United Homes Group, Inc

Ladies and gentlemen, thank you for standing by and welcome to the United Homes Group second quarter 2025 earnings call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one on your telephone keypad. As a reminder, today's call is being recorded. I will now hand today's call over to Erin Reeves-McGinnis, General Counsel. Please go ahead.

Good morning, and welcome to United Homes Group's second quarter of 2025 earnings call. Before the call begins, I would like to note that this call will include forward-looking statements within the meaning of the federal securities laws. United Homes Group cautions that forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. These risks and uncertainties include but are not limited to the risk factors described by United Homes Group in its filings with the Securities and Exchange Commission. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events, or otherwise, except as may be required under applicable security laws. Additionally, reconciliations of non-GAAP financial measures discussed on this call to the most directly comparable GAAP measures can be accessed through the company's website and in its SEC filing. Hosting the call today are United Homes Group Chief Executive Officer Jack Nisenko and Chief Financial Officer Keith Feldman. With that, I'd like to turn the call over to Jack.

Thank you, Erin, and good morning to everyone joining us on the call. Home sales revenue came in at $105.5 million on 303 new home deliveries at an average sales price of $349,000. Home sales gross margin for the quarter was 18.9%, representing a 100 basis point improvement over the second quarter of 2024 and counter to the broader industry trend. Net new orders declined 5.9% year-over-year, primarily due to a 10% decrease in average community count. Our sales pace was relatively consistent on a year-over-year basis coming in at 1.9 homes per community per month. Overall, I'm pleased with our company's performance this quarter as we continue to navigate changing market conditions. Demand trends during the second quarter were inconsistent as home buyers continue to weigh their desire for home ownership against the reality of high mortgage rates and concerns over affordability. On a positive note, we saw fairly resilient traffic patterns through the quarter, both online and in our communities, which we feel is a sign that buyers in our markets remain engaged and interested in buying a home provided it fits within their budget. We continue to offer mortgage rate buy-downs and other financing incentives as a way to address affordability concerns with our buyers. Another way we combat the rising cost of home ownership is by keeping the price of our homes well below the industry average. In June, the median sales price of new homes sold in the U.S. was $402,000, an average of $501,000. This compares to United Homes' average sales price of $349,000 in the second quarter. Keeping our home prices affordable for the vast majority of home buyers in our markets continue to be a focus in our communities. Another focus for our company will be the continued rollout of our updated new home designs to each of our markets. Last year, we embarked on a company-wide review of our floor plans and product offerings and realized there was an opportunity to enhance the appeal of our homes. Since that time, we've systematically introduced refreshed product into our communities, and the response has been extremely positive. Not only has this initiative given a boost to our sales space, It's also aided in our profitability, with gross margins on our refreshed homes trending approximately 300 basis points higher than the legacy product. We believe our gross margins will be higher in 2025 compared to 2024 as a result of this product transition. We continue to be disciplined in our approach to land acquisition, adhering to an asset-light strategy while making sure each deal meets or exceeds our underwriting criteria. Lot costs continue to be the key driver of home price inflation, as we've been successful in stabilizing and in some cases lowering the direct costs that go into building our home, thanks in part to the rebidding initiative we've implemented last year. We've also seen some builders walk away from land deals in our markets recently, and we're optimistic this will lead to some softening in lot costs in the future. To sum up, I'm pleased with our progress in the quarter, and I believe United Homes is well positioned to head into the back half of the year. Now I'd like to turn the call over to Keith, who will provide more detail on our operational and financial results for the quarter. Keith?