Green Brick Posts Revenue of $448.2 Million, Missing Estimates as Profit Falls
Key Facts
Green Brick Partners reported results for the third quarter ended September 30, 2026, with revenue of $448.2 million and diluted earnings per share of $1.35, according to the company’s statement published via Business Wire. Revenue came in below the consensus estimate of $469.36 million, while earnings per share also missed the $1.46 estimate, according to Investing.com. Meanwhile, net income attributable to the company fell 24.0% year over year to $59.160 million, from $77.853 million a year earlier. Diluted earnings per share declined from $1.77 in the third quarter of 2025 to $1.35. The results show a divergence between an increase in homes sold through deliveries and orders, and a decline in prices and the margins achieved on them.
Homebuilding revenue totaled $437.043 million, while total revenue reached $448.204 million. Financial services contributed $11.161 million, up 51.9% year over year from $7.350 million in the comparable period. In its homebuilding business, the company delivered 978 homes, an increase of 2.6% from 953 homes a year earlier. But the average price of delivered homes fell 12.1% to $446.7 thousand, from $508.1 thousand. The combination of higher deliveries and a lower average price means that growth in home volume did not prevent homebuilding revenue from falling short of the level expected, according to the published consensus estimate for the quarter.
Net new home orders totaled 926 units, up 3.1% from 898 units in the third quarter of 2025. At the same time, the order cancellation rate rose to 8.2%, from 6.7% a year earlier, making order growth more mixed. Co-CEO Jim Brickman said demand in the company’s markets remained “resilient,” and that buyers had responded to an incentives and product strategy he described as attractive. He added that the company continues to adapt to deteriorating market conditions to maintain its sales pace. Incentives on new orders stood at 11%, according to the company’s statement, as sales concessions weighed on profit per home.
The gross margin on homebuilding fell to 28.0% in the third quarter, from 32.1% a year earlier, a decline of 410 basis points. The contraction came despite increases in deliveries and orders and coincided with a lower average price for delivered homes and the use of incentives totaling 11%. Ahead of the results, an Investing.com report said 43% of homebuilders cut prices in October, while 65% used sales incentives. The report described the sector’s environment as one of the toughest in more than a decade and said homebuilder confidence fell in October to its lowest level in 14 years. These indicators provide context for the pricing and incentive pressures reflected in Green Brick’s results, while the company’s management continued to describe demand in its markets as resilient.
Backlog totaled $379.345 million as of September 30, covering 629 homes. Its value fell 17.0% year over year, while the number of units declined 6.8% from 675 homes. This points to a smaller volume of contracted work compared with the end of the third quarter a year earlier, alongside an increase in net orders during the current quarter. The company ended the period with $325 million in liquidity, including $100 million in cash. It also repurchased 264,215 shares during the quarter for about $17.9 million, according to its statement.
Green Brick had reported second-quarter 2026 earnings per share of $1.70, beating analysts’ estimate of $1.53, with revenue of $471.99 million against an estimate of $470 million, according to Investing.com data. The third-quarter results mark a decline in earnings per share and revenue from that level, with both metrics also missing analyst estimates this time. The results were announced after the market close on Wednesday, October 28, 2026, according to Investing.com. The company is scheduled to hold a conference call to discuss its quarterly results on October 29 at 12:00 p.m. Eastern Time. The call will give management an opportunity to provide further details on sales, incentives and margins in the company’s markets.