Alex Johnson's questions to United Homes Group Inc (UHG) leadership • Q1 2025
Question
Alex Johnson from RBC Capital Markets inquired about the significant gross margin difference between the company's newly refreshed home products and its legacy inventory, and the expected timeline for this new product to constitute a larger portion of closings.
Answer
Interim CEO Jamie Pirrello explained that the 23 newly designed homes closed in Q1 achieved a gross margin of approximately 24%, compared to the company average of 16.2%. He highlighted that 95 of these higher-margin homes are already in backlog and are becoming a larger percentage of future closings daily, a trend supported by the rollout of new communities featuring this product.