Smith Douglas Homes Reports Strong 2024 Performance

Smith Douglas Homes Corp. Class A ( (SDHC) ) has released its Q4 earnings. Here is a breakdown of the information Smith Douglas Homes Corp. Class A presented to its investors.

Smith Douglas Homes Corp. is a homebuilding company focused on providing affordable housing solutions primarily for entry-level and empty-nest homebuyers across various metro areas in the United States. The company is recognized for its personalized and affordable-luxury home buying experience.

Smith Douglas Homes Corp. has reported a strong performance for the fourth quarter and full year of 2024, marking its first year as a public company. The company achieved record quarterly home closings and significant revenue growth, reflecting its successful expansion into new markets and increased community count.

In the fourth quarter of 2024, Smith Douglas Homes saw a 28% increase in home closings, reaching 836, and a 32% rise in home closing revenue to $287.5 million. However, the gross margin slightly decreased to 25.5% from 26.7%. For the full year, home closings rose by 25% to 2,867, and revenue increased by 28% to $975.5 million, though the gross margin fell to 26.2% from 28.3%. The company also reported a significant reduction in its debt-to-book capitalization, dropping to 0.8% from 26.6%, and expanded its active community count by 13%.

The company continues to focus on its land-light strategy, with a 52% increase in total controlled lots, primarily through option agreements. Management expressed optimism about the upcoming spring selling season, citing solid traffic levels and the company’s competitive pricing and customization options as key advantages in the current market environment.

Looking ahead, Smith Douglas Homes remains committed to expanding its operations and leveraging its strategic positioning to capitalize on market opportunities. The company is poised to navigate affordability challenges while maintaining its growth trajectory in the homebuilding sector.