LGI Homes' Strong Financial Performance in 2025

By Chris Stiles • Tuesday, February 17 13:45 • Permanent Link

LGI Homes, Inc. has reported its financial results for the fourth quarter and full year 2025, and has also issued guidance for 2026. In the fourth quarter of 2025, the company closed 1,362 homes, contributing to reported revenue of $474.0 million. This represented an increase in home closings from the previous year, with an average sales price per home closed of $364,310.

The company's gross margin as a percentage of home sales revenues was 17.7% in the fourth quarter of 2025, while the adjusted gross margin stood at 22.3%. This marked an improvement from the previous year, indicating stronger operational efficiency and cost management.

For the full year 2025, LGI Homes reported home sales revenues of $1.7 billion, with 4,685 home closings. The average sales price per home closed was $364,035, and the gross margin as a percentage of home sales revenues improved to 20.7%. The adjusted gross margin also showed significant improvement, reaching 24.0%.

The company's net income before income taxes for the fourth quarter was $24.0 million, and net income stood at $17.3 million. The full year net income before income taxes was $98.5 million, with net income reaching $72.6 million. These figures represent a notable increase from the previous year, reflecting improved profitability.

Looking ahead to 2026, LGI Homes projects full-year home closings between 4,600 and 5,400, at an average sales price between $355,000 and $365,000. The gross margin is expected to range between 18.0% and 20.0%, with adjusted gross margin between 21.0% and 23.0%. These projections indicate the company's optimism for continued growth and profitability in the coming year.

In terms of liquidity, LGI Homes reported total liquidity of $334.8 million at the end of 2025, including cash and cash equivalents of $61.2 million and $273.6 million of availability under the company’s revolving credit facility. The company's net debt to capital ratio stood at 43.2% at the end of 2025, reflecting a solid financial position.

As a result of these announcements, the company's shares have moved -0.86% on the market, and are now trading at a price of $53.80. For the full picture, make sure to review LGI Homes's 8-K report.

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