Parsons and Globalstar Pave Way for Commercial Satellite Solutions after Completing Successful Proof of Concept
The successful demonstration represents a significant step forward in the strategic partnership between Globalstar and Parsons, moving the opportunity into the commercial phase.
'At Parsons, we are building for the future of defense and emergency communications, where adaptability, resilience, and global reach are essential,' said Mike Kushin, President of Defense and Intelligence for Parsons. 'Globalstar's infrastructure gives us the low latency, global coverage, and proven performance that our customers demand. This successful proof of concept confirms that Globalstar's capabilities combined with Parsons' innovative technologies are driving the future of mission-critical communications.'
Parsons collaborated with Globalstar to validate its software-defined communications platform under real-world operating conditions, following earlier prototype testing in the continental U.S. The system leverages Globalstar's LEO satellite constellation to deliver fast and reliable communications worldwide, particularly in areas where traditional infrastructure is compromised.
'This milestone is powerful validation of the resiliency and reliability of Globalstar's network to support mission-critical government and defense communications,' said Dr. Paul E. Jacobs, Globalstar CEO. 'With successful proof of concept behind us, we are proud to have demonstrated our capabilities in providing steady, dependable connectivity to Parsons' solution set.'
About Globalstar, Inc.
Globalstar empowers its customers to connect, transmit, and communicate smarter – easily, quickly, securely, and affordably – offering reliable satellite and terrestrial connectivity services as an international telecom infrastructure provider. The Company's low Earth orbit ("LEO") satellite constellation ensures secure data transmission for connecting and protecting assets, transmitting critical operational data, and saving lives for consumers, businesses, and government agencies across the globe. Globalstar's terrestrial spectrum, Band 53, and its 5G variant, n53, offer carriers, cable companies, and system integrators a versatile, fully licensed channel for private networks with a growing ecosystem to improve customer wireless connectivity, while Globalstar's XCOM RAN product offers significant capacity gains in dense wireless deployments. In addition to SPOT GPS messengers, Globalstar offers next-generation Internet of Things ("IoT") hardware and software products for efficiently tracking and monitoring assets, processing smart data at the edge, and managing analytics with cloud-based telematics solutions to drive safety, productivity, and profitability. For more information, visit www.globalstar.com.
About Parsons
Parsons (NYSE: PSN) is a leading disruptive technology provider in the national security and global infrastructure markets, with capabilities across cyber and intelligence, space and missile defense, transportation, environmental remediation, urban development, and critical infrastructure protection. Please visit Parsons.com and follow us on LinkedIn and Facebook to learn how we're making an impact.
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Cheniere Partners Reports Second Quarter 2025 Results and Reconfirms Full Year 2025 Distribution Guidance
HOUSTON--(BUSINESS WIRE)--Cheniere Energy Partners, L.P. ('Cheniere Partners') (NYSE: CQP) today announced its financial results for second quarter 2025. HIGHLIGHTS During the three and six months ended June 30, 2025, Cheniere Partners generated revenues of $2.5 billion and $5.4 billion, net income of $553 million and $1.2 billion, and Adjusted EBITDA 1 of $0.7 billion and $1.8 billion, respectively. With respect to the second quarter of 2025, Cheniere Partners declared a cash distribution of $0.820 per common unit to unitholders of record as of August 8, 2025, comprised of a base amount equal to $0.775 and a variable amount equal to $0.045. The common unit distribution and the related general partner distribution will be paid on August 14, 2025. Reconfirming full year 2025 distribution guidance of $3.25 - $3.35 per common unit, maintaining a base distribution of $3.10 per common unit. In June 2025, certain subsidiaries of Cheniere Partners updated the SPL Expansion Project's (defined below) application with the Federal Energy Regulatory Commission ('FERC') to reflect a two-phased project, inclusive of three liquefaction trains and supporting infrastructure, maintaining an expected total peak production capacity of up to approximately 20 million tonnes per annum ('mtpa') of liquefied natural gas ('LNG'), inclusive of estimated debottlenecking opportunities. In July 2025, Cheniere Partners produced and loaded its 3,000 th LNG cargo since commencing export operations at the Sabine Pass LNG terminal in February 2016. 2025 FULL YEAR DISTRIBUTION GUIDANCE 2025 Distribution per Unit $ 3.25 - $ 3.35 Expand SUMMARY AND REVIEW OF FINANCIAL RESULTS As compared to the corresponding 2024 periods, net income decreased approximately $17 million and $58 million during the three and six months ended June 30, 2025, respectively, while Adjusted EBITDA 1 decreased by approximately $106 million and $68 million during the three and six months ended June 30, 2025, respectively. The decreases for both periods were primarily attributable to planned maintenance activities during the three months ended June 30, 2025 resulting in higher operating expenses and lower volumes recognized in income during the period. The decreases were partially offset by higher gross margins per MMBtu of LNG delivered during the 2025 periods as compared to the corresponding 2024 periods. During the three and six months ended June 30, 2025, we recognized in income 351 and 756 TBtu, respectively, of LNG loaded from the SPL Project (defined below). Capital Resources The table below provides a summary of our available liquidity (in millions) as of June 30, 2025: Recent Key Financial Transactions and Updates In July 2025, we issued $1.0 billion of aggregate principal amount of 5.550% Senior Notes due 2035, and the net proceeds, together with cash on hand, were used to redeem $1.0 billion of the aggregate principal amount of SPL's 5.875% Senior Secured Notes due 2026. During the six months ended June 30, 2025, SPL repaid the remaining $300 million in principal amount of its 5.625% Senior Secured Notes due 2025 with cash on hand. SABINE PASS OVERVIEW We own natural gas liquefaction facilities with total production capacity of over 30 mtpa of LNG at the Sabine Pass LNG terminal in Cameron Parish, Louisiana (the 'SPL Project'). As of August 1, 2025, approximately 3,030 cumulative LNG cargoes totaling approximately 210 million tonnes of LNG have been produced, loaded, and exported from the SPL Project. SPL Expansion Project We are developing an expansion adjacent to the SPL Project with an expected total peak production capacity of up to approximately 20 mtpa of LNG (the 'SPL Expansion Project'), inclusive of estimated debottlenecking opportunities. In February 2024, certain of our subsidiaries submitted an application to the FERC for authorization to site, construct and operate the SPL Expansion Project, as well as an application to the Department of Energy ('DOE') requesting authorization to export LNG to Free-Trade Agreement ('FTA') and non-FTA countries, both of which applications exclude debottlenecking. In October 2024, we received authorization from the DOE to export LNG to FTA countries. In June 2025, the SPL Expansion Project's FERC application was updated to reflect a two-phased project, inclusive of three liquefaction trains and supporting infrastructure, maintaining an expected total peak production capacity of up to approximately 20 mtpa of LNG. DISTRIBUTIONS TO UNITHOLDERS In July 2025, we declared a cash distribution of $0.820 per common unit to unitholders of record as of August 8, 2025, comprised of a base amount equal to $0.775 ($3.10 annualized) and a variable amount equal to $0.045, which takes into consideration, among other things, amounts reserved for annual debt repayment and capital allocation goals, anticipated capital expenditures to be funded with cash, and cash reserves to provide for the proper conduct of the business. The common unit distribution and the related general partner distribution will be paid on August 14, 2025. INVESTOR CONFERENCE CALL AND WEBCAST Cheniere Energy, Inc. (NYSE: LNG) will host a conference call to discuss its financial and operating results for the second quarter 2025 on Thursday, August 7, 2025, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at Following the call, an archived recording will be made available on our website. The call and accompanying slide presentation will include financial and operating results or other information regarding Cheniere Partners. 1 Non-GAAP financial measure. See 'Reconciliation of Non-GAAP Measures' for further details. Expand About Cheniere Partners Cheniere Partners owns the Sabine Pass LNG terminal located in Cameron Parish, Louisiana, which has natural gas liquefaction facilities with a total production capacity of over 30 mtpa of LNG. The Sabine Pass LNG terminal also has operational regasification facilities that include five LNG storage tanks, vaporizers, and three marine berths. Cheniere Partners also owns the Creole Trail Pipeline, which interconnects the Sabine Pass LNG terminal with a number of large interstate and intrastate pipelines. For additional information, please refer to the Cheniere Partners website at and Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed with the Securities and Exchange Commission. Use of Non-GAAP Financial Measures In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains a non-GAAP financial measure. Adjusted EBITDA is a non-GAAP financial measure that is used to facilitate comparisons of operating performance across periods. 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Included among 'forward-looking statements' are, among other things, (i) statements regarding Cheniere Partners' financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding Cheniere Partners' anticipated quarterly distributions and ability to make quarterly distributions at the base amount or any amount, (iii) statements regarding regulatory authorization and approval expectations, (iv) statements expressing beliefs and expectations regarding the development of Cheniere Partners' LNG terminal and liquefaction business, (v) statements regarding the business operations and prospects of third-parties, (vi) statements regarding potential financing arrangements, (vii) statements regarding future discussions and entry into contracts, and (viii) statements relating to our goals, commitments and strategies in relation to environmental matters. Although Cheniere Partners believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere Partners' actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere Partners' periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere Partners does not assume a duty to update these forward-looking statements. (Financial Tables Follow) (1) Please refer to the Cheniere Energy Partners, L.P. Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed with the Securities and Exchange Commission. Expand Cheniere Energy Partners, L.P. Consolidated Balance Sheets (in millions, except unit data) (1) (unaudited) June 30, December 31, 2025 2024 ASSETS Current assets Cash and cash equivalents $ 108 $ 270 Restricted cash and cash equivalents 36 109 Trade and other receivables, net of current expected credit losses 261 380 Trade and other receivables—affiliate 147 164 Trade receivables, net of current expected credit losses—related party — 1 Advances to affiliates 191 101 Inventory 153 151 Current derivative assets 28 84 Prepaid expenses 65 42 Other current assets, net 27 23 Other current assets—affiliate 1 — Total current assets 1,017 1,325 Property, plant and equipment, net of accumulated depreciation 15,540 15,760 Operating lease assets 78 79 Derivative assets 103 98 Other non-current assets, net 192 191 Total assets $ 16,930 $ 17,453 LIABILITIES AND PARTNERS' DEFICIT Current liabilities Accounts payable $ 71 $ 62 Accrued liabilities 667 838 Accrued liabilities—related party — 5 Current debt, net of unamortized discount and debt issuance costs 609 351 Due to affiliates 42 63 Deferred revenue 110 120 Deferred revenue—affiliate 1 3 Current derivative liabilities 142 250 Other current liabilities 13 20 Total current liabilities 1,655 1,712 Long-term debt, net of unamortized discount and debt issuance costs 14,213 14,761 Derivative liabilities 1,136 1,213 Other non-current liabilities 243 252 Other non-current liabilities—affiliate 23 24 Total liabilities 17,270 17,962 Partners' deficit Common unitholders' interest (484.0 million units issued and outstanding at both June 30, 2025 and December 31, 2024) 2,197 1,821 General partner's interest (2% interest with 9.9 million units issued and outstanding at both June 30, 2025 and December 31, 2024) (2,537 ) (2,330 ) Total partners' deficit (340 ) (509 ) Total liabilities and partners' deficit $ 16,930 $ 17,453 Expand (1) Please refer to the Cheniere Energy Partners, L.P. Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed with the Securities and Exchange Commission. Expand Reconciliation of Non-GAAP Measures Regulation G Reconciliations Adjusted EBITDA The following table reconciles our Adjusted EBITDA to U.S. GAAP results for the three and six months ended June 30, 2025 and 2024 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income $ 553 $ 570 $ 1,194 $ 1,252 Interest expense, net of capitalized interest 188 202 378 404 Loss on modification or extinguishment of debt — 3 — 3 Interest and dividend income, including affiliate (26 ) (9 ) (31 ) (18 ) Income from operations $ 715 $ 766 $ 1,541 $ 1,641 Adjustments to reconcile income from operations to Adjusted EBITDA: Depreciation and amortization expense 171 170 342 338 Gain from changes in fair value of commodity derivatives, net (1) (160 ) (104 ) (119 ) (147 ) Adjusted EBITDA $ 726 $ 832 $ 1,764 $ 1,832 Expand (1) Change in fair value of commodity derivatives prior to contractual delivery or termination Expand Adjusted EBITDA is commonly used as a supplemental financial measure by our management and external users of our Consolidated Financial Statements to assess the financial performance of our assets without regard to financing methods, capital structures, or historical cost basis. Adjusted EBITDA is not intended to represent cash flows from operations or net income as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies. We believe Adjusted EBITDA provides relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operating performance in a manner that is consistent with management's evaluation of financial and operating performance. Adjusted EBITDA is calculated by taking net income before interest expense, net of capitalized interest, depreciation and amortization, and adjusting for the effects of certain non-cash items, other non-operating income or expense items and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, impairment expense, gain or loss on disposal of assets, and changes in the fair value of our commodity derivatives prior to contractual delivery or termination. The change in fair value of commodity derivatives is considered in determining Adjusted EBITDA given that the timing of recognizing gains and losses on these derivative contracts differs from the recognition of the related item economically hedged. We believe the exclusion of these items enables investors and other users of our financial information to assess our sequential and year-over-year performance and operating trends on a more comparable basis and is consistent with management's own evaluation of performance.
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Installed Building Products Reports Record Second Quarter 2025 Results; Declares Regular Quarterly Cash Dividend
COLUMBUS, Ohio--(BUSINESS WIRE)--Installed Building Products, Inc. (the "Company" or "IBP") (NYSE: IBP), an industry-leading installer of insulation and complementary building products, today announced results for the second quarter ended June 30, 2025. Second Quarter 2025 Highlights (Comparisons are to Prior Year Period) Net revenue increased 3.1% to a second quarter record of $760.3 million Installation revenue increased 2.6% to $715.6 million, including sales from IBP's recent acquisitions Other revenue, net of eliminations, which includes IBP's manufacturing and distribution operations, increased to $44.7 million from $40.3 million Net income increased 5.8% to $69.0 million Adjusted EBITDA* increased 3.2% to $134.0 million Net income per diluted share increased 9.6% to $2.52 Adjusted net income* was $80.8 million, or $2.95 per diluted share Net cash flow from operations increased 14.3% to $90.3 million At June 30, 2025, IBP had $305.2 million in cash and cash equivalents Repurchased 300,000 shares of common stock at a total cost of $49.2 million Declared second quarter dividend of $0.37 per share that was paid to shareholders on June 30, 2025 Recent Developments IBP's Board of Directors declared the third quarter regular cash dividend of $0.37 per share 'IBP continues to deliver strong financial results, demonstrating the high-value installation services we provide our homebuilding customers. Our market positioning and focus on service is especially valuable as many homebuilders rely on relationships with experienced partners to navigate today's evolving market dynamics. While we expect housing affordability to remain a challenge over the near-term, we are confident in the long-term fundamentals of the U.S. housing industry and the effectiveness of our growth-focused capital allocation strategy,' stated Jeff Edwards, Chairman and Chief Executive Officer. Mr. Edwards, added: 'As we maintain a disciplined approach to acquisitions with a focus on favorable returns on invested capital, we continue to identify opportunities to enhance operational and financial performance, while returning capital to shareholders through dividends and share repurchases.' 'Our performance thus far in 2025 reflects the dedication of our entire team and we believe IBP continues to operate from a position of strength as we take advantage of opportunities and navigate any challenges in the second half of the year,' concluded Mr. Edwards. Acquisition Update IBP continues to prioritize profitable growth through its proven strategy of acquiring well-run installers of insulation and complementary building products. To date in 2025, IBP has acquired over $10 million of annual revenue and we continue to focus on acquiring at least $100 million of annual revenue. As previously announced, during the 2025 second quarter, IBP completed the following acquisition: In May 2025, IBP acquired Pro Foamers, Inc., an installer of spray foam and air barrier products in the commercial end market based in Green Bay, Wisconsin with annual revenue of $4 million. 2025 Third Quarter Cash Dividend IBP's Board of Directors has approved the Company's quarterly cash dividend of $0.37 per share, payable on September 30, 2025, to stockholders of record on September 15, 2025. The third quarter regular cash dividend represents a 6% increase from last year's third quarter cash dividend payment. Share Repurchases During the three months ended June 30, 2025, IBP repurchased 300,000 shares of its common stock at a total cost of $49.2 million and 500,000 shares at a total cost of $83.5 million during the six months ended June 30, 2025. At June 30, 2025, the Company had approximately $416.5 million available under its stock repurchase program, expiring March 1, 2026. Second Quarter 2025 Results Overview For the second quarter of 2025, net revenue was a second quarter record of $760.3 million, an increase of 3.1% from $737.6 million for the second quarter of 2024. On a consolidated same branch basis, net revenue increased 0.7% from the prior year quarter. Residential same branch sales within the Company's Installation segment were down 1.1% in the quarter while commercial same branch sales within the Installation segment were up 9.3% from the prior year quarter. Gross profit increased 3.4% to $259.9 million from $251.4 million in the prior year quarter. Gross profit and adjusted gross profit* as a percent of net revenue were a record 34.2%, compared to 34.1% in the same period last year. Adjusted gross profit primarily adjusts for the Company's share-based compensation expense. Selling and administrative expense, as a percent of total revenue, was 19.6% compared to 19.1% in the prior year quarter. Adjusted selling and administrative expense*, as a percent of net revenue, was 18.8% compared to 18.5% in the prior year quarter. Net income was $69.0 million, or $2.52 per diluted share, compared to $65.2 million, or $2.30 per diluted share in the prior year quarter. Net profit margin for the second quarter was 9.1% compared to 8.8% in the prior year quarter. Adjusted net income* was $80.8 million, or $2.95 per diluted share, compared to $80.5 million, or $2.84 per diluted share in the prior year quarter. Adjusted net profit margin* for the second quarter was 10.6% compared to 10.9% in the prior year quarter. Adjusted net income accounts for the impact of non-core items in both periods, including an addback for non-cash amortization expense related to acquisitions. EBITDA* was $128.2 million, a 7.2% increase from $119.6 million in the prior year quarter. Adjusted EBITDA* was $134.0 million, a 3.2% increase from $129.8 million in the prior year quarter, representing an adjusted EBITDA margin* of 17.6% for both periods. Conference Call and Webcast The Company will host a conference call and webcast on August 7, 2025 at 10:00 a.m. Eastern Time to discuss these results. To participate in the call, please dial 877-407-0792 (domestic) or 201-689-8263 (international). The live webcast will be available at in the investor relations section. A replay of the conference call will be available through September 7, 2025 by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13753926. Alternatively, participants can register for the call 15 minutes prior to the event by using the call me option for a faster connection to join the conference call. You can enter your phone number and let the system call you right away. Click here for the call me option. About Installed Building Products Installed Building Products, Inc. is one of the nation's largest new residential insulation installers and is a diversified installer of complementary building products, including waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company manages all aspects of the installation process for its customers, from direct purchase and receipt of materials from national manufacturers to its timely supply of materials to job sites and quality installation. The Company offers its portfolio of services for new and existing single-family and multi-family residential and commercial building projects in all 48 continental states and the District of Columbia from its national network of over 250 branch locations. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws, including with respect to the housing market and the commercial market, our operations, industry and economic conditions, our financial and business model, payment of dividends, the demand for our services and product offerings, expansion of our national footprint and end markets, diversification of our products, our ability to grow and strengthen our market position, our ability to pursue and integrate value-enhancing acquisitions and the expected amount of acquired revenue, our ability to improve sales and profitability, and expectations for demand for our services and our earnings. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intends," "plan," and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Any forward-looking statements that we make herein and in any future reports and statements are not guarantees of future performance, and actual results may differ materially from those expressed in or suggested by such forward-looking statements as a result of various factors, including, without limitation, general economic and industry conditions; increases in mortgage interest rates and rising home prices; inflation and interest rates; the material price and supply environment; increased tariffs; the timing of increases in our selling prices; the risk that the Company may reduce, suspend or eliminate dividend payments in the future; and the factors discussed in the 'Risk Factors' section of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. In addition, any future declaration of dividends will be subject to the final determination of our Board of Directors. Any forward-looking statement made by the Company in this press release speaks only as of the date hereof. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict these events or how they may affect it. The Company has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. *Use of Non-GAAP Financial Measures In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles ('GAAP'), this press release contains the non-GAAP financial measures of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin (i.e., Adjusted EBITDA divided by net revenue), Adjusted Net Income, Adjusted Net Income per diluted share, Adjusted Gross Profit and Adjusted Selling and Administrative expense. The reasons for the use of these measures, reconciliations of EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per diluted share, Adjusted Gross Profit, and Adjusted Selling and Administrative expense to the most directly comparable GAAP measures and other information relating to these measures are included below following the unaudited condensed consolidated financial statements. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for IBP's financial results prepared in accordance with GAAP. INSTALLED BUILDING PRODUCTS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in millions, except share and per share amounts) December 31, 2025 2024 ASSETS Current assets Cash and cash equivalents $ 305.2 $ 327.6 Accounts receivable (less allowance for credit losses of $12.4 and $10.7 at June 30, 2025 and December 31, 2024, respectively) 447.6 433.9 Inventories 192.0 194.6 Prepaid expenses and other current assets 72.6 98.8 Total current assets 1,017.4 1,054.9 Property and equipment, net 177.4 174.8 Operating lease right-of-use assets 100.4 95.6 Goodwill 436.9 432.6 Customer relationships, net 171.0 178.8 Other intangibles, net 88.7 91.7 Other non-current assets 28.3 31.5 Total assets $ 2,020.1 $ 2,059.9 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current maturities of long-term debt $ 33.3 $ 32.4 Current maturities of operating lease obligations 36.1 34.3 Current maturities of finance lease obligations 2.8 2.8 Accounts payable 150.1 146.6 Accrued compensation 63.5 66.4 Other current liabilities 70.8 76.5 Total current liabilities 356.6 359.0 Long-term debt 842.8 842.4 Operating lease obligations 64.2 61.0 Finance lease obligations 4.2 5.4 Deferred income taxes 23.0 26.3 Other long-term liabilities 64.8 60.5 Total liabilities 1,355.6 1,354.6 Commitments and contingencies (Note 16) Stockholders' equity Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively — — Common stock; $0.01 par value: 100,000,000 authorized, 33,835,259 and 33,713,662 issued and 27,326,871 and 27,758,491 shares outstanding at June 30, 2025 and December 31, 2024, respectively 0.3 0.3 Additional paid in capital 275.4 261.3 Retained earnings 912.5 865.5 Treasury stock; at cost: 6,508,388 and 5,955,171 shares at June 30, 2025 and December 31, 2024, respectively (549.3 ) (456.8 ) Accumulated other comprehensive income 25.6 35.0 Total stockholders' equity 664.5 705.3 Total liabilities and stockholders' equity $ 2,020.1 $ 2,059.9 Expand INSTALLED BUILDING PRODUCTS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in millions) Six months ended June 30, 2025 2024 Cash flows from operating activities Net income $ 114.4 $ 121.1 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization of property and equipment 32.7 28.0 Amortization of operating lease right-of-use assets 17.9 16.3 Amortization of intangibles 20.2 21.2 Amortization of deferred financing costs and debt discount 0.8 0.8 Provision for credit losses 4.0 3.1 Write-off of debt issuance costs — 1.1 Gain on sale of property and equipment (0.7 ) (1.2 ) Non-cash stock compensation 11.2 8.7 Asset impairment — 4.9 Other, net (5.6 ) (6.8 ) Changes in assets and liabilities, excluding effects of acquisitions Accounts receivable (16.4 ) (18.4 ) Inventories 3.0 (11.4 ) Other assets 13.1 5.1 Accounts payable 4.5 (1.6 ) Income taxes receivable/payable — (0.6 ) Other liabilities (16.6 ) (6.5 ) Net cash provided by operating activities 182.5 163.8 Cash flows from investing activities Purchases of property and equipment (35.8 ) (42.6 ) Acquisitions of businesses, net of cash acquired of $— in 2025 and 2024, respectively (11.3 ) (22.7 ) Proceeds from sale of property and equipment 1.2 1.8 Settlements with interest rate swap counterparties 6.9 9.0 Other (4.2 ) (0.7 ) Net cash used in investing activities $ (43.2 ) $ (55.2 ) Six months ended June 30, 2025 2024 Cash flows from financing activities Proceeds from Term Loan $ — $ 142.9 Payments on Term Loan (2.5 ) (134.2 ) Proceeds from vehicle and equipment notes payable 18.1 15.0 Debt issuance costs — (1.5 ) Principal payments on long-term debt (14.8 ) (15.5 ) Principal payments on finance lease obligations (1.4 ) (1.5 ) Dividends paid (67.7 ) (65.2 ) Acquisition-related obligations (1.5 ) (1.0 ) Repurchase of common stock (83.5 ) (45.7 ) Surrender of common stock awards by employees (8.4 ) (8.1 ) Net cash used in financing activities (161.7 ) (114.8 ) Net change in cash and cash equivalents (22.4 ) (6.2 ) Cash and cash equivalents at beginning of period 327.6 386.5 Cash and cash equivalents at end of period $ 305.2 $ 380.3 Supplemental disclosures of cash flow information Net cash paid during the period for: Interest $ 20.5 $ 21.9 Income taxes, net of refunds 36.6 42.7 Supplemental disclosures of non-cash activities Right-of-use assets obtained in exchange for operating lease obligations $ 22.9 $ 23.6 Property and equipment obtained in exchange for finance lease obligations 0.3 1.8 Seller obligations in connection with acquisition of businesses 1.7 2.2 Unpaid purchases of property and equipment included in accounts payable 4.2 2.7 Accrued excise tax on common stock repurchases 0.6 — Expand INSTALLED BUILDING PRODUCTS, INC. SEGMENT INFORMATION (unaudited, in millions) Information on Segments Our Company has three operating segments consisting of Installation, Distribution and Manufacturing. The Other category reported below reflects the operations of our Distribution and Manufacturing operating segments. The following tables represent our segment information for the three and six months ended June 30, 2025 and 2024 (in millions): (1) Cost of sales included in the Installation segment gross profit is exclusive of depreciation and amortization for the three and six months ended June 30, 2025 and 2024. Expand The reconciliation of Installation revenue and segment gross profit for each period as shown in the table above to consolidated net revenue and income before income taxes is as follows (in millions): (1) Other revenue and other gross profit include the remaining two operating segments, Distribution and Manufacturing before inter-segment eliminations. These operating segments are each below the quantitative thresholds for being reported as a reportable segment for the three and six months ended June 30, 2025 and 2024. Expand Reconciliation of Non-GAAP Financial Measures EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Gross Profit and Adjusted Selling and Administrative Expense measure performance by adjusting GAAP net income, EBITDA, gross profit and selling and administrative expense, respectively, for certain income or expense items that are not considered part of our core operations. We believe that the presentation of these measures provides useful information to investors regarding our results of operations because it assists both investors and us in analyzing and benchmarking the performance and value of our business. We believe the Adjusted EBITDA measure is useful to investors and us as a measure of comparative operating performance from period to period as it measures our changes in pricing decisions, cost controls and other factors that impact operating performance, and removes the effect of our capital structure (primarily interest expense), asset base (primarily depreciation and amortization), items outside our control (primarily income taxes) and the volatility related to the timing and extent of other activities such as asset impairments and non-core income and expenses. Accordingly, we believe that this measure is useful for comparing general operating performance from period to period. In addition, we use various EBITDA-based measures in determining the achievement of awards under certain of our incentive compensation programs. Other companies may define Adjusted EBITDA differently and, as a result, our measure may not be directly comparable to measures of other companies. In addition, Adjusted EBITDA may be defined differently for purposes of covenants contained in our revolving credit facility or any future facility. Although we use the Adjusted EBITDA measure to assess the performance of our business, the use of the measure is limited because it does not include certain material expenses, such as interest and taxes, necessary to operate our business. Adjusted EBITDA should be considered in addition to, and not as a substitute for, GAAP net income as a measure of performance. Our presentation of this measure should not be construed as an indication that our future results will be unaffected by unusual or non-recurring items. This measure has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Because of these limitations, this measure is not intended as an alternative to net income as an indicator of our operating performance, as an alternative to any other measure of performance in conformity with GAAP or as an alternative to cash flow provided by operating activities as a measure of liquidity. You should therefore not place undue reliance on this measure or ratios calculated using this measure. We also believe the Adjusted Net Income measure is useful to investors and us as a measure of comparative operating performance from period to period as it measures our changes in pricing decisions, cost controls and other factors that impact operating performance, and removes the effect of certain non-core items such as discontinued operations, acquisition related expenses, amortization expense, the tax impact of these certain non-core items, and the volatility related to the timing and extent of other activities such as asset impairments and non-core income and expenses. To make the financial presentation more consistent with other public building products companies, beginning in the fourth quarter 2016 we included an addback for non-cash amortization expense related to acquisitions. Accordingly, we believe that this measure is useful for comparing general operating performance from period to period. Other companies may define Adjusted Net Income differently and, as a result, our measure may not be directly comparable to measures of other companies. In addition, Adjusted Net Income may be defined differently for purposes of covenants contained in our revolving credit facility or any future facility. INSTALLED BUILDING PRODUCTS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES ADJUSTED NET INCOME CALCULATIONS (unaudited, in millions, except share and per share amounts) The tables below reconcile Adjusted Net Income to the most directly comparable GAAP financial measure, net income, for the periods presented therein. We have included Adjusted Net Income in this press release because it is a key measure used by our management team to understand the operating performance and profitability of our business. During the three months ended June 30, 2024, we decided to wind down the operations of a single new commercial end market-oriented branch that focused on the installation of a non-core end product, due to shifting market conditions, an unfavorable contract settlement, and sub-standard operating performance. For the periods ended June 30, September 30, and December 31, 2024 we reported Adjusted Net Income (Loss), Diluted Adjusted Net Income (Loss) per Share, dispositions and net of dispositions in order to provide useful insight and metrics relevant to understanding and evaluating the results of our ongoing operations given plans to close a single new commercial end market-oriented branch. As of the three months ended June 30, 2025, the closing of this branch is essentially complete and its financial results were insignificant. Therefore, we have chosen not to report any financial results for dispositions or net of dispositions in the tables below. Per share figures may reflect rounding adjustments and consequently totals may not appear to sum. Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net income, as reported $ 69.0 $ 65.2 $ 114.4 $ 121.1 Adjustments for adjusted net income Share-based compensation expense 5.3 4.7 11.2 8.7 Acquisition related expenses 0.5 0.6 1.0 1.1 Amortization expense (1) 10.1 10.5 20.2 21.2 Loan refinancing expenses (2) — — — 4.1 Asset impairment (3) — 4.9 — 4.9 Tax impact of adjusted items at a normalized tax rate (4) (4.1 ) (5.4 ) (8.4 ) (10.4 ) Adjusted net income $ 80.8 $ 80.5 $ 138.4 $ 150.7 Weighted average shares outstanding (diluted) 27,403,669 28,317,801 27,549,791 28,351,401 Diluted net income per share, as reported $ 2.52 $ 2.30 $ 4.15 $ 4.27 Adjustments for diluted adjusted net income, net of tax impact, per share (5) 0.43 0.54 0.87 1.05 Diluted adjusted net income per share $ 2.95 $ 2.84 $ 5.02 $ 5.32 Expand (1) Addback of all non-cash amortization resulting from business combinations. (2) Includes $1.1 million of non-cash write-off of capitalized loan expense and $3.0 million of cash paid to third parties in connection with loan refinancing for the three months ended March 31, 2024. (3) During the three and six months ended June 30, 2024, we recognize intangible and asset impairment charges for a combined amount of $4.9 million related to winding down the operations of a branch that installs one of our non-core building products. (4) Normalized effective tax rate of 26.0% applied to periods presented. (5) Includes adjustments related to the items noted above, net of tax. Expand INSTALLED BUILDING PRODUCTS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES ADJUSTED GROSS PROFIT CALCULATIONS (unaudited, in millions) The table below reconciles Adjusted Gross Profit to the most directly comparable GAAP financial measure, gross profit, for the periods presented therein. INSTALLED BUILDING PRODUCTS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES ADJUSTED SELLING AND ADMINISTRATIVE EXPENSE CALCULATIONS (unaudited, in millions) The table below reconciles Adjusted Selling and Administrative to the most directly comparable GAAP financial measure, selling and administrative, for the periods presented therein. Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Selling expense $ 35.7 $ 34.5 $ 71.1 $ 67.8 Administrative expense 113.1 106.7 221.5 209.3 Selling and Administrative expense, as reported 148.8 141.2 292.6 277.1 Share-based compensation expense 5.0 4.4 10.6 8.2 Acquisition related expenses 0.5 0.6 1.0 1.1 Adjusted Selling and Administrative expense $ 143.3 $ 136.2 $ 281.0 $ 267.8 Selling and Administrative expense - % Total revenue 19.6 % 19.1 % 20.2 % 19.4 % Adjusted Selling and Administrative expense - % Total revenue 18.8 % 18.5 % 19.4 % 18.7 % Expand INSTALLED BUILDING PRODUCTS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES EBITDA AND ADJUSTED EBITDA CALCULATIONS (unaudited, in millions) The tables below reconcile EBITDA and Adjusted EBITDA to the most directly comparable GAAP financial measure, net income, for the periods presented therein. For the periods ended June 30, September 30, and December 31, 2024 we reported Adjusted EBITDA, dispositions and net of dispositions in order to provide useful insight and metrics relevant to understanding and evaluating the results of our ongoing operations given plans to close a single new commercial end market-oriented branch. As of the three months ended June 30, 2025, the closing of this branch is essentially complete and its financial results were insignificant. Therefore, we have chosen not to report any financial results for dispositions or net of dispositions in the tables below. Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net income, as reported $ 69.0 $ 65.2 $ 114.4 $ 121.1 Interest expense 8.3 8.2 16.6 20.1 Provision for income tax 24.4 21.5 40.3 42.0 Depreciation and amortization 26.5 24.7 52.9 49.2 EBITDA 128.2 119.6 224.2 232.4 Acquisition related expenses 0.5 0.6 1.0 1.1 Share based compensation expense 5.3 4.7 11.2 8.7 Asset impairment (1) — 4.9 — 4.9 Adjusted EBITDA $ 134.0 $ 129.8 $ 236.4 $ 247.1 Net profit margin 9.1 % 8.8 % 7.9 % 8.5 % EBITDA margin 16.9 % 16.2 % 15.5 % 16.2 % Adjusted EBITDA margin 17.6 % 17.6 % 16.4 % 17.3 % Expand (1) During the three and six months ended June 30, 2024, we recognized intangible and asset impairment charges for a combined amount of $4.9 million related to winding down the operations of a branch that installs one of our non-core building products. Expand INSTALLED BUILDING PRODUCTS, INC. SUPPLEMENTARY TABLE (unaudited) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Period-over-period Growth Consolidated Sales Growth 3.1 % 6.6 % 1.0 % 5.9 % Consolidated Same Branch Sales Growth 0.7 % 4.8 % (1.7 )% 3.9 % Installation Sales Growth 2.6 % 7.0 % 0.7 % 6.2 % Same Branch Sales Growth 0.6 % 5.2 % (1.5 )% 4.2 % Single-Family Sales Growth 2.6 % 10.4 % 0.9 % 7.1 % Single-Family Same Branch Sales Growth (0.4 )% 7.9 % (2.3 )% 4.7 % Multi-Family Sales Growth (3.9 )% 6.2 % (4.0 )% 9.6 % Multi-Family Same Branch Sales Growth (4.0 )% 5.2 % (4.5 )% 8.8 % Residential Sales Growth 1.2 % 9.4 % (0.2 )% 7.7 % Residential Same Branch Sales Growth (1.1 )% 7.3 % (2.8 )% 5.6 % Commercial Sales Growth (1) 10.0 % (4.1 )% 3.8 % (0.7 )% Commercial Same Branch Sales Growth 9.3 % (5.3 )% 3.3 % (3.1 )% Other (2) Sales Growth 28.7 % 4.3 % 19.3 % 4.2 % Same Branch Sales Growth 20.2 % 2.4 % 8.6 % 3.2 % Same Branch Sales Growth - Installation Volume Growth (3) (1.1 )% (1.4 )% (3.3 )% (1.4 )% Price/Mix Growth (3) 0.8 % 6.4 % 1.1 % 5.1 % U.S. Housing Market (4) Total Completions Growth (13.1 )% 12.6 % (6.5 )% 9.1 % Single-Family Completions Growth (9.8 )% 8.6 % (3.4 )% 1.8 % Multi-Family Completions Growth (19.7 )% 20.7 % (12.2 )% 24.4 % Expand (1) Our commercial end market consists of heavy and light commercial projects. (2) Other business segment category includes our manufacturing and distribution businesses operating segments. (3) The heavy commercial end market is excluded from these metrics given its much larger per-job revenue compared to our average job. (4) U.S. Census Bureau data, as revised. Expand INSTALLED BUILDING PRODUCTS, INC. INCREMENTAL REVENUE AND ADJUSTED EBITDA MARGINS (unaudited, in millions) Revenue Increase Three months ended June 30, Six months ended June 30, 2025 % Total 2024 % Total 2025 % Total 2024 % Total Same Branch $ 5.0 22.0 % $ 32.5 71.4 % $ (24.0 ) (163.3 )% $ 51.9 65.6 % Acquired 17.7 78.0 % 13.0 28.6 % 38.7 263.3 % 27.2 34.4 % Total $ 22.7 100.0 % $ 45.5 100.0 % $ 14.7 100.0 % $ 79.1 100.0 % Expand Adjusted EBITDA Margin Contributions * Three months ended June 30, Six months ended June 30, 2025 % Margin 2024 % Margin 2025 % Margin * 2024 % Margin Same Branch (1) $ 0.8 16.0 % $ 5.4 16.6 % $ (17.4 ) (72.5 )% $ 15.1 29.1 % Acquired 3.3 18.6 % 2.3 17.7 % 6.7 17.3 % 4.8 17.6 % Total $ 4.1 18.1 % $ 7.7 16.9 % $ (10.7 ) NMF $ 19.9 25.2 % Expand (1) Same branch adjusted EBITDA margin contribution percentage is a percentage of same branch revenue increase. * During the six months ended June 30, 2025, same branch revenue decreased and same branch and total adjusted EBITDA decreased. The negative same branch % margin result reflects a decremental margin. NMF - Not meaningful figure. Expand
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United Homes Group, Inc. Reports 2025 Second Quarter Results
COLUMBIA, S.C.--(BUSINESS WIRE)--United Homes Group, Inc. (the 'Company') (NASDAQ: UHG) today announced results for the three and six months ended June 30, 2025. Second Quarter 2025 Operating Results For the second quarter 2025, net loss was $6.3 million, or $0.11 per diluted share, which included a loss from the change in fair value of derivative liabilities of $6.2 million, with that change predominantly due to changes in fair value on potential earn-out consideration due to fluctuation in the stock price during the measurement period, representing a non-cash item. The earnout consideration would be paid in common shares upon reaching certain stock price hurdles. The Company is required to record the fair value of this earnout as derivative liabilities on the Condensed Consolidated Balance Sheets and to record changes in fair value of derivative liabilities on the Condensed Consolidated Statements of Operations, in each case until UHG shares reach certain predetermined values or expiration of the five year earnout period. Net income for the second quarter 2024 was $28.6 million, or $0.50 per diluted share, which included income from the change in fair value of derivative liabilities of $32.1 million. Total Stockholders' equity for the second quarter 2025 was $82.2 million. Adjusted book value 1, which excludes the derivative liability and goodwill, was $96.9 million. 'United Homes Group made progress on a number of fronts in the second quarter of 2025,' said Jack Micenko, Chief Executive Officer and President of United Homes Group. 'We continued to reap the benefits of the refreshed product initiative we implemented last year. We also made further strides in our efforts to improve our direct cost efficiency through the systematic rebidding of the materials and labor that go into our homes. We expect these initiatives, as well as several new communities set to be opened, to have a more significant impact on our results as we head into the second half of the year.' Revenue, net of sales discounts, for the second quarter 2025 was $105.5 million, compared to $109.4 million in the second quarter 2024. Home closings during the second quarter 2025 were 303 compared to 337 in the second quarter 2024. Net new home orders during the second quarter 2025 were 304 compared to 323 in the second quarter 2024. ASP of 302 production-built homes (which excludes one percentage of completion home) closed during the second quarter 2025 was approximately $349,000, compared to approximately $341,000 during the second quarter 2024 for 299 production-built homes (which excludes two percentage of completion homes and 36 build to rent homes), representing a 2.5% increase. Gross margin during the second quarter of 2025 was 18.9% compared to 17.9% during the second quarter 2024. Gross margins improved in the second quarter of 2025, driven by closing a healthy mixture of homes featuring redesigned floor plans, direct construction cost savings as a result of the rebid initiative, and less non-recurring expenses compared to the same quarter in 2024. Adjusted gross margin 2 in the second quarter 2025 was 21.3%, compared to 20.9% in the second quarter 2024. The increase in adjusted gross margin was attributable to the closings associated with redesigned floor plans and direct construction cost savings. 'Gross margins came in at 18.9% for the quarter, representing a 270 basis point improvement over the prior quarter,' said Keith Feldman, Chief Financial Officer of United Homes Group. 'We believe that this margin expansion is a testament to the appeal of our refreshed product and our rebid initiative, and we feel that we are well positioned as we head into the second half of 2025.' Selling, general and administrative expenses ("SG&A") as a percentage of revenues was 17.1% in the second quarter 2025, which included $1.4 million of stock-based compensation, $0.7 million of transaction-related expenses, and $0.1 million related to severance costs. Excluding stock-based compensation, transaction-related expense, and severance expense, Adjusted SG&A 3 for the second quarter 2025 was 14.9% of revenues. Adjusted EBITDA 4 during the second quarter 2025 was $7.2 million compared to $7.7 million during the second quarter 2024. Six Months Ended June 30, 2025 Operating Results For the six months ended June 30, 2025, net income was $11.8 million, or $0.20 per diluted share, which included income from the change in fair value of derivative liabilities of $15.0 million, with that change predominantly due to changes in fair value on potential earn-out consideration due to fluctuation in the stock price during the measurement period, representing a non-cash item. Net income for the six months ended June 30, 2024 was $53.6 million, or $0.93 per diluted share, which included income from the change in fair value of derivative liabilities of $58.4 million. Revenue, net of sales discounts, for the six months ended June 30, 2025 was $192.5 million, compared to $210.3 million for the six months ended June 30, 2024. Home closings during the six months ended June 30, 2025 were 555 compared to 648 in the six months ended June 30, 2024. Net new home orders during the six months ended June 30, 2025 were 600 compared to 707 for the six months ended June 30, 2024. ASP of 553 production-built homes (which excludes two percentage of completion homes) closed during the six months ended June 30, 2025 was approximately $347,000, compared to approximately $338,000 during the six months ended June 30, 2024 for 585 production-built homes (which excludes three percentage of completion home and 60 build to rent homes), representing an increase of 2.7%. Gross margin during the six months ended June 30, 2025 was 17.7% compared to 17.0% during the six months ended June 30, 2024. Gross margin increased slightly, primarily due to the large number of home closings constructed with redesigned floor plans, which carry higher margins, coupled with lower interest expense as a percentage of revenue within cost of sales, partially offset by higher incentive-related costs. Adjusted gross margin during the six months ended June 30, 2025 was 20.2%, compared to 20.7% for the six months ended June 30, 2024. Adjusted gross margin declined, primarily due to higher incentives partially offset by homes closed with redesigned floor plans in 2025. Selling, general and administrative expenses ("SG&A") as a percentage of revenues was 17.8% in the six months ended June 30, 2025, which included $3.4 million of stock-based compensation, $0.7 million of transaction-related expenses, and $0.1 million related to severance costs. Excluding stock-based compensation, transaction-related expense, and severance expense, Adjusted SG&A for the six months ended June 30, 2025 was 15.6% of revenues. Adjusted EBITDA during the six months ended June 30, 2025 was $10.1 million compared to $14.9 million during the six months ended June 30, 2024. Recent Developments On May 19, 2025, the Company announced that its Board of Directors initiated a process to explore strategic alternatives, including a sale of the Company, a sale of assets, and a refinancing of existing indebtedness, among others, to maximize shareholder value. This process remains ongoing. No assurances can be given as to the outcome or timing of the Board's process. The Company does not intend to make any further comment regarding the process until the Board of Directors has approved a specific course of action or the Company has otherwise determined that disclosure is appropriate. Earnings Conference Call The Company will host a conference call via live webcast for investors and other interested parties beginning at 8:30 a.m. Eastern Time on Thursday, August 7, 2025. Interested parties can listen to the call live on the Internet under the Events & Presentations heading in the Investors section of the Company's website at Listeners should log into the website at least fifteen minutes prior to the call to download and install any necessary audio software. The call can also be accessed toll free at 800-715-9871, or 646-307-1963 for international participants, Conference ID: 3108794. Those dialing in should do so at least ten minutes prior to the start of the call. An archive of the webcast will also be available on the Company's website. 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, expansion plans, future operations, future operating results, estimated revenues, losses, projected costs, prospects, 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, including potential tariffs; 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; the potential for disruption to our business resulting from the process of reviewing strategic alternatives, and suspension or consummation of the strategic alternatives review process; our ability to successfully integrate homebuilding operations that we acquire; our ability to realize the expected results of strategic initiatives; delays in land development, community openings, or home construction, including delays 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 UNITED HOMES GROUP, INC GAAP TO NON-GAAP RECONCILIATIONS (Unaudited) Adjusted gross profit is a non-GAAP financial measure used by management of the Company as a supplemental measure in evaluating operating performance. The Company defines adjusted gross profit as gross profit excluding the effects of capitalized interest expensed in cost of sales, amortization included in homebuilding cost of sales, abandoned project costs, severance expense in cost of sales, and non-recurring remediation costs. The Company's management believes this information is meaningful because it separates the impact that capitalized interest and non-recurring costs directly expensed in cost of sales have on gross profit to provide a more specific measurement of the Company's gross profits. However, because adjusted gross profit information excludes certain balances expensed in cost of sales, which have real economic effects and could impact the Company's results of operations, the utility of adjusted gross profit information as a measure of the Company's operating performance may be limited. Other companies may not calculate adjusted gross profit information in the same manner that the Company does. Accordingly, adjusted gross profit information should be considered only as a supplement to gross profit information as a measure of the Company's performance. The following table presents a reconciliation of adjusted gross profit to the GAAP financial measure of gross profit for each of the periods indicated (in thousands, except percentages). ____________________ Expand (a) Represents expense recognized resulting from purchase accounting adjustments (b) Calculated as a percentage of revenue Expand UNITED HOMES GROUP, INC GAAP TO NON-GAAP RECONCILIATIONS (Unaudited) Earnings before interest, taxes, depreciation and amortization, or EBITDA, and adjusted EBITDA are supplemental non-GAAP financial measures used by management of the Company. The Company defines EBITDA as net income before (i) capitalized interest expensed in cost of sales, (ii) interest expensed in other (expense) income, net, (iii) depreciation and amortization, and (iv) taxes. The Company defines adjusted EBITDA as EBITDA before stock-based compensation expense, transaction cost expense, amortization included in homebuilding cost of sales, severance expense, abandoned project costs, change in fair value of derivative liabilities, non-recurring remediation costs, and loss on extinguishment of Convertible Notes. Management of the Company believes EBITDA and adjusted EBITDA are useful because they provide a more effective evaluation of UHG's operating performance and allow comparison of UHG's results of operations from period to period without regard to UHG's financing methods or capital structure or other items that impact comparability of financial results from period to period such as fluctuations in interest expense or effective tax rates, levels of depreciation or amortization, or unusual items. EBITDA and adjusted EBITDA should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. UHG's computations of EBITDA and adjusted EBITDA may not be comparable to EBITDA or adjusted EBITDA of other companies. The following table presents a reconciliation of EBITDA and adjusted EBITDA to the GAAP financial measure of net income for each of the periods indicated (in thousands, except percentages). Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net (loss) income $ (6,341 ) $ 28,640 $ 11,839 $ 53,578 Interest expense in cost of sales 1,632 1,659 3,133 5,172 Interest expense in other expense, net 2,383 3,578 4,844 5,720 Depreciation and amortization 515 476 1,007 926 Taxes (251 ) 218 (1,496 ) (903 ) EBITDA $ (2,062 ) $ 34,571 $ 19,327 $ 64,493 Stock-based compensation expense 1,411 1,840 3,368 3,350 Transaction cost expense 707 517 707 1,742 Amortization in homebuilding cost of sales (b) 882 913 1,563 1,861 Severance expense 125 1,504 125 1,504 Abandoned project costs 3 320 58 320 Change in fair value of derivative liabilities 6,171 (32,055 ) (15,038 ) (58,435 ) Non-recurring remediation costs — 50 — 109 Adjusted EBITDA $ 7,237 $ 7,660 $ 10,110 $ 14,944 EBITDA margin (a) (2.0 )% 31.6 % 10.0 % 30.7 % Adjusted EBITDA margin (a) 6.9 % 7.0 % 5.3 % 7.1 % Expand ____________________ Expand (a) Calculated as a percentage of revenue (b) Represents expense recognized resulting from purchase accounting adjustments Expand UNITED HOMES GROUP, INC GAAP TO NON-GAAP RECONCILIATIONS (Unaudited) Adjusted selling, general and administrative expense, or adjusted SG&A, is a supplemental non-GAAP financial measure used by management of the Company. UHG defines adjusted SG&A as SG&A, excluding the effects of stock-based compensation expense, transaction cost expense, and severance expense included in SG&A. Management of UHG believes adjusted SG&A provides useful information to investors because it enables an alternative assessment of the Company's operating results in a manner that is focused on its operating performance. The following table presents a reconciliation of Adjusted SG&A to the GAAP financial measure of SG&A for the three and six months ended June 30, 2025 (in thousands, except percentages). ____________________ Expand (a) Calculated as a percentage of revenue Expand UNITED HOMES GROUP, INC GAAP TO NON-GAAP RECONCILIATIONS (Unaudited) Adjusted book value is a supplemental non-GAAP financial measure used by management of the Company. UHG defines adjusted book value as total stockholders' equity (book value), excluding the effect of goodwill and derivative instruments. Management of UHG believes adjusted book value is useful to investors because it excludes the impact of purchase accounting and fair value adjustments on derivative instruments which are not expected to result in economic gain or loss. The following table presents a reconciliation of adjusted book value to the GAAP financial measure of total stockholders' equity for the period indicated (in thousands). UNITED HOMES GROUP, INC OPERATIONAL METRICS BY MARKET $'s in millions Six Months Ended June 30, 2025 2024 Period Over Period % Change Market Net New Orders Closings Net New Orders Closings Net New Orders Closings Coastal 97 94 130 93 -25 % 1 % Midlands 281 269 378 325 -26 % -17 % Upstate 164 139 168 196 -2 % -29 % Rosewood 33 29 17 22 94 % 32 % Raleigh 25 24 14 12 79 % 100 % Total 600 555 707 648 -15 % -14 % Expand As of June 30, 2025 As of June 30, 2024 Period Over Period % Change Market Backlog Inventory 5 Backlog Value 6 Backlog Inventory 5 Backlog Value 6 Backlog Inventory Backlog Value Coastal 52 $ 19.1 52 $ 18.1 — % 6 % Midlands 83 29.4 125 42.4 -34 % -31 % Upstate 49 16.0 55 15.4 -11 % 4 % Rosewood 14 8.7 11 7.9 27 % 10 % Raleigh 4 1.7 5 1.9 -20 % -11 % Total 202 $ 74.9 248 $ 85.7 -19 % -13 % Expand 1 Adjusted book value is a non-GAAP financial measure. See 'Reconciliation of Non-GAAP Financial Measures.' 2 Adjusted gross margin is a non-GAAP financial measure. See 'Reconciliation of Non-GAAP Financial Measures.' 3 Adjusted SG&A is a non-GAAP financial measure. See 'Reconciliation of Non-GAAP Financial Measures.' 4 Adjusted EBITDA is a non-GAAP financial measure. See 'Reconciliation of Non-GAAP Financial Measures.' 5 Backlog inventory consists of homes that are under a sales contract but have not closed. Backlog may be impacted by customer cancellations. 6 Backlog value is calculated as the total contract value of homes in backlog. Expand
