LGIH Research | Milton Maxwell

LGIH

LGI Homes, Inc.

47.73

-0.50-1.04%

Dec 16, 4:00:00 PM EST

Upcoming Earnings

Report date

-/-

Earnings Call Transcripts

This Quarter (Q1 '26)

No earnings call transcript available yet

Last Quarter (Q4 '25)

FY Q4 '25

Q&A reinforces steady, cautious outlook

2/16/26Feb 16, 2026

Q&A largely reaffirms prepared remarks, with management framing 2026 guidance as a repeat of 2025's incentive-heavy dynamics amid persistent affordability woes. Eric Lipar detailed Q4 margin pressure from buydowns and discounts matching competitors, expecting similar levers next year; upside hinges on easing incentives or costs. Wholesale closings eyed at 10-15%, but new orders paused pending institutional buyer policy clarity. Cancellations stay elevated as teams nurture buyers longer for net closings gains, while buyer mix tilts toward more move-ups via Terrata (10-15% communities). Opportunistic finished-lot sales aid debt reduction. Q&A adds color, not surprises. Management stayed execution-focused.

Key Stats

Market Cap

1.10B

P/E (TTM)

10.56

Basic EPS (TTM)

4.52

Dividend Yield

Recent Filings

10-K

FY2025 results

2/20/26Feb 20, 2026

LGI Homes closed FY2025 ended December 31, 2025 with 4,685 homes at $364K ASP, down 22% y/y from 6,028 homes at $365K, as absorption slowed to 2.7/month amid affordability headwinds—yet Southeast and Central segments powered 73% of profits. Revenues fell 23% to $1.7B with gross margins compressing to 20.7% on higher lot costs, house costs, and $6.7M inventory impairments in Florida/Central; Q4 backlog ballooned 133% to 1,394 homes ($501M value) on weak closings. Wholesale surged to 16% of volume. Net debt rose to 43%; $274M revolver room. No dividends; $157M buyback left. Elevated cancellations threaten backlog conversion.

8-K

Q4 revenues $474M, backlog jumps

2/17/26Feb 17, 2026

LGI Homes reported Q4 2025 home sales revenues of $474.0 million from 1,301 closings at $364,310 ASP, down from prior year yet hitting 3.1 closings per community monthly. Adjusted gross margin held at 22.3%, backed by self-developed land offsetting incentives. Backlog surged 133% to 1,394 homes, fueled by a 480-home wholesale deal. 2026 guides 4,600-5,400 closings, ASP $355,000-$365,000, adjusted gross margin 21.0-23.0%. Solid balance sheet, yet softer revenues signal market caution.

8-K

Q3 results show revenue dip

11/4/25Nov 4, 2025

LGI Homes reported third-quarter 2025 results with home sales revenue of $396.6 million, down from $651.9 million last year, after closing 1,065 homes at an average price of $372,424. Gross margin held at 21.5%, while adjusted gross margin reached 24.5%, reflecting disciplined inventory management amid softer demand. Backlog surged 19.9% year-over-year to 1,305 homes valued at $498.7 million. Momentum builds.

10-Q

Q3 FY2025 results

11/4/25Nov 4, 2025

LGI Homes posted Q3 revenue of $396.6M, down 39.2% y/y from $651.9M, with home closings dropping 39.4% to 1,065 units amid affordability headwinds, yet average sales price edged up 0.4% to $372K. Gross margin slipped to 21.5% from 25.1%, pressured by higher lot costs and overhead, while operating income fell 73.2% to $21.5M and diluted EPS declined to $0.85 from $2.95, reconciling cleanly with 23.1M weighted shares. YTD revenue through September 30, 2025, totaled $1.23B, off 25.1% y/y, with net income at $55.2M versus $145.2M last year. Cash stood at $62M, bolstered by $368M revolver availability against $1.75B total debt including $400M each in 8.75% notes due 2028 and 7% notes due 2032; free cash flow not disclosed in the 10-Q. Non-GAAP metrics like adjusted gross margin (24.5%) are defined and reconciled. Elevated mortgage rates continue to challenge demand.

8-K

LGI Homes Q2 earnings dip

8/5/25Aug 5, 2025

LGI Homes reported Q2 2025 results with $483.5 million in home sales revenue from 1,323 closings at an average $365,446 price, down from last year's pace amid affordability pressures from high interest rates. Gross margin rose to 22.9%, adjusted gross margin to 25.5%, while net income hit $31.5 million or $1.36 per share; the company repurchased $20.6 million in shares. Backlog shrank to 808 homes valued at $322.5 million, yet recent trends signal Q3 improvement. It withdrew full-year guidance due to spec model uncertainties. Demand persists, but economic headwinds linger.

About

LGI Homes, Inc. engages in the design, construction, and sale of homes in the United States. It markets and sells attached and detached entry-level homes and active adult offerings under the LGI Homes brand; and luxury homes under the Terrata Homes brand. The company also engages in the wholesale business, which includes building and selling homes to large institutions interested in acquiring single-family rental properties. It operates in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia, Pennsylvania, Maryland, and Utah. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas.

CEO

Mr. Eric Thomas Lipar

IPO

11/7/2013

Website

https://www.lgihomes.com

Employees

1,170

Sector

Consumer Cyclical

Industry

Residential Construction