Smith Douglas Homes Projects 800 to 875 Home Closings in Q4

Smith Douglas Homes projected 800 to 875 home closings in the fourth quarter of 2026, with a home-closing gross margin of 15.5% to 16.5%, on its Nov. 4 earnings call.

The company also forecast an average sales price of $310,000 to $320,000. Management said it would not provide 2027 guidance, citing variable demand conditions.

The closing forecast follows a third quarter in which Smith Douglas closed 831 homes. Its 16.3% home-closing gross margin falls within the fourth-quarter range, which extends from 0.8 percentage point below that result to 0.2 point above it. Home-closing revenue was $262.5 million, up 0.2% from a year earlier. The company also recorded 777 net new orders, a 13% increase, and ended the quarter with a backlog of 947 homes, up 25%. Its third-quarter results included those figures.

CEO and Vice Chairman Greg Bennett said higher mortgage rates and affordability pressures “have weighed on buyer demand and profitability.”

Its communities focus primarily on entry-level purchasers and empty nesters in Atlanta, Charlotte, Dallas-Fort Worth, Houston and Nashville.