Lgi Homes Stock Earnings Reports

LGI Homes reported Q3 2025 results largely in line with prior guidance. The company closed 1,107 homes (1,065 contributing to revenue) and reported revenue of $396.6M. Reported gross margin was 21.5% (adjusted gross margin 24.5%), with margins supported by disciplined pricing, selective use of incentives (notably competitive buydowns) and the earnings benefit of self-developed lots. Net income was $19.7M ($0.85/share). Net orders improved materially to 1,570 homes (+8% YoY, +44% sequentially), driving backlog to 1,305 homes (+20% YoY, +62% sequentially) valued at $498.7M. Wholesale closings represented 15.3% of closings. Land position remains a competitive advantage with ~62.6k owned/controlled lots (84.9% owned) and an average finished lot cost in the ~$70k range; 13k finished vacant lots are available to monetize or absorb. Starts (725) and homes under construction (895) were down as LGI continued to rebalance inventory. Capital structure: $1.75B debt outstanding (including $623.6M revolver draw), total liquidity of $429.9M, debt-to-capital ~45.7% (net ~44.8%) with intent to move toward mid-point of 35%-45% target as development spend moderates. For Q4, the company reported strong early momentum (October closings of ~390–400 homes pending funding) and guided to 1,300–1,500 homes for Q4 (midpoint +26% vs Q3), ASP guidance $365k–$375k, gross margin 21%–22% (adjusted 24%–25%), SG&A 15%–16%, and an approximate tax rate of 26%. Community count expected ~145 at year-end and targeted to grow 10%–15% in 2026 (spread across existing markets). Management continues to emphasize affordability-focused strategy, careful use of incentives (including forward rate buydowns and select price discounts up to $50k), and disciplined land and start timing. Key risks remain sensitivity to mortgage rates and the broader housing demand environment.