Company: SDHC
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049591
Chunk: 56

Company: Smith Douglas Homes Corp.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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 tax rate of 5.9% and 

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4.4%, respectively. Provision for income taxes was $2.6 million and $3.8 million, respectively, for the nine months ended September 30, 2025 and 2024, which reflects an effective tax rate of 4.9% and 4.4%, respectively.

On July 4, 2025, the One Big Beautiful Bill Act was enacted in the U.S. The Company has assessed the legislation and determined that it does not have a material impact on the Company's income tax expense for the three and nine months ended September 30, 2025 nor does it materially impact the Company's effective income tax rate for 2025. See Note 1—Description of the business and summary of significant accounting policies to our unaudited condensed consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q.

Net income

The following table sets forth net income by reportable segment for the periods presented (in thousands):

 Three months endedSeptember 30,Nine months endedSeptember 30, 20252024Period over period change 20252024Period over period change Southeast$20,854$39,765$(18,911)$66,700$86,368$(19,668)Central5,3939,762(4,369)18,74833,381(14,633)Segment total26,24749,527(23,280)85,448119,749(34,301)Other(1)(10,032)(11,703)1,671(34,088)(36,705)2,617Total$16,215$37,824$(21,609)$51,360$83,044$(31,684)

(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.

Net income for the three and nine months ended September 30, 2025 decreased by $21.6 million, or 57%, and $31.7 million, or 38%, respectively, from the same periods of the prior year. The decrease was primarily due to decreases of $18.7 million and $21.8 million in home closing gross profit, respectively, and increases of $2.0 million and $10