United Homes Group Reports 10% Revenue Increase to $463.7 Million, Net Income Declines

United Homes Group, Inc. (UHG) reported a revenue increase of 10% for the fiscal year ending December 31, 2024, generating approximately $463.7 million compared to $421.5 million in 2023. The company also recorded a net income of $46.9 million, a significant decrease from $125.1 million in the previous year, primarily due to a loss of $45.6 million related to the extinguishment of Convertible Notes and a decline in gross profit margin. Gross profit for the year was $79.8 million, representing 17.2% of revenue, down from 18.9% in 2023. Adjusted gross profit was $92.4 million, with an adjusted gross profit margin of 19.9%, reflecting a decrease from 21.4% the previous year.

UHG's operational metrics showed a mixed performance, with net new orders rising to 1,399 units, an increase of 7.9% from 1,296 units in 2023. The cancellation rate improved to 11.4%, down from 13.6% the previous year. However, the backlog of homes decreased to 157 units, down from 189 units in 2023. The company closed 1,431 homes during the year, a slight increase from 1,383 in 2023. The average sales price of homes closed rose to $329,111, up from $315,718, attributed to a favorable product mix from recent acquisitions.

Strategically, UHG has been active in expanding its market presence through acquisitions, completing three significant transactions in 2023 and early 2024. These include the acquisition of Creekside Custom Homes for $12.7 million, which is expected to enhance UHG's footprint in the coastal region of South Carolina, and the acquisition of Rosewood Communities for $24.7 million, aimed at bolstering operations in the Upstate region. The company has also focused on operational improvements, including revising its portfolio of house plans and reducing construction costs to enhance profitability.

As of December 31, 2024, UHG controlled approximately 7,700 lots, with lot deposits totaling $48.2 million, reflecting a strategic land-light operating model. The company employed around 175 full-time team members and maintained a strong liquidity position with $22.6 million in cash and cash equivalents. Looking ahead, UHG anticipates continued growth driven by favorable housing market trends, although it acknowledges potential challenges from rising interest rates and inflation. The company remains committed to leveraging its land-light strategy and expanding its market share through targeted acquisitions and operational efficiencies.