LGI Homes Reports Decrease in Home Closings for 2024

By Tamara Parker • Tuesday, February 25 15:17 • Permanent Link

LGI Homes, Inc. has reported its financial results for the fourth quarter and full year of 2024. The company's full year closings for 2024 were reported at 6,131 homes, which included the bulk sale of 103 leased, single-family homes. This represented a decrease of 10.4% from the previous year. However, the average sales price per home closed increased by 4.2% to $365,394.

The company's gross margin as a percentage of home sales revenues increased by 120 basis points to 24.2% for the full year of 2024. Additionally, LGI Homes reported an adjusted gross margin (non-GAAP) as a percentage of home sales revenues, which increased by 160 basis points to 26.3% compared to the previous year.

In the fourth quarter of 2024, home sales revenues decreased by 8.4% to $557.4 million, and home closings decreased by 12.8% to 1,533 homes. However, the average sales price per home closed increased by 5.1% to $363,598. The gross margin as a percentage of home sales revenues decreased by 50 basis points to 22.9%, while the adjusted gross margin increased by 10 basis points to 25.2%.

The net income before income taxes decreased by 2.1% to $67.1 million in the fourth quarter of 2024, and the net income decreased by 2.3% to $50.9 million.

Looking ahead to 2025, the company is projecting full year closings between 6,200 and 7,000 homes, at an average sales price between $360,000 and $370,000. The full year gross margin is projected to be between 23.2% and 24.2%, with adjusted gross margin between 25.5% and 26.5%.

The company's active selling communities at December 31, 2024, increased by 29.1% to 151, and the total owned and controlled lots at the same date were reported at 70,899. The ending backlog of homes at December 31, 2024, was 599, with a value of $236.5 million.

LGI Homes reported a net debt to capitalization of 41.2% at December 31, 2024, and total liquidity of $323.7 million, including cash and cash equivalents of $53.2 million and $270.5 million of availability under the company’s revolving credit facility.

Following these announcements, the company's shares moved 4.8%, and are now trading at a price of $79.61. If you want to know more, read the company's complete 8-K report here.

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