LGI Homes reported second-quarter 2026 homebuilding revenue of $501.5 million, up 3.7% from a year earlier, as total revenue rose to $516.0 million. The company delivered 1,440 homes in the quarter, an 8.8% increase, including 75 currently and previously leased homes. Excluding those leased homes, closings were 1,365, up 3.2%.
Average sales price per home closed rose 0.5% to $367,407. Homebuilding gross margin came in at 19.8%, while adjusted homebuilding gross margin was 23.2%.
Net income for the quarter was $27.0 million, or $1.16 per share on both a basic and diluted basis. Pre-tax income was $36.6 million.
At June 30, 2026, LGI Homes said it had 151 active communities, up 3.4% from a year earlier. The company reduced debt by $128.6 million during the quarter and ended with a debt-to-capital ratio of 42.6%, down 220 basis points year over year. Net debt to capital was 41.6% at quarter-end. Liquidity totaled $468.0 million, including $61.1 million in cash and $406.9 million available under its revolving credit facility.
For the first six months of 2026, homebuilding revenue was $821.2 million, down 1.6% from the prior year. Total home closings increased 1.6% to 2,356, including 110 leased homes, while closings excluding leased homes fell 3.1% to 2,246. Average sales price per home closed increased 1.6% to $365,649.
For the half year, homebuilding gross margin was 19.4%, adjusted homebuilding gross margin was 23.3%, and net income was $29.1 million, or $1.26 per basic share and $1.25 per diluted share. Adjusted net income was $32.6 million, or $1.41 per adjusted basic share and $1.40 per adjusted diluted share.
LGI Homes also raised its full-year 2026 guidance. It now expects homebuilding gross margin of 19.0% to 21.0%, adjusted homebuilding gross margin of 22.5% to 24.5%, and average sales price per home closed of $360,000 to $370,000. The market has reacted to these announcements by moving the company's shares 6.94% to a price of $59.995. For the full picture, make sure to review LGI Homes's 8-K report.
