Smith Douglas Homes Corp. (NYSE: SDHC) (“Smith Douglas” or the “Company”) today announced third quarter results for the three and nine months ended September 30, 2026.

Q3 2026 Results as compared to Q3 2025:

• Home closings increased 5% to 831
• Home closing revenue increased 0.2% to $262.5 million
• Home closing gross margin of 16.3% compared to 21.0%
• Net new home orders increased 13% to 777
• Backlog homes increased 25% to 947
• Pretax income of $3.3 million compared to $17.2 million
• Earnings of $0.07 per diluted share compared to $0.24
• Debt-to-book capitalization of 18.8% compared to 9.0% at December 31, 2025
• Active community count increased 15% to 113 at quarter end
• Total controlled lots increased 2% to 24,724
• Repurchased 28,370 shares of Class A common stock for $0.3 million

“We continued to execute with discipline during the third quarter despite increasingly challenging housing market conditions,” said Greg Bennett, Chief Executive Officer and Vice Chairman of Smith Douglas Homes. “Higher mortgage rates and affordability pressures have weighed on buyer demand and profitability, but our teams remain focused on things we can control with respect to managing costs, building efficiently, and maintaining a steady absorption pace. We believe our differentiated operating model and commitment to providing affordable, quality homes position us well to navigate the current environment.”

Mr. Bennett continued, “While we expect market conditions to remain challenging in the near term, we remain confident in the long-term demand for affordable housing. Our priorities continue to be running an efficient homebuilding operation and preserving our financial strength while remaining prepared to take advantage of opportunities as conditions improve.”

“Our disciplined approach to capital allocation and land investment remains particularly important in today’s operating environment,” said Russ Devendorf, Executive Vice President and Chief Financial Officer. “Our land-light operating model, efficient construction cycle times, and conservative balance sheet provide us with the flexibility to manage through periods of weaker demand without compromising our long-term objectives. We remain focused on preserving liquidity, managing inventory, and generating attractive returns on invested capital, while positioning Smith Douglas to emerge from this challenging period in a strong competitive position.”

Conference Call & Webcast Information

Management will host a conference call to discuss the Company’s results at 8:30 a.m. Eastern Time on November 4, 2026. 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.

To join with dial-in:
Local: (+1) 585-542-9983
Toll Free: (+1) 833-461-5787
Conference ID: 245281666

A replay of the call will be available on the Company’s website shortly after the call concludes.