Oct 21, 2026 earnings call — Q3 results and balance sheet strength
Q3 pretax income decreased 38% to $87 million.
Revenue $1.1B (est $1.1B) · EPS $2.70 (est $3.25)
Key quotes
"We ended the third quarter with an all time record $3.3 billion of equity equating to a book value per share of $130."
"We continue to use mortgage rate buy downs as our primary incentive to drive sales. With rates rising during the quarter, the cost of such buydowns has increased. Thereby impacting our margins."
"Of note, during the quarter, our Smart Series sales comprised about half of our sales."
Analyst Q&A 3
Strategy changes for 2027
Q (Alan Ratner · Zelman and Associates): Is the recent market leg down and higher rates causing you to change strategy for 2027—mix of spec vs BPO, price points, or other adjustments?
A: They said they will not make material company-wide changes. They will be more careful about new deals, may adjust product mix in a few markets, control hiring and expenses, and keep focusing on balance sheet strength and execution. They noted spec levels and other operational strengths but are watching conditions closely.
"We are not gonna make any material changes Maybe in a few markets, we might adjust our product mix a little bit company wide." — Robert H. Schottenstein (CEO)
Florida pricing and labor issues
Q (Buck Horne · Raymond James): How is Florida trending after pricing adjustments in Tampa and Sarasota, and have you made incentive or pricing moves in other regions? Also, are you seeing labor or immigration enforcement effects through Q3?
A: They said Florida is mixed: Orlando held up, Sarasota was up in new contracts, Tampa was down a little, and adjustments are made on a community-by-community basis. Fort Myers/Naples is exceeding expectations and they have confidence in the Tampa team. On labor, they see issues in certain markets including ICE activity, but overall they feel pretty good and do not view labor as a huge issue; they could build about "1 thousand or 1.5 thousand more homes a year" if demand existed.
"You know, in certain markets, and it seems to kind of come and go You know, we have issues with ICE and those type issues." — Phillip G. Creek
SG&A, move-up homes, incentives
Q (Jay McCanless · Citizens Bank): Were there any one-time items in SG&A or is the higher level due to more communities? Also, what happened with move-up product this quarter and will you pivot more to move-up in 2027? Finally, how did incentives trend this quarter and start of Q4?
A: They said SG&A was up about 5%, roughly matching the increase in community count, with some additional advertising spending. On move-up, in select markets there has been a greater emphasis on move-up versus first-time buyers starting "probably 3 to 6 months ago" and that shift will continue in 2–4 markets. On incentives, margins have declined, incentives (primarily mortgage rate buy-downs) increased through the quarter, vary by community, and more buyers are choosing ARM products.
"Our SG&A expenses were up about 5%, you know, which is similar to community count." — Phillip G. Creek