Landsea Homes Reports Fourth Quarter and Full Year 2024 Results

Core Insights - Landsea Homes Corporation reported strong financial results for Q4 and full year 2024, with significant growth in revenues and home deliveries, despite challenges in margins due to elevated mortgage rates and sales incentives [1][2][7] Financial Performance - Q4 2024 pretax income was $6.5 million, net income was $3.0 million, or $0.08 per diluted share; adjusted net income was $9.1 million or $0.25 per diluted share [1][9] - Full year 2024 pretax income was $26.7 million, net income was $17.2 million, or $0.47 per diluted share; adjusted net income was $41.7 million or $1.14 per diluted share [1][16] - Total revenue for Q4 2024 reached a record $486.7 million, up 22% year-over-year, while full year revenue was $1.6 billion, a 28% increase compared to 2023 [3][11] Home Deliveries and Orders - New home deliveries in Q4 2024 increased by 41% to 937 homes, with an average sales price of $481,000, compared to 664 homes at an average price of $572,000 in Q4 2023 [4][8] - For the full year, new home deliveries reached a record 2,831 homes, with an average sales price of $525,000 [12] - Net new home orders in Q4 2024 increased by 60% to 636 homes, valued at $289.8 million, with an average sales price of $456,000 [5][8] Operational Highlights - The company generated $47.8 million in cash from operations during Q4 2024 [2][8] - Home sales gross margin for Q4 2024 was 12.5%, down from 15.9% in the prior year, primarily due to higher sales incentives and mortgage rates [7][15] - Total lots owned or controlled as of December 31, 2024, were 10,944, representing a 4.2-year supply based on the last twelve months' net orders [6][19] Market Position and Strategy - The CEO highlighted the company's strong position heading into the spring selling season, emphasizing the quality and value of their High-Performance Homes [2] - The company continues to pursue an asset-light strategy, controlling 56% of lots while owning 44% [6][19] - Management remains optimistic about long-term growth prospects, driven by strategic initiatives and operational execution [2][11]