LGI Homes Reports Strong Financial Performance

By Tamara Parker • Tuesday, August 05 10:29 • Permanent Link

LGI Homes, Inc. has reported its financial results for the second quarter and the six months ended June 30, 2025. In the second quarter, the company delivered 1,323 homes at an average sales price of $365,446, resulting in $483.5 million in revenue. The gross margin as a percentage of home sales revenues increased 190 basis points sequentially to 22.9%, while the adjusted gross margin (non-GAAP) as a percentage of home sales revenues increased to 25.5%.

The net income before income taxes for the second quarter was $42.0 million, and the net income was $31.5 million or $1.36 basic EPS and $1.36 diluted EPS.

For the six months ended June 30, 2025, the company reported home sales revenues of $834.9 million, with home closings of 2,319 at an average sales price per home closed of $360,028. The gross margin as a percentage of home sales revenues was 22.1%, and the adjusted gross margin (non-GAAP) was 24.7%. The net income before income taxes for this period was $47.8 million, and the net income was $35.5 million or $1.52 basic EPS and $1.52 diluted EPS.

At the end of June 30, 2025, the company had 146 active selling communities and a total of 64,756 owned and controlled lots. The ending backlog at June 30, 2025, stood at 808 homes valued at $322.5 million.

In terms of the balance sheet, 367,568 shares of common stock were repurchased during the second quarter of 2025 for an aggregate amount of $20.6 million. The total liquidity at June 30, 2025, was $322.6 million, including cash and cash equivalents of $59.6 million and $263.0 million of availability under the company’s revolving credit facility. The net debt to capitalization ratio was 45.0% at June 30, 2025.

Looking ahead, the company is withdrawing its full-year 2025 guidance due to market uncertainties and is providing guidance only for the third quarter of 2025. It intends to reintroduce annual guidance when market conditions stabilize.

Despite the challenges, the company remains confident in the long-term outlook of the housing market and its ability to capitalize on future opportunities while delivering strong results today. The market has reacted to these announcements by moving the company's shares 0.29% to a price of $54.64. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.