What Green Brick Partners, Inc. told the SEC could break it.

As a homebuilder and land developer, Green Brick's margins depend on the cost and availability of construction inputs — lumber and other raw materials plus skilled construction labor. It warns that shortages or increased costs of labor and raw materials could materially adversely affect its business, and that it may not be able to pass higher input costs through to home prices, compressing margins (homebuilding gross margin already fell 330 bps in 2025). It does not hedge commodities. A sustained spike in lumber/material prices or a labor shortage would directly raise the cost to build and pressure profitability. The core building-materials commodity exposure for a homebuilder.

“shortages or increased costs of labor and raw materials could have a material adverse effect on our business, prospects, financial condition and results of operations.”

Green Brick faces a specific trade-policy exposure on its single largest material input: the U.S. has imposed a 35% tariff on softwood lumber imports from Canada — the primary foreign source of U.S. construction lumber — which it warns could significantly increase the cost of lumber in the U.S. Because it may not be able to raise home prices enough to offset tariff-driven cost increases, the tariffs could compress its margins. It also notes the tariffs are the subject of numerous legal challenges (including before the U.S. Supreme Court), with uncertain ability to recover previously paid tariffs even if those challenges succeed. A concrete, lumber-specific tariff exposure layered on top of general building-material cost risk.

“The Trump administration has imposed a number of tariffs on imports from several countries, including a 35% tariff on softwood lumber imports from Canada”