United Homes Group, Inc. Reports Preliminary 2025 First Quarter Unit Statistics
United Homes Group (NASDAQ: UHG) reported declining metrics for Q1 2025, with net new orders down 22.9% to 296 units, home starts decreased 10.1% to 248 units, and closings fell 19.0% to 252 units compared to Q1 2024. The company attributes the reduction in orders to unusual snow conditions in South Carolina markets and a slow start to the spring selling season.
Total inventory decreased 22.1% year-over-year to 563 units, with backlog down 23.3% to 201 units. However, the company reports positive trends in their product refresh initiative, with refreshed products showing approximately 500 basis points higher gross margins compared to overall backlog margins. The company is actively managing finished spec inventory and implementing strategic initiatives to align community-level inventory with demand.
United Homes Group (NASDAQ: UHG) ha riportato metriche in calo per il primo trimestre del 2025, con nuovi ordini netti in diminuzione del 22,9% a 296 unità, avvii di costruzione in calo del 10,1% a 248 unità e chiusure scese del 19,0% a 252 unità rispetto al primo trimestre del 2024. L'azienda attribuisce la riduzione degli ordini a condizioni di neve insolite nei mercati della Carolina del Sud e a un avvio lento della stagione di vendita primaverile.
Il totale dell'inventario è diminuito del 22,1% su base annua a 563 unità, con un arretrato in calo del 23,3% a 201 unità. Tuttavia, l'azienda riporta tendenze positive nella loro iniziativa di rinnovamento del prodotto, con i prodotti rinnovati che mostrano margini lordi circa 500 punti base superiori rispetto ai margini complessivi dell'arretrato. L'azienda sta gestendo attivamente l'inventario di specifiche finite e implementando iniziative strategiche per allineare l'inventario a livello comunitario con la domanda.
United Homes Group (NASDAQ: UHG) informó sobre métricas en declive para el primer trimestre de 2025, con nuevos pedidos netos cayendo un 22,9% a 296 unidades, los inicios de construcción disminuyeron un 10,1% a 248 unidades y los cierres cayeron un 19,0% a 252 unidades en comparación con el primer trimestre de 2024. La compañía atribuye la reducción en los pedidos a condiciones de nieve inusuales en los mercados de Carolina del Sur y un inicio lento de la temporada de ventas de primavera.
El inventario total disminuyó un 22,1% interanual a 563 unidades, con el retraso en la construcción bajando un 23,3% a 201 unidades. Sin embargo, la compañía informa sobre tendencias positivas en su iniciativa de renovación de productos, con productos renovados mostrando márgenes brutos aproximadamente 500 puntos básicos más altos en comparación con los márgenes generales de retraso. La compañía está gestionando activamente el inventario de especificaciones terminadas e implementando iniciativas estratégicas para alinear el inventario a nivel comunitario con la demanda.
United Homes Group (NASDAQ: UHG)는 2025년 1분기 지표가 감소했다고 보고했으며, 순 신규 주문이 22.9% 감소하여 296개 유닛에 이르렀고, 주택 착공이 10.1% 감소하여 248개 유닛, 그리고 계약 체결이 19.0% 감소하여 252개 유닛에 그쳤습니다. 회사는 주문 감소의 원인을 사우스 캐롤라이나 시장의 비정상적인 눈 조건과 봄 판매 시즌의 느린 시작으로 설명하고 있습니다.
총 재고는 전년 대비 22.1% 감소하여 563개 유닛에 달했으며, 미결 주문은 23.3% 감소하여 201개 유닛에 이르렀습니다. 그러나 회사는 제품 리프레시 이니셔티브에서 긍정적인 추세를 보고하고 있으며, 리프레시된 제품이 전체 미결 주문 마진에 비해 약 500 베이시스 포인트 높은 총 마진을 보여주고 있습니다. 회사는 완료된 사양 재고를 적극적으로 관리하고 있으며, 지역 사회 수준의 재고를 수요에 맞추기 위한 전략적 이니셔티브를 시행하고 있습니다.
United Homes Group (NASDAQ: UHG) a rapporté des indicateurs en baisse pour le premier trimestre 2025, avec des nouvelles commandes nettes en baisse de 22,9% à 296 unités, des démarrages de maisons en baisse de 10,1% à 248 unités et des clôtures en baisse de 19,0% à 252 unités par rapport au premier trimestre 2024. L'entreprise attribue la réduction des commandes à des conditions de neige inhabituelles sur les marchés de Caroline du Sud et à un démarrage lent de la saison des ventes de printemps.
L'inventaire total a diminué de 22,1% d'une année sur l'autre pour atteindre 563 unités, avec un retard en baisse de 23,3% à 201 unités. Cependant, l'entreprise signale des tendances positives dans son initiative de renouvellement de produits, les produits renouvelés affichant environ 500 points de base de marges brutes plus élevées par rapport aux marges globales des arriérés. L'entreprise gère activement l'inventaire des spécifications terminées et met en œuvre des initiatives stratégiques pour aligner l'inventaire au niveau communautaire avec la demande.
United Homes Group (NASDAQ: UHG) berichtete über rückläufige Kennzahlen für das erste Quartal 2025, mit einem Rückgang der Netto-Neubestellungen um 22,9% auf 296 Einheiten, einem Rückgang der Baubeginne um 10,1% auf 248 Einheiten und einem Rückgang der Abschlüsse um 19,0% auf 252 Einheiten im Vergleich zum ersten Quartal 2024. Das Unternehmen führt den Rückgang der Bestellungen auf ungewöhnliche Schneeverhältnisse in den Märkten von South Carolina und einen langsamen Start in die Frühjahrssaison zurück.
Der gesamte Bestand verringerte sich im Jahresvergleich um 22,1% auf 563 Einheiten, wobei der Auftragsbestand um 23,3% auf 201 Einheiten zurückging. Das Unternehmen berichtet jedoch von positiven Trends in seiner Produktauffrischungsinitiative, wobei die aufgefrischten Produkte etwa 500 Basispunkte höhere Bruttomargen im Vergleich zu den gesamten Auftragsmargen aufweisen. Das Unternehmen verwaltet aktiv den Bestand an fertigen Spezifikationen und setzt strategische Initiativen um, um das Gemeinschaftsinventar an die Nachfrage anzupassen.
- Refreshed product line showing 500 basis points higher gross margins
- Sales improved in February and were much stronger in March
- Higher pre-sales ratio leading to better margins and increased option purchases
- Strategic inventory management to optimize cash flow and profitability
- Net new orders decreased 22.9% year-over-year
- Home closings declined 19.0% compared to Q1 2024
- Total inventory decreased 22.1% year-over-year
- Backlog reduced by 23.3% compared to prior year
Insights
United Homes Group's Q1 2025 preliminary results reveal significant operational challenges, with
The inventory position has deteriorated considerably, with total inventory down
There are some potential bright spots worth noting. Management's strategic shift toward pre-sales versus speculative builds could improve margins, as pre-sales typically generate higher option revenue and require fewer incentives. Their product refresh initiative is showing early promise with approximately
The intentional reduction in finished spec inventory represents a deliberate cash flow management strategy, balancing profitability against liquidity concerns. This suggests management is adopting a more conservative operational approach in response to market conditions. March's performance improvement and early April strength offer minimal encouragement but don't offset the substantial quarterly declines across all key operational metrics.
The following table provides a summary of the Company’s net new orders, home starts, and home closings:
|
Three Months Ended March 31, |
|||||||
|
2025 |
|
2024 |
|
% Change |
|||
Net new orders |
296 |
|
384 |
|
(22.9 |
)% |
||
Starts |
248 |
|
|
276 |
|
|
(10.1 |
)% |
Closings |
252 |
|
|
311 |
|
|
(19.0 |
)% |
The following table provides a summary of the Company’s backlog, speculative home, and model home inventory:
|
As of March 31, 2025 |
|
As of March 31, 2024 |
||||||||||||||||||||
|
Backlog1 |
|
Spec homes |
|
Model homes |
|
Total |
|
Backlog1 |
|
Spec homes |
|
Model homes |
|
Total |
||||||||
Not yet started |
20 |
|
— |
|
— |
|
20 |
|
10 |
|
— |
|
— |
|
10 |
||||||||
Homes under construction |
66 |
|
|
182 |
|
|
14 |
|
|
262 |
|
|
90 |
|
|
166 |
|
|
6 |
|
|
262 |
|
Finished homes |
115 |
|
|
154 |
|
|
12 |
|
|
281 |
|
|
162 |
|
|
261 |
|
|
30 |
|
|
453 |
|
Total |
201 |
|
|
336 |
|
|
26 |
|
|
563 |
|
|
262 |
|
|
427 |
|
|
36 |
|
|
725 |
|
|
% Change Period-over-Period |
||||||||||
|
Backlog1 |
|
Spec homes |
|
Model homes |
|
Total |
||||
Not yet started |
100.0 |
% |
|
NM2 |
|
NM2 |
|
100.0 |
% |
||
Homes under construction |
(26.7 |
)% |
|
9.6 |
% |
|
133.3 |
% |
|
(3.1 |
)% |
Finished homes |
(29.0 |
)% |
|
(41.0 |
)% |
|
(60.0 |
)% |
|
(36.4 |
)% |
Total |
(23.3 |
)% |
|
(21.3 |
)% |
|
(27.8 |
)% |
|
(22.1 |
)% |
“The reduction in our net new orders was a result of unusual snow in all three of our
“Traditionally for United Homes Group, sales early each quarter translate into closings at the end of the quarter,” continued Mr. Pirrello. “The soft sales in January and early February impacted our first-quarter closings.”
Jack Micenko, President of the Company, stated, “A developing theme around our product refresh initiative has been a higher percentage of pre-sales relative to historical levels. Higher pre-sales should translate into better margins as they do not require the same level of incentives while buyer customization is typically accompanied by more option purchases.” Mr. Micenko continued, “We continue to see higher gross margins in our refreshed product set, with backlog and closed gross margins of the refreshed product trending approximately 500 basis points higher than company backlog gross margin overall. We closed 23 of these plans during the first quarter and expect the number to significantly increase as a percentage of all closings over the next few quarters.”
“The decline in finished specs year-over-year has been intentional and a result of two strategic initiatives,” shared the Company’s Chief Financial Officer Keith Feldman. “First, we are more actively managing the age of our finished inventory to maximize the tradeoff between cash flow and profitability. Another focus has been to ‘right size’ our spec inventory at the community level to better align with community level demand.”
____________________ |
1 Backlog inventory consists of homes that are under a sales contract but have not closed. Backlog may be impacted by customer cancellations.
2 NM - Not Meaningful
About United Homes Group, Inc.
The Company is a publicly traded residential builder headquartered near
The Company employs a land-light operating strategy with a focus on the design, construction and sale of entry-level, first, second and third move-up single-family houses. The Company principally builds detached single-family houses, and, to a lesser extent, attached single-family houses, including duplex houses and town houses. The Company seeks to operate its homebuilding business in high-growth markets, with substantial in-migrations and employment growth.
Under its land-light lot operating strategy, the Company controls its supply of finished building lots through lot option contracts with third parties, related parties, and land bank partners, which provide the Company with the right to purchase finished lots after they have been developed. This land-light operating strategy provides the Company with the ability to amass a pipeline of lots without the risks associated with acquiring and developing raw land.
As the Company reviews potential geographic markets into which it could expand its homebuilding business, it intends to focus on selecting markets with positive population and employment growth trends, favorable migration patterns, attractive housing affordability, low state and local income taxes, and desirable lifestyle and weather characteristics.
Forward-Looking Statements
Certain statements contained in this earnings release, other than historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “seek,” “continue,” or other similar words.
Any such forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate, and beliefs of, and assumptions made by, our management and involve uncertainties that could significantly affect our financial results. Such statements include, but are not limited to, statements about our future financial performance, strategy, future operations, future operating results, plans and objectives of management. Such statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those projected or anticipated, including, without limitation:
- disruption in the terms or availability of mortgage financing or an increase in the number of foreclosures in our markets;
- volatility and uncertainty in the credit markets and broader financial markets;
- a slowdown in the homebuilding industry or changes in population growth rates in our markets;
- shortages of, or increased prices for, labor, land or raw materials used in land development and housing construction, including due to changes in trade policies;
- increases in interest rates or inflationary pressures;
- our ability to execute our business model, including the success of our operations in new markets and our ability to expand into additional new markets;
- our ability to successfully integrate homebuilding operations that we acquire;
- our ability to realize the expected results of strategic initiatives;
- delays in land development or home construction resulting from natural disasters, adverse weather conditions or other events outside our control;
- changes in applicable laws or regulations;
- the outcome of any legal proceedings;
- our ability to continue to leverage our land-light operating strategy;
- the ability to maintain the listing of our securities on Nasdaq or any other exchange; and
- the possibility that we may be adversely affected by other economic, business or competitive factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release and are not intended to be a guarantee of our performance in future periods. We cannot guarantee the accuracy of any such forward-looking statements contained in this release, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
For further information regarding other risks and uncertainties associated with our business, and important factors that could cause our actual results to vary materially from those expressed or implied in such forward-looking statements, please refer to the factors listed and described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the “Risk Factors” sections of the documents we file from time to time with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20250406048781/en/
Investor Relations Contact:
Drew Mackintosh
drew@mackintoshir.com
Mobile: 310-924-9036
Media Contact:
Erin Reeves-McGinnis
erinreevesmcginnis@unitedhomesgroup.com
Phone: 844-766-4663
Source: United Homes Group, Inc.
FAQ
How much did United Homes Group's (UHG) net new orders decline in Q1 2025?
What caused the decrease in UHG's Q1 2025 sales performance?
What is the margin improvement for UHG's refreshed product line?
How many refreshed product homes did UHG close in Q1 2025?
