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1. Company Snapshot

1.a. Company Description

Green Brick Partners, Inc.operates as a homebuilding and land development company in the United States.It operates through Builder operations Central, Builder operations Southeast, and Land development segments.


The company is involved in the land acquisition and development, entitlements, design, construction, title and mortgage services, marketing, and sale of townhomes, patio homes, single family homes, and luxury homes in residential neighborhoods, and master planned communities.As of December 31,2021, the company owns or controls approximately 28,600 home sites in Dallas-Forth Worth, Atlanta metropolitan areas, and the Treasure Coast, Florida market.The company sells its homes through sales representatives and independent realtors.


Green Brick Partners, Inc.was incorporated in 2006 and is headquartered in Plano, Texas.

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1.b. Last Insights on GRBK

Green Brick Partners' recent performance faced challenges due to affordability concerns and rising land/labor costs. Despite record Q4 2025 results, with $78 million net income and 1,038 new homes delivered, the industry backdrop remains tough. The company's vertically integrated approach has led to stable profitability, but its growth is being tested by market conditions. With a cautious stance from analysts, GRBK's operational efficiency and marketing strategies will be crucial in navigating the challenging environment. A new $1.65 million investment by D.A. Davidson & CO. was also announced.

1.c. Company Highlights

2. Green Brick Partners' Q4 2025 Earnings: A Mixed Bag

Green Brick Partners reported a net income attributable to the company of $78 million, or $1.78 per diluted share, beating analyst estimates of $1.62. The company's home closings revenue was $550 million, a 1.3% decline compared to the same period last year, while the average sales price was $530,000, down 3.1% year-over-year. Homebuilding gross margin decreased 490 basis points year-over-year to 29.4%, due to higher incentives and changes in product mix. SG&A as a percentage of residential unit revenue was 10.6%, a decrease of 30 basis points year-over-year.

Publication Date: Mar -01

📋 Highlights
  • Margin Pressure: Homebuilding gross margin dropped 490 bps YoY to 29.4% due to higher incentives and mix shifts.
  • Cycle Time Efficiency: Construction cycle reduced by 20 days to 130 days, with Trophy’s DFW at under 90 days.
  • Lot Position Strength: Total lots increased 10% YoY to ~48,800, with 6-year lot supply excluding master-planned communities.
  • Share Buybacks: $23M spent repurchasing 359K shares in Q4; $83M for 1.4M shares annually in 2025.
  • Incentive Surge: Incentives on closings rose to 9.2% (from 5.2% YoY), reflecting competitive market pressures.

Operational Highlights

The company delivered 1,038 homes, a 1.9% increase year-over-year, and achieved 883 net orders, a record for any fourth quarter. Green Brick Mortgage closed and funded over 380 loans in the fourth quarter, with an average FICO score of 746 and an average debt-to-income ratio of 40%. The company reduced construction cycle times by 20 days to 130 days, with Trophy's average cycle time in DFW at under 90 days.

Land Supply and Growth Prospects

The company's total lots owned and under contract increased 10% year-over-year to approximately 48,800, with 37,000 lots owned on the balance sheet and 11,800 lots under contract. Jeffery Cox mentioned that they anticipate land spend will be higher this year, given the increase in lot supply. Jed Dolson added that they're adding horizontal development dollars to previous year's land acquisition to increase community count.

Spec Strategy and Pricing Power

James Brickman said they're seeing great success with specs, especially at Trophy, where buyers want certainty and can move in quickly. Jed Dolson noted that they're going to continue putting specs on the ground because that's what buyers desire. On pricing power, Jed Dolson said they've been able to raise prices in some communities, but it's still a competitive landscape.

Valuation and Outlook

With a P/E Ratio of 10.21 and an ROE of 17.7%, the company's valuation appears reasonable. Analysts estimate next year's revenue growth at 10.8%. Given the company's robust cash position of $155 million and total liquidity of $520 million, with $365 million undrawn on its homebuilding credit facilities, Green Brick Partners is well-positioned to capitalize on growth opportunities. The company's net debt to total capital ratio decreased to 8.2%, and its debt to total capital ratio decreased to 14.7%.

3. NewsRoom

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Green Brick Partners, Inc. Announces Dates For 8-K Filing and Earnings Call

Mar -31

Source: businesswire.com

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Rainwater Crossing on Track for Spring 2026 Debut in Celina, Texas

Mar -24

Source: businesswire.com

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Trophy Signature Homes Announces New Nicholson Ranch Community in Lavon, TX

Mar -16

Source: businesswire.com

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Lone Oak by Trophy Signature Homes Now Open in Alvarado, Texas

Mar -13

Source: businesswire.com

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2 Homebuilders Navigating a Challenging Industry Backdrop

Mar -10

Source: zacks.com

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Green Brick Partners, Inc. (GRBK) Q4 2025 Earnings Call Transcript

Feb -26

Source: seekingalpha.com

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Green Brick Partners, Inc. Reports Fourth Quarter and Full Year 2025 Results

Feb -25

Source: businesswire.com

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2 Stocks to Hold for the Next 5 Years

Feb -14

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.56%)

6. Segments

Builder Operations Central

Expected Growth: 10%

Builder Operations Central's 10% growth is driven by increasing demand for new homes, strategic land acquisition, and operational efficiencies. Green Brick Partners' diversified revenue streams, including homebuilding, land development, and financial services, contribute to the segment's growth. Additionally, the company's focus on affordable luxury homes and strategic partnerships with national builders also support the growth momentum.

Builder Operations Southeast

Expected Growth: 12%

Strong demand for new homes in the Southeast region, driven by population growth, job creation, and migration to suburban areas, coupled with Green Brick's strategic land acquisition and development, efficient construction process, and diverse product offerings, contribute to the 12% growth of Builder Operations Southeast.

Land Development

Expected Growth: 9%

Green Brick Partners' 9% land development growth is driven by increasing demand for new homes, strategic land acquisitions, and partnerships with top homebuilders. The company's focus on high-growth markets, efficient development processes, and strong relationships with local governments also contribute to its growth.

7. Detailed Products

Residential Homes

Green Brick Partners, Inc. builds and sells single-family homes, townhomes, and condominiums in various communities across the United States.

Master-Planned Communities

The company develops and sells master-planned communities, which include amenities such as parks, trails, and community centers.

Land Development

Green Brick Partners acquires, develops, and sells land to other builders, investors, and developers.

Mortgage Services

The company offers mortgage services, including loan origination and title insurance, to its homebuyers.

Title Insurance and Closing Services

Green Brick Partners provides title insurance and closing services to its homebuyers and other customers.

8. Green Brick Partners, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Green Brick Partners, Inc. is medium due to the availability of alternative housing options, such as renting or buying existing homes. However, the company's focus on building high-quality, energy-efficient homes with modern amenities helps to differentiate its products and reduce the threat of substitutes.

Bargaining Power Of Customers

The bargaining power of customers is low for Green Brick Partners, Inc. due to the company's focus on building high-quality homes in desirable locations, which gives it pricing power. Additionally, the company's sales process is designed to provide a personalized experience for customers, which helps to build loyalty and reduce price sensitivity.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Green Brick Partners, Inc. due to the company's reliance on a few large suppliers for materials such as lumber and drywall. However, the company's scale and purchasing power help to mitigate the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is low for Green Brick Partners, Inc. due to the significant barriers to entry in the homebuilding industry, including the need for significant capital and expertise. Additionally, the company's established relationships with suppliers and its experience in navigating complex regulatory environments help to deter new entrants.

Intensity Of Rivalry

The intensity of rivalry is high for Green Brick Partners, Inc. due to the competitive nature of the homebuilding industry. The company faces competition from both national and regional homebuilders, and the industry is characterized by frequent price wars and intense marketing efforts.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 21.11%
Debt Cost 3.95%
Equity Weight 78.89%
Equity Cost 12.62%
WACC 10.79%
Leverage 26.76%

11. Quality Control: Green Brick Partners, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Green Brick Partners

A-Score: 5.5/10

Value: 6.8

Growth: 8.3

Quality: 7.9

Yield: 0.0

Momentum: 4.5

Volatility: 5.7

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Value: 8.6

Growth: 5.3

Quality: 6.5

Yield: 4.0

Momentum: 2.5

Volatility: 5.7

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Tri Pointe Homes

A-Score: 5.2/10

Value: 8.0

Growth: 8.2

Quality: 6.0

Yield: 0.0

Momentum: 2.5

Volatility: 6.3

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Taylor Morrison

A-Score: 5.1/10

Value: 8.0

Growth: 5.7

Quality: 6.4

Yield: 0.0

Momentum: 3.5

Volatility: 7.0

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Century Communities

A-Score: 5.1/10

Value: 8.0

Growth: 7.6

Quality: 4.7

Yield: 3.0

Momentum: 2.0

Volatility: 5.3

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Skyline Champion

A-Score: 4.0/10

Value: 3.8

Growth: 6.8

Quality: 7.0

Yield: 0.0

Momentum: 2.5

Volatility: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

65.35$

Current Price

65.35$

Potential

-0.00%

Expected Cash-Flows