Green Brick Partners reported lower third-quarter earnings despite modest year-over-year growth in home orders and deliveries. The homebuilder said buyers remained active in its Texas markets, but affordability pressures and a tougher economic backdrop led it to use incentives to support sales.
The company also retired debt, repurchased shares and declared a quarterly dividend on its preferred stock.
Key details
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Net income attributable to Green Brick was $59 million, or $1.35 per diluted share, compared with $78 million, or $1.77 per share, in the third quarter of 2025.
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Homebuilding activity increased modestly year over year. Green Brick recorded 926 net new home orders, up 3%, and delivered 978 homes, also up 3%. Home-closing revenue was $437 million.
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The company reported a 28.0% homebuilding gross margin. Incentives on new orders were 11%, while the cancellation rate was 8.2%. The sales pace eased slightly to 2.8 sales per community.
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The quarter-end backlog totaled 629 homes, valued at $379 million. Book value rose 14% year over year to $46.10 per share.
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Green Brick ended the quarter with $325 million of liquidity, including $100 million in cash. Homebuilding debt was 13.1% of total capital, or 9.6% on a net basis.
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The company retired $50 million of 4.00% senior notes due in August 2026 and repurchased 264,215 common shares for about $17.9 million. It said it continued investing in its land pipeline.
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Financial services operating income rose 69% year over year to $5.6 million for the quarter. The business generated about $16 million of operating income in the first nine months of the year. Green Brick said its mortgage business increased its share of financing customers in its core Texas markets.
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Green Brick attributed its ability to manage land costs partly to owning and developing land itself. Management said securing land well ahead of home deliveries helps limit exposure to inflation in finished-lot prices.
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Preferred-share dividend: Holders of record on December 1 are scheduled to receive a quarterly dividend on December 15. The payment is $0.35938 per depositary share, equivalent to $359.38 for each underlying preferred share, for the period from September 15 through December 14. The preferred stock carries a 5.75% annual rate on a $25,000 liquidation preference per preferred share.
Plain-English implications
Green Brick’s order and delivery growth came alongside lower earnings per share, while incentives were elevated and the sales pace softened. The quarter’s figures also show the company returning capital through share repurchases while maintaining liquidity and continuing land investment. The preferred dividend is a separate, scheduled payment to holders of the company’s Series A preferred stock.