Highlights

  • Second quarter revenue fell 8.7% to $493.8 million, and net income attributable to the company fell to $74.2 million.
  • Net new home orders rose 18.8% to 1,079, while backlog revenue declined 23.6% to $387.4 million.
  • Homebuilding gross margin narrowed to 29.8% from 31.3%, with the company citing higher incentives and discounts.
  • Green Brick held $461.6 million of liquidity, repurchased $16.5 million of stock in six months and had $150.6 million remaining.

Green Brick Partners (NYSE:GRBK) shares were trading near their 52-week low at USD 61.15 on October 21, 2026, down 1.36%. The Plano, Texas homebuilder reported second quarter 2026 results in a Form 10-Q filed July 29, which showed lower revenue and margins alongside higher orders.

The filing does not address the share price, so this article reports what the company disclosed. Green Brick is a Delaware corporation headquartered at 5501 Headquarters Drive in Plano. It has four reportable segments: Builder operations Central, covering its builders in Texas; Builder operations Southeast, covering Georgia and Florida; Financial Services, which includes mortgage banking, title and insurance agency operations and became a separate segment on January 1, 2026; and Land Development, which acquires land and develops lots for its own builders and third parties. Its fiscal year ends December 31.

Lower Prices and Margins, Higher Orders

Total revenues for the three months ended June 30, 2026 were $493.8 million, compared with $540.9 million a year earlier. Home closings revenue fell 11.5% to $471.5 million even though deliveries were essentially flat at 1,047 homes, up 0.5%. The average sales price of homes delivered fell 11.9% to $450.3 thousand, which the company tied to increased incentives and product mix.

Homebuilding gross margin was 29.8%, down from 31.3%, and management attributed the decline to higher incentives and discounts. Selling, general and administrative expenses were 11.3% of revenue against 10.7%. Income before income taxes was $99.5 million versus $112.3 million, and net income attributable to Green Brick was $74.2 million, or $1.70 per diluted share, compared with $81.9 million, or $1.85. For six months, revenue was $959.5 million and net income attributable to the company was $135.1 million, or $3.09 per diluted share.

Orders moved the other way. Net new home orders climbed 18.8% to 1,079, with the order value up 7.4% to $488.6 million. Average active selling communities grew 5.9% to 108, absorption improved to 10.0 orders per community per quarter from 8.9, and the cancellation rate eased to 7.8% from 9.9%. The average selling price of orders fell 9.6% to $452.9 thousand, reflecting a higher mix from Trophy Signature Homes, which targets first-time buyers at a lower price point.

Backlog revenue ended the quarter at $387.4 million, down 23.6%, with 681 homes under contract, down 6.7%, and an average backlog price of $568.8 thousand, down 18.1%.

Mortgage Growth, Balance Sheet and Buybacks

Financial Services revenue nearly doubled to $12.2 million, and segment pre-tax income rose 90.2% to $5.6 million. Green Brick funded 521 loans totaling $196.5 million, and its mortgage capture rate reached 66% from 53.1%.

At June 30, unrestricted cash was $131.6 million, and the unsecured revolving credit facility had $330.0 million of capacity with nothing drawn, for total liquidity of about $461.6 million. Operating cash flow for six months was $47.4 million versus $143.5 million, as inventory investment rose by $154.0 million to support future deliveries. Senior unsecured notes totaled $237.2 million, after a $25.0 million repayment of 2028 notes. Homebuilding debt to total capitalization was approximately 11.2%, with $50.0 million of 2026 notes due August 8, 2026.

Under its repurchase plan, Green Brick bought 143,026 shares for about $9.3 million in the second quarter and 256,875 shares for about $16.5 million in six months. Authorization remaining was $150.6 million.

Outlook Language

The 10-Q does not include numerical guidance. Management says it intends to use leverage prudently to fund land acquisition, development and homebuilding, and it targets a homebuilding debt to total capitalization ratio of up to about 20%. It believes cash on hand, credit capacity and operating cash flow will cover debt service and operations for the next 12 months. The company also notes that it normally delivers more homes in the second half of the year.