Latest news with #UnitedHomesGroup
Yahoo
7 days ago
- Business
- Yahoo
United Homes Stock Slips Post Q2 Earnings Despite Higher Margins
Shares of United Homes Group, Inc. UHG have lost 0.5% since the company reported its earnings for the quarter ended June 30, 2024, underperforming the S&P 500 Index's 0.5% gain over the same period. Over the past month, however, UHG shares have surged 37.1%, far outpacing the S&P 500's 2.1% growth. UHG's Financial Performance Snapshot For the second quarter of 2025, UHG posted revenues of $105.5 million, down 3.6% from $109.4 million in the prior-year period, reflecting a 10.1% decline in home closings to 303 units from 337. The average sales price rose 2.3% to $349,000 from $341,000, partially offsetting volume weakness. Gross margin improved 100 basis points year over year to 18.9% from 17.9%, aided by cost efficiencies and higher-margin redesigned floor plans. Adjusted gross margin in second-quarter 2025 increased to 21.3% from 20.9%. However, United Homes incurred a net loss of $6.3 million, or $0.11 per share, against a net income of $28.6 million, or $0.50 per share, a year earlier, primarily due to a $6.2 million non-cash fair value adjustment related to contingent earn-out liabilities. Adjusted EBITDA came in at $7.2 million, down 5.5% from $7.7 million in the year-ago quarter, with an adjusted EBITDA margin of 6.9%. United Homes' Other Key Business Metrics Net new orders for the quarter fell 5.9% year over year to 304 homes from 323, with declines in most markets except the Upstate and Rosewood regions, where net new orders grew 26% and 78%, respectively. Raleigh saw a 20% drop in net new orders, though closings in the market increased 13%. Segmental closings also varied — Rosewood saw a 100% increase in closings, while Midlands and Upstate closings dropped 17% and 14%, respectively. Backlog as of June 30, 2025, stood at 202 homes valued at approximately $74.9 million compared with 248 valued at approximately $85.7 million a year earlier. Available liquidity totaled $95.2 million as of June 30, 2025, including $36.5 million in cash and $58.7 million in unused credit capacity. United Homes Group, Inc. Price, Consensus and EPS Surprise United Homes Group, Inc. price-consensus-eps-surprise-chart | United Homes Group, Inc. Quote UHG's Management Commentary CEO Jack Micenko highlighted the continued positive impact of United Homes' refreshed product initiative, which has not only boosted sales pace but also enhanced profitability, with refreshed home gross margins trending about 300 basis points above legacy designs. The company also maintained a focus on affordability, pricing its homes significantly below the U.S. median and average new home prices. CFO Keith Feldman emphasized the 270-basis-point sequential improvement in gross margin, attributing it to product mix and cost-saving measures. Factors Influencing United Homes' Headline Numbers Revenue decline stemmed from lower unit volumes, driven partly by a 10.1% drop in average community count and market conditions marked by high mortgage rates and affordability challenges. The average sales price increase and gross margin expansion were supported by the rollout of redesigned floor plans and direct construction cost savings from United Homes' rebidding initiative. Operating expenses, while slightly lower in dollar terms year over year, remained elevated as a percentage of revenue due to reduced top-line performance. UHG's Guidance While no formal numeric guidance was issued, management expressed confidence in further margin gains in 2025 compared to 2024, citing ongoing product enhancements, new community openings in the second half of the year and disciplined land acquisition strategies. United Homes' Other Developments On May 19, 2025, UHG's board of directors announced the initiation of a strategic review process to explore options including a sale of the company, asset sales or refinancing existing debt to maximize shareholder value. The process remains ongoing, with no definitive outcome or timeline disclosed. 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
Business Wire
07-08-2025
- Business
- Business Wire
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
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
