COLUMBIA, S.C.--(BUSINESS WIRE)--July 08, 2025--
United Homes Group, Inc. (the "Company") $(UHG)$ 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)%
The following table provides a summary of the Company's backlog, speculative home, and model home inventory:
As of June 30, 2025 As of June 30, 2024
------------------------------- -------------------------------
Spec Model Spec Model
Backlog(1) homes homes Total Backlog(1) homes homes Total
---------- ----- ----- ----- ---------- ----- ----- -----
Not yet
started 28 -- -- 28 21 -- -- 21
Homes under
construction 74 315 17 406 76 287 -- 363
Finished
homes 100 103 20 223 151 232 30 413
---------- ----- ----- ----- ---------- ----- ----- -----
Total 202 418 37 657 248 519 30 797
========== ===== ===== ===== ========== ===== ===== =====
% Change Period-over-Period
---------------------------------------------------------
Model
Backlog(1) Spec homes 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
"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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250707286005/en/
CONTACT: Investor Relations Contact:
Drew Mackintosh
drew@mackintoshir.com
Mobile: 310-924-9036
Media Contact:
Erin Reeves-McGinnis
erinreevesmcginnis@unitedhomesgroup.com
Phone: 844-766-4663
(END) Dow Jones Newswires
July 08, 2025 07:00 ET (11:00 GMT)