Company: UHG
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001830188-25-000012
Chunk: 89

Company: United Homes Group, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 7
Chunk 89
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2023. The increase is primarily attributable to the product mix from acquisitions.

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Cost of Sales and Gross Profit: Cost of sales for the year ended December 31, 2024 was $383.9 million, an increase of $42.2 million, or 12.4%, from $341.7 million for the year ended December 31, 2023. The increase in cost of sales was primarily attributable to an increase in home closings, product mix from acquisitions, and increased incentives, primarily in the form of mortgage rate buy-downs and closing cost assistance. The Company closed 1,431 homes during the year ended December 31, 2024, an increase of 48 home closings, or 3.5%, as compared to 1,383 homes closed during the year ended December 31, 2023.

Gross profit for the year ended December 31, 2024 was $79.8 million, an increase of $0.1 million, or 0.1%, from $79.7 million for the year ended December 31, 2023. Gross profit as a percentage of revenue for the year ended December 31, 2024 was 17.2%, a decrease of 1.7%, as compared to 18.9% for the year ended December 31, 2023. The decrease in gross profit as a percentage of revenue is attributable to higher discounting on homes in an effort to accelerate sales, especially on finished inventory, higher level of incentives, amortization of purchase price accounting adjustments related to acquisitions, and certain non-recurring costs, such as severance costs from the June 2024 workforce reduction and abandoned project costs, partially offset by lower interest expense in cost of sales.

Adjusted Gross Profit: Adjusted gross profit for the year ended December 31, 2024 was $92.4 million, an increase of $2.3 million, or 2.6%, as compared to $90.1 million for the year ended December 31, 2023. Adjusted gross profit as a percentage of revenue for the year ended December 31, 2024 was 19.9%, a decrease of 1.5%, as compared to 21.4% for the year ended December 31, 2023. The decrease in adjusted gross profit as a percentage of revenue was attributable to discounting of homes in an effort to accelerate sales,