Quick Review of Setups for U.S. Homebuilders Post-June Quarter Results

Attached is a note from Vipin Khare, Director, Research Analyst and Neel Vaghasiya, Equity Research Analyst on U.S. homebuilders.

 

Key points from this report:

 

  • Quarter ended June 2025 – key homebuilders reported a revenue and earnings beat, while order intake missed estimates.
  • Key highlights from management commentary:
    • Weak affordability due to elevated home prices and mortgage rates.
    • Continued use of incentives to generate sales will impact margins.
    • Some builders buying Canadian lumber to be impacted as tariffs take effect this month.
    • Labor availability has improved driving a decrease in construction cycle time.