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    Stephen Mea • RBC Capital Markets

    Stephen Mea's questions to Smith Douglas Homes Corp (SDHC) leadership

    Stephen Mea's questions to Smith Douglas Homes Corp (SDHC) leadership • Q2 2025

    Question

    Stephen Mea from RBC Capital Markets asked for an update on the full-year outlook, particularly the 3,000-3,100 homes target, and inquired about the current state of the land market.

    Answer

    EVP and CFO Russell Devendorf stated that the 3,000-home target is an achievable goal dependent on market demand, reinforcing the company's 'pace over price' philosophy. President and CEO Gregory Bennett added that while there is some softness in the land market, it's manifesting more in favorable terms and retrading rather than significant price pullbacks.

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    Stephen Mea's questions to Smith Douglas Homes Corp (SDHC) leadership • Q1 2025

    Question

    Stephen Mea of RBC Capital Markets asked for an update on the company's full-year outlook beyond Q2, specifically regarding prior closing targets. He also requested more detail on the operational integration and cycle time improvements in the Houston market.

    Answer

    EVP & CFO Russ Devendorf explained that while specific full-year guidance is withheld due to macro uncertainty, the target of 3,000-3,100 closings remains the internal goal. CEO Greg Bennett reported significant progress in Houston, with cycle times improving from nearly 200 days post-acquisition and a new target of a 70-day schedule by year-end.

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    Stephen Mea's questions to Smith Douglas Homes Corp (SDHC) leadership • Q4 2024

    Question

    Stephen Mea, on behalf of RBC Capital Markets, asked about the market assumptions embedded in the full-year guidance and whether it bakes in any improvement. He also sought commentary on potential margin impacts from tariffs and any on-the-ground feedback regarding immigration and labor.

    Answer

    EVP & CFO Russ Devendorf stated that the company is confident in its volume guidance, with the primary risk being on the margin side due to affordability pressures. CEO Greg Bennett added that while they are monitoring supply chains, there has been no current impact from tariffs or immigration. Bennett also highlighted a significant operational efficiency gain, with cycle times improving year-over-year from 65 to 55 days.

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    Stephen Mea's questions to KB Home (KBH) leadership

    Stephen Mea's questions to KB Home (KBH) leadership • Q2 2025

    Question

    Stephen Mea of RBC Capital Markets, on for Mike Dahl, asked about the outlook for the year-end backlog and its potential impact on growth in 2026. He also inquired about the expected sequential gross margin trend from Q3 to Q4, given the company's price adjustments.

    Answer

    President & COO Robert McGibney explained that the strategy is to build the backlog to support 2026 goals by setting minimum community run rates, but declined to provide specific 2026 guidance. EVP & CFO Rob Dillard reiterated that the Q4 margin uplift is expected to come from operating leverage due to higher delivery volume, with margins stabilizing in the second half of the year.

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