Smith Douglas Homes

SDHC

Market cap $846M

Investors interested in stocks from the Real Estate - Operations sector have probably already heard of TPG RE Finance Trust (TRTX) and Smith Douglas Homes Corp. (SDHC). But which of these two stocks is more attractive to value investors?

Smith Douglas Homes offers a unique, efficient, and scalable land-light homebuilding model with industry-leading cycle times and a focus on affordable housing. The company's prudent capital structure, low debt, and Up-C ownership align management incentives directly with profitability, minimizing shareholder dilution risks. Despite a premium valuation, SDHC's growth prospects, disciplined expansion, and management's insider buying signal long-term upside as the housing market recovers.

I reiterate my sell rating on Smith Douglas Homes due to intensifying margin compression, inconsistent demand, and growing reliance on unsustainable incentives. 2Q25 results show regional weakness, with Central segment declines offsetting Southeast growth, and gross margin dropping sharply year-over-year. Despite strategic positives like market expansion and lot control, near-term demand remains fragile and backlog erosion reduces revenue visibility for SDHC.

Smith Douglas Homes Corp. (NYSE:SDHC ) Q2 2025 Earnings Conference Call August 6, 2025 8:30 AM ET Company Participants Gregory S. Bennett - President, CEO & Vice Chairman Joe Thomas - Corporate Participant SVP of Accounting & Finance - Corporate Participant Russell Devendorf - Executive VP & CFO Conference Call Participants Alex Barrón - Housing Research Center, LLC Andrew Azzi - JPMorgan Chase & Co, Research Division Jay McCanless - Wedbush Securities Inc., Research Division Paul Allen Przybylski - Wolfe Research, LLC Rafe Jason Jadrosich - BofA Securities, Research Division Richard Samuel Reid - Wells Fargo Securities, LLC, Research Division Stephen Mea - RBC Capital Markets, Research Division Operator Hello, and welcome to Smith Douglas Homes Second Quarter 2025 Call and Webcast.

The headline numbers for Smith Douglas Homes Corp. (SDHC) give insight into how the company performed in the quarter ended June 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Smith Douglas Homes Corp. (SDHC) came out with a quarterly loss of $0.13 per share versus the Zacks Consensus Estimate of $0.25. This compares to earnings of $0.4 per share a year ago.

ATLANTA--(BUSINESS WIRE)--Smith Douglas Homes Corp. (NYSE: SDHC) (“Smith Douglas” or the “Company”) today announced second quarter results for the three and six months ended June 30, 2025. Q2 2025 Results as compared to Q2 2024: Home closings increased 2% to 669 Home closing revenue increased 1% to $223.9 million Home closing gross margin of 23.2% compared to 26.7% Net new home orders increased 2.9% to 736 Pretax income of $17.2 million compared to $25.9 million Earnings of $0.26 per diluted sh.

Smith Douglas Homes Corp. (SDHC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

ATLANTA--(BUSINESS WIRE)--Smith Douglas Homes Corp. (NYSE: SDHC) (“Smith Douglas” or the “Company”) will release its results for the second quarter of 2025 before the market opens on Wednesday, August 6, 2025. The Company will hold a conference call to discuss the results and conduct a question-and-answer session on the same day at 8:30 AM Eastern Time. 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.

ATLANTA--(BUSINESS WIRE)--Smith Douglas Homes Corp. (NYSE: SDHC) (“Smith Douglas” or the “Company”) today announced that its Board of Directors has authorized a stock repurchase program for up to $50.0 million of the Company's Class A common stock. “This repurchase authorization underscores the Board and Management's belief that at times our share price may be undervalued relative to our long-term opportunity. We remain committed to evaluating the strategic deployment of our capital where we be.