Smith Douglas (SDHC) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 30, 2026 astatine 10:44 AM CDT 33 min read

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Date

Wednesday, Apr. 29, 2026 astatine 8:30 a.m. ET

Call participants

• Chief Executive Officer — Greg Bennett

• Chief Financial Officer — Russ Devendorf

• President — Joe Thomas

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Full Conference Call Transcript

Greg Bennett: Good morning, and convey you for joining america contiguous to reappraisal our results for archetypal 4th of 2026 and supply an update connected our operations. Smith Douglas Homes generated $4.3 cardinal successful pretax income for the quarter, nett income of $0.06 per share. We delivered 624 homes, which came successful astatine the precocious extremity of our guidance range, portion location closing gross borderline exceeded expectations astatine 19.6% connected a GAAP basis. For the quarter, we generated 981 nett caller orders, up 28% from a twelvemonth agone and a caller quarterly grounds for the company.

While bid enactment remained choppy passim the quarter, we experienced a sequential betterment successful our income gait each period of the quarter, culminating successful a income gait of 4 homes per assemblage successful the period of March. Financing incentives proceed to beryllium a cardinal selling instrumentality arsenic buyers stay motivated to ain a home, provided they tin unafraid a monthly owe outgo that fits their budget. We are encouraged by the terms elasticity we experienced during the 4th arsenic incremental adjustments successful pricing led to an uptick successful demand. We presumption this arsenic an indicator that underlying request remains intact crossed our markets contempt broader macroeconomic uncertainty.

From an operational standpoint, we stay focused connected gait implicit terms philosophy, which means maintaining a accordant cadence of starts, driving businesslike inventory turns and driving towards a much presale oriented backlog. Our mean physique clip was 57 days during the quarter, accordant with anterior period, and we proceed to presumption our quality to present homes rapidly and reliably with an offering of location prime and personalization arsenic a cardinal competitory advantage. Our land-light strategy besides remains cardinal to however we operate. By relying connected third-party batch developers, we're capable to allocate superior efficiently and support flexibility done varying marketplace conditions. We judge this attack positions america good to negociate hazard portion continuing to standard the business.

We besides made advancement connected our maturation initiatives during the quarter. Community number expanded to 108 progressive communities crossed our markets, up 24% from a twelvemonth ago, and we proceed to ramp operations successful our caller markets specified arsenic Dallas, Chattanooga, Greenville and Alabama Gulf Coast. Our acquisition successful Houston continues to show that our operating exemplary translates good beyond our bequest footprint, and we stay focused connected executing a disciplined and opportunistic enlargement strategy implicit time. As we determination done the outpouring selling season, we are encouraged by income orders generated during the quarter, which helps rebuild backlog and supply momentum heading into the 2nd quarter.