Workflow
Dream Finders Homes(DFH) - 2025 Q1 - Quarterly Results
DFHDream Finders Homes(DFH)2025-05-06 12:59

Homebuilding Performance - Homebuilding revenues increased 18% to 970millionfrom970 million from 825 million year-over-year[3] - Home closings rose 16% to 1,925 compared to 1,655 in the same quarter last year[3] - Net new orders increased 18% to 2,032 from 1,724 year-over-year, with a cancellation rate improvement to 11.7%[12] - Homebuilding gross margin improved by 140 basis points to 19.2% compared to 17.8% in the prior year[8] - Adjusted homebuilding gross margin increased 150 basis points to 27.8% from 26.3% year-over-year[9] - Home closings rose to 1,925 units in Q1 2025, compared to 1,655 units in Q1 2024, reflecting an increase of 16.3%[25] - The average sales price of homes closed was 498,284inQ12025,slightlyupfrom498,284 in Q1 2025, slightly up from 494,995 in Q1 2024, indicating a growth of 0.6%[25] - Homebuilding gross margin increased to 186.6millioninQ12025,comparedto186.6 million in Q1 2025, compared to 146.6 million in Q1 2024, a rise of 27.3%[30] - Adjusted homebuilding gross margin for Q1 2025 was 270.1million,upfrom270.1 million, up from 217.2 million in Q1 2024, representing a growth of 24.3%[30] Financial Performance - Total revenues for the three months ended March 31, 2025, increased to 989.9million,upfrom989.9 million, up from 827.8 million in the same period of 2024, representing a growth of 19.6%[23] - Financial services pre-tax income increased 29% to 7millionfrom7 million from 5 million[3] - Earnings per share remained stable at 0.55forbasicsharesinbothQ12025andQ12024[23]MarketPositionandStrategy−Controlledlotpipelineexpandedto60,538asofMarch31,2025,upfrom54,698attheendof2024[3]−RecentacquisitionsincludeLibertyCommunitiesandGreenRiverBuilders,enhancingmarketpresenceinAtlanta[5]−Thecompanymaintainsitsfull−yearguidanceofapproximately9,250expectedhomeclosingsfor2025[17]DebtandLiquidity−Totaldebtincreasedto0.55 for basic shares in both Q1 2025 and Q1 2024[23] Market Position and Strategy - Controlled lot pipeline expanded to 60,538 as of March 31, 2025, up from 54,698 at the end of 2024[3] - Recent acquisitions include Liberty Communities and Green River Builders, enhancing market presence in Atlanta[5] - The company maintains its full-year guidance of approximately 9,250 expected home closings for 2025[17] Debt and Liquidity - Total debt increased to 1.48 billion as of March 31, 2025, from 1.00billioninthepreviousyear,reflectingagrowthof47.01.00 billion in the previous year, reflecting a growth of 47.0%[35] - Net homebuilding debt to net capitalization ratio was 40.4% as of March 31, 2025, compared to 39.9% in the same period of 2024, indicating a slight increase in leverage[35] - Total liquidity reached 677 million as of March 31, 2025, including cash and credit availability[3] Backlog and Cancellations - The backlog as of March 31, 2025, was valued at 1.39billion,downfrom1.39 billion, down from 2.32 billion in the previous year, a decrease of 40.2%[25] - The cancellation rate improved to 11.7% in Q1 2025, down from 21.0% in Q1 2024, showing a significant reduction in cancellations[25]