Landsea Homes Soars 59.37% on New Home Co. Acquisition

On May 13, 2025, Landsea Homes experienced a significant surge in its stock price, rising by 59.37% in pre-market trading. This substantial increase can be attributed to several key factors that have influenced the company's performance and market perception.

One of the primary drivers behind this surge is the acquisition of Landsea Homes by New Home Co. for $11.30 per share, amounting to a total of $1.2 billion. This acquisition, announced on May 12, 2025, represents a 61% premium over Landsea Homes' previous stock price, signaling a major shift in the housing market and investor confidence in the company's future prospects.

Additionally, Landsea Homes reported its first-quarter 2025 financial results, which showed a 2.3% increase in home sales revenue to $299.4 million. The company also delivered 27.3% more homes compared to the same period last year, with a total of 643 homes delivered. Net new home orders increased by 11.1% to 679 homes, indicating strong demand for the company's products.

Despite these positive indicators, Landsea Homes reported a pretax loss of $9.9 million and a net loss of $7.1 million for the first quarter of 2025. The company attributed this loss to higher discounts and incentives offered to buyers, as well as increased interest costs and costs of purchase accounting adjustments for inventory acquired in recent business combinations.

Overall, the acquisition by New Home Co. and the company's strong performance in home deliveries and new orders have contributed to the significant increase in Landsea Homes' stock price. Investors are optimistic about the company's future prospects, despite the reported losses in the first quarter of 2025.