Smith Douglas Homes stock price rose by 3%, despite Q4 earnings falling short of expectations

LootboxPhobia · 2026-03-11T16:38:52+00:00

Smith Douglas Homes announced a Q4 earnings of $0.39 per share, below expectations, but revenue of $260.4 million exceeded forecasts. Despite declines in housing deliveries and gross margin, the company performed well in a competitive environment. The company expects sales activity to improve in spring 2026.

LootboxPhobia

2026-03-11 16:38:52

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Atlanta - Wednesday, Smith Douglas Homes Corp. (NYSE:SDHC) announced its fourth-quarter adjusted earnings per share of $0.39, below analysts’ expectations of $0.75, but revenue of $260.4 million exceeded expectations.

The homebuilder’s stock rose 3.05% in after-hours trading, mainly driven by better-than-expected gross margins and encouraging sales activity early in 2026.

The company delivered 780 homes in the fourth quarter, down 7% year-over-year, with revenue decreasing 9% to $287.5 million compared to the same period last year. However, the 19.9% gross margin on home deliveries exceeded the company’s guidance range, despite a decline from 25.5% in Q4 2024. Net new home orders declined 7% year-over-year to 532 units.

For the full year 2025, Smith Douglas delivered 2,908 homes, up 1% year-over-year, while revenue decreased 0.4% to $971.1 million. Full-year adjusted diluted earnings per share were $1.19, below $1.81 in 2024.

As of year-end, the company increased the number of active communities by 28% to 100 and the total controlled land parcels by 14% to 22,268.

“Smith Douglas Homes finished 2025 on a strong note, achieving record annual deliveries, with Q4 deliveries and gross margins both exceeding our guidance range,” said Vice Chairman and CEO Greg Bennett. “Despite a challenging sales environment, with affordability pressures and intense competitive discounts, our team maintained discipline in sustaining sales velocity and operational efficiency.”

The company’s debt-to-capitalization ratio increased from 0.8% last year to 9.0%. The full-year gross margin on home deliveries compressed from 26.2% in 2024 to 21.8%, reflecting market competition pressures.

Executive Vice President and CFO Russ Devendorf noted that although sales activity remained volatile at year-end, the company saw encouraging traffic and order activity as it entered the spring 2026 sales season.

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