LGI Homes(US:LGIH)2025-11-04 13:31Home Sales Performance - Home sales revenues for Q3 2025 were $396.6 million, with 1,107 homes closed, reflecting an 8.1% year-over-year increase in net orders[3] - Home sales revenues for Q3 2025 were $396,632, a decrease of 39% compared to $651,854 in Q3 2024[19] - The company closed 3,384 homes and generated $1.2 billion in home sales revenues for the nine months ended September 30, 2025[6] - The total number of home closings for the nine months ended September 30, 2025, was 3,384, compared to 4,495 in the same period of 2024[20] Financial Metrics - The average sales price per home closed in Q3 2025 was $372,424, with gross margin at 21.5% and adjusted gross margin at 24.5%[6] - The average sales price per home closed (ASP) in Q3 2025 was $372,424, compared to $371,004 in Q3 2024, reflecting a slight increase[20] - Gross margin for Q4 2025 is projected to be between 21% and 22%, with adjusted gross margin expected between 24% and 25%[13] - Adjusted gross margin for Q3 2025 was $97,115, down from $177,603 in Q3 2024, with an adjusted gross margin percentage of 24.5%[27] Backlog and Orders - The ending backlog at September 30, 2025, was 1,305 homes valued at $498.7 million, representing a 19.9% increase year-over-year and a 61.5% sequential increase[3] - Ending backlog homes as of September 30, 2025, totaled 1,305, with a backlog value of $498,713, compared to 1,088 homes valued at $417,798 in 2024[23] - The cancellation rate for net orders increased to 28.1% in the nine months ended September 30, 2025, up from 21.6% in the same period of 2024[23] Liquidity and Debt - Total liquidity as of September 30, 2025, was $429.9 million, including cash and cash equivalents of $62.0 million[12] - The net debt to capital ratio as of September 30, 2025, was 44.8%[12] - Total debt as of September 30, 2025, was $1,751,427, an increase from $1,480,718 at the end of 2024[30] - The net debt to capital ratio improved to 44.8% as of September 30, 2025, compared to 41.2% at the end of 2024[30] Future Outlook - For Q4 2025, the company expects to close between 1,300 and 1,500 homes, with an average sales price ranging from $365,000 to $375,000[9] - The effective tax rate for Q4 2025 is anticipated to be approximately 26%[13] - The company operates 141 active selling communities as of September 30, 2025, with plans to increase to approximately 145 by the end of Q4 2025[12] Market Trends - The average monthly absorption rate for the total reportable segments was 2.5 in Q3 2025, down from 4.4 in Q3 2024[20] - Net income for Q3 2025 was $19,704, down 72% from $69,575 in Q3 2024[19]