Smith Douglas Homes Corp. Class A ( (SDHC) ) has released its Q3 earnings. Here is a breakdown of the information Smith Douglas Homes Corp. Class A presented to its investors.
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Smith Douglas Homes Corp. is a company based in Woodstock, Georgia, specializing in building affordable homes targeted primarily at entry-level and empty-nest homebuyers across various metro areas in the Southeastern and Southern United States. The company is recognized as a top 50 builder nationally.
In its third-quarter 2024 report, Smith Douglas Homes showcased a robust performance, with notable increases in home closings and revenue, alongside strategic geographic expansions. The company continues to focus on personalized buying experiences and efficient production cycles.
Key highlights from the report include a 39% increase in home closings to 812 units and a 41% rise in home closing revenue to $277.8 million. The company recorded a gross margin of 26.5% and pretax income of $39.6 million. Home orders experienced a 6% growth, and the active community count rose by 19% to 74. The total controlled lots increased significantly by 54%, reaching 17,878.
Strategically, Smith Douglas expanded its market presence into new regions such as Greenville, SC, and further developed infrastructure in Central Georgia and Chattanooga, TN. The company ended the quarter with a strong balance sheet, boasting $24 million in cash and zero borrowings under its credit facility.
Looking forward, Smith Douglas Homes’ management remains optimistic about continuing strong performance, driven by a growing demand for quality homes in their target markets and a solid financial position. With a commitment to strategic growth, the company is well-positioned to capitalize on future opportunities.
