We are one of the nation’s fastest growing private homebuilders by number of closings and are engaged in the design, construction, and sale of single-family homes in some of the highest growth and most desirable markets in the Southeastern and Southern United States. We employ an efficient land-light, production focused, and conservatively leveraged business model, which we believe results in a compelling combination of strong home closing gross margins, construction cycle times, and returns. Our communities are primarily targeted to entry-level and empty-nest homebuyers. We offer our homebuyers an attractive value proposition by providing a personalized home buying experience at affordable price points. With the goal of becoming one of the most dominant homebuilders in the Southeastern and Southern United States, we intend to grow operations within our existing footprint and to expand into new markets where we can most effectively implement our business strategy and maximize our profit and returns. Pursuant to our land-light business model, we typically purchase finished lots through lot-option contracts from third-party land developers or land bankers. Our lot acquisition strategy reduces our up-front capital requirements and generally provides for “just-in-time” lot delivery, which closely aligns with our pace of home orders and home starts. We believe our lot acquisition strategy reduces our operating and financial risk relative to other homebuilders that own a higher percentage of their land supply on balance sheet. As of both September 30, 2023 and December 31, 2022, 96% of our unstarted controlled lots were controlled through finished lot option contracts. Our strategy and focus on capital efficiency has delivered strong risk-adjusted returns, as evidenced by our adjusted return on equity and adjusted return on inventory of 63% and 57%, respectively, for the 12 months ended September 30, 2023, excluding our Houston segment acquired pursuant to the Devon Street Homes Acquisition, and of 81% and 75%, respectively, for the year ended December 31, 2022. We are a disciplined, process driven, and schedule-oriented company. We utilize a single database ERP system called SMART Builder (that we nonexclusively license from an entity affiliated with the Founder Fund) that is fully integrated with our homebuilding operations. Through SMART Builder, we manage all aspects of our construction process and work-flow scheduling in real-time, enhancing our operating efficiency and helping us generate higher returns for our stockholders. Additionally, we approach our homebuilding operations through a partnership-oriented and relationship-based process called Rteam. The key tenet of Rteam is to enhance the collaboration, visibility, and mutual accountability between us and our key business partners, including the developers, suppliers, and trade partners within our production model. The Rteam process is the foundation of our operational success and the key driver of our current strong construction cycle times of approximately 64 business days and high inventory turnover rate of 3.8x for the year ended December 31, 2022. The combination of our production efficiency and real-time construction management capabilities allows us to generate strong home closing gross margins, which were 29% for both the nine months ended September 30, 2023 and the year ended December 31, 2022. We pride ourselves on offering our homebuyers a personalized, affordable luxury buying experience at attractive prices. For the nine months ended September 30, 2023, our ASP of homes closed was approximately $333,000, providing an attractive price point for our target homebuyers with starting base prices below Federal Housing Administration (“FHA”) loan limits. We construct most of our homes on a pre-sold basis, where our homebuyers choose their homes based on a select number of value-engineered floor plans and are offered flexibility on the selection of home options. The SMART Builder system and Rteam process allows this optionality for homebuyers based on just-in-time modifications. As a result of our differentiated value proposition and efficient construction cycle times, we believe we typically achieve a high level of homebuyer satisfaction and experience low cancellation rates, which were 9% and 11% for the nine months ended September 30, 2023 and for the year ended December 31, 2022, respectively. Our geographic footprint is concentrated in markets that demonstrate strong population and employment growth trends, favorable migration patterns, and desirable lifestyle and weather conditions. Our operations are currently organized into six geographical segments; our reportable segments include Atlanta (which includes certain Atlanta suburbs like Dalton, GA), Raleigh, Charlotte, Nashville, Alabama (which consists of both Birmingham and Huntsville), and Houston. Each of our markets is experiencing strong momentum in housing demand drivers relative to historic averages, and we believe there is significant opportunity to expand our presence in each of our respective markets. We intend to utilize proceeds from this offering to continue the expansion of our communities and the overall growth of our platform. We have demonstrated significant growth since our inception in 2008, joining the Builder Magazine Top 100 list as the 83rd largest builder based on number of closings in 2014 and have grown to be ranked as the 38th largest builder for closings in 2022. Additionally, based off of the Builder Magazine Top 100 list, we believe we are the second largest private builder founded after 2007 and sixth largest builder overall founded after 2007, each based on 2022 home closings. During the year ended December 31, 2022, we closed 2,200 homes as compared to 526 homes in the year ended December 31, 2015, representing a 23% CAGR over the last seven years. In the same period, our revenue grew at a 32% CAGR from $109.3 million to $755.4 million. Smith Douglas Homes Corp. was incorporated as a Delaware corporation on June 20, 2023. Our corporate headquarters are located at 110 Village Trail, Suite 215, Woodstock, Georgia.
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Here are 1-3 brief analogies to describe Smith Douglas Homes (SDHC):
- A D.R. Horton focused on the entry-level housing market in the Southeast.
- The Toyota of new home construction, emphasizing reliable and affordable homes for the Southeast market.
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- Single-family homes: New residential properties designed, constructed, and sold to individual homebuyers.
- Mortgage services: Provision of home financing options to their homebuyers, often through a subsidiary or joint venture.
- Title services: Facilitation of property title examinations and insurance for homebuyers to ensure clear ownership.
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Smith Douglas Homes (symbol: SDHC) primarily sells residential homes directly to individual consumers rather than to other businesses. As a homebuilder, its major customers are individual homebuyers.
The company focuses on serving the following key categories of customers:
- First-time Homebuyers: This segment includes individuals and families purchasing their first home. They are typically looking for an accessible price point, good value, and efficient home designs. Smith Douglas Homes often caters to this group with streamlined floor plans and attractive pricing, making homeownership attainable.
- Move-up Homebuyers: These are individuals or families who already own a home but are looking to purchase a larger home, a home with more features, or a home in a different community. Smith Douglas Homes targets those in this category who are seeking value and quality without the premium price tag of higher-end builders.
- Empty Nesters/Active Adults: This category includes older adults whose children have moved out and who are looking to downsize or find a home with less maintenance. They often seek single-story homes, desirable community amenities, and convenient locations, which Smith Douglas Homes provides in some of its communities.
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Gregory S. Bennett, President, Chief Executive Officer, and Vice Chairman
Mr. Bennett has served as the Chief Executive Officer and President of Smith Douglas since 2019 and as a member of its board of directors since its formation. Prior to that, he served as Chief Operating Officer since 2015. Before joining Smith Douglas, Mr. Bennett founded and operated his own homebuilding company, Greg Bennett Homes, from 2004 to 2015. Earlier in his career, he was Executive Vice President for the Atlanta market of KB Home between 2003 and 2004, following the acquisition of Colony Homes, where he had served as Region President from 1999 to 2003. Colony Homes, founded by Thomas L. Bradbury, was sold to KB Home in 2003.
Russell Devendorf, Executive Vice President and Chief Financial Officer
Mr. Devendorf has served as the Chief Financial Officer and Executive Vice President of Smith Douglas since 2017. Before joining Smith Douglas, he was the Senior Vice President and Chief Financial Officer for WCI Communities, a publicly traded homebuilder, from 2008 through 2017. WCI Communities was sold to Lennar in 2017, and Mr. Devendorf was integral in its turnaround, reorganization, and IPO after entering bankruptcy under a Carl Icahn-led board. Prior to 2008, he held several senior-level finance positions with Meritage Homes Corporation and TOUSA, Inc., both national, publicly traded homebuilding companies. He began his career as an auditor at Ernst & Young LLP in its real estate practice from 1996 to 2000.
Thomas L. Bradbury, Founder and Executive Chairman
Mr. Bradbury is the founder of Smith Douglas and has served as a member of its board of directors since its formation and as the Chairman of Smith Douglas Holdings, LLC's board of managers since 2016. He previously served as Smith Douglas' Chief Executive Officer from its inception until 2019. Mr. Bradbury is also the founder and Chief Executive Officer of Sodmasters Turf Farm. Prior to Smith Douglas, he founded Colony Homes of Atlanta in 1975 and served as its Chief Executive Officer until 2003, when it was sold to KB Home.
Brett A. Steele, Vice President and Chief Legal Officer
Mr. Steele serves as the Vice President and Chief Legal Officer at Smith Douglas Homes. His prior experience includes roles as Senior Associate at King & Spalding, Vice President and Chief Legal Officer at Atlanta Habitat for Humanity, and Senior Counsel at Siemens.
Julie James, Executive Vice President, Sales and Marketing
Ms. James serves as the Executive Vice President, Sales & Marketing, and joined Smith Douglas Homes in 2025. She brings over two decades of leadership experience from various public and private homebuilders, including Century Communities, Richmond American Homes, and D.R. Horton.
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Smith Douglas Homes (SDHC) primarily focuses on the design, construction, and sale of new single-family homes, including one-to-two-story homes and townhomes. Their target demographic includes entry-level and empty-nest homebuyers. The company operates in the Southeastern United States, across metro areas in Alabama, Georgia, North Carolina, South Carolina, Tennessee, and Texas.
The addressable market for Smith Douglas Homes' main products and services is primarily the U.S. residential construction market.
- The **U.S. residential construction market** is estimated to be valued at approximately **USD 1.35 trillion in 2025**, with a projected growth to USD 1.69 trillion by 2030, at a compound annual growth rate (CAGR) of 4.59%.
- New-build activity constituted 69.80% of the U.S. residential construction market share in 2024.
- Specifically, the **Southeast region** of the United States held 41.54% of the U.S. residential construction market share in 2024.
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Smith Douglas Homes (SDHC) is expected to drive future revenue growth over the next 2-3 years through several key strategies:
- Expansion into New Markets: The company is strategically expanding its presence into new, high-growth markets, including Greenville, Dallas-Fort Worth, and the Gulf Coast of Alabama, through greenfield startups. This expansion aims to achieve long-term scale and significantly contribute to future growth.
- Increase in Active Community Count: Smith Douglas Homes has consistently increased its active community count, with a 32% year-over-year increase reported in the third quarter of 2025. This growing number of communities supports broader market presence and future home closings.
- Controlled Lot Expansion: The company has nearly tripled its controlled lot count since going public and increased its total controlled lots by 36% to approximately 24,300. This substantial inventory of controlled lots provides a robust foundation for future development and sustained growth.
- "Pace Over Price" Sales Strategy: Smith Douglas Homes is committed to its "pace over price" philosophy, actively utilizing incentives such as rate buy-downs to drive sales velocity. This strategy aims to maintain sales volumes and conversions, particularly appealing to entry-level buyers.
- Focus on Affordable-Luxury for Entry-Level and Empty-Nest Buyers: By catering to the entry-level and empty-nest buyer segments with quality, affordable-luxury homes and opportunities for customization at below-average market price points, the company is well-positioned to capture demand from these demographic groups amidst affordability challenges.
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Share Repurchases
- Smith Douglas Homes Corp. authorized a stock repurchase program of up to $50.0 million for its Class A common stock on May 28, 2025.
- The company plans to fund this repurchase program using existing cash and cash equivalents or future cash flows.
- This authorization reflects the Board and Management's view that the company's share price may be undervalued relative to its long-term potential.
Share Issuance
- Smith Douglas Homes completed its Initial Public Offering (IPO) on January 16, 2024.
- The company issued 8,846,154 shares of Class A common stock at $21.00 per share, including the full exercise of the underwriters' option for additional shares, generating gross proceeds of approximately $185.8 million.
- Net proceeds from the IPO were used to acquire 6,410,257 newly issued LLC Interests from Smith Douglas Holdings LLC for about $125.2 million and 2,435,897 LLC Interests from Continuing Equity Owners for $47.6 million.
Inbound Investments
- The primary inbound investment in the company over the last 3-5 years was the Initial Public Offering completed in January 2024, raising approximately $185.8 million in gross proceeds from public investors.
Outbound Investments
No significant outbound investments (strategic investments in other companies) were reported for Smith Douglas Homes over the last 3-5 years. The reported "net change in investments - total" for 2024 was -$1 million.
Capital Expenditures
- Smith Douglas Homes reported capital expenditures of -$3.89 million in the trailing twelve months as of November 2025.
- For the nine months ended September 30, 2025, capital expenditures financed by a related party note payable amounted to $3.0 million.
- The company employs a "land-light" homebuilding model, primarily using lot option contracts and outsourcing lot development to land banks to minimize capital requirements. Its capital expenditure focus includes expanding its homebuilding footprint in existing markets and establishing a presence in newer markets.
