United Homes Group, Inc ( (UHG) ) has released its Q4 earnings. Here is a breakdown of the information United Homes Group, Inc presented to its investors.
United Homes Group, Inc. is a publicly traded residential builder based near Columbia, SC, focusing on the southeastern U.S. markets, primarily constructing single-family homes with a land-light operating strategy. In its latest earnings report, United Homes Group, Inc. announced a 15% increase in revenue for the fourth quarter of 2024, driven by a 7% rise in home closings and a 19% increase in net new orders compared to the previous year. The company also completed a refinancing of its Convertible Notes, expected to reduce annual interest expenses by $4 million and minimize future shareholder dilution.
Key financial metrics for the fiscal year 2024 include a 10% increase in revenue to $463.7 million, with home closings rising by 3% and net new orders by 8% year-over-year. The average sale price of production-built homes increased to approximately $329,000. Despite these positive trends, the gross profit percentage decreased due to higher sales incentives and amortization of purchase price accounting adjustments. The company also expanded its presence in the Myrtle Beach market through the acquisition of Creekside Custom Homes, LLC.
The company’s adjusted EBITDA for the fourth quarter was $7.7 million, down from $10.0 million in the previous year, reflecting challenges in the homebuilding industry, including increased mortgage buy-down costs. United Homes Group’s strategic initiatives launched in October 2024 aim to boost revenue and reduce costs, with expected impacts to be seen in the second quarter of 2025 and beyond.
Looking ahead, United Homes Group remains focused on leveraging its land-light operating strategy and product redesign initiatives to enhance profitability. The company is optimistic about its ability to navigate the competitive environment and capitalize on growth opportunities in high-demand markets throughout the southeastern United States.