Smith Douglas Homes misses Q4 estimates, shares fall over 2%

Published 12/03/2025, 12:28
Smith Douglas Homes misses Q4 estimates, shares fall over 2%

ATLANTA -On Wednesday, Smith Douglas Homes Corp. (NYSE:SDHC) reported fourth quarter earnings that fell short of analyst expectations.

The company’s shares were down -2.51% in premarket trading after the release.

The homebuilder posted earnings per share of $0.46 for the quarter, missing the analyst consensus estimate of $0.65 by $0.19. Revenue came in at $287.5 million, compared to no revenue reported in the same quarter last year as the company completed its initial public offering in January 2024.

Despite the earnings miss, Smith Douglas saw strong growth in home closings, which increased 28% year-over-year to 836 units. Home closing revenue rose 32% to $287.5 million.

"Smith Douglas ended the year on a strong note, generating pre-tax income of $30 million in the fourth quarter of 2024," said Greg Bennett, Vice Chairman and CEO. "New home deliveries for the quarter totaled 836, which was well above our stated guidance and represented a Company record for quarterly closings."

The company’s home closing gross margin declined to 25.5% from 26.7% in Q4 2023. Net new home orders increased 9% to 569 units.

For the full year 2024, Smith Douglas reported earnings of $1.81 per diluted share on revenue of $975.5 million. Home closings for the year rose 25% to 2,867 units.

Looking ahead, management said they remain encouraged by market trends entering the 2025 spring selling season, though affordability issues persist. The company’s total controlled lots increased 52% year-over-year to 19,522 at the end of 2024.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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