Earnings release
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Exhibit 99.1 Smith Douglas Homes Reports Second Quarter 2025 Results ATLANTA, August 6, 2025 (Business Wire) – Smith Douglas Homes Corp. (NYSE: SDHC) (“Smith Douglas” or the “Company”) today announced second quarter results for the three and six months ended June 30, 2025. Q2 2025 Results as compared to Q2 2024: • Home closings increased 2% to 669 • Home closing revenue increased 1% to $223.9 million • Home closing gross margin of 23.2% compared to 26.7% • Net new home orders increased 2.9% to 736 • Pretax income of $17.2 million compared to $25.9 million • Earnings of $0.26 per diluted share compared to $0.40 • Debt-to-book capitalization of 15.2% compared to 0.8% at December 31, 2024 • Active community count increased 23% to 92 at quarter end • Total controlled lots increased 57% to 24,824 Greg Bennett, Vice Chairman and Chief Executive Officer, commented, “Smith Douglas Homes delivered strong results in the second quarter of 2025, driven by our disciplined approach to homebuilding and our team’s solid execution. Home closings for the quarter came in above our stated guidance range, while our home closing gross margin of 23.2% was at the high end of the range. We generated pretax income of $17.2 million in the second quarter and posted earnings of $0.26 per diluted share. I am proud of the way our team members performed this quarter and feel we are well-positioned to continue to deliver on and improve our strong execution as we head into the second half of 2025.” Russ Devendorf, Executive Vice President and Chief Financial Officer added, “Throughout the second quarter, new home sales continued to be uneven in our markets due to affordability constraints and macroeconomic concerns among some potential buyers. We believe there is pent up demand for home ownership in our markets and continue to use financing incentives as a tool in driving traffic and converting sales." Mr. Devendorf continued, “We ended the second quarter with 57% more lots under control and 23% more new communities open than we had in the same period last year, putting us in a great position to expand our operations and increase our market share. I am pleased we were able to make these investments and still maintain a strong balance sheet, as our net debt-to-net book capitalization ratio at the end of the quarter was 12.1%. This financial strength, coupled with our asset light strategy and quick-turn operational focus, gives me confidence in the long-term future of Smith Douglas Homes.” 1
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Conference Call & Webcast Information Management will host a conference call to discuss the Company’s results at 8:30 a.m. Eastern Time on August 6, 2025. Interested parties can dial in using the numbers below or access the call via a webcast link provided in the investor relations section of the company’s website. Dial-in Numbers: Toll Free - North America (+1) 800-715-9871 International: (+1) 646-307-1963 Conference ID: 8459388 Replay Numbers: Toll Free - North America: (+1) 800-770-2030 Playback Passcode: 8459388 Replay will expire 7 days following the event About Smith Douglas Homes Headquartered in Woodstock, Georgia, Smith Douglas Homes completed its initial public offering in January 2024. Since its inception, Smith Douglas has been entrusted by over 18,000 families to fulfill their new home dreams. Ranked a top 50 builder nationally for several years and with 2,867 closings in 2024, Smith Douglas currently holds the #32 position on the Builder Magazine Top 100 list. The Smith Douglas communities are primarily targeted to entry-level and empty-nest homebuyers looking to purchase a new home priced below the Federal Housing Administration loan limit in the metro areas of Atlanta, Birmingham, Central Georgia, Charlotte, Chattanooga, Greenville, Houston, Huntsville, Nashville, and Raleigh. Smith Douglas offers its homebuyers a personalized, affordable-luxury buying experience at attractive prices. Investor Relations Joe Thomas investors@smithdouglas.com 2
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Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the Company’s performance, growth, market share, strategic plans and opportunities, financial position, ability to navigate the changing homebuilding landscape in the macroeconomic environment, ability to provide solutions to fit buyer needs, and the timing of any of the foregoing. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. These forward-looking statements are based on management’s current estimates and expectations. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. 3
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Smith Douglas Homes Condensed Consolidated Statements of Income (Unaudited, in thousands, except share and per share amounts) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Home closing revenue $ 223,924 $ 220,933 $ 448,646 $ 410,142 Cost of home closings 171,985 161,875 343,177 301,624 Home closing gross profit 51,939 59,058 105,469 108,518 Selling, general, and administrative costs 34,702 31,809 67,701 59,350 Equity in income from unconsolidated entities (598) (220) (817) (404) Interest expense 772 591 1,438 1,289 Other (income) expense, net (116) 1,012 401 1,010 Income before income taxes 17,179 25,866 36,746 47,273 Provision for income taxes 744 1,132 1,601 2,053 Net income 16,435 24,734 35,145 45,220 Net income attributable to non-controlling interests and LLC members prior to IPO 14,070 21,088 30,097 38,602 Net income attributable to Smith Douglas Homes Corp. $ 2,365 $ 3,646 $ 5,048 $ 6,618 Three months ended June 30, Six monthsended June 30,2025 Period fromJanuary 11,2024 to June 30,20242025 2024 Earnings per share: Basic $ 0.26 $ 0.41 $ 0.56 $ 0.75 Diluted $ 0.26 $ 0.40 $ 0.55 $ 0.74 Weighted average shares of common stock outstanding: Basic 8,998,470 8,846,154 8,983,328 8,846,154 Diluted 8,998,470 51,431,974 9,160,922 51,414,509 4
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Smith Douglas Homes Condensed Consolidated Balance Sheets (In thousands, except share and per share amounts) June 30, 2025 December 31,2024 (unaudited) Assets Cash and cash equivalents $ 16,777 $ 22,363 Real estate inventory 320,848 277,834 Deposits on real estate under option or contract 132,372 103,026 Real estate not owned 26,127 5,830 Property and equipment, net 8,858 3,775 Goodwill 25,726 25,726 Deferred tax asset, net 10,643 10,906 Other assets 28,868 26,441 Total assets $ 570,219 $ 475,901 Liabilities and Equity Liabilities: Accounts payable $ 15,823 $ 17,234 Customer deposits 5,903 5,301 Notes payable 74,088 3,060 Liabilities related to real estate not owned 26,127 5,830 Accrued expenses and other liabilities 23,045 32,348 Tax receivable agreement liability 10,401 10,401 Total liabilities 155,387 74,174 Commitments and contingencies (Note 9) Stockholders’ equity: Preferred stock, $0.0001 par value – 10,000,000 shares authorized; none issued andoutstanding as of June 30, 2025 and December 31, 2024 — — Class A common stock, $0.0001 par value – 250,000,000 shares authorized; 9,015,173 and8,846,154 shares issued and outstanding as of June 30, 2025 and December 31, 2024,respectively 1 1 Class B common stock, $0.0001 par value – 100,000,000 shares authorized; 42,435,897 sharesissued and outstanding as of June 30, 2025 and December 31, 2024 4 4 Additional paid-in capital 59,789 58,208 Retained earnings 20,188 15,419 Total stockholders’ equity attributable to Smith Douglas Homes Corp. 79,982 73,632 Non-controlling interests attributable to Smith Douglas Holdings LLC 334,850 328,095 Total equity 414,832 401,727 Total liabilities and equity $ 570,219 $ 475,901 5
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Smith Douglas Homes Summary Cash Flow Information (Unaudited, dollars in thousands) Six months ended June 30, 2025 2024 Net cash used in operating activities $ (63,847) $ (9,234) Net cash used in investing activities (4,225) (3,153) Net cash provided by financing activities 62,486 9,908 Net (decrease) in cash and cash equivalents (5,586) (2,479) Cash and cash equivalents, beginning of period 22,363 19,777 Cash and cash equivalents, end of period $ 16,777 $ 17,298 Smith Douglas Homes Selected Other Operating Data (Unaudited, dollars in thousands) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Home closings 669 653 1,340 1,219 ASP of homes closed $ 335 $ 338 $ 335 $ 336 Net new home orders 736 715 1,504 1,480 Contract value of net new home orders $ 247,421 $ 243,842 $ 506,139 $ 503,282 ASP of net new home orders $ 336 $ 341 $ 337 $ 340 Cancellation rate 10.0% 11.8% 9.1% 11.2% Backlog homes (period end) 858 1,173 858 1,173 Contract value of backlog homes (period end) $ 292,881 $ 404,750 $ 292,881 $ 404,750 ASP of backlog homes (period end) $ 341 $ 345 $ 341 $ 345 Active communities (period end) 92 75 92 75 Controlled lots (period end): Homes under construction 1,091 1,088 1,091 1,088 Owned lots 834 587 834 587 Optioned lots 22,899 14,167 22,899 14,167 Total controlled lots 24,824 15,842 24,824 15,842 (1) The cancellation rate is the total number of cancellations during the period divided by the total gross new home orders during the period. (2) Backlog homes (period end) is the number of homes in backlog from the previous period plus the number of net new home orders generated during the current period minus the number of homes closed during the current period. (3) A community becomes active once the model is completed or the community has its first sale. A community becomes inactive when it has fewer than two homes remaining to sell. (1) (2) (3) 6
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Smith Douglas Homes Selected Financial Information by Segment (Unaudited, dollars in thousands) Home Closing Revenue Three monthsended June 30, 2025 2024 Period over period change Home closingrevenue Homeclosings ASP ofhomesclosed Home closingrevenue Homeclosings ASP ofhomesclosed Home closingrevenue Home closings ASP ofhomes closed Southeast $ 141,267 407 $ 347 $ 124,393 355 $ 350 14 % 15 % (1)% Central 82,657 262 315 96,540 298 324 (14)% (12)% (3)% Total $ 223,924 669 $ 335 $ 220,933 653 $ 338 1 % 2 % (1)% Six months endedJune 30, 2025 2024 Period over period change Home closingrevenue Homeclosings ASP ofhomesclosed Home closingrevenue Homeclosings ASP ofhomesclosed Home closingrevenue Home closings ASP ofhomes closed Southeast $ 279,485 799 $ 350 $ 227,887 652 $ 350 23 % 23 % — % Central 169,161 541 313 182,255 567 321 (7)% (5)% (2)% Total $ 448,646 1,340 $ 335 $ 410,142 1,219 $ 336 9 % 10 % — % Backlog As of June 30, 2025 2024 Period over period change Backloghomes Contractvalue ofbackloghomes ASP ofbackloghomes Backloghomes Contractvalue ofbackloghomes ASP ofbackloghomes Backloghomes Contractvalue ofbackloghomes ASP ofbackloghomes Southeast 511 $ 178,409 $ 349 752 $ 269,502 $ 358 (32)% (34)% (3)% Central 347 114,472 330 421 135,248 321 (18)% (15)% 3 % Total 858 $ 292,881 $ 341 1,173 $ 404,750 $ 345 (27)% (28)% (1)% Controlled Lots As of June 30, 2025 2024 Period over period change Owned Optioned Total Controlled Owned Optioned Total Controlled Owned Optioned Total Controlled Southeast 986 16,005 16,991 843 10,537 11,380 17% 52% 49% Central 939 6,894 7,833 832 3,630 4,462 13% 90% 76% Total 1,925 22,899 24,824 1,675 14,167 15,842 15% 62% 57% (1) Includes homes under construction and owned lots. (1) (1) (1) 7
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Net Income Three months ended June 30, Six months ended June 30, 2025 2024 Period over period change 2025 2024 Period over period change Southeast $ 21,991 $ 25,598 $ (3,607) $ 45,846 $ 46,603 $ (757) Central 6,345 13,336 (6,991) 13,355 23,619 (10,264) Segment total 28,336 38,934 (10,598) 59,201 70,222 (11,021) Other (11,901) (14,200) 2,299 (24,056) (25,002) 946 Total $ 16,435 $ 24,734 $ (8,299) $ 35,145 $ 45,220 $ (10,075) (1) Other primarily includes homebuilding operations in non-reportable segments, corporate overhead costs, such as payroll and benefits, business insurance, information technology, office costs, outside professional services and travel costs, and certain other amounts that are not allocated to the reportable segments. Non-GAAP Financial Measures In addition to our results determined in accordance with generally accepted accounting principles in the U.S. (“GAAP”), this press release includes net debt-to-net book capitalization and adjusted net income. Net debt-to-net book capitalization Net debt-to-net book capitalization is a supplemental measure of our leverage that is not required by, or presented in accordance with, GAAP and should not be considered as an alternative to debt-to-book capitalization or any other measure derived in accordance with GAAP. We caution investors that amounts presented in accordance with our definition of net debt-to-net book capitalization may not be comparable to similar measures disclosed by our competitors because not all companies and analysts calculate this non-GAAP financial measure in the same manner. We present this non-GAAP financial measure because we consider it to be an important supplemental measure of our leverage and believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. We define net debt-to-net book capitalization as: • Total debt, less cash and cash equivalents, divided by • Total debt, less cash and cash equivalents, plus equity. This non-GAAP financial measure has limitations as an analytical tool in that it subtracts cash and cash equivalents and therefore may imply that the Company has less debt than the most comparable measure determined in accordance with GAAP. Because of this limitation, this non-GAAP financial measure should be considered along with other financial measures presented in accordance with GAAP. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. We have reconciled this non-GAAP financial measure with the most directly comparable GAAP financial measure in the following table: (1) 8
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As of(in thousands, except percentages) June 30, 2025 December 31, 2024 Notes payable $ 74,088 $ 3,060 Equity 414,832 401,727 Total capitalization $ 488,920 $ 404,787 Debt-to-book capitalization 15.2% 0.8% Notes payable $ 74,088 $ 3,060 Less: cash and cash equivalents 16,777 22,363 Net debt 57,311 (19,303) Equity 414,832 401,727 Total net capitalization $ 472,143 $ 382,424 Net debt-to-net book capitalization 12.1% (5.0)% Adjusted net income Adjusted net income is not a measure of net income or net income margin as determined by GAAP. Adjusted net income is a supplemental non-GAAP financial measure used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders, and rating agencies. We define adjusted net income as net income adjusted for the tax impact using a 24.9% federal and state blended tax rate (assuming 100% public ownership to adjust for the impact of taxes on earnings attributable to Smith Douglas Holdings LLC as if Smith Douglas Holdings LLC was a subchapter C corporation in the periods presented). Management believes adjusted net income is useful because it allows management to more effectively evaluate our operating performance and comparability to industry peers who record income tax expense on their income before tax as opposed to the income of Smith Douglas Holdings LLC not being taxed at the entity level and, therefore, not reflecting a charge against earnings for income tax expense. Adjusted net income should not be considered as an alternative to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. Our computation of adjusted net income may not be comparable to adjusted net income of other companies. We present adjusted net income because we believe it provides useful information regarding our comparability to peers. The following table presents a reconciliation of adjusted net income to the GAAP financial measure of net income for each of the periods indicated (in thousands): Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net income $ 16,435 $ 24,734 $ 35,145 $ 45,220 Provision for income taxes 744 1,132 1,601 2,053 Income before income taxes 17,179 25,866 36,746 47,273 Tax-effected adjustments 4,278 6,467 9,150 11,818 Adjusted net income $ 12,901 $ 19,399 $ 27,596 $ 35,455 (1) For the three and six months ended June 30, 2025 and 2024, our tax expenses assumes a 24.9% and 25.0% federal and state blended tax rate, respectively, (assuming 100% public ownership to adjust for the impact of taxes on earnings attributable to Smith Douglas Holdings LLC as if Smith Douglas Holdings LLC was a subchapter C corporation in the periods presented). (1) 9