LGI Homes, Inc. Reports Fourth Quarter and Full Year 2024 Results and Issues Guidance for 2025

Core Insights - LGI Homes, Inc. reported financial results for Q4 and the full year 2024, achieving strategic goals despite a mixed macroeconomic environment [1][2] - The company closed 6,131 homes in 2024, including a bulk sale of 103 leased homes, and ended the year with a record 151 active communities, a 29.1% increase [2][7] - Profitability improved with a full-year gross margin of 24.2% and an adjusted gross margin of 26.3%, both reflecting increases over 2023 [2][7] Financial Performance - Q4 2024 home sales revenues decreased by 8.4% to $557.4 million, while home closings fell by 12.8% to 1,533 homes [7] - The average sales price per home closed increased by 5.1% to$ 363,598 [7] - Full-year home sales revenues decreased by 6.6% to $2.2 billion, with home closings down 10.4% to 6,028 homes [7] - Net income before income taxes for the year decreased by 1.1% to$ 258.9 million, while net income fell by 1.6% to $196.1 million [7] Operational Highlights - The company maintained a pre-tax net income margin of 11.8%, up 70 basis points from the previous year [2] - As of December 31, 2024, LGI Homes had total owned and controlled lots of 70,899 and an ending backlog of 599 homes valued at$ 236.5 million [7][29] - The company plans to continue strategic investments to drive growth in the coming years [2] 2025 Outlook - For 2025, LGI Homes projects full-year closings between 6,200 and 7,000 homes, with an average sales price between $360,000 and$ 370,000 [3][12] - The company anticipates gross margins between 23.2% and 24.2%, and adjusted gross margins between 25.5% and 26.5% [3][12] - The outlook reflects a conservative approach due to ongoing affordability challenges in the housing market [3]