Green Brick Partners — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income attributable to Green Brick Partners, Inc. was $59.2 million ($1.35 per diluted share) for the quarter ended September 30, 2026, a 24.0% decrease from $77.9 million ($1.77 per diluted share) in the prior year period.
• Total homebuilding revenues were $437.0 million for the quarter, down 9.7% year-over-year from $484.2 million.
• Total homebuilding gross profit was $122.6 million, a 21.2% decrease from $155.5 million in the prior year.
• Homebuilding gross margin percentage was 28.0%, down 410 basis points from 32.1% in the prior year.
• Total financial services operating income was $5.6 million for the quarter, a 68.9% increase from $3.3 million in the prior year.
• Total financial services revenues were $11.2 million for the quarter, up 51.9% from $7.4 million in the prior year.
• For the nine months ended September 30, 2026, net income attributable to Green Brick was $194.3 million ($4.44 per diluted share), down 17.3% from $234.9 million ($5.29 per diluted share) in the prior year.
• Total homebuilding revenues for the nine months were $1.37 billion, down 8.6% from $1.50 billion in the prior year.
• Homebuilding gross margin for the nine months was 29.0%, down 280 basis points from 31.8% in the prior year.
• Financial services operating income for the nine months was $15.6 million, a 92.4% increase from $8.1 million in the prior year.
• Book value per share was $46.10, an increase of 14% year-over-year.
• Homebuilding debt to total capitalization was 13.1% (down from 15.3% in the prior year).
• Net homebuilding debt to total capitalization was 9.6% (up from 9.5% in the prior year).
• Quarter-end liquidity was $325 million, including $100 million in cash.

Guidance and Future Outlook:

• Management stated the company is positioned to navigate the current down-cycle and capitalize on future growth opportunities while generating attractive long-term returns.
• The company intends to continue investing in its land pipeline and remains patient and selective due to its investment-grade balance sheet characteristics.
• Management expects to continue delivering peer-leading gross margins despite elevated incentives.
• The company anticipates the benefits of its long-standing strategy of owning and self-developing land in desirable infill and infill-adjacent submarkets will continue to lock in lot costs and reduce exposure to inflation in finished lot pricing.

Business Segments and Product Lines:

• Net new home orders were 926, up 3% year-over-year from 898.
• New home deliveries were 978, up 3% year-over-year from 953.
• Average sales price of homes delivered was $446.7 thousand for the quarter, down 12.1% from $508.1 thousand in the prior year.
• Average sales price of net new home orders was $463.2 thousand for the quarter, down 4.1% from $483.1 thousand in the prior year.
• Backlog consisted of 629 homes with a dollar value of $379.3 million, down 17.0% in value and 6.8% in units from the prior year.
• Homes under construction were 2,181, down 1.0% from 2,202 in the prior year.
• Owned lot position increased 11.4% year-over-year to 40,869 lots as of September 30, 2026.
• The Trophy Signature Homes brand continued to grow in core Texas markets.
• Green Brick Mortgage increased its capture rate in core Texas markets.
• Financial services originations for the quarter included 499 loans totaling $185.0 million in principal, up 42.2% in volume and 35.6% in principal from the prior year.
• Financial services originations for the nine months included 1,385 loans totaling $531.9 million in principal, up 130.1% in volume and 116.8% in principal from the prior year.
• Land and lots revenue was $0 for the quarter and $17.1 million for the nine months (up from $4.3 million in the prior year).

Market and Competitive Landscape:

• Sales pace declined slightly to 2.8 sales per community.
• Absorption rate per average active selling community per quarter was 8.5, down from 8.7 in the prior year.
• Average active selling communities were 109, up 5.8% from 103 in the prior year.
• Active selling communities at period end were 104, up 4.0% from 100 in the prior year.
• Cancellation rate was 8.2% for the quarter, up from 6.7% in the prior year.
• Incentives on growing new orders were elevated at 11% for the quarter.
• The company operates in Texas (Central), Georgia, and Florida, with a focus on infill and infill-adjacent submarkets.

Risks and Challenges:

• The company faces continued affordability pressures, broader economic uncertainty, and an increasing rate environment.
• Forward-looking statements highlight risks including general economic conditions, seasonality, cyclicality, and competition.
• Risks include changes in macroeconomic conditions, increasing interest rates, and inflation impacting buyer qualification.
• Potential shortages, delays, or increased costs of raw materials and labor are cited as risks.
• Geographic concentration in Texas, Georgia, and Florida presents specific regional risks.
• Risks include the inability to acquire land at anticipated prices, difficulty obtaining entitlements, and adverse changes in mortgage financing availability.
• Potential write-downs of real estate assets due to declining inventory values are noted.

Management Commentary and Tone:

• Co-CEO Jim Brickman described results as demonstrating the resilience of the company's differentiated operating model in a challenging housing environment.
• Brickman noted that demand remained resilient as buyers responded to incentive strategies and attractive product offerings.
• Co-CEO Jed Dolson highlighted disciplined execution and the growth of the Trophy Signature Homes brand.
• Dolson emphasized the strategic advantage of owning and self-developing land to lock in lot costs and mitigate inflation exposure compared to builders relying on third-party developers.
• Management expressed confidence in the company's ability to balance price, pace, and profitability as market conditions evolve.
• The tone was confident regarding the company's investment-grade balance sheet, low leverage, and substantial liquidity.

Other Key Points:

• The company retired $50 million of 4.00% senior notes due August 2026 during the quarter.
• The company repurchased 264,215 shares of common stock for approximately $17.9 million during the quarter.
• Green Brick Partners, Inc. is the third largest homebuilder in Dallas-Fort Worth.
• The company owns five subsidiary homebuilders in Texas and holds interests in homebuilders in Atlanta and Florida.
• The company retains interests in financial services platforms including Green Brick Title, GRBK Mortgage, and Green Brick Insurance.
• Earnings conference call was scheduled for October 29, 2026, at 12:00 p.m. Eastern Time.