What does LGI Homes do and what are its main business segments?

What were the key takeaways from LGI Homes’s earnings call?

What were the key takeaways from LGI Homes's earnings call?

What is the revenue and EPS growth rate for LGI Homes year over year?

What is the market's earnings forecast for LGI Homes next quarter?

Did LGI Homes beat or miss consensus estimates last quarter?

What is LGI Homes's gross profit margin?

What is LGI Homes's latest dividend and current dividend yield?

- **Q4 2025 Results**: $474 million revenue, 19.2% gross margin (pre-impairment), 1,362 homes delivered, and 43.3% cancellation rate.
- **Backlog Surge**: 133% growth to 1,394 homes, including 480 wholesale units for 2026.
- **2026 Guidance**: 4,600-5,400 closings, 18%-20% gross margin, and 15%-16% SG&A.
- **Challenges**: Affordability pressures driving cancellations, higher wholesale mix (12.1%), and $6.7 million inventory impairment.
- **Strategic Focus**: Leaning into incentives, maintaining land advantage (21% ASP from land costs), and navigating institutional buyer policy uncertainty.

**【CEO Summary Section】**
- Delivered 1,362 homes in Q4 2025, generating $474 million in revenue. Gross margin before inventory charges was 19.2%, impacted by buydowns and discounts on aged inventory.
- Backlog grew 133% to 1,394 homes, with a $501 million value, including a 480-home wholesale agreement for 2026.
- Cancellation rate rose to 43.3% due to affordability pressures and economic uncertainty.
- 2026 guidance: 4,600-5,400 closings, average sales price $355,000-$365,000, gross margin 18%-20%, and SG&A 15%-16%.

**【CFO Financial Commentary】**
- Q4 revenue of $474 million (+19.5% sequential) driven by sales initiatives. Adjusted gross margin was 22.3%, down from 24% in 2024 due to higher wholesale closings (12.1%) and borrowing costs.
- Took a $6.7 million inventory impairment charge, with no material future impairments expected.
- SG&A expenses were $65.6 million (13.8% of revenue), down 90 bps YoY due to compensation adjustments.
- Full-year net income was $72.6 million ($3.13 per share), with $1.7 billion in revenue and 4,788 closings.
- Land position: 60,842 lots owned/control, with 21% of ASP from land costs, supporting structural margin benefits.

**【Q&A Key Highlights】**
- **Gross Margin Outlook**: 2026 guidance of 18%-20% reflects continued incentives and market alignment with competitors.
- **Wholesale Business**: 10%-15% of 2026 closings expected, with profitability similar to retail business but lower gross margin.
- **Community Growth**: 150-160 active communities by end-2026, with new openings weighted to the back half.
- **Cancellations**: 43.3% rate driven by extended qualification timelines, but incremental closings from expanded backlog.
- **Affordability Strategy**: Continued focus on closing cost assistance, rate buydowns, and selective price adjustments.
- **G&A Run Rate**: ~$110 million annualized, similar to 2025 levels, with variability quarter-to-quarter.

LGI Homes, Inc. (LGIH) Q4 2025 Earnings Call Transcript

- **Revenue Resilience**: Q3 revenue $397 million, closing 1,107 homes, with 8% YoY net orders growth and 62% sequential backlog jump. 
- **Margin Strength**: 24.5% adjusted gross margin, supported by $70k lot basis and self-development. 
- **Growth Ambition**: 2026 community count to rise 10%-15%, driven by Florida, Texas, and California. 
- **Affordability Focus**: 3.99% ARMs and $50k price cuts boost Q4 closings guidance to 1,300-1,500 homes. 
- **Financial Discipline**: Debt-to-capital 45.7%, liquidity $429.9 million, with capex focused on high-margin communities.

### **CEO Summary Section**
- **Financial Performance**: Q3 2025 revenue of $397 million, closing 1,107 homes. Gross margin of 21.5%, adjusted gross margin of 24.5%, in line with guidance. 
- **Margin Management**: Maintained margins through disciplined incentives (e.g., 3.99% 5/1 ARM), selective price adjustments, and self-developed lots (adding 300+ basis points to margins). 
- **Sales Momentum**: Net orders up 8% YoY and 44% sequentially, backlog at $498.7 million (20% YoY, 62% sequential). Q4 guidance: 1,300-1,500 closings (+26% vs. Q3), ASP $365k-$375k. 
- **Community Growth**: 2026 community count to increase 10%-15% (Florida, Texas, California), driven by existing market expansion. 

### **CFO Financial Commentary**
- **Financial Results**: Revenue down 39.2% YoY due to 39.4% closing decline. Average selling price $372k, up slightly YoY. SG&A expenses 16% of revenue, stable at $63.6 million. 
- **Land Position**: 62,564 owned/control lots, 84.9% owned (avg. lot cost $70k). 13,136 vacant finished lots, 3,696 under construction. Land basis advantage supports 20%+ gross margins. 
- **Capital Structure**: Debt $1.75 billion, debt-to-capital 45.7%. Liquidity $429.9 million (up $107 million Q/Q). 2026 capex focus on high-performing communities. 

### **Q&A Key Highlights**
- **Sales Drivers**: Lower rates (10-year Treasury below 4%), promotional ARMs, and aged inventory discounts ($50k price cuts). October closings at 390-400 homes, best since June. 
- **Land Strategy**: 13k vacant finished lots with $70k basis; monetizing via wholesale (15.3% Q3 closings) and institutional buyers. No immediate land sell-down pressure. 
- **Community Growth**: 2026 expansion steady, not front-loaded. G&A stable at $30 million/quarter, SG&A leverage improving with volume. 
- **Mortgage Trends**: 60%+ FHA/VA loans, 3.99% 5/1 ARMs driving affordability. ASP trends: geographic mix, cost inflation, and smaller floor plans. 
- **Risk Management**: No inventory impairment risk due to self-development. Cancellation rate 33.6%, stable Q/Q.

LGI Homes, Inc. (LGIH) Q3 2025 Earnings Call Transcript

- **Revenue decline**: Q2 2025 revenue down 19.8% YoY to $484 million, driven by 20.1% drop in closings.
- **Gross margin improvement**: Adjusted gross margin 25.5% (up 190 basis points sequentially), offsetting wholesale channel drag.
- **Debt focus**: $1.7 billion debt with 45.8% debt-to-capital ratio; plans to reduce leverage as inventory shrinks.
- **Q3 outlook**: 1,100-1,300 closings with 21.5%-22.5% gross margin, balancing incentives with margin preservation.
- **Community expansion**: Q3 community count 145, targeting long-term growth into 2026.

**【CEO Summary Section】**
- Q2 2025 revenue: $484 million (19.8% YoY decline) with 1,323 homes sold at an average sales price (ASP) of $365,000.
- Adjusted gross margin: 25.5% (up 190 basis points sequentially, at high end of guidance range).
- Active communities: 146 (14% YoY increase), with top-performing markets including Atlanta, Nashville, and Wilmington.
- Challenges: Elevated mortgage rates and economic uncertainty impacting sales pace, though late-June/July trends showed improvement.

**【CFO Financial Commentary】**
- Revenue: $483.5 million (19.8% YoY decline) due to 20.1% drop in home closings, partially offset by 0.4% ASP increase.
- Gross margin: 22.9% (vs. 21% Q1 2025 and 25% Q2 2024), with adjusted gross margin at 25.5% (down 150 basis points YoY).
- SG&A: $71 million (14.7% of revenue), with selling expenses optimized to 8.6% of revenue.
- Backlog: 808 homes ($322.5 million), with 11.3% related to wholesale contracts.
- Land position: 64,756 owned/control lots (7.4% YoY decline), with 37,374 raw/development lots.
- Debt: $1.7 billion (45.8% debt-to-capital ratio), with $322.6 million liquidity.

**【Q&A Highlights】**
- **Sales pace and incentives**: Q2 gross orders 1,620 (net 1,091), with cancellation rate 32.7% (vs. 22.2% Q2 2024). Q3 guidance: 1,100-1,300 closings at ASP $360,000-$365,000, with gross margin 21.5%-22.5%.
- **Debt reduction**: Targeting lower leverage as inventory trends down; Q2 share buybacks ($20.6 million) to continue if price remains attractive.
- **Community growth**: Q3 community count 145, with long-term focus on increasing active communities into 2026.
- **Finished lot sales**: Volatile but strategic to reduce inventory; Q2 other income limited.
- **Margin balance**: Emphasis on affordability (smaller homes, incentives) while maintaining land development profit margins.

LGI Homes, Inc. (LGIH) Q2 2025 Earnings Call Transcript

- **Q1 Results**: 996 homes delivered ($351.4M rev), 146 communities (22% YoY). 
- **Margin Headwinds**: 21% gross margin (vs 23.4% YoY), 23.6% adj margin (vs 25.3%). 
- **Guidance Update**: 2025 adj gross margin 24-25.5% (down 150-100bps). 
- **Tariff Impact**: $1M/month added costs from component tariffs. 
- **Incentives**: 5-6% ASP in rate buydowns, 18% wholesale closings. 
- **Liquidity**: $177M buyback capacity, 44.3% debt-to-cap ratio. 
- **Share Value**: 36% discount to book value ($87.27/share). 


**【CEO Opening Remarks】**
- Q1 2025 homes delivered: 996 units at $352,831 ASP, revenue $351.4M (10.1% YoY decline). 
- 146 communities (22% YoY increase), top markets: Richmond (5.3 closings/comm), Charlotte (4.6), Raleigh (4.3). 
- Backlog ended Q1 at 1,040 homes ($406M), net contracts 1,437. 
- One-time $8.6M expense from forward commitment program impacted margins. 
- Wholesale closings rose to 18% of total (vs 9.4% last year). 
- Q1 cancellation rate 16.3% (stable vs 16.8% YoY). 
- 2025 guidance: 6,200-7,000 homes, 160-170 communities, ASP $360-370K. 
- Adjusted gross margin guidance lowered to 24-25.5% (from 25.5-26.5%) due to tariffs and market uncertainty. 
- Tariffs on components may add 150-100bps to annual margin headwinds. 

**【CFO Financial Details】**
- Q1 GAAP net income: $4M ($0.17 EPS). 
- Gross margin: 21.0% (vs 23.4% YoY), adjusted gross margin 23.6% (vs 25.3%). 
- SG&A: $73.5M (20.9% of rev vs 18.8% YoY), driven by sales incentives and headcount. 
- Land position: 7,792 owned/control lots (3.4% YoY decline). 
- 2025 capex: $1.6B debt, 44.3% debt-to-cap ratio. 
- $177M remaining on $200M share buyback program. 

**【Q&A Key Takeaways】**
- **Gross Margin Cadence**: Q1 21.0%, expect sequential improvement as volume ramps. 
- **Tariff Impact**: ~$1M/month in added costs from component tariffs. 
- **Incentives Strategy**: 5-6% ASP in rate buydowns, closing cost assistance. 
- **Wholesale Channel**: 18% of closings, profitable at current ASP. 
- **Community Growth**: 22% YoY comm count, 2025 targets 160-170. 
- **Inventory Management**: 4,200 homes in pipeline, balanced between completed/WIP. 
- **Share Buybacks**: 36% discount to book value ($87.27/share) justifies aggressive repurchases. 


LGI Homes (LGIH)-29 Apr 25-2025 Q1 Earnings call transcript

- **2024 Performance**: 6,131 homes sold (+17% YoY), 24.2% gross margin (+120 bps), and 151 active communities (+29%).\n- **2025 Guidance**: 6,200-7,000 closings, 23.2-24.2% gross margin, and $360-370K ASP.\n- **Key Risks**: 7%+ mortgage rates, 5-6% incentives per home, and 2-3% cost inflation.\n- **Leverage Strengths**: 37% of land in active development, 14.7% SG&A efficiency, and $1.5B debt capacity.

**【CEO Summary Section】**
- **2024 Key Achievements**: Delivered 6,131 homes with total revenue of $2.2B, 120/160 bps margin expansion, and 29% community count growth to 151 active communities.\n- **2025 Outlook**: Closings guidance of 6,200-7,000 homes (3.5% absorption rate), ASP $360-370K, and 23.2-24.2% gross margin despite 5-6% incentives per home.\n- **Strategic Focus**: Maintain profitability through cost control, targeted marketing, and affordable product mix.\n
**【CFO Financial Commentary】**
- **Q4 2024 Results**: Revenue $557.4M (-8.4% YoY), gross margin 22.9%, adjusted gross margin 25.2% (+10 bps YoY).\n- **Full Year 2024**: Revenue $2.2B (-6.6% YoY), gross margin 24.2% (+120 bps YoY), pretax margin 11.8% (+70 bps YoY).\n- **Key Drivers**: 80 new community openings, 5.1% ASP growth, and 14.7% SG&A as % of revenue.\n
**【Q&A Highlights】**
- **Gross Margin Pressure**: 2025 guide reflects 2-3% cost inflation offset by pricing and incentives ($20K/house).\n- **Community Growth**: 9% YoY community count growth weighted to back half of 2025.\n- **Market Dynamics**: DC metro strength driven by exurban locations, not federal employment.\n- **Inventory Management**: 4,000 units in pipeline (1,360 in progress), 599 homes in backlog ($236.5M).

Actual												1.67	2.21	3.52	5.34	3.95	4.71	4.05	4.53	3.25	5.2	3.85	1.45	1.14	2.25	2.84	2.19	0.72	2.48	2.95	2.15	0.17	1.36	0.85	0.97
Forecast												1.2475	1.616	2.156	4.1881	2.5014	3.9229	4.0143	4.1957	2.7183	4.248	3.5313	1.709	1.2526	1.8433	2.1812	2.5385	1.0604	2.1773	2.5378	2.1767	0.6313	1.2786	0.93	0.96
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+33.87%	+36.76%	+63.27%	+27.50%	+57.91%	+20.06%	+0.89%	+7.97%	+19.56%	+22.41%	+9.03%	-15.16%	-8.99%	+22.06%	+30.20%	-13.73%	-32.10%	+13.90%	+16.24%	-1.23%	-73.07%	+6.37%	-8.60%	+1.04%

LGIH

LGIH fundamentals

LGIH Q4 2025 Earnings

Earnings Call

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LGIH

LGIH fundamentals

LGIH Q4 2025 Earnings

Earnings Call

LGIH Earnings Call Summary for Q4/202512:30 PM on Feb 17, 2026

LGIH Earnings Call Summary for Q3/202512:30 PM on Nov 4, 2025

LGIH Earnings Call Summary for Q2/202512:30 PM on Aug 5, 2025

LGIH Earnings Call Summary for Q1/202512:30 PM on Apr 29, 2025

LGIH Earnings Call Summary for Q4/202412:30 PM on Feb 25, 2025

You can ask Aime