Smith Douglas Delivers Record 2,908 Homes in 2025, Q4 Margin at 19.9%
Smith Douglas delivered a record 2,908 homes in 2025 on $971 million revenue, posting Q4 gross margin of 19.9% and net income of $17 million. Active communities rose 28% to 100, while net debt remained low at 6.6% of book capitalization and backlog totaled $173 million.
1. Record Deliveries and Revenue Growth
In Q4 2025, the company delivered a record 780 homes, contributing to a full-year total of 2,908 home deliveries and generating $260 million in Q4 revenue and $971 million for the full year. Net new orders reached 532 homes in Q4 and 2,726 for 2025, underscoring strong underlying demand.
2. Profitability and Cost Trends
Gross margin improved to 19.9% in Q4 (21.8% for the full year), exceeding prior guidance despite year-over-year compression from 26.2%. Net income in Q4 was $17 million (adjusted $12.8 million), while SG&A expenses rose to 13.8% of Q4 revenue and 14.4% for the full year, reflecting increased operational investment.
3. Conservative Balance Sheet and Backlog
Cash balances stood at $12.7 million against $44.1 million in notes payable, resulting in a debt-to-book capitalization ratio of 9% and net debt at 6.6% of book capital. Backlog comprised 512 homes with an average sales price of $337,000, totaling approximately $173 million in future revenue.
4. Community Expansion and 2026 Outlook
Active community count expanded by 28% to 100 communities, and controlled lots increased 14% to about 22,300. Early 2026 sales pace followed typical seasonality—slower in January, accelerating in February and March—with positive but inconsistent demand trends noted per community.