LGI Homes, Inc. Reports Second Quarter 2025 Results
LGI Homes (NASDAQ: LGIH) reported Q2 2025 financial results with home sales revenues of $483.5 million from 1,323 home closings at an average price of $365,446. The company achieved a gross margin of 22.9% and adjusted gross margin of 25.5%, both increasing 190 basis points sequentially.
Net income reached $31.5 million ($1.36 per diluted share), and the company repurchased 367,568 shares for $20.6 million. Due to market uncertainty, LGIH withdrew its full-year 2025 guidance, providing only Q3 2025 guidance with expected home closings between 1,100-1,300 and average sales prices of $360,000-$365,000.
The company maintains 146 active selling communities and controls 64,756 lots, with a total liquidity position of $322.6 million as of June 30, 2025.
LGI Homes (NASDAQ: LGIH) ha comunicato i risultati finanziari del secondo trimestre 2025, con ricavi da vendite di case pari a 483,5 milioni di dollari derivanti da 1.323 chiusure di compravendite a un prezzo medio di 365.446 dollari. L'azienda ha raggiunto un margine lordo del 22,9% e un margine lordo rettificato del 25,5%, entrambi in aumento di 190 punti base rispetto al trimestre precedente.
L'utile netto ha raggiunto 31,5 milioni di dollari (1,36 dollari per azione diluita), e la societ脿 ha riacquistato 367.568 azioni per un valore di 20,6 milioni di dollari. A causa dell'incertezza del mercato, LGIH ha ritirato le previsioni per l'intero anno 2025, fornendo solo le indicazioni per il terzo trimestre 2025 con chiusure di compravendite previste tra 1.100 e 1.300 e prezzi medi di vendita tra 360.000 e 365.000 dollari.
L'azienda mantiene 146 comunit脿 di vendita attive e controlla 64.756 lotti, con una posizione di liquidit脿 totale di 322,6 milioni di dollari al 30 giugno 2025.
LGI Homes (NASDAQ: LGIH) report贸 los resultados financieros del segundo trimestre de 2025 con ingresos por ventas de viviendas de 483,5 millones de d贸lares provenientes de 1.323 cierres de viviendas a un precio promedio de 365.446 d贸lares. La empresa logr贸 un margen bruto del 22,9% y un margen bruto ajustado del 25,5%, ambos aumentando 190 puntos b谩sicos de forma secuencial.
El ingreso neto alcanz贸 31,5 millones de d贸lares (1,36 d贸lares por acci贸n diluida), y la compa帽铆a recompr贸 367.568 acciones por 20,6 millones de d贸lares. Debido a la incertidumbre del mercado, LGIH retir贸 su gu铆a para todo el a帽o 2025, proporcionando solo la gu铆a para el tercer trimestre de 2025 con cierres de viviendas esperados entre 1.100 y 1.300 y precios de venta promedio entre 360.000 y 365.000 d贸lares.
La empresa mantiene 146 comunidades de venta activas y controla 64.756 lotes, con una posici贸n total de liquidez de 322,6 millones de d贸lares al 30 de junio de 2025.
LGI Homes (NASDAQ: LGIH)電� 2025雲� 2攵勱赴 鞛 鞁れ爜鞚� 氚滍憸頃橂┌ 1,323毂勳潣 欤柬儩 韥措歆曥棎靹� 4鞏� 8,350毵� 雼煬鞚� 欤柬儩 韺愲Г 靾橃澋鞚� 旮半頄堦碃, 韽夑窢 韺愲Г 臧�瓴╈潃 365,446雼煬鞓�鞀惦媹雼�. 须岇偓电� 22.9%鞚� 齑� 鞚挫澋毳犼臣 25.5%鞚� 臁办爼 齑� 鞚挫澋毳犾潉 雼劚頄堨溂氅�, 霊� 歆�響� 氇憪 鞝� 攵勱赴 雽�牍� 190 氩犾澊鞁滌姢 韽澑韸� 靸侅姽頄堨姷雼堧嫟.
靾涤澊鞚奠潃 3,150毵� 雼煬 (頋劃 欤茧嫻 1.36雼煬)鞓�鞙茧┌, 须岇偓电� 367,568欤�毳� 2,060毵� 雼煬鞐� 鞛愳偓欤茧 毵れ瀰頄堨姷雼堧嫟. 鞁滌灔 攵堩檿鞁れ劚鞙茧 鞚疙暣 LGIH電� 2025雲� 鞝勳泊 鞐瓣皠 臧�鞚措崢鞀るゼ 觳犿殞頃橁碃, 2025雲� 3攵勱赴 臧�鞚措崢鞀る 鞝滉车頄堨溂氅�, 鞓堨儊 欤柬儩 韥措歆� 靾橂姅 1,100~1,300毂�, 韽夑窢 韺愲Г 臧�瓴╈潃 36毵寏36毵� 5,000雼煬搿� 鞝滌嫓頄堨姷雼堧嫟.
须岇偓电� 146臧滌潣 頇滌劚 韺愲Г 旎る雼堩嫲毳� 鞙犾頃橁碃 鞛堨溂氅�, 64,756臧滌潣 攵�歆�毳� 氤挫湢頃橁碃 鞛堨姷雼堧嫟. 2025雲� 6鞗� 30鞚� 旮办 齑� 鞙犽彊靹膘潃 3鞏� 2,260毵� 雼煬鞛呺媹雼�.
LGI Homes (NASDAQ : LGIH) a annonc茅 ses r茅sultats financiers du deuxi猫me trimestre 2025, avec des revenus de ventes de maisons s鈥櫭﹍evant 脿 483,5 millions de dollars issus de 1 323 cl么tures de ventes 脿 un prix moyen de 365 446 dollars. La soci茅t茅 a atteint une marge brute de 22,9% et une marge brute ajust茅e de 25,5%, en hausse de 190 points de base par rapport au trimestre pr茅c茅dent.
Le b茅n茅fice net a atteint 31,5 millions de dollars (1,36 dollar par action dilu茅e), et la soci茅t茅 a rachet茅 367 568 actions pour 20,6 millions de dollars. En raison de l鈥檌ncertitude du march茅, LGIH a retir茅 ses pr茅visions pour l鈥檈nsemble de l鈥檃nn茅e 2025, ne fournissant que des indications pour le troisi猫me trimestre 2025 avec des cl么tures de ventes attendues entre 1 100 et 1 300 et des prix de vente moyens compris entre 360 000 et 365 000 dollars.
La soci茅t茅 maintient 146 communaut茅s de vente actives et contr么le 64 756 lots, avec une position de liquidit茅 totale de 322,6 millions de dollars au 30 juin 2025.
LGI Homes (NASDAQ: LGIH) ver枚ffentlichte die Finanzergebnisse 蹿眉谤 das zweite Quartal 2025 mit Umsatzerl枚sen aus Hausverk盲ufen in H枚he von 483,5 Millionen US-Dollar aus 1.323 Hausabschl眉ssen zu einem durchschnittlichen Verkaufspreis von 365.446 US-Dollar. Das Unternehmen erzielte eine Bruttomarge von 22,9% und eine bereinigte Bruttomarge von 25,5%, beide stiegen sequenziell um 190 Basispunkte.
Der Nettogewinn betrug 31,5 Millionen US-Dollar (1,36 US-Dollar pro verw盲sserter Aktie), und das Unternehmen kaufte 367.568 Aktien 蹿眉谤 20,6 Millionen US-Dollar zur眉ck. Aufgrund der Marktunsicherheit zog LGIH seine Prognose 蹿眉谤 das Gesamtjahr 2025 zur眉ck und gab nur eine Prognose 蹿眉谤 das dritte Quartal 2025 heraus, mit erwarteten Hausabschl眉ssen zwischen 1.100 und 1.300 und durchschnittlichen Verkaufspreisen von 360.000 bis 365.000 US-Dollar.
Das Unternehmen unterh盲lt 146 aktive Verkaufsgemeinschaften und kontrolliert 64.756 Grundst眉cke, mit einer Gesamtliquidit盲tsposition von 322,6 Millionen US-Dollar zum 30. Juni 2025.
- Gross margin and adjusted gross margin both increased 190 basis points sequentially to 22.9% and 25.5%
- Strong liquidity position of $322.6 million, including $59.6 million cash
- Returned value to shareholders through repurchase of 367,568 shares for $20.6 million
- Significant land position with 64,756 owned and controlled lots
- Sequential decline in Q2 net orders due to affordability challenges and economic uncertainty
- Withdrew full-year 2025 guidance due to market uncertainty
- Net income declined to $31.5 million in Q2 2025 compared to previous periods
- Net debt to capitalization ratio relatively high at 45.0%
Insights
LGI Homes delivered solid Q2 profitability despite market headwinds, but withdrew full-year guidance amid economic uncertainty and declining orders.
LGI Homes' Q2 results demonstrate the operational resilience of their spec-home business model in a challenging market environment. The company delivered 1,323 homes at an average price of
The results reveal a mixed picture of the current housing market. While LGI reported resilient demand, they also acknowledged that affordability challenges and economic uncertainty dampened buyer willingness, resulting in declining net orders. This aligns with broader industry trends where high interest rates continue to pressure affordability. The company's decision to withdraw full-year 2025 guidance and only provide Q3 guidance signals significant near-term market uncertainty, though management noted encouraging sales trends in late June and July.
LGI's inventory position remains substantial with 64,756 owned and controlled lots and 146 active selling communities. Their ending backlog of 808 homes valued at
For Q3 2025, LGI projects 1,100-1,300 home closings with gross margins between
LGI's Q2 shows margin improvement but signals caution with withdrawn guidance, while maintaining financial stability through active capital management.
LGI Homes delivered a financially resilient second quarter despite housing market headwinds. The company achieved net income of
The sequential margin improvement of
From a balance sheet perspective, LGI maintains strong liquidity of
The withdrawal of full-year guidance is a significant red flag, indicating limited visibility into Q4 performance. This demonstrates the volatility in the current housing market and suggests potential challenges ahead. LGI's projected Q3 closings of 1,100-1,300 homes represent a potential sequential decline from Q2's 1,323 closings, further indicating market softness.
For the first half of 2025, LGI reported cumulative net income of
THE WOODLANDS, Texas, Aug. 05, 2025 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ: LGIH) today announced financial results for the second quarter and the six months ended June听30, 2025.
鈥淲e delivered solid results in the second quarter including profitability metrics at the high end of our prior guidance range,鈥� said Eric Lipar, Chairman and Chief Executive Officer of LGI Homes.
鈥淚n the second quarter, we delivered 1,323 homes at an average sales price of
鈥淎lthough demand for homeownership during the quarter was resilient, affordability challenges tied to interest rates and broader economic uncertainty dampened some buyers鈥� willingness to transact, resulting in a sequential decline in our second quarter net orders. However, we are encouraged by recent trends in late June and throughout July, which point to an improved sales environment in the third quarter.
鈥淚n today鈥檚 market, our spec-focused business model makes visibility into the fourth quarter a challenge. As a result, we are withdrawing our full year 2025 guidance and providing guidance only for the third quarter of 2025. We intend to reintroduce annual guidance when market conditions stabilize.鈥�
Mr. Lipar concluded, 鈥淒espite the current challenges confronting our industry, we remain confident in the housing market鈥檚 long-term outlook, underpinned by strong demographics and a structural shortage of new homes. Our second quarter results demonstrate our commitment to positioning the Company to capitalize on long-term opportunities when the market improves, while continuing to deliver strong results today.鈥�
Second Quarter 2025 Highlights
- Home sales revenues of
$483.5 million - Home closings of 1,323
- Average sales price per home closed of
$365,446 - Gross margin as a percentage of home sales revenues of
22.9% - Adjusted gross margin (non-GAAP) as a percentage of home sales revenues of
25.5% - Net income before income taxes of
$42.0 million - Net income of
$31.5 million or$1.36 b asic EPS and$1.36 diluted EPS
Six Months Ended June 30, 2025 Highlights
- Home sales revenues of
$834.9 million - Home closings of 2,319
- Average sales price per home closed of
$360,028 - Gross margin as a percentage of home sales revenues of
22.1% - Adjusted gross margin (non-GAAP) as a percentage of home sales revenues of
24.7% - Net income before income taxes of
$47.8 million - Net income of
$35.5 million or$1.52 b asic EPS and$1.52 diluted EPS - Active selling communities at June听30, 2025 of 146
- Total owned and controlled lots at June听30, 2025 of 64,756
- Ending backlog at June 30, 2025 of 808 homes valued at
$322.5 million
Please see 鈥�Non-GAAP Measures鈥� for a reconciliation of Adjusted Gross Margin (a non-GAAP measure) to Gross Margin, the most directly comparable GAAP measure.
Balance Sheet Highlights
- 367,568 shares of common stock were repurchased during the second quarter of 2025 for an aggregate amount of
$20.6 million - Total liquidity of
$322.6 million at June听30, 2025, including cash and cash equivalents of$59.6 million and$263.0 million of availability under the Company鈥檚 revolving credit facility - Net debt to capitalization of
45.0% at June听30, 2025
Third Quarter 2025 Outlook
Subject to the caveats in the Forward-Looking Statements section of this press release and the assumptions noted below, the Company is providing the following guidance for the third quarter of 2025. The Company expects:
- Home closings between 1,100 and 1,300
- Active selling communities at the end of the third quarter of 2025 of approximately 145
- Average sales price per home closed between
$360,000 and$365,000 - Gross margin as a percentage of home sales revenues between
21.5% and22.5% - Adjusted gross margin (non-GAAP) as a percentage of home sales revenues between
24.0% and25.0% with capitalized interest accounting for substantially all of the difference between gross margin and adjusted gross margin - SG&A as a percentage of home sales revenues between
15.0% and16.0% - Effective tax rate of approximately
24.5%
This outlook assumes that general economic conditions, including input costs, materials, product and labor availability, interest rates and mortgage availability, in the third quarter of 2025 are similar to those experienced to date in 2025 and that the average sales price per home closed, construction costs, availability of land and land development costs for the full third quarter of 2025 are consistent with the Company鈥檚 recent experience. In addition, this outlook assumes that governmental regulations relating to land development and home construction are similar to those currently in place and does not take into account any additional changes to U.S. trade policies, including the imposition of tariffs and duties on homebuilding products.
Earnings Conference Call
The Company will host a conference call via live webcast for investors and other interested parties beginning at 12:30 p.m. Eastern Time on Tuesday, August听5, 2025 (the 鈥淓arnings Call鈥�).
Participants may access the live webcast by visiting the Investor Relations section of the Company鈥檚 website at https://investor.lgihomes.com.
An archive of the Earnings Call webcast will be available for replay on the Company鈥檚 website for one year from the date of the Earnings Call.
About LGI Homes, Inc.
Headquartered in The Woodlands, Texas, LGI Homes, Inc. is a pioneer in the homebuilding industry, successfully applying an innovative and systematic approach to the design, construction and sale of homes across 36 markets in 21 states. As one of America鈥檚 fastest growing companies, LGI Homes has closed over 75,000 homes since its founding in 2003 and has delivered profitable financial results every year. Nationally recognized for its quality construction and exceptional customer service, LGI Homes was named to Newsweek鈥檚 list of the World鈥檚 Most Trustworthy Companies. LGI Homes鈥� commitment to excellence extends to its more than 1,000 employees, earning the Company numerous workplace awards at the local, state, and national level, including the Top Workplaces USA 2025 Award. For more information about LGI Homes and its unique operating model focused on making the dream of homeownership a reality for families across the nation, please visit the Company鈥檚 website at www.lgihomes.com.
Forward-Looking Statements
Any statements made in this press release or on the Earnings Call that are not statements of historical fact, including statements about the Company鈥檚 beliefs, outlook and expectations, are forward-looking statements within the meaning of the federal securities laws, and should be evaluated as such. Forward-looking statements include information concerning expected third quarter 2025 home closings, active selling communities, average sales price per home closed, gross margin as a percentage of home sales revenues, adjusted gross margin as a percentage of homes sales revenues, SG&A as a percentage of home sales revenues and effective tax rate, as well as market conditions and possible or assumed future results of operations, including descriptions of the Company鈥檚 business plan and strategies. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms 鈥渁nticipate,鈥� 鈥渂elieve,鈥� 鈥渃ontinue,鈥� 鈥渃ould,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渇orecast,鈥� 鈥済oal,鈥� 鈥渋ntend,鈥� 鈥渕ay,鈥� 鈥渙bjective,鈥� 鈥減lan,鈥� 鈥減otential,鈥� 鈥減redict,鈥� 鈥減rojection,鈥� 鈥渟hould,鈥� 鈥渨ill鈥� or, in each case, their negative, or other variations or comparable terminology. For more information concerning factors that could cause actual results to differ materially from those contained in the forward-looking statements please refer to the 鈥淩isk Factors鈥� section in the Company鈥檚 Annual Report on Form 10-K for the fiscal year ended December 31, 2024, including the 鈥淐autionary Statement about Forward-Looking Statements鈥� subsection within the 鈥淩isk Factors鈥� section, and subsequent filings by the Company with the U.S. Securities and Exchange Commission (the 鈥淪EC鈥�), including the 鈥淩isk Factors鈥� and 鈥淐autionary Statement about Forward-Looking Statements鈥� sections in the Company鈥檚 Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025. The Company bases these forward-looking statements or outlook on its current expectations, plans and assumptions that it has made in light of its experience in the industry, as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances and at such time. As you read and consider this press release or listen to the Earnings Call, you should understand that these statements are not guarantees of future performance or results. The forward-looking statements, including the Company鈥檚 third quarter 2025 outlook, are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements or outlook. Although the Company believes that these forward-looking statements and outlook are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect the Company鈥檚 actual results to differ materially from those expressed in the forward-looking statements and outlook. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. If the Company does update one or more forward-looking statements, there should be no inference that it will make additional updates with respect to those or other forward-looking statements.
| LGI HOMES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share data) | ||||||||
| 听 | 听 | June 30, | 听 | December 31, | ||||
| 听 | 听 | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 |
| ASSETS | 听 | 听 | 听 | 听 | ||||
| Cash and cash equivalents | 听 | $ | 59,560 | 听 | 听 | $ | 53,197 | 听 |
| Accounts receivable | 听 | 听 | 34,596 | 听 | 听 | 听 | 28,717 | 听 |
| AG真人官方 estate inventory | 听 | 听 | 3,650,443 | 听 | 听 | 听 | 3,387,853 | 听 |
| Pre-acquisition costs and deposits | 听 | 听 | 29,030 | 听 | 听 | 听 | 36,049 | 听 |
| Property and equipment, net | 听 | 听 | 93,802 | 听 | 听 | 听 | 57,038 | 听 |
| Other assets | 听 | 听 | 116,196 | 听 | 听 | 听 | 174,391 | 听 |
| Deferred tax assets, net | 听 | 听 | 10,433 | 听 | 听 | 听 | 9,271 | 听 |
| Goodwill | 听 | 听 | 12,018 | 听 | 听 | 听 | 12,018 | 听 |
| Total assets | 听 | $ | 4,006,078 | 听 | 听 | $ | 3,758,534 | 听 |
| 听 | 听 | 听 | 听 | 听 | ||||
| LIABILITIES AND EQUITY | 听 | 听 | 听 | 听 | ||||
| Accounts payable | 听 | $ | 46,044 | 听 | 听 | $ | 33,271 | 听 |
| Accrued expenses and other liabilities | 听 | 听 | 162,059 | 听 | 听 | 听 | 207,317 | 听 |
| Notes payable | 听 | 听 | 1,740,830 | 听 | 听 | 听 | 1,480,718 | 听 |
| Total liabilities | 听 | 听 | 1,948,933 | 听 | 听 | 听 | 1,721,306 | 听 |
| 听 | 听 | 听 | 听 | 听 | ||||
| COMMITMENTS AND CONTINGENCIES | 听 | 听 | 听 | 听 | ||||
| EQUITY | 听 | 听 | 听 | 听 | ||||
| Common stock, par value | 听 | 听 | 277 | 听 | 听 | 听 | 276 | 听 |
| Additional paid-in capital | 听 | 听 | 345,189 | 听 | 听 | 听 | 337,161 | 听 |
| Retained earnings | 听 | 听 | 2,121,314 | 听 | 听 | 听 | 2,085,787 | 听 |
| Treasury stock, at cost, 4,656,592 shares as of June 30, 2025 and 4,247,339 shares as of December 31, 2024 | 听 | 听 | (409,635 | ) | 听 | 听 | (385,996 | ) |
| Total equity | 听 | 听 | 2,057,145 | 听 | 听 | 听 | 2,037,228 | 听 |
| Total liabilities and equity | 听 | $ | 4,006,078 | 听 | 听 | $ | 3,758,534 | 听 |
| LGI HOMES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share and per share data) | ||||||||||||||||
| 听 | ||||||||||||||||
| 听 | 听 | Three Months Ended June 30, | 听 | Six Months Ended June 30, | ||||||||||||
| 听 | 听 | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 |
| Home sales revenues | 听 | $ | 483,485 | 听 | 听 | $ | 602,497 | 听 | 听 | $ | 834,905 | 听 | 听 | $ | 993,348 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Cost of sales | 听 | 听 | 372,877 | 听 | 听 | 听 | 451,613 | 听 | 听 | 听 | 650,584 | 听 | 听 | 听 | 751,063 | 听 |
| Selling expenses | 听 | 听 | 41,599 | 听 | 听 | 听 | 52,872 | 听 | 听 | 听 | 83,941 | 听 | 听 | 听 | 94,000 | 听 |
| General and administrative | 听 | 听 | 29,401 | 听 | 听 | 听 | 30,491 | 听 | 听 | 听 | 60,603 | 听 | 听 | 听 | 62,031 | 听 |
| Operating income | 听 | 听 | 39,608 | 听 | 听 | 听 | 67,521 | 听 | 听 | 听 | 39,777 | 听 | 听 | 听 | 86,254 | 听 |
| Other income, net | 听 | 听 | (2,432 | ) | 听 | 听 | (9,362 | ) | 听 | 听 | (7,987 | ) | 听 | 听 | (13,723 | ) |
| Net income before income taxes | 听 | 听 | 42,040 | 听 | 听 | 听 | 76,883 | 听 | 听 | 听 | 47,764 | 听 | 听 | 听 | 99,977 | 听 |
| Income tax provision | 听 | 听 | 10,507 | 听 | 听 | 听 | 18,310 | 听 | 听 | 听 | 12,237 | 听 | 听 | 听 | 24,351 | 听 |
| Net income | 听 | $ | 31,533 | 听 | 听 | $ | 58,573 | 听 | 听 | $ | 35,527 | 听 | 听 | $ | 75,626 | 听 |
| Earnings per share: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Basic | 听 | $ | 1.36 | 听 | 听 | $ | 2.49 | 听 | 听 | $ | 1.52 | 听 | 听 | $ | 3.21 | 听 |
| Diluted | 听 | $ | 1.36 | 听 | 听 | $ | 2.48 | 听 | 听 | $ | 1.52 | 听 | 听 | $ | 3.20 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Weighted average shares outstanding: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Basic | 听 | 听 | 23,221,565 | 听 | 听 | 听 | 23,543,378 | 听 | 听 | 听 | 23,308,534 | 听 | 听 | 听 | 23,560,977 | 听 |
| Diluted | 听 | 听 | 23,265,062 | 听 | 听 | 听 | 23,603,311 | 听 | 听 | 听 | 23,364,957 | 听 | 听 | 听 | 23,635,116 | 听 |
Non-GAAP Measures
In addition to the results reported in accordance with accounting principles generally accepted in the United States (鈥淕AAP鈥�), the Company has provided information in this press release relating to adjusted gross margin.
Adjusted Gross Margin
Adjusted gross margin is a non-GAAP financial measure used by management as a supplemental measure in evaluating operating performance. The Company defines adjusted gross margin as gross margin less capitalized interest and adjustments resulting from the application of purchase accounting included in the cost of sales. Management believes this information is useful because it isolates the impact that capitalized interest and purchase accounting adjustments have on gross margin. However, because adjusted gross margin information excludes capitalized interest and purchase accounting adjustments, which have real economic effects and could impact results, the utility of adjusted gross margin information as a measure of the Company鈥檚 operating performance may be limited. In addition, other companies may not calculate adjusted gross margin information in the same manner that the Company does. Accordingly, adjusted gross margin information should be considered only as a supplement to gross margin information as a measure of the Company鈥檚 performance.
The following table reconciles adjusted gross margin to gross margin, which is the GAAP financial measure that management believes to be most directly comparable (dollars in thousands, unaudited):
| 听 | 听 | Three Months Ended June 30, | 听 | Six Months Ended June 30, | ||||||||||||
| 听 | 听 | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 |
| Home sales revenues | 听 | $ | 483,485 | 听 | 听 | $ | 602,497 | 听 | 听 | $ | 834,905 | 听 | 听 | $ | 993,348 | 听 |
| Cost of sales | 听 | 听 | 372,877 | 听 | 听 | 听 | 451,613 | 听 | 听 | 听 | 650,584 | 听 | 听 | 听 | 751,063 | 听 |
| Gross margin | 听 | 听 | 110,608 | 听 | 听 | 听 | 150,884 | 听 | 听 | 听 | 184,321 | 听 | 听 | 听 | 242,285 | 听 |
| Capitalized interest charged to cost of sales | 听 | 听 | 11,836 | 听 | 听 | 听 | 10,632 | 听 | 听 | 听 | 20,103 | 听 | 听 | 听 | 17,233 | 听 |
| Purchase accounting adjustments (1) | 听 | 听 | 1,042 | 听 | 听 | 听 | 1,174 | 听 | 听 | 听 | 1,851 | 听 | 听 | 听 | 1,977 | 听 |
| Adjusted gross margin | 听 | $ | 123,486 | 听 | 听 | $ | 162,690 | 听 | 听 | $ | 206,275 | 听 | 听 | $ | 261,495 | 听 |
| Gross margin % (2) | 听 | 听 | 22.9 | % | 听 | 听 | 25.0 | % | 听 | 听 | 22.1 | % | 听 | 听 | 24.4 | % |
| Adjusted gross margin % (2) | 听 | 听 | 25.5 | % | 听 | 听 | 27.0 | % | 听 | 听 | 24.7 | % | 听 | 听 | 26.3 | % |
| 听 | (1) | Adjustments result from the application of purchase accounting for acquisitions and represent the amount of the fair value step-up adjustments included in cost of sales for real estate inventory sold after the acquisition dates. |
| 听 | (2) | Calculated as a percentage of home sales revenues. |
Home Sales Revenues, Home Closings, Average Sales Price Per Home Closed (ASP), Average Community Count, Average Monthly Absorption Rate, and Ending Community Count by Reportable Segment
(Revenues in thousands, unaudited)
| 听 | 听 | Three Months Ended June 30, 2025 | 听 | As of June听30, 2025 | 听 | |||||||||||||||
| Reportable Segment | 听 | Revenues | 听 | Home Closings | 听 | 听 | ASP | 听 | Average Community Count | 听 | 听 | Average Monthly Absorption Rate | 听 | 听 | Community Count at End of Period | 听 | ||||
| Central | 听 | $ | 112,986 | 听 | 听 | 360 | 听 | 听 | $ | 313,850 | 听 | 听 | 47.3 | 听 | 听 | 2.5 | 听 | 听 | 46 | 听 |
| Southeast | 听 | 听 | 150,110 | 听 | 听 | 456 | 听 | 听 | 听 | 329,189 | 听 | 听 | 33.7 | 听 | 听 | 4.5 | 听 | 听 | 35 | 听 |
| Northwest | 听 | 听 | 53,487 | 听 | 听 | 100 | 听 | 听 | 听 | 534,870 | 听 | 听 | 16.0 | 听 | 听 | 2.1 | 听 | 听 | 16 | 听 |
| West | 听 | 听 | 100,339 | 听 | 听 | 230 | 听 | 听 | 听 | 436,257 | 听 | 听 | 24.7 | 听 | 听 | 3.1 | 听 | 听 | 25 | 听 |
| Florida | 听 | 听 | 66,563 | 听 | 听 | 177 | 听 | 听 | 听 | 376,062 | 听 | 听 | 24.3 | 听 | 听 | 2.4 | 听 | 听 | 24 | 听 |
| Total | 听 | $ | 483,485 | 听 | 听 | 1,323 | 听 | 听 | $ | 365,446 | 听 | 听 | 146.0 | 听 | 听 | 3.0 | 听 | 听 | 146 | 听 |
| 听 | 听 | Three Months Ended June 30, 2024 | 听 | As of June听30, 2024 | 听 | |||||||||||||||
| Reportable Segment | 听 | Revenues | 听 | Home Closings | 听 | 听 | ASP | 听 | Average Community Count | 听 | 听 | Average Monthly Absorption Rate | 听 | 听 | Community Count at End of Period | 听 | ||||
| Central | 听 | $ | 173,434 | 听 | 听 | 535 | 听 | 听 | $ | 324,176 | 听 | 听 | 44.0 | 听 | 听 | 4.1 | 听 | 听 | 44 | 听 |
| Southeast | 听 | 听 | 135,418 | 听 | 听 | 410 | 听 | 听 | 听 | 330,288 | 听 | 听 | 24.7 | 听 | 听 | 5.5 | 听 | 听 | 23 | 听 |
| Northwest | 听 | 听 | 68,125 | 听 | 听 | 132 | 听 | 听 | 听 | 516,098 | 听 | 听 | 14.3 | 听 | 听 | 3.1 | 听 | 听 | 14 | 听 |
| West | 听 | 听 | 128,155 | 听 | 听 | 308 | 听 | 听 | 听 | 416,088 | 听 | 听 | 22.0 | 听 | 听 | 4.7 | 听 | 听 | 23 | 听 |
| Florida | 听 | 听 | 97,365 | 听 | 听 | 270 | 听 | 听 | 听 | 360,611 | 听 | 听 | 23.3 | 听 | 听 | 3.9 | 听 | 听 | 24 | 听 |
| Total | 听 | $ | 602,497 | 听 | 听 | 1,655 | 听 | 听 | $ | 364,047 | 听 | 听 | 128.3 | 听 | 听 | 4.3 | 听 | 听 | 128 | 听 |
Home Sales Revenues, Home Closings, Average Sales Price Per Home Closed (ASP), Average Community Count, and Average Monthly Absorption Rate by Reportable Segment
(Revenues in thousands, unaudited)
| 听 | 听 | Six Months Ended June 30, 2025 | |||||||||||||||
| Reportable Segment | 听 | Revenues | 听 | Home Closings | 听 | 听 | ASP | 听 | Average Community Count | 听 | 听 | Average Monthly Absorption Rate | 听 | ||||
| Central | 听 | $ | 214,132 | 听 | 听 | 690 | 听 | 听 | $ | 310,336 | 听 | 听 | 49.2 | 听 | 听 | 2.3 | 听 |
| Southeast | 听 | 听 | 251,792 | 听 | 听 | 768 | 听 | 听 | 听 | 327,854 | 听 | 听 | 31.5 | 听 | 听 | 4.1 | 听 |
| Northwest | 听 | 听 | 87,724 | 听 | 听 | 165 | 听 | 听 | 听 | 531,661 | 听 | 听 | 16.3 | 听 | 听 | 1.7 | 听 |
| West | 听 | 听 | 167,295 | 听 | 听 | 389 | 听 | 听 | 听 | 430,064 | 听 | 听 | 25.2 | 听 | 听 | 2.6 | 听 |
| Florida | 听 | 听 | 113,962 | 听 | 听 | 307 | 听 | 听 | 听 | 371,212 | 听 | 听 | 24.8 | 听 | 听 | 2.1 | 听 |
| Total | 听 | $ | 834,905 | 听 | 听 | 2,319 | 听 | 听 | $ | 360,028 | 听 | 听 | 147.0 | 听 | 听 | 2.6 | 听 |
| 听 | 听 | Six Months Ended June 30, 2024 | |||||||||||||||
| Reportable Segment | 听 | Revenues | 听 | Home Closings | 听 | 听 | ASP | 听 | Average Community Count | 听 | 听 | Average Monthly Absorption Rate | 听 | ||||
| Central | 听 | $ | 277,170 | 听 | 听 | 854 | 听 | 听 | $ | 324,555 | 听 | 听 | 42.8 | 听 | 听 | 3.3 | 听 |
| Southeast | 听 | 听 | 251,863 | 听 | 听 | 765 | 听 | 听 | 听 | 329,233 | 听 | 听 | 25.7 | 听 | 听 | 5.0 | 听 |
| Northwest | 听 | 听 | 104,192 | 听 | 听 | 194 | 听 | 听 | 听 | 537,072 | 听 | 听 | 13.2 | 听 | 听 | 2.4 | 听 |
| West | 听 | 听 | 201,234 | 听 | 听 | 487 | 听 | 听 | 听 | 413,211 | 听 | 听 | 19.5 | 听 | 听 | 4.2 | 听 |
| Florida | 听 | 听 | 158,889 | 听 | 听 | 438 | 听 | 听 | 听 | 362,760 | 听 | 听 | 21.3 | 听 | 听 | 3.4 | 听 |
| Total | 听 | $ | 993,348 | 听 | 听 | 2,738 | 听 | 听 | $ | 362,801 | 听 | 听 | 122.5 | 听 | 听 | 3.7 | 听 |
Owned and Controlled Lots
The table below shows (i) home closings by reportable segment for the six months ended June听30, 2025 and (ii) the Company鈥檚 owned or controlled lots by reportable segment as of June听30, 2025.
| 听 | 听 | Six Months Ended June 30, 2025 | 听 | 听 | As of June 30, 2025 | |||||||
| Reportable Segment | 听 | Home Closings | 听 | 听 | Owned (1) | 听 | 听 | Controlled | 听 | 听 | Total | 听 |
| Central | 听 | 690 | 听 | 听 | 19,830 | 听 | 听 | 883 | 听 | 听 | 20,713 | 听 |
| Southeast | 听 | 768 | 听 | 听 | 13,956 | 听 | 听 | 3,962 | 听 | 听 | 17,918 | 听 |
| Northwest | 听 | 165 | 听 | 听 | 5,462 | 听 | 听 | 1,337 | 听 | 听 | 6,799 | 听 |
| West | 听 | 389 | 听 | 听 | 8,970 | 听 | 听 | 3,297 | 听 | 听 | 12,267 | 听 |
| Florida | 听 | 307 | 听 | 听 | 5,337 | 听 | 听 | 1,722 | 听 | 听 | 7,059 | 听 |
| Total | 听 | 2,319 | 听 | 听 | 53,555 | 听 | 听 | 11,201 | 听 | 听 | 64,756 | 听 |
| 听 | (1) | Of the 53,555 owned lots as of June听30, 2025, 37,374 were raw/under development lots and 16,181 were finished lots. Finished lots included 2,524 completed homes, including information centers, and 1,512 homes in progress. |
Backlog Data
As of the dates set forth below, the Company鈥檚 net orders, cancellation rate and ending backlog homes and value were as follows (dollars in thousands, unaudited):
| Backlog Data | 听 | Six Months Ended June 30, | ||||||
| 2025 (4) | 听 | 2024 (5) | ||||||
| Net orders (1) | 听 | 听 | 2,528 | 听 | 听 | 听 | 3,541 | 听 |
| Cancellation rate (2) | 听 | 听 | 24.2 | % | 听 | 听 | 19.5 | % |
| Ending backlog听鈥撎齢omes (3) | 听 | 听 | 808 | 听 | 听 | 听 | 1,393 | 听 |
| Ending backlog听鈥撎齰alue (3) | 听 | $ | 322,466 | 听 | 听 | $ | 553,604 | 听 |
| 听 | (1) | Net orders are new (gross) orders for the purchase of homes during the period, less cancellations of existing purchase contracts during the period. |
| 听 | (2) | Cancellation rate for a period is the total number of purchase contracts cancelled during the period divided by the total new (gross) orders for the purchase of homes during the period. |
| 听 | (3) | Ending backlog consists of retail homes at the end of the period that are under a purchase contract that has been signed by homebuyers who have met preliminary financing criteria but have not yet closed and wholesale contracts with varying terms. Ending backlog is valued at the contract amount. |
| 听 | (4) | As of June听30, 2025, the Company had 91 units related to bulk sales agreements associated with its wholesale business. |
| 听 | (5) | As of June听30, 2024, the Company had 181 units related to bulk sales agreements associated with its wholesale business. |
| CONTACT: | Joshua D. Fattor |
| 听 | Executive Vice President, Investor Relations and Capital Markets |
| 听 | (281) 210-2586 |
| 听 | [email protected] |
FAQ
What were LGI Homes' key financial results for Q2 2025?
Why did LGIH withdraw its full-year 2025 guidance?
What is LGI Homes' outlook for Q3 2025?
How much stock did LGIH repurchase in Q2 2025?
What is LGI Homes' current liquidity position?
