Green Brick Partners, Inc.

and is also available on the company's website at .greenbrickpartners.com. On the call today is Jim Brickman, co-founder and chief executive officer, Jed Dolson, president and chief operating officer, and myself, Jeff Cox, interim chief financial officer. Some of the information discussed on this call is forward-looking, including a discussion of the company's financial and operational expectations for 2025 and beyond. In yesterday's press release and SEC filings, the company detailed material risks that may cause its future results to differ from its expectations. The company's statements are as of today, July 31st, 2025, and the company has no obligation to update any forward-looking statement it may make. The comments also include non-GAAP financial metrics, reconciliation of these metrics, and the other information required by Regulation G can be found in the earnings release that the company issued yesterday and in the presentation available on the company's website. With that, I'll turn the call over to Jim.

Thank you, Jeff. I'm pleased to announce our second quarter results, particularly given the ongoing and persistent affordability challenges faced by many consumers in this housing market. Net income attributable to GreenBrick for the second quarter was $82 million, or $1.85 per diluted share. As we exited the spring selling season, our performance remained strong despite high interest rates and decreasing consumer confidence. We were focused on balancing price and pace to maximize returns in each of our communities. Our builders and their sales teams were able to adapt quickly to changing market conditions to drive traffic and sales. As a result, we set several company records during the quarter. For one, we achieved a record for closings by delivering 1,042 homes. And two, we achieved a record for net new orders of 908, which was the highest for any second quarter in company history. Year over year, both home closings and net new orders increased approximately 6%, though revenue for the quarter was virtually flat year over year. That's 547 million. As Jen will discuss in more detail, maintaining that sales volume required price concessions and other incentives as we address the affordability challenges raised in this high interest rate environment. As expected, these dynamics put downward pressure on our home building gross margins, which declined 410 basis points year over year and 80 basis points sequentially to 30.4%. Nonetheless, our gross margins remain the highest in the public home building industry and mark the ninth consecutive quarter in which our gross margins exceeded 30%. Additionally, we returned 60 million of capital to our shareholders in the first half of 2025 through chair repurchases and we still have another $40 million of authorization remaining under a buyback program. Since 2022, we have repurchased approximately 7.9 million shares, reducing our outstanding share account by approximately 16%. Looking ahead, our strategic focus remains on maintaining operational excellence while navigating ongoing market volatility. We are laser focused on maintaining an investment grade balance sheet with our disciplined approach in land acquisition while at the same time ensuring that we are well positioned for future growth. Our continued emphasis on efficient cost controls, innovative home offerings and targeted expansion in high volume markets supports our goal of sustaining industry leading profitability metrics and creating long-term shareholder value. We are particularly encouraged by the positive reception of our trophy signature homes brand, which continues to outperform expectations and resonates strongly with both first time and move up buyers. The continued expansion of trophy in DFW in Austin, along with the upcoming entry into the Houston market later this year, presents significant opportunities as we believe it will allow us to further diversify our revenue base, strengthen our presence in key Texas markets and provide a runway for sustained growth over the next few years. As we remain vigilant in monitoring macroeconomic trends and adapting to shifts in buyer preferences, we believe that our experienced team and robust land pipeline and desirable infill and infill adjacent locations will drive continued success in the quarters to come. With that, I'll now turn it over to Jeff to provide more detail regarding our financial results.

Thank you, Jim. As Jim mentioned earlier, we achieved a couple of new records this quarter for home closings and net new orders. Given the challenging economic conditions and increased supply of housing inventory in our markets, discounts and incentives increased year over year as a percentage of residential unit revenue to .7% from 4.5%. Our average sales price also declined by .3% year over year to 525,000 as our affiliated builders adjusted quickly to meet market demand. Home closings revenue was virtually unchanged compared to the same period last year at 547 million. And home building gross margins decreased 410 basis points year over year and 80 basis points sequentially to .4% due to higher discounts and incentives primarily for mortgage buy downs. SCNA as a percentage of residential unit revenue for the second quarter increased by 40 basis points year over year to .9% as we continue to invest in our future growth. As a result of lower average sales prices and gross margins, net income attributable to GreenBrick for the second quarter decreased 22% year over year to 82 million and diluted earnings per share decreased 20% from our record quarterly earnings in the second quarter of 2024 to $1.85 per share. Our effective tax rate also increased to .9% from .5% due in part to a one-time benefit last year associated with stock options exercised in the second quarter of 2024. Year to date, deliveries increased 8% year over year to 1952 homes and our average sales price declined .5% to 534,000. As a result, we generated home closings revenue of just over 1 billion, which increased .3% year to date from the same period in 2024. Home building gross margin decreased 320 basis points to 30.8%. Year to date net income attributable to GreenBrick decreased .8% to 157 million and diluted earnings per share declined 15% to $3.52. As a reminder, we sold our .9% interest in Challenger homes in the first quarter last year, which had the impact of adding 21 cents to 2024 diluted earnings per share. Net new home orders during the second quarter moderated from our record level of 1,106 in the first quarter of 2025, but we're up .2% year over year to 908. Year to date, net new home orders increased .6% year over year to 2014. Our average active selling communities remained relatively unchanged year over year at approximately 102, a third of which were trophy communities and our sales pace of the second quarter increased .7% to approximately three homes per month compared to 2.8 homes per month in the previous year. With our continued investment in land and in particular, larger master plan communities, our average lot count per owned and controlled community increased .3% from the same period last year. We increased our starts by 10% from the previous quarter to 950 to better match our sales pace. The year over year starts still declined by 3.4%. Units under construction at the end of the quarter were down marginally by .1% to approximately 2,200 units. We will continue to monitor market conditions and adjust our start space to manage our inventory levels accordingly. Due to a higher proportion of quick move in sales coupled with a 13 day improvements in our average construction cycle time, our backlog value at the end of the second quarter decreased 21% year over year to 516 million. Backlog average sales price decreased .3% to 707,000, due primarily to higher discounts and incentives. Trophy, our spec home builder represented only 15% of our overall backlog value, consistent with previous quarters, but they accounted for nearly half of our closing volume. Lastly, we believe our investment grade balance sheet continues to serve as a solid foundation for future growth, providing us with exceptional financial strength to navigate market headwinds and deploy capital opportunistically. At the end of the second quarter, our net debt to total capital ratio declined to .4% and our debt to total capital ratio was only 14.4%, the lowest level since 2015, and among the best of our small and mid cap public home building peers. Our long-term notes bear interest at a low average fixed rate of 3.4%. At the end of the quarter, we maintained a robust cash position of 112 million with no outstanding borrowings on our syndicated line of credit. With total liquidity of 477 million, we believe we are well positioned to weather more challenging market conditions, to opportunistically deploy capital, to maximize shareholder returns and to accelerate growth as the housing market improves. With that, I'll now turn it over to Jeff.