United Homes Group, Inc. Reports Preliminary 2025 Second Quarter Unit Statistics

Business Wire

08-07-2025

COLUMBIA, S.C.--(BUSINESS WIRE)--United Homes Group, Inc. (the 'Company') (NASDAQ: UHG) today announced preliminary operational unit statistics for the quarter and year ended June 30, 2025.
The following table provides a summary of the Company's net new orders, home starts, and home closings:
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
% Change
2025
2024
% Change
Net new orders
304
323
(5.9
)%
600
707
(15.1
)%
Starts
357
347
2.9
%
605
623
(2.9
)%
Closings
303
337
(10.1
)%
555
648
(14.4
)%
Expand
The following table provides a summary of the Company's backlog, speculative home, and model home inventory:
% Change Period-over-Period
Backlog 1
Spec homes
Model
homes
Total
Not yet started
33.3
%
NM 2
NM 2
33.3
%
Homes under construction
(2.6
)%
9.8
%
NM 2
11.8
%
Finished homes
(33.8
)%
(55.6
)%
(33.3
)%
(46.0
)%
Total
(18.5
)%
(19.5
)%
23.3
%
(17.6
)%
_______________
1 Backlog inventory consists of homes that are under a sales contract but have not closed. Backlog may be impacted by customer cancellations.
2 NM - Not Meaningful
Expand
'Net new orders declined 6% year-over-year in the second quarter as improvement in our sales pace was offset by a 10% decline in active community count over the same time frame,' stated Chief Executive Officer Jack Micenko. 'This decline in community count is expected to reverse in the second half of 2025 as we have a number of new communities coming online, which should translate into a double-digit increase in active communities in the second half of the year.'
'Additionally, our previously highlighted product refresh initiative continues to drive margin improvement, with refreshed product gross margins trending approximately 300 basis points higher than legacy product margins in the second quarter,' added Mr. Micenko. 'We continue to expect the combination of new community openings and the growing mix of refreshed product in our closings to result in year-over-year gross margin improvement in 2025.'
'The reduction in active communities has also resulted in a decline in closings year-over-year,' shared the Company's Chief Financial Officer Keith Feldman. 'However, as Jack mentioned, we expect community count to increase in the back half of the year which has driven the 3% increase in starts year-over-year.'
About United Homes Group, Inc.
The Company is a publicly traded residential builder headquartered near Columbia, SC. The Company focuses on southeastern markets with active communities in South Carolina, North Carolina and Georgia.
The Company employs a land-light operating strategy with a focus on the design, construction and sale of entry-level, first, second and third move-up single-family houses. The Company principally builds detached single-family houses, and, to a lesser extent, attached single-family houses, including duplex houses and town houses. The Company seeks to operate its homebuilding business in high-growth markets, with substantial in-migrations and employment growth.
Under its land-light lot operating strategy, the Company controls its supply of finished building lots through lot option contracts with third parties, related parties, and land bank partners, which provide the Company with the right to purchase finished lots after they have been developed. This land-light operating strategy provides the Company with the ability to amass a pipeline of lots without the risks associated with acquiring and developing raw land.
Forward-Looking Statements
Certain statements contained in this earnings release, other than historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the 'Securities Act') and Section 21E of the Securities Exchange Act of 1934, as amended (the 'Exchange Act'). We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as 'may,' 'will,' 'expect,' 'intend,' 'anticipate,' 'estimate,' 'believe,' 'seek,' 'continue,' or other similar words.
Any such forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate, and beliefs of, and assumptions made by, our management and involve uncertainties that could significantly affect our financial results. Such statements include, but are not limited to, statements about our future financial performance, strategy, future operations, future operating results, plans and objectives of management. Such statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those projected or anticipated, including, without limitation:
disruption in the terms or availability of mortgage financing or an increase in the number of foreclosures in our markets;
volatility and uncertainty in the credit markets and broader financial markets;
a slowdown in the homebuilding industry or changes in population growth rates in our markets;
shortages of, or increased prices for, labor, land or raw materials used in land development and housing construction, including due to changes in trade policies;
increases in interest rates or inflationary pressures;
our ability to execute our business model, including the success of our operations in new markets and our ability to expand into additional new markets;
our ability to identify and successfully execute on potential strategic alternatives;
our ability to successfully integrate homebuilding operations that we acquire;
our ability to realize the expected results of strategic initiatives;
delays in land development or home construction resulting from natural disasters, adverse weather conditions or other events outside our control;
changes in applicable laws or regulations;
the outcome of any legal proceedings;
our ability to continue to leverage our land-light operating strategy;
the ability to maintain the listing of our securities on Nasdaq or any other exchange; and
the possibility that we may be adversely affected by other economic, business or competitive factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release and are not intended to be a guarantee of our performance in future periods. We cannot guarantee the accuracy of any such forward-looking statements contained in this release, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
For further information regarding other risks and uncertainties associated with our business, and important factors that could cause our actual results to vary materially from those expressed or implied in such forward-looking statements, please refer to the factors listed and described under 'Management's Discussion and Analysis of Financial Condition and Results of Operations' and the 'Risk Factors' sections of the documents we file from time to time with the U.S. Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K and our quarterly reports on Form 10-Q, copies of which may be obtained from our website at https://ir.unitedhomesgroup.com/financials/sec-filings/default.aspx.