Smith Douglas Homes Corp. (NYSE: SDHC) (“Smith Douglas” or the “Company”) today announced second quarter results for the three and six months ended June 30, 2025.

Q2 2025 Results as compared to Q2 2024:

• Home closings increased 2% to 669

• Home closing revenue increased 1% to $223.9 million

• Home closing gross margin of 23.2% compared to 26.7%

• Net new home orders increased 2.9% to 736

• Pretax income of $17.2 million compared to $25.9 million

• Earnings of $0.26 per diluted share compared to $0.40

• Debt-to-book capitalization of 15.2% compared to 0.8% at December 31, 2024

• Active community count increased 23% to 92 at quarter end

• Total controlled lots increased 57% to 24,824

Greg Bennett, Vice Chairman and Chief Executive Officer, commented, “Smith Douglas Homes delivered strong results in the second quarter of 2025, driven by our disciplined approach to homebuilding and our team’s solid execution. Home closings for the quarter came in above our stated guidance range, while our home closing gross margin of 23.2% was at the high end of the range. We generated pretax income of $17.2 million in the second quarter and posted earnings of $0.26 per diluted share. I am proud of the way our team members performed this quarter and feel we are well-positioned to continue to deliver on and improve our strong execution as we head into the second half of 2025.”

Russ Devendorf, Executive Vice President and Chief Financial Officer added, “Throughout the second quarter, new home sales continued to be uneven in our markets due to affordability constraints and macroeconomic concerns among some potential buyers. We believe there is pent up demand for home ownership in our markets and continue to use financing incentives as a tool in driving traffic and converting sales."

Mr. Devendorf continued, “We ended the second quarter with 57% more lots under control and 23% more new communities open than we had in the same period last year, putting us in a great position to expand our operations and increase our market share. I am pleased we were able to make these investments and still maintain a strong balance sheet, as our net debt-to-net book capitalization ratio at the end of the quarter was 12.1%. This financial strength, coupled with our asset light strategy and quick-turn operational focus, gives me confidence in the long-term future of Smith Douglas Homes.”

Conference Call & Webcast Information

Management will host a conference call to discuss the Company’s results at 8:30 a.m. Eastern Time on August 6, 2025. Interested parties can dial in using the numbers below or access the call via a webcast link provided in the investor relations section of the company’s website.

Dial-in Numbers:

Toll Free - North America (+1) 800-715-9871
International: (+1) 646-307-1963
Conference ID: 8459388

Replay Numbers:

Toll Free - North America: (+1) 800-770-2030
Playback Passcode: 8459388
Replay will expire 7 days following the event