LGI Homes, Inc. Reports Third Quarter 2025 Results
LGI Homes (NASDAQ: LGIH) reported third quarter 2025 results with Q3 home sales revenue of $396.6 million, 1,065 home closings and average sales price of $372,424. Net income was $19.7 million or $0.85 per share. Adjusted gross margin was 24.5% and ending backlog totaled 1,305 homes valued at $498.7 million, up 19.9% year-over-year and 61.5% sequentially. Total liquidity was $429.9 million. For Q4 2025 the company guides to 1,300–1,500 closings, ASP $365k–$375k, adjusted gross margin 24%–25%, and SG&A 15%–16%.
LGI Homes (NASDAQ: LGIH) ha riportato i risultati del terzo trimestre 2025 con ricavi delle vendite di case nel Q3 di 396,6 milioni di dollari, 1.065 consegne di case e un prezzo medio di vendita di 372.424 dollari. L’utile netto è stato 19,7 milioni di dollari o 0,85 dollari per azione. Il margine lordo rettificato è stato 24,5% e il backlog finale ammontava a 1.305 case valutate 498,7 milioni di dollari, in aumento del 19,9% annuo e del 61,5% rispetto al trimestre precedente. La liquidità totale era 429,9 milioni di dollari. Per il quarto trimestre 2025 la società guida a 1.300–1.500 chiusure, prezzo di vendita medio 365k–375k dollari, margine lordo rettificato 24%–25%, e SG&A 15%–16%.
LGI Homes (NASDAQ: LGIH) informó resultados del tercer trimestre de 2025 con ingresos por ventas de viviendas del Q3 de 396,6 millones de dólares, 1.065 cierres de viviendas y precio medio de venta de 372.424 dólares. El ingreso neto fue 19,7 millones de dólares o 0,85 dólares por acción. El margen bruto ajustado fue 24,5% y la cartera pendiente al final totalizó 1.305 viviendas valoradas en 498,7 millones de dólares, un aumento del 19,9% interanual y del 61,5% secuencialmente. La liquidez total fue de 429,9 millones de dólares. Para el Q4 2025 la compañía estima 1.300–1.500 cierres, ASP de 365k–375k dólares, margen bruto ajustado del 24%–25%, y SG&A del 15%–16%.
LGI Homes(NASDAQ: LGIH) 2025년 3분기 실적 발표로 3분기 주택 매출 수익 3억 9660만 달러, 주택 인도 1,065건 및 평균 매출가 372,424달러였습니다. 순이익은 1,970만 달러 또는 주당 0.85달러였습니다. 조정된 총마진은 24.5%였고 종료 잔고는 1,305채 주택 가치 4억 9870만 달러, 전년 대비 19.9% 증가, 직전 분기 대비 61.5% 증가였습니다. 총 유동성은 4억 2,990만 달러였습니다. 2025년 4분기에 대해 회사는 1,300–1,500건의 클로징, 평균 매출가 36만–37.5만 달러, 수정된 총마진 24%–25%, SG&A 15%–16%로 전망합니다.
LGI Homes (NASDAQ: LGIH) a publié les résultats du troisième trimestre 2025 avec un chiffre d’affaires des ventes de maisons au T3 de 396,6 millions de dollars, 1 065 clôtures de maisons et un prix de vente moyen de 372 424 dollars. Le résultat net était de 19,7 millions de dollars ou 0,85 dollar par action. La marge brute ajustée était de 24,5% et le backlog en fin de période s’élevait à 1 305 maisons d’une valeur de 498,7 millions de dollars, en hausse de 19,9% sur l’année et de 61,5% par rapport au trimestre précédent. La liquidité totale était de 429,9 millions de dollars. Pour le Q4 2025, l’entité prévoit 1 300–1 500 fermetures, un ASP de 365k–375k dollars, une marge brute ajustée de 24%–25% et des SG&A de 15%–16%.
LGI Homes (NASDAQ: LGIH) meldete die Ergebnisse des dritten Quartals 2025 mit Q3-Hausverkäufen Umsatz von 396,6 Mio. USD, 1.065 Hausabschlüssen und einem durchschnittlichen Verkaufspreis von 372.424 USD. Der Nettogewinn betrug 19,7 Mio. USD bzw. 0,85 USD pro Aktie. Die bereinigte Bruttomarge betrug 24,5% und der Endbestand belief sich auf 1.305 Häuser im Wert von 498,7 Mio. USD, ein Anstieg um 19,9% gegenüber dem Vorjahr und 61,5% gegenüber dem Vorquartal. Die Gesamtliquidität betrug 429,9 Mio. USD. Für Q4 2025 führt das Unternehmen 1.300–1.500 Closings, einen ASP von 365k–375k USD, eine bereinigte Bruttomarge von 24%–25% und SG&A von 15%–16% an.
LGI Homes (نادي ناسداك: LGIH) أصدرت نتائج الربع الثالث 2025 مع إيرادات مبيعات المنازل في الربع الثالث تبلغ 396.6 مليون دولار، إغلاق 1,065 منزل ومتوسط سعر البيع 372,424 دولار. صافي الدخل بلغ 19.7 مليون دولار أو 0.85 دولار للسهم. الهامش الإجمالي المعدل كان 24.5% والمتبقي الإجمالي للمخزون بلغ 1,305 منزلًا بقيمة 498.7 مليون دولار، بارتفاع 19.9% على أساس سنوي و61.5% على التوالي. الإجمالي السيولة كان 429.9 مليون دولار. للربع الرابع 2025 تتوقع الشركة إغلاق 1,300–1,500، سعر البيع المتوقع 365k–375k دولار، الهامش الإجمالي المعدل 24%–25%، والمصاريف SG&A 15%–16%
- Q3 home sales revenue of $396.6 million
- Net income of $19.7 million (Q3) or $0.85 EPS
- Adjusted gross margin of 24.5% in Q3
- Ending backlog 1,305 homes valued at $498.7 million
- Total liquidity of $429.9 million at Sept 30, 2025
- Net debt to capital ratio (non-GAAP) of 44.8% at Sept 30, 2025
- SG&A expected between 15% and 16% of home sales revenues
Insights
LGI reported quarter-on-quarter operational momentum with guided Q4 closings and margins in line with management targets.
The company closed 1,065 homes in the quarter and reported
Dependencies and risks are explicit: guidance for the fourth quarter assumes similar economic and input-cost conditions and stable interest and mortgage availability. Management also tied performance to operational levers such as lead generation, inventory management and land position. Key monitorables over the next quarter include the forecasted closings of 1,300–1,500 homes, the expected average sales price range of
THE WOODLANDS, Texas, Nov. 04, 2025 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ: LGIH) today announced financial results for the third quarter and the nine months ended September 30, 2025.
“We are pleased with our third quarter results, which met our stated guidance and reflect the disciplined execution of our teams as we continue to deliver on our strategic objectives,” said Eric Lipar, Chairman and Chief Executive Officer of LGI Homes.
“During the quarter, we closed 1,107 homes, including 42 currently and previously leased homes, generated
“Looking ahead to the fourth quarter, we expect to close between 1,300 and 1,500 homes,” Mr. Lipar continued. “We remain focused on affordability and meeting buyers at a monthly payment where they are able and willing to transact. We expect our average sales price in the fourth quarter to range between
Mr. Lipar concluded, “As we enter the final stretch of the year, we are encouraged by the momentum built in the third quarter and remain confident in our strategy and optimistic about the long-term outlook for the housing market. The persistent shortage of entry-level homes and favorable demographic trends continue to support demand for the attainable housing solutions LGI provides. With a strong land position, disciplined strategy, and a growing backlog, we are well-positioned to navigate the current environment and drive long-term value for our shareholders.”
Third Quarter 2025 Highlights
- Home sales revenues of
$396.6 million - Home closings of 1,065
- Average sales price per home closed of
$372,424 - Gross margin as a percentage of home sales revenues of
21.5% - Adjusted gross margin (non-GAAP) as a percentage of home sales revenues of
24.5% - Net income before income taxes of
$26.7 million - Net income of
$19.7 million or$0.85 basic EPS and$0.85 diluted EPS
Nine Months Ended September 30, 2025 Highlights
- Home sales revenues of
$1.2 billion - Home closings of 3,384
- Average sales price per home closed of
$363,929 - Gross margin as a percentage of home sales revenues of
21.9% - Adjusted gross margin (non-GAAP) as a percentage of home sales revenues of
24.6% - Net income before income taxes of
$74.5 million - Net income of
$55.2 million or$2.38 basic EPS and$2.37 diluted EPS - Active selling communities at September 30, 2025 of 141
- Total owned and controlled lots at September 30, 2025 of 62,564
- Ending backlog at September 30, 2025 of 1,305 homes valued at
$498.7 million
Please see “Non-GAAP Measures” for a reconciliation of Adjusted Gross Margin (a non-GAAP measure) to Gross Margin, the most directly comparable GAAP measure.
Balance Sheet Highlights
- Total liquidity of
$429.9 million at September 30, 2025, including cash and cash equivalents of$62.0 million and$367.9 million of availability under the Company’s revolving credit facility - Net debt to capital ratio (non-GAAP) of
44.8% at September 30, 2025
Please see “Non-GAAP Measures” for a reconciliation of net debt to capital ratio (a non-GAAP measure) to debt to capital ratio, the most directly comparable GAAP measure.
Fourth Quarter 2025 Outlook
Subject to the caveats in the Forward-Looking Statements section of this press release and the assumptions noted below, the Company is providing the following guidance for the fourth quarter of 2025. The Company expects:
- Home closings between 1,300 and 1,500
- Active selling communities at the end of the fourth quarter of 2025 of approximately 145
- Average sales price per home closed between
$365,000 and$375,000 - Gross margin as a percentage of home sales revenues between
21.0% and22.0% , adjusted for estimated capitalized interest and estimated purchase accounting of approximately3.0% , which results in Adjusted gross margin (non-GAAP) as a percentage of home sales revenues between24.0% and25.0% - SG&A as a percentage of home sales revenues between
15.0% and16.0% - Effective tax rate of approximately
26.0%
This outlook assumes that general economic conditions, including input costs, materials, product and labor availability, interest rates and mortgage availability, in the fourth quarter of 2025 are similar to those experienced to date in 2025 and that the average sales price per home closed, construction costs, availability of land and land development costs for the full fourth quarter of 2025 are consistent with the Company’s recent experience. In addition, this outlook assumes that governmental regulations relating to land development and home construction are similar to those currently in place and does not take into account any additional changes to U.S. trade policies, including the imposition of tariffs and duties on homebuilding products.
Earnings Conference Call
The Company will host a conference call via live webcast for investors and other interested parties beginning at 12:30 p.m. Eastern Time on Tuesday, November 4, 2025 (the “Earnings Call”).
Participants may access the live webcast by visiting the Investor Relations section of the Company’s website at https://investor.lgihomes.com.
An archive of the Earnings Call webcast will be available for replay on the Company’s website for one year from the date of the Earnings Call.
About LGI Homes, Inc.
Headquartered in The Woodlands, Texas, LGI Homes, Inc. is a pioneer in the homebuilding industry, successfully applying an innovative and systematic approach to the design, construction and sale of homes across 36 markets in 21 states. As one of America’s fastest growing companies, LGI Homes has closed over 75,000 homes since its founding in 2003 and has delivered profitable financial results every year. Nationally recognized for its quality construction and exceptional customer service, LGI Homes was named to Newsweek’s list of the World’s Most Trustworthy Companies. LGI Homes’ commitment to excellence extends to its more than 1,000 employees, earning the Company numerous workplace awards at the local, state, and national level, including the Top Workplaces USA 2025 Award. For more information about LGI Homes and its unique operating model focused on making the dream of homeownership a reality for families across the nation, please visit the Company’s website at www.lgihomes.com.
Forward-Looking Statements
Any statements made in this press release or on the Earnings Call that are not statements of historical fact, including statements about the Company’s beliefs, outlook and expectations, are forward-looking statements within the meaning of the federal securities laws, and should be evaluated as such. Forward-looking statements include information concerning expected fourth quarter 2025 home closings, active selling communities, average sales price per home closed, gross margin as a percentage of home sales revenues, adjusted gross margin as a percentage of homes sales revenues, SG&A as a percentage of home sales revenues and effective tax rate, as well as market conditions and possible or assumed future results of operations, including descriptions of the Company’s business plan and strategies. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “projection,” “should,” “will” or, in each case, their negative, or other variations or comparable terminology. For more information concerning factors that could cause actual results to differ materially from those contained in the forward-looking statements please refer to the “Risk Factors” section in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, including the “Cautionary Statement about Forward-Looking Statements” subsection within the “Risk Factors” section, and subsequent filings by the Company with the U.S. Securities and Exchange Commission (the “SEC”), including the “Risk Factors” and “Cautionary Statement about Forward-Looking Statements” sections in the Company’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025, June 30, 2025, and September 30, 2025. The Company bases these forward-looking statements or outlook on its current expectations, plans and assumptions that it has made in light of its experience in the industry, as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances and at such time. As you read and consider this press release or listen to the Earnings Call, you should understand that these statements are not guarantees of future performance or results. The forward-looking statements, including the Company’s fourth quarter 2025 outlook, are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements or outlook. Although the Company believes that these forward-looking statements and outlook are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect the Company’s actual results to differ materially from those expressed in the forward-looking statements and outlook. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. If the Company does update one or more forward-looking statements, there should be no inference that it will make additional updates with respect to those or other forward-looking statements.
| LGI HOMES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share data) | ||||||||
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 61,979 | $ | 53,197 | ||||
| Accounts receivable | 21,239 | 28,717 | ||||||
| Real estate inventory | 3,646,945 | 3,387,853 | ||||||
| Pre-acquisition costs and deposits | 27,720 | 36,049 | ||||||
| Property and equipment, net | 101,550 | 57,038 | ||||||
| Other assets | 158,756 | 174,391 | ||||||
| Deferred tax assets, net | 9,624 | 9,271 | ||||||
| Goodwill | 12,018 | 12,018 | ||||||
| Total assets | $ | 4,039,831 | $ | 3,758,534 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Accounts payable | $ | 37,944 | $ | 33,271 | ||||
| Accrued expenses and other liabilities | 171,086 | 207,317 | ||||||
| Notes payable | 1,751,427 | 1,480,718 | ||||||
| Total liabilities | 1,960,457 | 1,721,306 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| EQUITY | ||||||||
| Common stock, par value | 277 | 276 | ||||||
| Additional paid-in capital | 347,714 | 337,161 | ||||||
| Retained earnings | 2,141,018 | 2,085,787 | ||||||
| Treasury stock, at cost, 4,656,592 shares as of September 30, 2025 and 4,247,339 shares as of December 31, 2024 | (409,635 | ) | (385,996 | ) | ||||
| Total equity | 2,079,374 | 2,037,228 | ||||||
| Total liabilities and equity | $ | 4,039,831 | $ | 3,758,534 | ||||
| LGI HOMES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Home sales revenues | $ | 396,632 | $ | 651,854 | $ | 1,231,537 | $ | 1,645,202 | ||||||||
| Cost of sales | 311,520 | 488,362 | 962,104 | 1,239,425 | ||||||||||||
| Selling expenses | 35,661 | 55,196 | 119,602 | 149,196 | ||||||||||||
| General and administrative | 27,967 | 27,991 | 88,570 | 90,022 | ||||||||||||
| Operating income | 21,484 | 80,305 | 61,261 | 166,559 | ||||||||||||
| Other income, net | (5,217 | ) | (11,547 | ) | (13,204 | ) | (25,270 | ) | ||||||||
| Net income before income taxes | 26,701 | 91,852 | 74,465 | 191,829 | ||||||||||||
| Income tax provision | 6,997 | 22,277 | 19,234 | 46,628 | ||||||||||||
| Net income | $ | 19,704 | $ | 69,575 | $ | 55,231 | $ | 145,201 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.85 | $ | 2.96 | $ | 2.38 | $ | 6.17 | ||||||||
| Diluted | $ | 0.85 | $ | 2.95 | $ | 2.37 | $ | 6.15 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 23,056,904 | 23,500,349 | 23,223,736 | 23,540,620 | ||||||||||||
| Diluted | 23,149,005 | 23,579,592 | 23,289,280 | 23,611,906 | ||||||||||||
Home Sales Revenues, Home Closings, Average Sales Price Per Home Closed (ASP), Average Community Count, Average Monthly Absorption Rate and Ending Community Count by Reportable Segment
(Revenues in thousands, unaudited)
| Three Months Ended September 30, 2025 | As of September 30, 2025 | |||||||||||||
| Reportable Segment | Revenues | Home Closings | ASP | Average Community Count | Average Monthly Absorption Rate | Community Count at End of Period | ||||||||
| Central | $ | 99,355 | 307 | $ | 323,632 | 45.0 | 2.3 | 45 | ||||||
| Southeast | 101,419 | 299 | 339,194 | 32.3 | 3.1 | 32 | ||||||||
| Northwest | 49,408 | 109 | 453,284 | 14.7 | 2.5 | 14 | ||||||||
| West | 91,699 | 203 | 451,719 | 25.7 | 2.6 | 25 | ||||||||
| Florida | 54,751 | 147 | 372,456 | 24.3 | 2.0 | 25 | ||||||||
| Total | $ | 396,632 | 1,065 | $ | 372,424 | 142.0 | 2.5 | 141 | ||||||
| Three Months Ended September 30, 2024 | As of September 30, 2024 | |||||||||||||
| Reportable Segment | Revenues | Home Closings | ASP | Average Community Count | Average Monthly Absorption Rate | Community Count at End of Period | ||||||||
| Central | $ | 164,439 | 509 | $ | 323,063 | 45.7 | 3.7 | 47 | ||||||
| Southeast | 155,205 | 466 | 333,058 | 27.3 | 5.7 | 29 | ||||||||
| Northwest | 83,061 | 150 | 553,740 | 14.3 | 3.5 | 15 | ||||||||
| West | 150,646 | 361 | 417,302 | 23.0 | 5.2 | 24 | ||||||||
| Florida | 98,503 | 271 | 363,480 | 23.0 | 3.9 | 23 | ||||||||
| Total | $ | 651,854 | 1,757 | $ | 371,004 | 133.3 | 4.4 | 138 | ||||||
Home Sales Revenues, Home Closings, Average Sales Price Per Home Closed (ASP), Average Community Count, and Average Monthly Absorption Rate by Reportable Segment
(Revenues in thousands, unaudited)
| Nine Months Ended September 30, 2025 | ||||||||||||
| Reportable Segment | Revenues | Home Closings | ASP | Average Community Count | Average Monthly Absorption Rate | |||||||
| Central | $ | 313,487 | 997 | $ | 314,430 | 47.8 | 2.3 | |||||
| Southeast | 353,211 | 1,067 | 331,032 | 31.8 | 3.7 | |||||||
| Northwest | 137,132 | 274 | 500,482 | 15.8 | 1.9 | |||||||
| West | 258,994 | 592 | 437,490 | 25.3 | 2.6 | |||||||
| Florida | 168,713 | 454 | 371,615 | 24.6 | 2.1 | |||||||
| Total | $ | 1,231,537 | 3,384 | $ | 363,929 | 145.3 | 2.6 | |||||
| Nine Months Ended September 30, 2024 | ||||||||||||
| Reportable Segment | Revenues | Home Closings | ASP | Average Community Count | Average Monthly Absorption Rate | |||||||
| Central | $ | 441,609 | 1,363 | $ | 323,998 | 43.8 | 3.5 | |||||
| Southeast | 407,068 | 1,231 | 330,681 | 26.2 | 5.2 | |||||||
| Northwest | 187,253 | 344 | 544,340 | 13.6 | 2.8 | |||||||
| West | 351,880 | 848 | 414,953 | 20.7 | 4.6 | |||||||
| Florida | 257,392 | 709 | 363,035 | 21.8 | 3.6 | |||||||
| Total | $ | 1,645,202 | 4,495 | $ | 366,007 | 126.1 | 4.0 | |||||
Owned and Controlled Lots
The table below shows (i) home closings by reportable segment for the nine months ended September 30, 2025 and (ii) the Company’s owned or controlled lots by reportable segment as of September 30, 2025.
| Nine Months Ended September 30, 2025 | As of September 30, 2025 | |||||||
| Reportable Segment | Home Closings | Owned (1) | Controlled | Total | ||||
| Central | 997 | 19,299 | 715 | 20,014 | ||||
| Southeast | 1,067 | 13,689 | 2,666 | 16,355 | ||||
| Northwest | 274 | 6,064 | 1,223 | 7,287 | ||||
| West | 592 | 8,745 | 3,530 | 12,275 | ||||
| Florida | 454 | 5,351 | 1,282 | 6,633 | ||||
| Total | 3,384 | 53,148 | 9,416 | 62,564 | ||||
(1) Of the 53,148 owned lots as of September 30, 2025, 36,316 were raw/under development lots and 16,832 were finished lots. Finished lots included 2,801 completed homes, including information centers, and 895 homes in progress. | ||||||||
Backlog Data
As of the dates set forth below, the Company’s net orders, cancellation rate and ending backlog homes and value were as follows (dollars in thousands, unaudited):
| Nine Months Ended September 30, | ||||||||
| Backlog Data | 2025 (4) | 2024 (5) | ||||||
| Net orders (1) | 4,098 | 4,993 | ||||||
| Cancellation rate (2) | 28.1 | % | 21.6 | % | ||||
| Ending backlog – homes (3) | 1,305 | 1,088 | ||||||
| Ending backlog – value (3) | $ | 498,713 | $ | 417,798 | ||||
(1) Net orders are new (gross) orders for the purchase of homes during the period, less cancellations of existing purchase contracts during the period. (2) Cancellation rate for a period is the total number of purchase contracts cancelled during the period divided by the total new (gross) orders for the purchase of homes during the period. (3) Ending backlog consists of retail homes at the end of the period that are under a purchase contract that has been signed by homebuyers who have met preliminary financing criteria but have not yet closed and wholesale contracts with varying terms. Ending backlog is valued at the contract amount. (4) As of September 30, 2025, the Company had 60 units related to bulk sales agreements associated with its wholesale business. (5) As of September 30, 2024, the Company had 212 units related to bulk sales agreements associated with its wholesale business. | ||||||||
Non-GAAP Measures
In addition to the results reported in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company has provided information in this press release relating to adjusted gross margin.
Adjusted Gross Margin
Adjusted gross margin is a non-GAAP financial measure used by management as a supplemental measure in evaluating operating performance. The Company defines adjusted gross margin as gross margin less capitalized interest and adjustments resulting from the application of purchase accounting included in the cost of sales. Management believes this information is useful because it isolates the impact that capitalized interest and purchase accounting adjustments have on gross margin. However, because adjusted gross margin information excludes capitalized interest and purchase accounting adjustments, which have real economic effects and could impact results, the utility of adjusted gross margin information as a measure of the Company’s operating performance may be limited. In addition, other companies may not calculate adjusted gross margin information in the same manner that the Company does. Accordingly, adjusted gross margin information should be considered only as a supplement to gross margin information as a measure of the Company’s performance.
The following table reconciles adjusted gross margin to gross margin, which is the GAAP financial measure that management believes to be most directly comparable (dollars in thousands, unaudited):
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Home sales revenues | $ | 396,632 | $ | 651,854 | $ | 1,231,537 | $ | 1,645,202 | ||||||||
| Cost of sales | 311,520 | 488,362 | 962,104 | 1,239,425 | ||||||||||||
| Gross margin | 85,112 | 163,492 | 269,433 | 405,777 | ||||||||||||
| Capitalized interest charged to cost of sales | 11,004 | 12,954 | 31,107 | 30,187 | ||||||||||||
| Purchase accounting adjustments (1) | 999 | 1,157 | 2,850 | 3,134 | ||||||||||||
| Adjusted gross margin | $ | 97,115 | $ | 177,603 | $ | 303,390 | $ | 439,098 | ||||||||
| Gross margin % (2) | 21.5 | % | 25.1 | % | 21.9 | % | 24.7 | % | ||||||||
| Adjusted gross margin % (2) | 24.5 | % | 27.2 | % | 24.6 | % | 26.7 | % | ||||||||
(1) Adjustments result from the application of purchase accounting for acquisitions and represent the amount of the fair value step-up adjustments included in cost of sales for real estate inventory sold after the acquisition dates. (2) Calculated as a percentage of home sales revenues. | ||||||||||||||||
Net Debt to Capital Ratio Reconciliation
Net debt to capital ratio is a non-GAAP financial measure used by management as a supplemental measure in understanding the leverage employed in the Company’s operations and as an indicator of its ability to obtain financing. The Company defines net debt to capital ratio as net debt (which is total debt minus cash and cash equivalents) divided by net debt plus total equity. Management believes that the presentation of net debt to capital ratio provides useful information to investors regarding the Company’s financial leverage and its ability to meet long-term obligations. By excluding cash and cash equivalents from total debt, the ratio offers a clearer view of the Company’s capital structure and financial flexibility. Management uses this metric to monitor the Company’s capital efficiency and to evaluate the effectiveness of its capital management strategies over time. Other companies may define this measure differently and, as a result, the Company’s measure of net debt to capital ratio may not be directly comparable to the measures of other companies.
The following table reconciles net debt to capital ratio (a non-GAAP financial measure) to debt to capital ratio, which is the GAAP financial measure that management believes to be most directly comparable (dollars in thousands):
| September 30, 2025 | December 31, 2024 | |||||||
| Total debt (Notes payable) | $ | 1,751,427 | $ | 1,480,718 | ||||
| Total equity | 2,079,374 | 2,037,228 | ||||||
| Total capital | 3,830,801 | 3,517,946 | ||||||
| Debt to capital ratio | 45.7 | % | 42.1 | % | ||||
| Total debt (Notes payable) | 1,751,427 | 1,480,718 | ||||||
| Less: Cash and cash equivalents | 61,979 | 53,197 | ||||||
| Net debt | 1,689,448 | 1,427,521 | ||||||
| Total equity | 2,079,374 | 2,037,228 | ||||||
| Total net capital | $ | 3,768,822 | $ | 3,464,749 | ||||
| Net debt to capital ratio (1) | 44.8 | % | 41.2 | % | ||||
(1) Net debt to capital ratio is calculated as net debt (which is total debt minus cash and cash equivalents) divided by net debt plus total equity. | ||||||||
| CONTACT: | Joshua D. Fattor |
| Executive Vice President, Investor Relations and Capital Markets | |
| (281) 210-2586 | |
| investorrelations@lgihomes.com |
FAQ
What were LGI Homes (LGIH) third quarter 2025 revenues and EPS?
How large was LGI Homes' backlog at September 30, 2025 and how did it change?
What Q4 2025 guidance did LGI Homes (LGIH) provide for home closings and ASP?
What gross margin and adjusted gross margin guidance did LGI Homes give for Q4 2025?
How much liquidity did LGI Homes report at September 30, 2025?
What operating expense level did LGI Homes forecast for Q4 2025?
