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United Homes Group Reports 66% Surge in Housing Starts for Q3 2025, Despite 5% Decline in Net New Orders

2025-10-07 19:10

United Homes Group, Inc. (the "Company") (NASDAQ:UHG) today announced preliminary operational unit statistics for the three and nine months ended September 30, 2025.

The following table provides a summary of the Company's net new orders, home starts, and home closings:

  Three Months Ended September 30,   Nine Months Ended September 30,
  2025   2024   % Change   2025   2024   % Change
Net new orders 324   341   (5.0 )%   924   1,048   (11.8 )%
Starts 526   317   65.9 %   1,131   940   20.3 %
Closings 262   369   (29.0 )%   817   1,017   (19.7 )%

The following table provides a summary of the Company's backlog, speculative home, and model home inventory:

  As of September 30, 2025   As of September 30, 2024
  Backlog1   Spec homes   Model homes   Total   Backlog1   Spec homes   Model homes   Total
Not yet started 29       29   29       29
Homes under construction 90   268   15   373   63   225   6   294
Finished homes 145   145   31   321   128   198   32   358
Total 264   413   46   723   220   423   38   681

  % Change Period-over-Period
  Backlog1   Spec homes   Model homes   Total
Not yet started %   NM2   NM2   %
Homes under construction 42.9 %   19.1 %   150.0 %   26.9 %
Finished homes 13.3 %   (26.8 )%   (3.1 )%   (10.3 )%
Total 20.0 %   (2.4 )%   21.1 %   6.2 %

1   Backlog inventory consists of homes that are under a sales contract but have not closed. Backlog may be impacted by customer cancellations.
2   NM - Not Meaningful

"Net new orders declined 5% year-over-year in the third quarter primarily reflecting weaker demand in July, which improved sequentially in August and September," stated Chief Executive Officer Jack Micenko.

"Elevated new home inventory levels continue to drive competition for new sales activity across our markets, and as a result we are not immune to the industry-wide pressures affecting other homebuilders," added Mr. Micenko. "We expect that these competitive dynamics are likely to weigh on the gross margin improvement we have seen as a result of our recent product refresh efforts."

"In addition to weaker demand, sales were impacted by delayed community openings earlier in the year," shared Chief Financial Officer Keith Feldman. "However, we have begun to see an increase in community count in the latter half of 2025, reaching 56 as of September 30, 2025, and we expect to see continued community count growth through the end of 2025. This expansion has contributed to the 66% increase in starts year-over-year, with approximately a third of these starts still in permitting."

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