgage company out to the rest of our Texas markets. Our plan is to still enter Atlanta here by the end of the year.

Jeffery Cox: Yeah. We were still in the process of rolling the mortgage company out to the rest of our Texas markets. Our plan is to still enter Atlanta here by the end of the year, and we're tracking with that. We're encouraged by the capture rate that we've got. We do think that there's some opportunity to improve it, especially as we enter into some of these newer markets. The thing that's really helped us out in particular is really just the builder forward commitments that we've been able to offer there to help buy the rates down, especially with Trophy and our first-time homebuyer product. I think that'll continue to hold here as long as rates continue to be elevated.

Jeff Cox: Yeah. We were still in the process of rolling the mortgage company out to the rest of our Texas markets. Our plan is to still enter Atlanta here by the end of the year, and we're tracking with that. We're encouraged by the capture rate that we've got. We do think that there's some opportunity to improve it, especially as we enter into some of these newer markets. The thing that's really helped us out in particular is really just the builder forward commitments that we've been able to offer there to help buy the rates down, especially with Trophy and our first-time homebuyer product. I think that'll continue to hold here as long as rates continue to be elevated.

Speaker #5: And we're tracking with that, but we're encouraged by the capture rate that we've got. We do think that there's some opportunity to improve it.

Speaker #5: Especially as we enter into some of these newer markets, the thing that's really helped us out in particular is just the builder forward commitments that we've been able to offer there to help buy the rates down.

Speaker #5: Especially with Trophy in our first-time homebuyer product. And I think that will continue to hold here as long as rates continue to be elevated.

Speaker #4: Okay. And if I could squeeze in one last question—rates have moved up here in July. Can you provide us some color on how traffic has responded?

Rohit Seth: Okay. If I could squeeze in a last one. Rates have moved up here in July. Can you provide us some color on maybe how traffic has responded so far?

Speaker #4: So far.

Speaker #3: Yeah, I can take this. This is Jim Brickman. It's spotty, and it's really surprising. I'll be candid with you: Florida, our Vero Beach market, is usually in the doldrums this time of year.

James Brickman: Yeah, I can take this. This is Jim Brickman. It's spotty, and it's really surprising, to be candid with you. Florida, our Vero Beach market, is usually in the doldrums this time of year, and we really had a great month of sales in July there. On the other side of the coin, Atlanta, which has usually been pretty steady, month-to-month, quarter-to-quarter, relative to our other markets, has been very slow in July. I think the best word is spotty, and we're watching it closely. Overall, we're still seeing that, particularly in the Trophy brand, that there is tremendous buyer demand as long as we can provide a favorable pricing and product.

Speaker #3: And we really had a great month of sales in July there. On the other side of the coin, Atlanta, which has usually been pretty steady month to month or quarter to quarter relative to our other markets, has been very slow in July.

Speaker #3: And so, I think the best word is "spotty." We're watching it closely. But overall, we're still seeing that, particularly in the trophy brand, there is tremendous buyer demand as long as we can provide favorable pricing and product.

Speaker #4: Thank you.

David Brown: Thank you.

Speaker #1: Your next question comes from the line of Ryan Gilbert with BTIG, your line is now open.

Operator: Your next question comes from the line of Ryan Gilbert with BTIG. Your line is now open.

Speaker #6: Hi, thanks, guys. And Jed, congrats on the promotion—very well deserved. First question on homes under construction: it looks like it was flat year over year despite a pretty nice pickup in absorption pace in the quarter.

Ryan Gilbert: Hi. Thanks, guys. Jed, congrats on the promotion. Very well-deserved. First question's on homes under construction. It looked like it was flat year-over-year, despite a pretty nice pickup in absorption pace in the quarter. I'm wondering if you guys could just talk about what you would need to see in the market to move homes under construction higher, accelerate starts pace even more than what you saw in the quarter.

Speaker #6: So I'm wondering if you guys could just talk about what you would need to see in the market to move homes under construction higher accelerate starts pace even more than what you saw in the quarter.

Speaker #3: Yeah, this is Jed, right? Jeff mentioned—and I believe I mentioned as well in my comments—that cycle times have come down. So we feel like we're keeping, it's not taking as long to build these houses.

Jed Dolson: Yeah, this is Jed. Ryan. Jeff mentioned, I believe I mentioned as well in my comments, that cycle times have come down, we feel like it's not taking as long to build these houses, we're keeping the inventory levels, especially the finished inventory levels, where we want them.

Speaker #3: So, we’re keeping the inventory levels—especially the finished inventory levels—right where we want them.

Speaker #6: Okay, got it. And then, second question on gross margin. It was up 80 basis points sequentially, but it sounds like your incentives were down 130 basis points sequentially, and maybe there was some warranty benefit.

Ryan Gilbert: Okay. Got it. Then second question on gross margin, up 80 basis points sequentially, it sounds like your incentives were down 130 basis points sequentially, and maybe there was some warranty benefit in the quarter as well. I'm hoping you could talk about some of the offsets that led to the 80 basis point improvement in gross margin relative to what you were able to do in incentives. Was it direct costs, land cost inflation? Any color would be helpful.

Speaker #6: In the quarter as well. So I'm hoping you could talk about some of the offsets that led to the 80 basis point improvement in gross margin, relative to what you were able to do in incentives.

Speaker #6: Was it direct costs? Land cost inflation? Any color would be helpful.

Speaker #3: Yeah, I would say the biggest driver in gross everybody wants to look at gross margin like it's static. Well, if you overlay what the interest rate was that quarter or that month and then what the buy downs were, that that's not static.

Jed Dolson: Yeah, I would say the biggest driver in growth, everybody wants to look at gross margin like it's static. Well, if you overlay what the interest rate was that quarter or that month, then what the buydowns were, that's not static. On FHA, we began the year around 6%, and we're at 6.4-ish today. That's a much bigger buydown cost for us. As far as just general sticks and bricks, we continue to see sticks and bricks come down, labor come down in cost, with the exception of lumber, which has risen this year.

Speaker #3: And so, on FHA, we began the year around 6%, and we're at 6.4% today. So that's a much bigger buy down cost for us.

Speaker #3: As far as just general sticks and bricks, we continue to see sticks and bricks come down, labor come down in cost, with the exception of lumber, which has risen this year.

Ryan Gilbert: Okay.

Speaker #3: I'd like to address the lot cost, land cost question. One of the things that we're, I think, going to get tailwinds from—particularly relative to our peers—is that our land and lot cost is pretty flat.

James Brickman: I'd like to address on the lot cost, land cost question. One of the things that we're, I think, going to get tailwinds from, particularly relative to our peers, is that our land and lot cost is pretty flat, might go up slightly. There's two reasons for that. One is we don't land bank. We don't have a high cost of capital being capitalized or borrowed into our land and lot costs. The other is that in just the way that we underwrite our larger land development deals, we assume our undeveloped lot cost doesn't inflate, even on some communities that are eight and 10 year large communities. Hopefully, in the future, we could still see some margin lift because of our low amount of capitalized interest and our lot cost basis is very favorable going forward.

Speaker #3: It might go up slightly. There are two reasons for that. One is we don't land bank. We don't have a high cost of capital being capitalized or borrowed into our land and lot costs.

Speaker #3: And the other is that, just the way that we underwrite our larger land development deals, we assume our undeveloped lot cost doesn't inflate, even on some communities that are eight- and ten-year, large communities.

Speaker #3: So hopefully in the future, we could still see some margin lift because of our low amount of capitalized interest, and our lot cost basis is very favorable going forward.

Speaker #6: Got it. Makes sense. Thanks guys.

Ryan Gilbert: Got it. Makes sense. Thanks, guys.

Speaker #1: Your next question comes from the line of Alex Rigel with Texas Capital. Your line is now open.

Operator: Your next question comes from the line of Alex Rygiel with Texas Capital. Your line is now open.

Speaker #4: Thank you. Good morning, and nice quarter, gentlemen. Could you speak to average selling price? Is $450k sort of the new norm, or directionally should we expect that number to tick up or tick down?

Alex Rygiel: Thank you. Good morning, and nice quarter, gentlemen. Could you speak to average selling price? Is $450,000 sort of the new norm, or directionally, should we expect that number to tick up or tick down?

James Brickman: Directionally, it's going to tick down. This is Jim. Again, Trophy is growing much faster than all of our other businesses. Pretty much our other businesses are not growing. They're flat, Trophy's growing quite rapidly. Trophy's average sales price in many of the new communities that we're opening is $325,000-ish. If you're adding a lot of $325,000 homes and you're at $450,000 now, that number's going to go down.

Speaker #3: Directionally, it’s going to kick down. This is Jim. Because, again, Trophy is growing much faster than all of our other businesses. Pretty much all of our other businesses are not growing.

Speaker #3: They're flat, and Trophy's growing quite rapidly. And Trophy's average sales price in many of the new communities that we're opening is about $325,000. So you're adding a lot of $325,000 homes, and you're at $450,000 now.

Speaker #3: That number is going to go

Speaker #5: And I'll just add on—this is Jeff. To Jim's point, as we continue to grow Trophy, especially in these newer markets like Austin and Houston, there is a bigger difference in average sales price in those markets as you compare it to DFW.

Jeffery Cox: I'll just add on. This is Jeff. To Jim's point, as we continue to grow Trophy, especially in these newer markets like Austin and Houston, there is a bigger difference in average sales price in those markets as you compare it to DFW. Mix will certainly be a large impact going forward.

Jeff Cox: I'll just add on. This is Jeff. To Jim's point, as we continue to grow Trophy, especially in these newer markets like Austin and Houston, there is a bigger difference in average sales price in those markets as you compare it to DFW. Mix will certainly be a large impact going forward.

Speaker #5: So mix will certainly be a large impact. Going forward.

Speaker #4: And then, any comments on community growth in the second half of the year?

Alex Rygiel: Any comments on community growth in the H2 of the year?

Speaker #5: Nothing specific, but we got it last time that we believe community count will continue to increase toward the end of this year, and we haven't had any reason to believe it will be any different at this point.

Jeffery Cox: Nothing specific, but as we guided last time that we believe community count will continue to increase towards the end of this year. We haven't had any reason to believe it will be any different at this point.

Jeff Cox: Nothing specific, but as we guided last time that we believe community count will continue to increase towards the end of this year. We haven't had any reason to believe it will be any different at this point.

Speaker #4: Thank you very much.

Alex Rygiel: Thank you very much.

Speaker #1: Your next question comes from the line of Jay McAnlis with Citizens Bank. Your line is now open.

Operator: Your next question comes from the line of Jay McAnally with Citizens Bank. Your line is now open.

Speaker #4: Hey, good morning, everyone. Jed, congrats from me as well. Several of your peers on their conference calls recently talked about underwriting for first move-up, maybe second move-up land, coming in more favorably than entry-level lots at this point.

Jay McAnally: Hey, good morning, everyone. Jed, congrats from me as well. Several of your peers on their conference calls have recently talked about underwriting for first move-up, maybe second move-up land coming in more favorably than entry-level lots at this point. Are you guys seeing the same thing for some of the new deals you're looking at? If not, maybe just talk about why entry-level land is still penciling well versus where it has historically.

Speaker #4: Are you guys seeing the same thing for some of the new deals you’re looking at? And if not, maybe just talk about why entry-level land is still penciling well versus where it has historically.

Speaker #3: Yeah, this is Jim. Really, it's a tale of two cities. I think you're seeing D-location land and C-location land actually depreciating. The A-location land is still in high demand because it produces higher margins.

James Brickman: Yeah, this is Jim. Really, it's a tale of two cities. I think you're seeing D location land and C location land actually depreciating. The A location land is still in high demand because it produces higher margins. It's more expensive. We don't see that stopping, really. We would rather pay up for an A location land than buy a C location land that we think we're getting a really good deal on. I think some of our competitors feel the same way, but I think our real strategic advantage versus some of our peers is that we have the ability to entitle, which takes a lot of work, and put larger, more complicated land deals together. These deals, it can be longer-life communities. Land bankers don't go after this asset class because they like 3-year deals. Really, that's kind of our sweet spot. They're complicated.

Speaker #3: It's more expensive, and we don't see that stopping, really. We would rather pay up for an A-location land than buy a C-location land that we think we're getting a really good deal on.

Speaker #3: I think some of our competitors feel the same way, but I think our real strategic advantage versus some of our peers is that we have the ability to entitle, which takes a lot of work, and put larger, more complicated land deals together.

Speaker #3: And these deals can be longer-life communities. Land bankers don't go after this asset class because they like three-year deals. And really, that's kind of our sweet spot.

Speaker #3: They're complicated. They have a lot of moving parts from entitlement to land development. The land planning requires a lot more work and upfront capital, and really those are the deals we're going to continue to pursue.

James Brickman: They have a lot of moving parts from entitlement to land development. The land planning requires a lot more work and up-front capital. Really, those are the deals we're going to continue to pursue. One of the things I find really curious as I listened to all of our peers call, with the exception of one nationally known, well-recognized premier higher-end builder, very few builders ever talk about creating communities that people want to live. Our focus is on creating affordable master planned communities where people want to live today and tomorrow. You just don't hear that very much. We are not hesitant at all to spending $8 million on upgraded amenity center, pools, landscaping in a community. Really, a lot of our peers are reluctant to do that because they can't amortize those front-end costs over a great number of lots.

Speaker #3: One of the things I find really curious is I listened to all of our peers call and what the exception of one national nationally known well recognized premier higher end builder.

Speaker #3: Very few builders ever talk about creating communities that people want to live in. And our focus is on creating affordable master-planned communities where people want to live today and tomorrow, and you just don't hear that very much.

Speaker #3: And we are not hesitant at all to spend $8 million on upgraded amenity centers, pools, landscaping in a community. Really, a lot of our peers are reluctant to do that because they can't amortize those front-end costs over a great number of lots.

Speaker #3: So we're going to continue to grow our affordable master-planned communities. And I think it's really going to help Jed, as my co-CEO, really grow the business.

James Brickman: We're going to continue to grow our affordable master planned communities, and I think it's really going to help Jed, as my co-CEO, really grow the business.

Speaker #4: Great. Thank you for that. The second question I had, you were talking about trophy and entry level demand being very strong, but with several of your peers trying to flex more into move up housing, and to be built, is there an opportunity for some of this land you already have either in-house or under contract for trophy to maybe pivot some of that to take advantage of what seems to be a little bit better demand in some markets for move up and to be built homes?

Jay McAnally: Great. Thank you for that. The second question I had, you were talking about Trophy and entry-level demand being very strong, but with several of your peers trying to flex more into move-up housing and to-be-builts, is there an opportunity for some of this land you already have, either in-house or under contract for Trophy to maybe pivot some of that to take advantage of what seems to be a little bit better demand in some markets for move-up and to-be-built homes?

Speaker #3: Yes, we are doing that. And with our larger communities, one of the advantages we have is that we can bifurcate the market. We're looking at a very large land deal right now that we've been working on for a very long time.

James Brickman: Yeah, we are doing that in our larger communities. One of the advantages we have is that we can bifurcate the market. We're looking at a very large land deal right now that we've been working on for a very long time, and Centre Living Homes may do 1 acre product. Southgate Homes may do $800,000 product. Trophy Signature Homes may do $400,000 product. We are going to address all these markets, and fortunately, we can do it with all of our existing brands that have really a good reputation in our markets.

Speaker #3: And Center Living Homes may do one-acre product. Southgate Homes may do $800,000 product. Trophy Signature Homes may do $400,000 product. So we are going to address all these markets, and fortunately, we can do it with all of our existing brands.

Speaker #3: They have a really good reputation in our markets.

Jay McAnally: Good. That's great. Then if I could just on Atlanta, and I think this is the second quarter in a row where you talked about Atlanta maybe being a little softer. Is that a function of H-1B buyers, or what's going on there, and what do you think? How do you get that turned around in Atlanta?

Speaker #4: Okay, that's great. And then, if I could just ask about Atlanta—this is the second quarter in a row where you've talked about Atlanta maybe being a little softer. Is that a function of H1B buyers, or what's going on there? And what do you think—how do you get that turned around in Atlanta?

Speaker #3: Yeah, I think this is Jed. I think it's twofold. I think there's definitely some cultural buyer headwinds there because of the visa issues. And then in Atlanta, we don't provide entry-level housing.

Jed Dolson: Yeah. This is Jed. I think it's twofold. I think there's definitely some cultural buyer headwinds there because of the visa issues. In Atlanta, we don't provide entry-level housing. Yeah, our ASP in Atlanta is in the right around $700,000. We're not luxury, but we're not entry level either. We're in that second-time move-up, that market has been tougher.

Speaker #3: So yeah, our ASP in Atlanta is in the right around $700,000. And so we're kind of we're not luxury, but we're not entry level either.

Speaker #3: We're in that second-time move-up market. And so, that market has been tougher.

Speaker #4: Right. And then I guess the last one I had: with rates moving up for most of July, have y'all been able to hold—I think you said the incentive rate was about nine and change on orders for this quarter?

Jay McAnally: Right. I guess the last one I had, with rates moving up for most of July, have you all been able to hold, I think you said the incentive rate was about nine and change on orders for this quarter. Is it still trending that way in July? If rates continue to move higher from there, do you think it's going to have to flex up?

Speaker #4: Is it still trending that way in July? And if rates continue to move higher from there, do you think it's going to have to flex up?

Jed Dolson: I'll answer it this way. Because rates go up, I don't think the buyer's going to say, Okay, I'll go up a quarter rate, quarter point on what I think my buydown rate should be. They're going to hold us, it's going to be the cost will be borne by us.

Speaker #3: I'll answer it this way. I don't think they buy because rates go up. I don't think the buyer is going to say, "Okay, I'll go up a quarter point on what I think my buy-down rate should be."

Speaker #3: They're going to hold us, and so it's going to be like the cost is borne by us.

Speaker #4: Okay, that sounds great. All right, thanks for taking my questions.

Jay McAnally: Okay. That sounds great. All right. Thanks for taking my questions.

Speaker #3: Thank you.

James Brickman: Thank you.

Speaker #1: Again, if you would like to ask a question, press star one on your telephone keypad. There are no further questions. I will now turn the conference back over to Jim Brickman, CEO, for closing remarks.

Operator: Again, if you would like to ask a question, press star one on your telephone keypad. There are no further questions. I will now turn the conference back over to James R. Brickman, CEO, for closing remarks.

James Brickman: Well, thank you for attending our call. If anybody wants additional information, our team's available to talk to you at any time. Even better, we hope you come to Dallas, Atlanta, or any of our markets and see what we're doing because I think you'll be able to tell the difference. Thank you.

Speaker #3: Oh, okay. Thank you for attending our call. If anybody wants additional information, our team is available to talk to you at any time. And even better, we hope you come to Dallas, Atlanta, or any of our markets and see what we're doing, because I think you'll be able to tell the difference.

Speaker #3: Thank you.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Q2 2026 Green Brick Partners Inc Earnings Call

Request DemoDemo

Green Brick Partners

Earnings