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LGI Homes narrows 2026 outlook to 4,600–4,800 homes

Affordability pressures and slower quarterly sales prompted a narrower 2026 home-closings range of 4,600–4,800 homes.

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Rhea-AI Filing Summary

LGI Homes, Inc. reported third-quarter 2026 total revenue of $444.5 million, up 10.2% year over year, and net income of $24.6 million, compared with $19.7 million. Diluted EPS was $1.05 versus $0.85. It closed 1,222 homes, including 33 currently and previously leased homes; 1,189 were new homes. Average sales price was $367,962, down 1.2%, while homebuilding gross margin was 20.2% versus 21.5%.

For the nine months, homebuilding revenue was $1,258.8 million, up 2.2%, while net income was $53.7 million versus $55.2 million. Net orders totaled 2,869 versus 4,098, the cancellation rate was 48.9% versus 28.1%, and ending backlog was 685 homes versus 1,305. Liquidity was $447.7 million at September 30, including $69.4 million in cash and $378.3 million available under the revolving credit facility; net debt to capital was 40.6%, which the company said was 420 basis points lower year over year.

LGI Homes narrowed its 2026 home-closing outlook to 4,600–4,800 homes, citing slower quarterly sales amid affordability pressures. Other outlook ranges included an average sales price of $360,000–$370,000 and adjusted homebuilding gross margin of 22.5%–24.5%.

2 points · 0 major

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0 major · 2 points

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Positive

  • Moderate pointThird-quarter revenue increased 10.2% to $444.5 million year over year.
  • Moderate pointThird-quarter net income reached $24.6 million, versus $19.7 million.

Negative

  • Moderate pointNine-month net orders were 2,869, down from 4,098.
  • Moderate pointNine-month cancellation rate was 48.9%, versus 28.1%.
Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Total revenue $444.5 million Third quarter 2026; increased 10.2% year over year
Homebuilding revenue $437.5 million Third quarter 2026; increased 10.3% year over year
Net income $24.6 million Third quarter 2026; $19.7 million in third quarter 2025
Diluted EPS $1.05 per share Third quarter 2026; $0.85 in third quarter 2025
Total home closings 1,222 homes Third quarter 2026; includes 33 currently and previously leased homes; up 10.4% year over year
Net orders 2,869 orders Nine months ended September 30, 2026; 4,098 in the comparable 2025 period
Cancellation rate 48.9% Nine months ended September 30, 2026; 28.1% in the comparable 2025 period
2026 home-closing outlook 4,600–4,800 homes Full-year 2026 outlook
Adjusted homebuilding gross margin financial
"Adjusted homebuilding gross margin as a percentage of homebuilding revenues"
A measure of the profit a homebuilder earns on its core house-construction operations after removing or normalizing items that can distort the picture, such as one-time charges, unusual write-downs or accounting treatments for land and lots. Think of it as the builder’s “clean” margin on each house, like a baker calculating cake profit after excluding a one-off oven repair. Investors use it to see true operating performance, compare builders, and judge pricing power and cost control over time.
Net debt to capital ratio financial
"Net debt to capital ratio is a non-GAAP financial measure"
Net debt to capital ratio measures how much of a company’s financing comes from debt after subtracting cash, compared with its total financing (debt plus shareholders’ equity). Think of it like a household’s mortgage balance minus savings divided by the home’s total value; a higher ratio means more leverage and financial risk. Investors use it to judge a company’s ability to weather downturns, pay interest, and fund growth without diluting owners or raising costly borrowing.
Net orders financial
"Net orders are new (gross) orders for the purchase of homes"
Ending backlog financial
"Ending backlog consists of retail homes at the end of the period"
Cancellation rate financial
"Cancellation rate for a period is the total number of purchase contracts cancelled"
The cancellation rate is the share of orders, bookings, subscriptions or appointments that are cancelled before they are completed, expressed as a percentage of total commitments. Investors care because a rising cancellation rate is like many diners calling off reservations: it can signal weaker demand, lower predictable revenue, higher costs to replace lost business, and risks to future growth and cash flow forecasts.
Total revenue $444.5 million Increased 10.2% year over year
Homebuilding revenue $437.5 million Increased 10.3% year over year
Net income $24.6 million Compared with $19.7 million in third quarter 2025
Diluted EPS $1.05 per share Compared with $0.85 in third quarter 2025
Total home closings 1,222 homes Increased 10.4% year over year
Guidance

For full-year 2026, home closings of 4,600–4,800; active selling communities of 150–160 at year-end; average sales price per home closed of $360,000–$370,000; homebuilding gross margin of 19.0%–21.0%; adjusted homebuilding gross margin of 22.5%–24.5%; SG&A of 15.0%–16.0% of total revenues; and an effective tax rate of approximately 26.5%.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much revenue and net income did LGIH report in Q3 2026?
LGI Homes reported $444.5 million in total revenue and $24.6 million in net income for Q3 2026. Revenue increased 10.2% year over year; net income was $19.7 million in Q3 2025. Diluted EPS was $1.05, compared with $0.85.

What is LGIH's 2026 home-closing guidance?
LGI Homes expects to close 4,600 to 4,800 homes in 2026. The company narrowed this outlook based on its year-to-date results and current market conditions, citing slower sales activity and affordability pressures.

What assumptions underlie LGIH's 2026 outlook?
The outlook assumes general economic conditions, including input costs, materials, product and labor availability, interest rates and mortgage availability, remain similar to those experienced to date in 2026. It also assumes construction costs, land availability and land development costs are consistent with recent experience, and does not take into account additional U.S. trade policy changes, including tariffs and duties on homebuilding products.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (date of earliest event reported): November 3, 2026
LGI HOMES, INC.
(Exact name of registrant as specified in its charter)
Delaware001-3612646-3088013
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(IRS Employer
Identification Number)
 
1450 Lake Robbins Drive, Suite 430,The Woodlands,Texas77380
(Address of principal executive offices)(Zip Code)
(281) 362-8998
(Registrant’s Telephone Number, Including Area Code)

N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareLGIH
Nasdaq Global Select Market
Nasdaq Texas, LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
                                    Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02Results of Operations and Financial Condition.
On November 3, 2026, LGI Homes, Inc. (the “Company”) issued a press release announcing its financial results for the three months ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
None of the information furnished in this Item 2.02 and the accompanying exhibit will be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor will it be deemed incorporated by reference into any filing by the Company under the Securities Act of 1933, as amended.
Item 7.01Regulation FD Disclosure.
The information set forth in Item 2.02 above and in Exhibit 99.1 to this Current Report on Form 8-K is incorporated herein by reference.
None of the information furnished in this Item 7.01 and the accompanying exhibit will be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor will it be deemed incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended.
Item 9.01Financial Statements and Exhibits.
            
(d)Exhibits.
99.1
Press Release of LGI Homes, Inc. issued on November 3, 2026.
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
Dated: November 3, 2026
LGI HOMES, INC.
By:/s/ Eric Lipar
Eric Lipar
Chief Executive Officer and Chairman of the Board


EXHIBIT 99.1
lgihlogoa.jpg
LGI Homes, Inc. Reports Third Quarter 2026 Results
THE WOODLANDS, Texas, November 3, 2026 (GLOBE NEWSWIRE) - LGI Homes, Inc. (NASDAQ: LGIH) today announced financial results for the third quarter and the nine months ended September 30, 2026.
“We delivered strong third quarter financial results, generating year-over-year growth in closings, revenue, and earnings while maintaining strong profitability, expanding our community count, and further strengthening our balance sheet,” said Eric Lipar, Chairman and Chief Executive Officer of LGI Homes.

“During the quarter, we delivered 1,222 homes, a 10.4% increase year-over-year, including 33 currently and previously leased homes. The 1,189 new homes we closed generated homebuilding revenues of $437.5 million, up 10.3%, and total revenues reached $444.5 million, up 10.2% from the prior year.

“Homebuilding gross margin of 20.2% and adjusted homebuilding gross margin of 23.7% were both above the midpoint of our previous guidance ranges and up 40 basis points sequentially. This reflects the continued benefits of our predominantly self-developed, on-balance-sheet land position and our disciplined approach to balancing affordability and profitability. Our teams also did an excellent job managing costs. SG&A expenses declined on an absolute-dollar basis, and SG&A as a percentage of total revenues improved 180 basis points year-over-year. As a result, net income increased to $24.6 million, or $1.05 per diluted share. We also continued to strengthen our balance sheet, reducing our net debt to capital ratio to 40.6%, a 420 basis point improvement year-over-year.

“Community growth remains an important element of our long-term strategy. We ended the quarter with 151 active communities, a 7.1% increase compared to the same time last year.

“Based on our year-to-date results and current market conditions, we are narrowing our full-year closings guidance and now expect to close between 4,600 and 4,800 homes in 2026. The revised outlook reflects slower sales activity in the quarter as affordability pressures continued to weigh on demand. We continue to see interest in homeownership and are leaning into our proven sales and marketing strategies to improve sales pace while maintaining our disciplined approach to balancing affordability and profitability. We are maintaining the remainder of our full-year 2026 guidance.”

Mr. Lipar concluded, “As we head into the final quarter of the year, our focus is on finishing 2026 strong. Affordability remains the key consideration for today’s buyers, and we have intentionally broadened our sales process to work with more prospective customers who may need additional time to qualify. With a growing community count, a strengthened balance sheet, and teams that continue to execute at a high level, we believe LGI Homes is well positioned to achieve our full-year objectives and carry that momentum into 2027.”
Third Quarter 2026 Results and Comparisons to Third Quarter 2025
•Homebuilding revenues of $437.5 million, an increase of 10.3%
•Total home closings of 1,222, including 33 currently and previously leased homes, an increase of 10.4%
•Home closings of 1,189, an increase of 11.6%
•Average sales price per home closed of $367,962, a decrease of 1.2%
•Homebuilding gross margin as a percentage of homebuilding revenues of 20.2%
•Adjusted homebuilding gross margin* as a percentage of homebuilding revenues of 23.7%
•Net income before income taxes of $33.3 million
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•Net income of $24.6 million or $1.05 basic EPS and $1.05 diluted EPS
Nine Months Ended September 30, 2026 Results and Comparisons to Nine Months Ended September 30, 2025
•Homebuilding revenues of $1,258.8 million, an increase of 2.2%
•Total home closings of 3,578, including 143 currently and previously leased homes, an increase of 4.4%
•Home closings of 3,435, an increase of 1.5%
•Average sales price per home closed of $366,449, an increase of 0.7%
•Homebuilding gross margin as a percentage of homebuilding revenues of 19.7%
•Homebuilding gross margin excluding inventory impairment* as a percentage of homebuilding revenues of 20.1%
•Adjusted homebuilding gross margin* as a percentage of homebuilding revenues of 23.4%
•Net income before income taxes of $74.2 million
•Net income of $53.7 million or $2.31 basic EPS and $2.31 diluted EPS
•Adjusted net income* of $57.2 million, or $2.46 adjusted basic EPS* and $2.46 adjusted diluted EPS*
*Please see “Non-GAAP Measures” for a reconciliation of Homebuilding Gross Margin Excluding Inventory Impairment (a non-GAAP measure) and Adjusted Homebuilding Gross Margin (a non-GAAP measure) to Homebuilding Gross Margin, and Adjusted Net Income (a non-GAAP measure) to Net Income, the most directly comparable GAAP measures, and for calculations of adjusted basic EPS and adjusted diluted EPS.
Balance Sheet Highlights
•Total liquidity of $447.7 million at September 30, 2026, including cash and cash equivalents of $69.4 million and $378.3 million of availability under the Company’s revolving credit facility
•Net debt to capital ratio* of 40.6% at September 30, 2026
*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.
Full Year 2026 Outlook
Subject to the caveats in the Forward-Looking Statements section of this press release and the assumptions noted below, the Company is narrowing its home closings outlook for the full year 2026 and reiterating its other outlook items for the full year 2026. Currently, the Company expects for full year 2026:
•Home closings between 4,600 and 4,800
•Active selling communities at the end of 2026 between 150 and 160
•Average sales price per home closed between $360,000 and $370,000
•Homebuilding gross margin as a percentage of homebuilding revenues between 19.0% and 21.0%, adjusted for estimated capitalized interest and estimated purchase accounting of approximately 3.5%, which results in adjusted homebuilding gross margin (non-GAAP) as a percentage of homebuilding revenues between 22.5% and 24.5%
•SG&A as a percentage of total revenues between 15.0% and 16.0%
•Effective tax rate of approximately 26.5%
This outlook assumes that general economic conditions, including input costs, materials, product and labor availability, interest rates and mortgage availability, in the remainder of 2026 are similar to those experienced to date in 2026 and that construction costs, availability of land and land development costs for the remainder of 2026 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
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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 3, 2026 (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. LGI Homes has closed over 80,000 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 employees, earning the Company numerous workplace awards at the local, state, and national level, including the Top Workplaces USA 2026 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.
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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 2026 home closings, active selling communities, average sales price per home closed, homebuilding gross margin as a percentage of homebuilding revenues, adjusted homebuilding gross margin as a percentage of homebuilding revenues, SG&A as a percentage of total 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, 2025, 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 Report on Form 10-Q for the quarters ended March 31, 2026, June 30, 2026, and September 30, 2026 (when it is filed with the SEC). 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 2026 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, except as required by law. 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.
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LGI HOMES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share data)

September 30,December 31,
20262025
ASSETS
Cash and cash equivalents$69,437 $61,247 
Accounts receivable29,013 32,467 
Real estate inventory3,487,271 3,555,602 
Pre-acquisition costs and deposits22,420 28,950 
Property and equipment, net189,811 107,145 
Other assets115,996 119,909 
Deferred tax assets, net10,483 9,904 
Goodwill12,018 12,018 
Total assets$3,936,449 $3,927,242 
LIABILITIES AND EQUITY
Accounts payable$67,381 $16,179 
Accrued expenses and other liabilities164,176 157,971 
Notes payable, net1,544,466 1,656,803 
Total liabilities1,776,023 1,830,953 
COMMITMENTS AND CONTINGENCIES
EQUITY
Common stock, par value $0.01, 250,000,000 shares authorized, 27,926,950 shares issued and 23,270,358 shares outstanding as of September 30, 2026 and 27,789,678 shares issued and 23,133,086 shares outstanding as of December 31, 2025
279 277 
Additional paid-in capital357,690 347,308 
Retained earnings2,212,039 2,158,339 
Treasury stock, at cost, 4,656,592 shares as of September 30, 2026 and December 31, 2025
(409,582)(409,635)
Total equity2,160,426 2,096,289 
Total liabilities and equity$3,936,449 $3,927,242 
5


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,
2026202520262025
Revenues
Homebuilding revenues$437,507 $396,632 $1,258,754 $1,231,537 
Land and other revenues6,957 6,869 34,634 43,594 
Total revenues444,464 403,501 1,293,388 1,275,131 
Cost of sales
Homebuilding costs349,018 311,520 1,010,942 962,104 
Land and other costs6,262 4,712 30,437 37,441 
Total cost of sales355,280 316,232 1,041,379 999,545 
Selling expenses35,757 35,661 112,556 119,602 
General and administrative26,298 27,967 82,730 88,570 
Other income, net(6,180)(3,060)(17,496)(7,051)
Net income before income taxes33,309 26,701 74,219 74,465 
Income tax provision8,753 6,997 20,519 19,234 
Net income$24,556 $19,704 $53,700 $55,231 
Earnings per share:
Basic$1.05 $0.85 $2.31 $2.38 
Diluted$1.05 $0.85 $2.31 $2.37 
Weighted average shares outstanding:
Basic23,331,728 23,056,904 23,210,620 23,223,736 
Diluted23,466,066 23,149,005 23,281,055 23,289,280 
Homebuilding 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, 2026As of September 30, 2026
Reportable SegmentHomebuilding RevenuesHome ClosingsASPAverage Community CountAverage Monthly Absorption RateCommunity Count at End of Period
Central$103,495 342 $302,617 50.32.349 
Southeast109,238 335 326,084 30.03.730 
Northwest60,125 115 522,826 18.02.118 
West108,581 239 454,314 29.32.729 
Florida56,068 158 354,861 24.42.225 
Total$437,507 1,189 $367,962 152.02.6151 

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Three Months Ended September 30, 2025As of September 30, 2025
Reportable SegmentHomebuilding RevenuesHome ClosingsASPAverage Community CountAverage Monthly Absorption RateCommunity Count at End of Period
Central$99,355 307 $323,632 45.0 2.345 
Southeast101,419 299 339,194 32.3 3.132 
Northwest49,408 109 453,284 14.7 2.514 
West91,699 203 451,719 25.7 2.625 
Florida54,751 147 372,456 24.3 2.025 
Total$396,632 1,065 $372,424 142.0 2.5141 

Homebuilding 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)

Nine Months Ended September 30, 2026As of September 30, 2026
Reportable SegmentHomebuilding RevenuesHome ClosingsASPAverage Community CountAverage Monthly Absorption RateCommunity Count at End of Period
Central$320,432 1,057 $303,152 49.1 2.449 
Southeast289,706 877 330,338 29.8 3.330 
Northwest156,736 302 518,993 16.4 2.018 
West319,040 710 449,352 28.2 2.829 
Florida172,840 489 353,456 23.9 2.325 
Total$1,258,754 3,435 $366,449 147.4 2.6151

Nine Months Ended September 30, 2025As of September 30, 2025
Reportable SegmentHomebuilding RevenuesHome ClosingsASPAverage Community CountAverage Monthly Absorption RateCommunity Count at End of Period
Central$313,487 997 $314,430 47.8 2.345 
Southeast353,211 1,067 331,032 31.8 3.732 
Northwest137,132 274 500,482 15.8 1.914 
West258,994 592 437,490 25.3 2.625 
Florida168,713 454 371,615 24.6 2.125 
Total$1,231,537 3,384 $363,929 145.3 2.6141 

Owned and Controlled Lots
The table below shows (i) home closings by reportable segment for the nine months ended September 30, 2026 and (ii) the Company’s owned or controlled lots by reportable segment as of September 30, 2026.
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Nine Months Ended September 30, 2026As of September 30, 2026
Reportable SegmentHome Closings
Owned (1)
ControlledTotal
Central1,057 17,813 671 18,484 
Southeast877 12,602 2,119 14,721 
Northwest302 5,879 1,012 6,891 
West710 8,947 3,111 12,058 
Florida489 5,029 1,217 6,246 
Total3,435 50,270 8,130 58,400 
(1)Of the 50,270 owned lots as of September 30, 2026, 34,119 were raw/under development lots and 16,151 were finished lots. Finished lots included 2,147 completed homes, including information centers, and 1,626 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
2026 (4)
2025 (5)
Net orders (1)
2,869 4,098 
Cancellation rate (2)
48.9 %28.1 %
Ending backlog – homes (3)
685 1,305 
Ending backlog – value (3)
$273,711 $498,713 
(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, 2026, the Company had 85 units related to bulk sales agreements associated with its wholesale business.
(5)As of September 30, 2025, the Company had 60 units related to bulk sales agreements associated with its wholesale business.

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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 net income, adjusted basic earnings per share, adjusted diluted earnings per share, homebuilding gross margin excluding inventory impairment, adjusted homebuilding gross margin, and net debt to capital ratio.

Adjusted Net Income, Adjusted Basic Earnings per Share, and Adjusted Diluted Earnings per Share

Adjusted net income, adjusted basic earnings per share, and adjusted diluted earnings per share are non-GAAP financial measures used by management as supplemental measures in evaluating operating performance. The Company defines adjusted net income as net income less inventory impairment charges. The Company defines adjusted basic earnings per share as adjusted net income divided by weighted average basic shares outstanding. The Company defines adjusted diluted earnings per share as adjusted net income divided by weighted average diluted shares outstanding. Management believes that the presentation of adjusted net income, adjusted basic earnings per share, and adjusted diluted earnings per share provides useful information to investors because such measures isolate the impact that inventory impairment charges have on net income and earnings per share. However, because adjusted net income, adjusted basic earnings per share, and adjusted diluted earnings per share exclude the inventory impairment charge, which has real economic effects and could impact the Company’s results, the utility of adjusted net income, adjusted basic earnings per share, and adjusted diluted earnings per share as measures of the Company’s operating performance may be limited. In addition, other companies may not calculate adjusted net income, adjusted basic earnings per share, and adjusted diluted earnings per share in the same manner that the Company does. Accordingly, adjusted net income, adjusted basic earnings per share, and adjusted diluted earnings per share should be considered only as supplements to net income, basic earnings per share, and diluted earnings per share, respectively, as measures of the Company’s performance.

The following table reconciles adjusted net income to net income, which is the GAAP financial measure that management believes to be most directly comparable, and adjusted basic earnings per share and adjusted diluted earnings per share are calculated by dividing adjusted net income by basic or diluted weighted average shares outstanding, respectively (dollars in thousands, except earnings per share, unaudited):

Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Net income$24,556 $19,704 $53,700 $55,231 
Basic weighted average number of shares outstanding23,331,728 23,056,904 23,210,620 23,223,736 
Basic earnings per share$1.05 $0.85 $2.31 $2.38 
Diluted weighted average number of shares outstanding23,466,066 23,149,005 23,281,055 23,289,280 
Diluted earnings per share$1.05 $0.85 $2.31 $2.37 


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Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Net income$24,556 $19,704 $53,700 $55,231 
Inventory impairment— — 4,681 — 
Tax impact due to above reconciling item— — (1,225)— 
Adjusted net income$24,556 $19,704 $57,156 $55,231 
Basic weighted average number of shares outstanding23,331,728 23,056,904 23,210,620 23,223,736 
Adjusted basic earnings per share $1.05 $0.85 $2.46 $2.38 
Diluted weighted average number of shares outstanding23,466,066 23,149,005 23,281,055 23,289,280 
Adjusted diluted earnings per share$1.05 $0.85 $2.46 $2.37 
Homebuilding Gross Margin Excluding Inventory Impairment and Adjusted Homebuilding Gross Margin
Homebuilding gross margin excluding inventory impairment and adjusted homebuilding gross margin are non-GAAP financial measures used by management as supplemental measures in evaluating operating performance. The Company defines homebuilding gross margin excluding inventory impairment as homebuilding gross margin less inventory impairment charges. The Company defines adjusted homebuilding gross margin as homebuilding gross margin excluding inventory impairment, less capitalized interest and adjustments resulting from the application of purchase accounting included in the cost of sales. Management believes homebuilding gross margin excluding inventory impairment and adjusted homebuilding gross margin are useful because they isolate the impact that capitalized interest, purchase accounting adjustments, and inventory impairment (as applicable) have on homebuilding gross margin. However, because homebuilding gross margin excluding inventory impairment and adjusted homebuilding gross margin exclude capitalized interest, purchase accounting adjustments, and inventory impairment (as applicable), which have real economic effects and could impact the Company’s results, the utility of homebuilding gross margin excluding inventory impairment and adjusted homebuilding gross margin as measures of the Company’s operating performance may be limited. In addition, other companies may not calculate homebuilding gross margin excluding inventory impairment and adjusted homebuilding gross margin in the same manner that the Company does. Accordingly, homebuilding gross margin excluding inventory impairment and adjusted homebuilding gross margin should be considered only as supplements to homebuilding gross margin as a measure of the Company’s performance.
The following table reconciles homebuilding gross margin excluding inventory impairment and adjusted homebuilding gross margin to homebuilding gross margin (homebuilding revenues less homebuilding costs), which is the GAAP financial measure that management believes to be most directly comparable (dollars in thousands, unaudited):
10

Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Homebuilding revenues$437,507 $396,632 $1,258,754 $1,231,537 
Homebuilding costs349,018 311,520 1,010,942 962,104 
Homebuilding gross margin$88,489 $85,112 $247,812 $269,433 
Inventory impairment
— — 4,681 — 
Homebuilding gross margin excluding inventory impairment$88,489 $85,112 $252,493 $269,433 
Capitalized interest amortized to cost of sales14,723 11,004 41,171 31,107 
Purchase accounting adjustments (1)
449 999 1,382 2,850 
Adjusted homebuilding gross margin$103,661 $97,115 $295,046 $303,390 
Homebuilding gross margin % (2)
20.2 %21.5 %19.7 %21.9 %
Homebuilding gross margin % excluding inventory impairment (2)
20.2 %21.5 %20.1 %21.9 %
Adjusted homebuilding gross margin % (2)
23.7 %24.5 %23.4 %24.6 %
(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 homebuilding revenues.

Net Debt to Capital Ratio
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 to debt to capital ratio, which is the GAAP financial measure that management believes to be most directly comparable (dollars in thousands, unaudited):

September 30, 2026December 31, 2025
Total debt (Notes payable)
$1,544,466 $1,656,803 
Total equity
2,160,426 2,096,289 
Total capital
$3,704,892 $3,753,092 
Debt to capital ratio
41.7 %44.1 %
Total debt (Notes payable)
$1,544,466 $1,656,803 
Less: Cash and cash equivalents
69,437 61,247 
Net debt
$1,475,029 $1,595,556 
Total equity
2,160,426 2,096,289 
Total net capital
$3,635,455 $3,691,845 
Net debt to capital ratio (1)
40.6 %43.2 %
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(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 of Finance and Capital Markets
Head of Investor Relations
(281) 210-2586
investorrelations@lgihomes.com
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Source: View Original Filing on SEC EDGAR

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