United Homes Group, Inc ( (UHG) ) has released its Q3 earnings. Here is a breakdown of the information United Homes Group, Inc presented to its investors.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
United Homes Group, Inc., a publicly traded residential builder headquartered in Columbia, SC, specializes in the design, construction, and sale of single-family homes in high-growth southeastern U.S. markets. The company focuses on entry-level, first move-up, and second move-up homes, operating with a land-light strategy to mitigate risks associated with land acquisition.
In its latest earnings report for the third quarter of 2024, United Homes Group reported a revenue of $118.6 million, a 35% year-over-year increase, driven by a 30% increase in home closings and a 25% rise in net new orders. Despite this growth, the company recorded a net loss of $7.3 million for the quarter, primarily due to changes in the fair value of derivative liabilities.
Key financial metrics highlighted in the report include a slight increase in the average sale price of homes to $320,000, up from $316,000 in the same period last year. The company also reported a decrease in gross profit percentage to 18.9% from 19.8%, largely due to continued sales incentives. Liquidity remains strong with $89 million available, comprising cash and unused credit facility capacity.
Looking forward, United Homes Group anticipates continued growth, supported by operational initiatives and a robust pipeline of owned and controlled lots. The company remains committed to its strategy of targeting high-growth markets with favorable demographic trends, aiming to leverage its land-light model for expansion and increased market presence.
