Landsea Homes Reports First Quarter 2025 Results

Core Insights - Landsea Homes Corporation reported a pretax loss of $9.9 million and a net loss of$7.1 million for Q1 2025, compared to a net income of $0.7 million in the same period last year [1][7] - Total revenue increased by 6$310.8 million, driven by a 27% increase in homes closed, despite a 20% decrease in average selling price [2][12] - The company’s gross margin for home sales was 13.0%, down from 14.9% in the prior year, while the adjusted gross margin improved to 20.0% from 19.4% [6][38] Financial Performance - The adjusted net loss for Q1 2025 was $1.7 million, or$0.05 loss per share, compared to an adjusted net income of $3.5 million, or$0.10 earnings per share in Q1 2024 [1][7] - EBITDA for the quarter was $6.2 million, down from$12.6 million in the prior year, while adjusted EBITDA was $13.5 million compared to$17.0 million [8][41] Sales and Orders - New home deliveries increased by 27.3% to 643 homes, with an average sales price of $466,000, down from$579,000 in Q1 2024 [3][32] - Net new home orders rose by 11.1% to 679 homes, valued at $317.8 million, with an average sales price of$468,000 [4][33] Backlog and Inventory - The total backlog consisted of 426 homes valued at $230.8 million, down from 623 homes valued at$380.0 million a year earlier [5][36] - The company controlled 10,516 lots as of March 31, 2025, an increase from 10,349 lots a year prior, with 55% of lots controlled and 45% owned [5][37] Balance Sheet - As of March 31, 2025, total liquidity was $256.3 million, with total debt at$727.5 million, slightly up from $725.4 million at the end of 2024 [9][50] - The debt to capital ratio was 52.1%, while the net debt to total capital ratio was 48.3% [10][46]