- The company aims to increase its built-to-order (BTO) homes from around 50% to approximately 70%, a key strategic shift to improve gross margins.
- Management highlighted that BTO homes currently generate 250 to 500 basis points higher gross margins than inventory homes.
- The reduction in build times, now approaching 120 days, makes the BTO model more attractive and compelling for buyers.
- Increasing the BTO mix is expected to support a larger backlog, providing better visibility into future sales and revenue.
- The company expects this strategic pivot to be gradual, with progress toward a higher BTO ratio expected in early 2026.
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