Q3 Profit Falls 24% as Green Brick's Homebuilding Margins Compress 410 bps
GRBK is trading near its 52-week low of $59.12 (6.4% above the low).
Summary
Green Brick earned $59 million, or $1.35 per diluted share, in Q3 2026 — down 24% from $78 million, or $1.77, a year earlier. Homebuilding gross margin fell to 28.0% from 32.1%, a 410 basis point drop, as average selling price slid 12.1% to $446.7K and closing revenue fell 9.7% to $437 million. Orders held up better than the top line: net new home orders rose 3% to 926 and deliveries rose 2.6% to 978, but incentives ran at 11% and the cancellation rate ticked up to 8.2% from 6.7%. Backlog is the soft spot — 629 homes worth $379 million, down 17% in dollars, pointing to weaker closings ahead. The offset is financial services, where operating income jumped 69% to $5.6 million, and a still-strong balance sheet: $325 million of liquidity, net homebuilding debt to total capital of 9.6%, and $17.9 million of buybacks plus retirement of $50 million of 4.00% notes. The earnings call is tomorrow, October 29, at noon ET.
At the time of this announcement, GRBK was trading at $62.92 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $2.7B. The 52-week trading range was $59.12 to $83.18. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: BusinessWire.