Smith Douglas Homes Q3 profit drops as revenue stays flat in challenging market
SDHC•Smith Douglas Homes reported flat year-over-year Q3 revenue and net income of $3.03 million as higher mortgage rates and affordability pressures weighed on profitability. Net new home orders and backlog homes rose, and the company repurchased 28,370 shares.
1. Q3 results
Smith Douglas Homes reported flat year-over-year revenue for the third quarter and net income of $3.03 million. The company cited higher mortgage rates and affordability pressures as weighing on buyer demand and profitability.
2. Orders and outlook
Net new home orders and backlog homes rose, and the company repurchased 28,370 shares. Smith Douglas Homes expects housing market conditions to remain challenging in the near term and said it is focused on preserving liquidity, managing inventory and costs, building efficiently, and maintaining a steady absorption pace.
