Company Overview - LGI Homes and its luxury brand, Terrata Homes, are expanding their home offerings in Cape Coral, Florida, with a new sales office to support continued homebuilding efforts [1] - LGI Homes has successfully closed over 75,000 homes since its founding in 2003 and has delivered profitable financial results every year [6] - The company is recognized for its quality construction and exceptional customer service, earning accolades such as being named to Newsweek's list of the World's Most Trustworthy Companies [6] Product Offerings - LGI Homes is providing newly constructed homes in northern Cape Coral, featuring single-story floor plans ranging from three to five bedrooms and sizes from 1,140 to 1,862 square feet, with prices ranging from the $340s to the $420s [2] - Each LGI home includes an attached two-car garage, professional landscaping, and the CompleteHome™ interior package, which offers premium features at no additional cost [2] - Terrata Homes offers luxury homes with three to five bedrooms, ranging from 1,670 to 3,496 square feet, with prices from the $440s to the $650s, featuring high-end finishes and open-concept layouts [4] Market Position - The expansion in Cape Coral reflects LGI Homes' decade-long commitment to the area's growth and the increasing demand for both affordable and luxury housing options [1][2] - The introduction of Terrata Homes aims to cater to homebuyers seeking an elevated living experience, enhancing the company's market presence in the luxury segment [4]

Core Points - LGI Homes, Inc. closed 450 homes in April 2025, indicating strong sales performance [1] - As of April 30, 2025, the company had 147 active selling communities, showcasing its extensive market presence [1] Company Overview - LGI Homes, Inc. is headquartered in The Woodlands, Texas, and operates in 36 markets across 21 states [2] - The company has closed over 75,000 homes since its founding in 2003 and has delivered profitable financial results every year [2] - LGI Homes is recognized for its quality construction and exceptional customer service, being named to Newsweek's list of the World's Most Trustworthy Companies [2] - The company employs over 1,000 individuals and has received numerous workplace awards, including the Top Workplaces USA 2025 Award [2]

The Spring Plan by LGI Homes at Peach Crossings The Spring Plan by LGI Homes at Peach Crossings features five bedrooms, three bathrooms, and an expansive living area. WINTER HAVEN, Fla., May 02, 2025 (GLOBE NEWSWIRE) -- LGI Homes is excited to announce the opening of Peach Crossings, a brand-new, 52-lot community now selling in Winter Haven. Nestled in the heart of Polk County, one of Florida’s most desirable and fastest-growing regions, homebuyers at Peach Crossings can choose from five never-before-s ...

Core Insights - LGI Homes, Inc. has launched its luxury brand Terrata Homes at Hallimore Ranch in Rosenberg, Texas, marking the largest development for Terrata Homes with 518 lots [1][7] - The new development features seven modern floor plans designed for contemporary homebuyers, emphasizing space, style, and convenience [1][4] Company Overview - LGI Homes is headquartered in The Woodlands, Texas, and operates in 36 markets across 21 states, having closed over 75,000 homes since its inception in 2003 [8] - The company has consistently delivered profitable financial results and has been recognized for its quality construction and customer service [8] Development Details - Hallimore Ranch introduces modern-contemporary architectural designs with upscale aesthetics, including stone and smooth stucco façades, black-framed windows, and sleek garage doors [2][3] - The homes range from 2,154 to 3,166 square feet and include three to six-bedroom floor plans, catering to various family sizes and lifestyles [4] Community Features - The development is strategically located off US-59, near Brazos Town Center and Sugar Land, offering a blend of upscale living and small-town charm [5] - Planned amenities for Hallimore Ranch include a 3.4-acre park, walking trails, a children's playground, and a splash pad, with over $5 million allocated for these features [6] Market Positioning - Homes at Hallimore Ranch are priced starting from the mid-$400s, reflecting the company's commitment to providing value in desirable locations [7]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2025 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . Commission file number 001-36126 LGI HOMES, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $351.4 million, a 10.1% decrease year-over-year, driven by an 8% decline in home closings and a 2.2% decline in average sales price (ASP) [10][11] - Gross margin for Q1 2025 was 21%, down from 23.4% in the same period last year, primarily due to a one-time expense related to the forward commitment incentive program [11][12] - Net income for Q1 2025 was $4 million, or $0.17 per share, compared to a higher figure in the previous year [14] Business Line Data and Key Metrics Changes - The company delivered 996 homes in Q1 2025 at an average sales price of $352,831 [5][10] - The company recognized a one-time expense of $8.6 million related to the forward commitment incentive program, impacting revenue and gross margins [10][11] - The cancellation rate for Q1 was 16.3%, slightly improved from 16.8% in the same period last year [14] Market Data and Key Metrics Changes - The company ended Q1 with 1,040 homes in backlog, representing over $406.2 million [14] - The top markets based on closings per community were Richmond (5.3), Charlotte (4.6), Raleigh (4.3), Atlanta (3.8), and Nashville (3.6) [6] Company Strategy and Development Direction - The company is focused on addressing the persistent shortage of entry-level homes, which is seen as a societal challenge and a long-term growth opportunity [9] - The company plans to maintain its full-year guidance of closing between 21,000 to 23,000 homes, with an average selling price between $360,000 and $370,000 [18] - The company is adjusting its gross margin expectations downward by 100 to 150 basis points due to anticipated cost increases from tariffs and market uncertainties [18] Management's Comments on Operating Environment and Future Outlook - Management noted that affordability remains the biggest challenge for buyers, with rate volatility affecting their purchasing confidence [4][5] - Despite recent headwinds, management expressed confidence in the long-term outlook for the housing market, citing strong underlying demographic fundamentals [9] - Management highlighted that the sales pace improved in March, indicating a potential recovery as the spring selling season began [5][36] Other Important Information - The company ended Q1 with $1.6 billion in debt and a debt-to-cap ratio of 44.3% [16] - The company repurchased 41,685 shares for $3.1 million during the quarter, with $177.7 million remaining on its stock buyback authorization [16][72] Q&A Session Summary Question: Can you provide more details on the gross margin trajectory for the upcoming quarters? - Management indicated that gross margins are expected to ramp up as volume increases, with adjustments made due to tariffs and market conditions [21][22][85] Question: What is driving the need for increased incentives? - Management noted that the competitive market dynamics and the need to assist buyers with closing costs and rate buy-downs are driving the increase in incentives [26][29] Question: How confident is the company in achieving its full-year closing targets? - Management expressed confidence in achieving the closing targets, citing improved sales trends in March and ongoing demand [36][39] Question: How is the company responding to competitors cutting prices? - Management stated that the company is cautious about discounting prices and focuses on providing value through incentives rather than steep discounts [78][81] Question: What interest rates are being offered through the forward commitment program? - Management mentioned that they are currently buying down rates to the mid-5% range for FHA loans with good credit [80]

Financial Data and Key Metrics Changes - Revenue for the first quarter was $351.4 million, a 10.1% decrease year over year, driven by an 8% decline in home closings and a 2.2% decline in average sales price [11][12] - Gross margin was 21% compared to 23.4% in the same period last year, primarily due to a one-time expense and an increase in wholesale closings [12] - Net income for the first quarter was $4 million, or $0.17 per share [15] Business Line Data and Key Metrics Changes - The company delivered 996 homes in the first quarter at an average sales price of $352,831 [5][11] - The company recognized a one-time expense of $8.6 million related to the forward commitment incentive program, impacting revenue and gross margins [11][12] - The cancellation rate was 16.3%, slightly improved from 16.8% in the same period last year [15] Market Data and Key Metrics Changes - The company ended the first quarter with 1,040 homes in backlog, representing over $406.2 million [15] - The top markets based on closings per community were Richmond, Charlotte, Raleigh, Atlanta, and Nashville [7] Company Strategy and Development Direction - The company is focused on addressing the persistent shortage of entry-level homes, which is expected to drive sustained demand for homeownership [9] - The company plans to maintain its full-year guidance for home closings and average selling prices despite market challenges [19] - The company is proactively managing costs related to tariffs and is adjusting gross margin expectations accordingly [19] Management's Comments on Operating Environment and Future Outlook - Management noted that affordability remains the biggest challenge for buyers, with rate volatility affecting their purchasing confidence [4][5] - The company expressed confidence in the long-term outlook for the housing market, citing strong underlying demographic fundamentals [9] - Management acknowledged the need to monitor market conditions closely, particularly regarding demand and pricing [40] Other Important Information - The company ended the quarter with $1.6 billion in debt and a debt-to-cap ratio of 44.3% [17] - The company repurchased 41,685 shares for $3.1 million during the quarter [18] Q&A Session Summary Question: Can you provide more details on the gross margin trajectory for the upcoming quarters? - Management indicated that gross margins are expected to ramp up as volume increases, with adjustments made due to tariff-related costs and market conditions [24][26] Question: What is driving the need for higher incentives? - Management noted that the need for incentives is driven by market dynamics, including a slower sales pace and increased competition [29][30] Question: How confident is the company in achieving its full-year closing targets? - Management expressed confidence in achieving closing targets, citing improved sales trends in March and ongoing demand [37][38] Question: How is the company responding to competitors cutting prices? - Management stated that while they do not typically engage in steep discounts, they are focused on providing compelling incentives to maintain competitiveness [79] Question: What is the current status of the stock buyback program? - The company has $177 million remaining on its stock buyback authorization and plans to prioritize share repurchases given the current stock valuation [71]

Company Performance - LGI Homes reported quarterly earnings of $0.46 per share, missing the Zacks Consensus Estimate of $0.75 per share, and down from $0.72 per share a year ago, indicating a significant earnings surprise of -38.67% [1][2] - The company posted revenues of $351.42 million for the quarter, missing the Zacks Consensus Estimate by 3.70%, and down from $390.85 million year-over-year [3] Market Position - LGI Homes shares have declined approximately 33.7% since the beginning of the year, contrasting with the S&P 500's decline of -6% [4] - The current Zacks Rank for LGI Homes is 5 (Strong Sell), indicating expectations of underperformance in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $1.95 on revenues of $595.31 million, and for the current fiscal year, it is $8.47 on revenues of $2.52 billion [8] - The Real Estate - Development industry, to which LGI Homes belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, suggesting a challenging environment for the company [9]

EXHIBIT 99.1 LGI Homes, Inc. Reports First Quarter 2025 Results "We continue to monitor tariffs and potential impacts that higher costs could have on margins. In March, we began receiving notices of price increases from some suppliers related to tariffs. With this in mind, we are proactively trimming our full year gross margin guidance by 150 basis points at the low end and 100 basis points at the high end to account for these additional costs and the potential for additional market volatility. As a result, ...

Core Viewpoint - LGI Homes reported solid financial results for Q1 2025 despite challenges in affordability and rate volatility affecting homebuyers' confidence [2][3]. Financial Performance - The company delivered 996 homes with an average sales price of $352,831, resulting in total revenue of $351.4 million for the first quarter [3][9]. - A one-time expense of $8.6 million related to a forward commitment incentive program was included in the financial results [3]. - Net income for the quarter was $4.0 million, translating to earnings per share of $0.17 [9][20]. Guidance and Outlook - LGI Homes maintains its full-year 2025 guidance, expecting to close between 6,200 and 7,000 homes at an average sales price between $360,000 and $370,000 [4][14]. - The company has adjusted its gross margin guidance down by 150 basis points at the low end and 100 basis points at the high end due to anticipated higher costs from tariffs [5][10]. Market Conditions - The company noted strong demand for new homes but highlighted affordability as a significant challenge for buyers [2]. - The persistent shortage of entry-level homes is seen as a societal challenge, emphasizing the need for affordable residential construction [5]. Balance Sheet Highlights - As of March 31, 2025, total liquidity was $360.0 million, including cash and cash equivalents of $57.6 million [9]. - The company had total owned and controlled lots of 67,792, with an ending backlog of 1,040 homes valued at $406.2 million [9][29]. Segment Performance - Home sales revenues by reportable segment showed the following for Q1 2025: Central ($101.1 million), Southeast ($101.7 million), Northwest ($34.2 million), West ($67.0 million), and Florida ($47.4 million) [25]. - The average sales price per home closed was $352,831, with an average community count of 148 [25]. Backlog Data - Net orders for the quarter were 1,437, with a cancellation rate of 16.3% [29]. - The ending backlog consisted of 1,040 homes, down from 1,335 homes in the same period last year [29].