Latest news with #UnitedHomesGroup
Business Wire
08-07-2025
- Business
- Business Wire
United Homes Group, Inc. Reports Preliminary 2025 Second Quarter Unit Statistics
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
Yahoo
21-05-2025
- Business
- Yahoo
United Homes (UHG) Appoints New CEO
United Homes Group, Inc. (NASDAQ:UHG) announced in the early hours of Monday that it would be appointing a new CEO, John G. (Jack) Micenko, Jr. A press release published on the UHG's website stated: 'The appointment of John G. (Jack) Micenko, Jr., as Chief Executive Officer of the Company and Jeremy Pyle as co-Chief Operating Officer of the Company, and simultaneously therewith announced that its Board of Directors has appointed a special committee comprised solely of independent directors and initiated a review of strategic alternatives in order to explore ways to maximize shareholder value.' A wide shot of a residential housing development taking shape with heavy machinery in the foreground. The review will also include a range of potential strategic alternatives, including a sale of the company, a sale of assets, and a refinancing of existing indebtedness, among others. It also stated that the committee has engaged Vestra Advisors as its financial advisor, in connection with the review, and has engaged Paul, Weiss, Rifkind, Wharton & Garrison LLP as its legal advisor. Meanwhile, Mr. Micenko's successor, Mr. James M. (Jamie) Pirrello, (the company's Interim Chief Executive Officer) will continue to serve as a member of the Company's board of directors. While we acknowledge the potential of UHG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UHG and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-05-2025
- Business
- Yahoo
United Homes Stock Declines Post Q1 Earnings Amid Slower Closings
Shares of United Homes Group, Inc. UHG have lost 10.8% since the company reported its earnings for the quarter ended March 31, 2025. This contrasts with the S&P 500 Index's 0.6% gain over the same period. Over the past month, UHG stock has plunged 17.2%, underperforming the S&P 500, which recorded an 11.8% gain. For the first quarter of 2025, UHG posted revenues of $87 million, down 13.7% from $100.8 million in the year-ago period. This decline was primarily due to an 18.9% year-over-year drop in home closings, which totaled 252 units versus 311 a year earlier. Despite a decrease in units sold, the average sales price of production-built homes rose 2.9% to approximately $345,000 compared with $335,000 in first-quarter 2024. Net income came in at $18.2 million, or $0.31 per diluted share, down 27.1% from $24.9 million, or $0.44 per share, in the prior-year quarter. This figure includes a $21.2 million non-cash gain related to the fair value adjustment of derivative liabilities tied to earnout considerations. Adjusted EBITDA was $2.9 million, a 60.6% decrease from $7.3 million in the prior year, reflecting continued margin pressure despite operational improvements. Gross profit for the quarter fell 12.2% year over year to $14.1 million from $16.1 million. Reported gross margin was 16.2%, a slight increase from 16% in first-quarter 2024, due to reduced interest expense within cost of sales. However, adjusted gross profit for the three months ended March 31, 2025, was $16.4 million, down 20.4% from $20.6 million for the three months ended March 31, 2024. Adjusted gross margin dropped to 18.8% from 20.4%, pressured by elevated incentives. Although net new orders declined 22.9% to 296 homes from 384, United Homes noted a sequential improvement in both sales pace and margins as the quarter progressed. The order momentum picked up in the latter half of February and sustained through March, with April orders up 6% year over year. Regionally, Raleigh and Rosewood posted substantial order growth, up 325% and 113%, respectively. Segmentally, the Midlands region delivered the highest closings at 124 homes, though this represented a 17% year-over-year decline. The Upstate market experienced the steepest decline in closings, at 44%. UHG also reduced its average construction cycle time by 16 days compared to the same period last year, thanks to improved labor and material availability, as well as internal efficiencies. Selling, general and administrative (SG&A) expenses totaled $16.2 million, or 18.6% of revenues, including $2 million in non-cash stock-based compensation, down 5.2% from $17.1 million. Adjusted SG&A, which excludes this charge, stood at 16.3% of revenues. United Homes reported available liquidity of $86.9 million, including $25 million in cash and $61.9 million in unused committed credit facility capacity. United Homes Group, Inc. price-consensus-eps-surprise-chart | United Homes Group, Inc. Quote Interim CEO Jamie Pirrello acknowledged the quarter as a 'tale of two halves,' citing slow January sales due to seasonality and adverse weather, which led to fewer closings in the back half of the quarter. However, demand began to rebound by late February and continued into March and April. President Jack Micenko noted a 400 basis-point sequential gross margin improvement within the quarter, highlighting the performance of 23 newly refreshed home designs that achieved gross margins of around 24%. An additional 27 of these homes closed in April, and United Homes had 91 such homes in backlog as of April 30. CFO Keith Feldman emphasized that UHG's cost-reduction strategy has already identified over $3.5 million in direct construction savings, with a bulk of the benefit expected to be realized in the second half of the year. The company also saw $1 million in first-quarter savings from reduced interest expense following a refinancing initiative compared with fourth-quarter 2024. The year-over-year declines in revenues, earnings and gross profit were primarily attributed to fewer home closings resulting from a weak start to the quarter. Aggressive sales incentives and discounting of completed spec inventory further compressed margins. However, United Homes began to pivot toward a greater mix of presold homes, which command higher margins through customization options and fewer price concessions. Cycle times improved due to better material and labor availability, resulting in a 16-day reduction in the average build cycle compared to the previous year. The move toward presales is expected to enhance delivery predictability and reduce working capital tied up in standing inventory. While formal guidance was not provided, management expressed optimism for the remainder of 2025. April orders were up 6% year over year, and the company expects margin enhancement to continue as refreshed home designs and cost savings ramp up. Additionally, UHG plans to launch 10 new communities in the second quarter and 18 in the third quarter, many of which will feature its new home designs, which are receiving strong buyer reception and higher margins. No acquisitions, divestitures, or significant restructuring actions were disclosed during the quarter. However, UHG remains committed to its asset-light, land-light strategy, maintaining control over approximately 7,500 lots through a mix of ownership, options, and land banking arrangements. The company is also evaluating geographic expansion based on favorable demographic and economic trends. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Homes Group, Inc. (UHG): Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
United Homes Group First Quarter 2025 Earnings: EPS: US$0.31 (vs US$0.52 in 1Q 2024)
Revenue: US$87.0m (down 14% from 1Q 2024). Net income: US$18.2m (down 27% from 1Q 2024). Profit margin: 21% (down from 25% in 1Q 2024). EPS: US$0.31 (down from US$0.52 in 1Q 2024). We've discovered 4 warning signs about United Homes Group. View them for free. All figures shown in the chart above are for the trailing 12 month (TTM) period United Homes Group's share price is broadly unchanged from a week ago. It is worth noting though that we have found 4 warning signs for United Homes Group (1 is significant!) that you need to take into consideration. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
15-05-2025
- Business
- Yahoo
United Homes Group Inc (UHG) Q1 2025 Earnings Call Highlights: Navigating Challenges with ...
Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. United Homes Group Inc (NASDAQ:UHG) delivered 252 homes in the first quarter, generating home sales revenue of $87 million. Home sales gross margins improved by 20 basis points year over year. The company has undertaken a product refresh and direct cost reduction initiative, with newly designed homes generating margins well in excess of the company's average. UHG identified over $3.5 million in direct construction cost savings for homes expected to be closed in 2025. The shift to pre-sold homes is producing higher margins and providing better visibility into delivery outlooks. Sales pace in January and the first half of February was disappointing, impacting the number of homes available to close in the second half of the quarter. Revenue for the first quarter of 2025 decreased by 13.7% compared to the first quarter of 2024. Net new orders for the first quarter were down from the prior year period, with 296 homes compared to 384 homes. Gross profit for the first quarter of 2025 was down 12.4% from the prior year period. Incentive activity remains elevated, impacting profitability despite efforts to offset with improved product design and pre-sold home focus. Warning! GuruFocus has detected 6 Warning Signs with UHG. Q: Can you provide an overview of United Homes Group's performance in the first quarter of 2025? A: James M Pirrello, Interim CEO, reported that United Homes Group delivered 252 homes with an average sales price of $345,000, generating $87 million in home sales revenue. The company saw a slower sales pace in January and early February, impacting results, but sales improved in March and April. The company is optimistic about operational momentum going into the second quarter. Q: What initiatives has United Homes Group undertaken to improve its competitive position and profitability? A: James M Pirrello, Interim CEO, mentioned a product refresh and direct cost reduction initiative. Newly designed homes have been well-received, with 23 closed in Q1 at an average gross margin of 24%. The company has identified over $3.5 million in direct construction cost savings for homes expected to close in 2025. Q: How is United Homes Group addressing the issue of elevated incentives and price discounting? A: Jack Micenko, President, stated that financing incentives remain a key selling tool, accounting for 4% of the average sales price. The company is shifting focus to pre-sold homes and refreshed products to dampen the impact of incentives on margins. Q: What is the company's strategy regarding land acquisition and community openings? A: Jack Micenko, President, explained that United Homes Group is pursuing an asset-light strategy, owning or controlling approximately 7,500 lots. The company plans to open 10 new communities in Q2 and 18 in Q3, featuring newly refreshed products with higher margins. Q: How did United Homes Group's financial results for Q1 2025 compare to the previous year? A: Keith Feldman, CFO, reported a net income of $18.2 million, with revenue of $87 million, down 13.7% from Q1 2024. The decline was due to lower home closings, partially offset by a 2.9% increase in average sales price. Gross profit was $14.1 million, with a slight improvement in gross margin to 16.2%. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
