LGI Homes, Inc. Reports Third Quarter 2025 Results

Core Insights - LGI Homes, Inc. reported strong financial results for Q3 2025, meeting guidance and reflecting disciplined execution of strategic objectives [1][2] - The company closed 1,107 homes, generating $396.6 million in revenue, with significant increases in net orders and backlog [2][7] - The outlook for Q4 2025 anticipates closing between 1,300 and 1,500 homes, with expected average sales prices and margins within specified ranges [2][13] Q3 2025 Highlights - Home sales revenues reached $396.6 million, with home closings totaling 1,065 and an average sales price of $372,424 [7][18] - Gross margin was 21.5% and adjusted gross margin was 24.5% [7][18] - Net income for the quarter was $19.7 million, translating to $0.85 basic and diluted EPS [7][18] Nine Months Ended September 30, 2025 Highlights - Total home sales revenues for the nine months were $1.2 billion, with 3,384 home closings and an average sales price of $363,929 [7][22] - Gross margin for the nine months was 21.9% and adjusted gross margin was 24.6% [7][22] - Net income for the nine months was $55.2 million, with basic EPS of $2.38 and diluted EPS of $2.37 [7][22] Backlog and Orders - The company ended Q3 2025 with a backlog of 1,305 homes valued at $498.7 million, a 19.9% increase year-over-year [2][27] - Net orders for the nine months were 4,098, with a cancellation rate of 28.1% [27][28] Fourth Quarter 2025 Outlook - The company expects to close between 1,300 and 1,500 homes in Q4 2025, with average sales prices projected between $365,000 and $375,000 [2][13] - Gross margin is anticipated to be between 21% and 22%, with adjusted gross margin between 24% and 25% [2][13] Balance Sheet Highlights - Total assets as of September 30, 2025, were $4.04 billion, with total liabilities of $1.96 billion [15][16] - The company had total equity of $2.08 billion and a net debt to capital ratio of 44.8% [12][35] Company Overview - LGI Homes is recognized for its innovative approach in the homebuilding industry, operating across 36 markets in 21 states [11] - The company has closed over 75,000 homes since its founding in 2003 and has consistently delivered profitable results [11]