LGI Homes (NASDAQ: LGIH) Q1 2026 results with higher 2026 margin outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
LGI Homes, Inc. reported first quarter 2026 results and raised its full-year gross margin outlook. Home sales revenues were $319.7 million on 881 home closings, with an average sales price of $362,924. Net income was $2.2 million, or $0.09 per basic and diluted share, and adjusted net income was $5.6 million, or $0.24 per share, reflecting inventory impairment adjustments.
The company delivered 916 total home closings including leased homes and ended the quarter with 1,699 homes in backlog valued at $660.5 million. LGI Homes reported first quarter adjusted gross margin of 23.4% and liquidity of $355.0 million, including $60.9 million in cash and $294.2 million of revolver availability.
For full year 2026, LGI Homes now expects gross margin as a percentage of home sales revenues between 18.5% and 20.5% and adjusted gross margin between 22.0% and 24.0%, while reiterating guidance for 4,600–5,400 home closings, 150–160 active communities at year-end, average sales price of $355,000–$365,000, SG&A of 15.0–16.0% of home sales revenues, and an effective tax rate of approximately 26.5%.
Positive
- None.
Negative
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Insights
LGI Homes posts modest Q1 profit, stronger backlog and higher margin outlook.
LGI Homes generated home sales revenues of $319.7 million in Q1 2026 on 881 home closings, with an average sales price of $362,924. Reported net income was modest at $2.2 million, but adjusted net income reached $5.6 million after adding back inventory impairment.
Profitability metrics show mixed trends. Gross margin was 18.7%, while adjusted gross margin was a stronger 23.4%, helped by cost discipline and pricing. The balance sheet carried total liquidity of $355.0 million and a net debt to capital ratio of 44.0%, indicating meaningful but manageable leverage for a land- and inventory-heavy model.
Operationally, backlog ended at 1,699 homes valued at $660.5 million, up from the prior-year figures disclosed in the backlog table. For full year 2026, management reaffirmed closings and community count targets while increasing gross margin and adjusted gross margin guidance ranges, contingent on economic and regulatory conditions remaining similar to those experienced so far in 2026.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
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, and exhibit attachments filed with this report.
Key Figures
Home sales revenues: $319.7 million
Net income: $2.2 million
Adjusted net income: $5.6 million
+5 more
8 metrics
Home sales revenues
$319.7 million
Three months ended March 31, 2026
Net income
$2.2 million
Three months ended March 31, 2026
Adjusted net income
$5.6 million
Three months ended March 31, 2026, excludes inventory impairment
Home closings
881 homes
Contributed to Q1 2026 home sales revenues
Average sales price
$362,924 per home
Average sales price per home closed, Q1 2026
Backlog value
$660.5 million
Ending backlog value as of March 31, 2026
Net debt to capital ratio
44.0%
As of March 31, 2026
Total liquidity
$355.0 million
Cash plus revolver availability at March 31, 2026
Key Terms
adjusted gross margin, inventory impairment, net debt to capital ratio, cancellation rate, +1 more
5 terms
adjusted gross margin financial
"We are pleased with our margin performance, including delivering an adjusted gross margin of 23.4%, exceeding our previous guidance range"
Adjusted gross margin is a measure of how much profit a company makes from its sales after accounting for certain expenses or one-time costs, but before deducting other operating expenses. It helps investors see the company's core profitability more clearly by removing factors that might distort the usual profit picture, similar to a runner measuring their speed without considering obstacles or weather. This metric provides a clearer view of the company's ongoing financial health.
inventory impairment financial
"Gross margin excluding inventory impairment* as a percentage of home sales revenues of 20.2%"
Inventory impairment is an accounting adjustment that reduces the recorded value of unsold goods when their market worth falls below what the company paid for them, like marking down spoiled food or outdated electronics on a store shelf. It matters to investors because it lowers reported profits and asset values, signals possible demand, production or pricing problems, and can foreshadow future cash flow pressures.
net debt to capital ratio financial
"Net debt to capital ratio* of 44.0% at March 31, 2026"
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.
cancellation rate financial
"Cancellation rate for a period is the total number of purchase contracts cancelled during the period"
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.
backlog financial
"Ending backlog – value (3) $ 660,511"
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
Earnings Snapshot
Home sales revenues: $319.7 million · Guidance included
Q1 2026
Home sales revenues
$319.7 million
Net income
$2.2 million
Basic EPS
$0.09
Adjusted net income
$5.6 million
Adjusted EPS
$0.24
Home closings
881 homes
Average sales price
$362,924 per home
Adjusted gross margin
23.4%
Guidance
For full year 2026, the company guides to 4,600–5,400 home closings, 150–160 active communities at year-end, average sales price of $355,000–$365,000, gross margin of 18.5–20.5% and adjusted gross margin of 22.0–24.0%.
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): April 28, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) | ||||||||||||
| (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):
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
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 2.02 | Results of Operations and Financial Condition. | ||||
On April 28, 2026 , LGI Homes, Inc. (the “Company”) issued a press release announcing its financial results for the three months and fiscal year ended March 31, 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 7.01 | Regulation 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 9.01 | Financial Statements and Exhibits. | ||||
| (d) | Exhibits. | ||||
| 99.1 | Press Release of LGI Homes, Inc. issued on April 28, 2026. | ||||
| 104 | Cover 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: | ||||||||
| LGI HOMES, INC. | ||||||||
| By: | /s/ Eric Lipar | |||||||
| Eric Lipar | ||||||||
| Chief Executive Officer and Chairman of the Board | ||||||||
EXHIBIT 99.1
LGI Homes, Inc. Reports First Quarter 2026 Results
THE WOODLANDS, Texas, April 28, 2026 (GLOBE NEWSWIRE) - LGI Homes, Inc. (NASDAQ: LGIH) today announced financial results for the three months ended March 31, 2026.
“We are pleased with our first quarter results, which met or exceeded our expectations across nearly every metric,” said Eric Lipar, Chairman and Chief Executive Officer of LGI Homes. “Our teams executed well throughout the quarter and the early weeks of the spring selling season have reinforced our confidence in the year ahead.
“In the first quarter, we delivered a total of 916 homes. 881 home closings contributed to revenue of $319.7 million and 35 currently or previously leased homes were recognized in other income. Notably, our average sales price per home closed increased nearly 3% to approximately $362,924, demonstrating our ability to preserve pricing while continuing to support affordability through targeted price discounts and financing strategies. We are pleased with our margin performance, including delivering an adjusted gross margin of 23.4%, exceeding our previous guidance range and further demonstrating our continued focus on cost discipline.
“Our teams remained focused on driving leads, managing inventory, and executing on sales initiatives that directly contributed to ending the quarter with 1,699 homes in backlog, up 63.4% compared to the same period last year and 21.9% sequentially.
“The performance to date in 2026 reinforces our confidence in the full‑year guidance we shared on our last call. Additionally, based on first quarter margins exceeding our previous guidance range, we are raising full year gross margin guidance to between 18.5% and 20.5% and adjusted gross margin between 22.0% and 24.0%.”
Mr. Lipar concluded, “Our first quarter results reflect the strength of our operating model and the dedication of our teams across the country. The structural advantages of our self-developed land pipeline, combined with our disciplined approach to pricing and inventory management, continue to support our margins and position us to perform through varying market conditions.”
First Quarter 2026 Highlights
•Home sales revenues of $319.7 million
•Home closings of 881
•Total home closings of 916, including 35 currently and previously leased homes
•Average sales price per home closed of $362,924
•Gross margin as a percentage of home sales revenues of 18.7%
•Gross margin excluding inventory impairment* as a percentage of home sales revenues of 20.2%
•Adjusted gross margin* as a percentage of home sales revenues of 23.4%
•Net income before income taxes of $4.3 million
•Net income of $2.2 million or $0.09 basic EPS and $0.09 diluted EPS
•Adjusted net income* of $5.6 million, or $0.24 adjusted basic EPS* and $0.24 adjusted diluted EPS*
*Please see “Non-GAAP Measures” for a reconciliation of Gross Margin Excluding Inventory Impairment (a non-GAAP measure) and Adjusted Gross Margin (a non-GAAP measure) to 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.
1
Balance Sheet Highlights
•Total liquidity of $355.0 million at March 31, 2026, including cash and cash equivalents of $60.9 million and $294.2 million of availability under the Company’s revolving credit facility
•Net debt to capital ratio* of 44.0% at March 31, 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 updating its gross margin and adjusted gross margin as a percentage of home sales revenues 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 5,400
•Active selling communities at the end of 2026 between 150 and 160
•Average sales price per home closed between $355,000 and $365,000
•Gross margin as a percentage of home sales revenues between 18.5% and 20.5%, adjusted for estimated capitalized interest and estimated purchase accounting of approximately 3.5%, which results in Adjusted gross margin (non-GAAP) as a percentage of home sales revenues between 22.0% and 24.0%
•SG&A as a percentage of home sales 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 the average sales price per home closed, 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 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, April 28, 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 more than 1,000 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.
2
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, 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, 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 quarter ended March 31, 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.
3
LGI HOMES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share data)
| March 31, | December 31, | |||||||||||||
| 2026 | 2025 | |||||||||||||
| ASSETS | ||||||||||||||
| Cash and cash equivalents | $ | 60,860 | $ | 61,247 | ||||||||||
| Accounts receivable | 45,011 | 32,467 | ||||||||||||
| Real estate inventory | 3,540,731 | 3,520,563 | ||||||||||||
| Pre-acquisition costs and deposits | 24,970 | 28,950 | ||||||||||||
| Property and equipment, net | 124,805 | 107,145 | ||||||||||||
| Other assets | 192,849 | 154,948 | ||||||||||||
| Deferred tax assets, net | 8,921 | 9,904 | ||||||||||||
| Goodwill | 12,018 | 12,018 | ||||||||||||
| Total assets | $ | 4,010,165 | $ | 3,927,242 | ||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| Accounts payable | $ | 38,569 | $ | 16,179 | ||||||||||
| Accrued expenses and other liabilities | 159,725 | 157,971 | ||||||||||||
| Notes payable | 1,709,457 | 1,656,803 | ||||||||||||
| Total liabilities | 1,907,751 | 1,830,953 | ||||||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||||||
| EQUITY | ||||||||||||||
Common stock, par value $0.01, 250,000,000 shares authorized, 27,888,871 shares issued and 23,232,279 shares outstanding as of March 31, 2026 and 27,789,678 shares issued and 23,133,086 shares outstanding as of December 31, 2025 | 278 | 277 | ||||||||||||
| Additional paid-in capital | 351,272 | 347,308 | ||||||||||||
| Retained earnings | 2,160,499 | 2,158,339 | ||||||||||||
Treasury stock, at cost, 4,656,592 shares as of March 31, 2026 and December 31, 2025 | (409,635) | (409,635) | ||||||||||||
| Total equity | 2,102,414 | 2,096,289 | ||||||||||||
| Total liabilities and equity | $ | 4,010,165 | $ | 3,927,242 | ||||||||||
4
LGI HOMES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share data)
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Home sales revenues | $ | 319,736 | $ | 351,420 | ||||||||||
| Cost of sales | 259,807 | 277,707 | ||||||||||||
| Selling expenses | 32,650 | 42,342 | ||||||||||||
| General and administrative | 27,861 | 31,202 | ||||||||||||
| Operating income (loss) | (582) | 169 | ||||||||||||
| Other income, net | (4,901) | (5,555) | ||||||||||||
| Net income before income taxes | 4,319 | 5,724 | ||||||||||||
| Income tax provision | 2,159 | 1,730 | ||||||||||||
| Net income | $ | 2,160 | $ | 3,994 | ||||||||||
| Earnings per share: | ||||||||||||||
| Basic | $ | 0.09 | $ | 0.17 | ||||||||||
| Diluted | $ | 0.09 | $ | 0.17 | ||||||||||
| Weighted average shares outstanding: | ||||||||||||||
| Basic | 23,149,912 | 23,396,470 | ||||||||||||
| Diluted | 23,219,224 | 23,466,746 | ||||||||||||
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 March 31, 2026 | As of March 31, 2026 | |||||||||||||||||||||||||||||||||||||
| Reportable Segment | Revenues | Home Closings | ASP | Average Community Count | Average Monthly Absorption Rate | Community Count at End of Period | ||||||||||||||||||||||||||||||||
| Central | $ | 89,160 | 296 | $ | 301,216 | 47.0 | 2.1 | 47 | ||||||||||||||||||||||||||||||
| Southeast | 72,323 | 219 | 330,242 | 29.7 | 2.5 | 29 | ||||||||||||||||||||||||||||||||
| Northwest | 37,006 | 66 | 560,697 | 14.3 | 1.5 | 15 | ||||||||||||||||||||||||||||||||
| West | 75,850 | 172 | 440,988 | 26.7 | 2.1 | 28 | ||||||||||||||||||||||||||||||||
| Florida | 45,397 | 128 | 354,664 | 23.0 | 1.9 | 23 | ||||||||||||||||||||||||||||||||
| Total | $ | 319,736 | 881 | $ | 362,924 | 140.7 | 2.1 | 142 | ||||||||||||||||||||||||||||||
5
| Three Months Ended March 31, 2025 | As of March 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Reportable Segment | Revenues | Home Closings | ASP | Average Community Count | Average Monthly Absorption Rate | Community Count at End of Period | ||||||||||||||||||||||||||||||||
| Central | $ | 101,146 | 330 | $ | 306,503 | 51.0 | 2.2 | 50 | ||||||||||||||||||||||||||||||
| Southeast | 101,682 | 312 | 325,904 | 29.3 | 3.5 | 30 | ||||||||||||||||||||||||||||||||
| Northwest | 34,237 | 65 | 526,723 | 16.7 | 1.3 | 16 | ||||||||||||||||||||||||||||||||
| West | 66,956 | 159 | 421,107 | 25.7 | 2.1 | 25 | ||||||||||||||||||||||||||||||||
| Florida | 47,399 | 130 | 364,608 | 25.3 | 1.7 | 25 | ||||||||||||||||||||||||||||||||
| Total | $ | 351,420 | 996 | $ | 352,831 | 148.0 | 2.2 | 146 | ||||||||||||||||||||||||||||||
Owned and Controlled Lots
The table below shows (i) home closings by reportable segment for the three months ended March 31, 2026 and (ii) the Company’s owned or controlled lots by reportable segment as of March 31, 2026.
| Three Months Ended March 31, 2026 | As of March 31, 2026 | |||||||||||||||||||||||||
| Reportable Segment | Home Closings | Owned (1) | Controlled | Total | ||||||||||||||||||||||
| Central | 296 | 18,696 | 326 | 19,022 | ||||||||||||||||||||||
| Southeast | 219 | 12,962 | 1,700 | 14,662 | ||||||||||||||||||||||
| Northwest | 66 | 5,799 | 1,314 | 7,113 | ||||||||||||||||||||||
| West | 172 | 8,610 | 3,286 | 11,896 | ||||||||||||||||||||||
| Florida | 128 | 5,126 | 1,209 | 6,335 | ||||||||||||||||||||||
| Total | 881 | 51,193 | 7,835 | 59,028 | ||||||||||||||||||||||
(1)Of the 51,193 owned lots as of March 31, 2026, 34,168 were raw/under development lots and 17,025 were finished lots. Finished lots included 2,266 completed homes, including information centers, and 1,355 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):
| Three Months Ended March 31, | ||||||||||||||
| Backlog Data | 2026 (4) | 2025 (5) | ||||||||||||
Net orders (1) | 1,221 | 1,437 | ||||||||||||
Cancellation rate (2) | 45.6 | % | 16.3 | % | ||||||||||
Ending backlog – homes (3) | 1,699 | 1,040 | ||||||||||||
Ending backlog – value (3) | $ | 660,511 | $ | 406,166 | ||||||||||
(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 March 31, 2026, the Company had 442 units related to bulk sales agreements associated with its wholesale business.
(5)As of March 31, 2025, the Company had 253 units related to bulk sales agreements associated with its wholesale business.
6
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, gross margin excluding inventory impairment, adjusted 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 March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income | $ | 2,160 | $ | 3,994 | |||||||
| Basic weighted average number of shares outstanding | 23,149,912 | 23,396,470 | |||||||||
| Basic earnings per share | $ | 0.09 | $ | 0.17 | |||||||
| Diluted weighted average number of shares outstanding | 23,219,224 | 23,466,746 | |||||||||
| Diluted earnings per share | $ | 0.09 | $ | 0.17 | |||||||
7
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income | $ | 2,160 | $ | 3,994 | |||||||
| Inventory Impairment | 4,681 | — | |||||||||
| Tax impact due to above reconciling item | (1,225) | — | |||||||||
| Adjusted net income | $ | 5,616 | $ | 3,994 | |||||||
| Basic weighted average number of shares outstanding | 23,149,912 | 23,396,470 | |||||||||
| Adjusted basic earnings per share | $ | 0.24 | $ | 0.17 | |||||||
| Diluted weighted average number of shares outstanding | 23,219,224 | 23,466,746 | |||||||||
| Adjusted diluted earnings per share | $ | 0.24 | $ | 0.17 | |||||||
Gross Margin Excluding Inventory Impairment and Adjusted Gross Margin
Gross margin excluding inventory impairment and adjusted gross margin are non-GAAP financial measures used by management as supplemental measures in evaluating operating performance. The Company defines gross margin excluding inventory impairment as gross margin less inventory impairment charges. The Company defines adjusted gross margin as 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 gross margin excluding inventory impairment and adjusted gross margin are useful because they isolate the impact that capitalized interest, purchase accounting adjustments, and inventory impairment (as applicable) have on gross margin. However, because gross margin excluding inventory impairment and adjusted 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 gross margin excluding inventory impairment and adjusted gross margin as measures of the Company’s operating performance may be limited. In addition, other companies may not calculate gross margin excluding inventory impairment and adjusted gross margin in the same manner that the Company does. Accordingly, gross margin excluding inventory impairment and adjusted gross margin should be considered only as supplements to gross margin as a measure of the Company’s performance.
The following table reconciles gross margin excluding inventory impairment and 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 March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Home sales revenues | $ | 319,736 | $ | 351,420 | ||||||||||
| Cost of sales | 259,807 | 277,707 | ||||||||||||
| Gross margin | $ | 59,929 | $ | 73,713 | ||||||||||
Inventory impairment | 4,681 | — | ||||||||||||
| Gross margin excluding inventory impairment | $ | 64,610 | $ | 73,713 | ||||||||||
| Capitalized interest charged to cost of sales | 9,976 | 8,267 | ||||||||||||
Purchase accounting adjustments (1) | 389 | 809 | ||||||||||||
| Adjusted gross margin | $ | 74,975 | $ | 82,789 | ||||||||||
Gross margin % (2) | 18.7 | % | 21.0 | % | ||||||||||
Gross margin % excluding inventory impairment (2) | 20.2 | % | 21.0 | % | ||||||||||
Adjusted gross margin % (2) | 23.4 | % | 23.6 | % | ||||||||||
(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 home sales revenues.
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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 (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):
| March 31, 2026 | December 31, 2025 | |||||||||||||
Total debt (Notes payable) | $ | 1,709,457 | $ | 1,656,803 | ||||||||||
Total equity | 2,102,414 | 2,096,289 | ||||||||||||
Total capital | $ | 3,811,871 | $ | 3,753,092 | ||||||||||
Debt to capital ratio | 44.8 | % | 44.1 | % | ||||||||||
Total debt (Notes payable) | $ | 1,709,457 | $ | 1,656,803 | ||||||||||
Less: Cash and cash equivalents | 60,860 | 61,247 | ||||||||||||
Net debt | $ | 1,648,597 | $ | 1,595,556 | ||||||||||
Total equity | 2,102,414 | 2,096,289 | ||||||||||||
Total net capital | $ | 3,751,011 | $ | 3,691,845 | ||||||||||
Net debt to capital ratio (1) | 44.0 | % | 43.2 | % | ||||||||||
(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
9
FAQ
How did LGI Homes (LGIH) perform financially in Q1 2026?
LGI Homes reported Q1 2026 home sales revenues of $319.7 million and net income of $2.2 million, or $0.09 per basic and diluted share. Adjusted net income was $5.6 million, reflecting inventory impairment adjustments and resulting in $0.24 adjusted earnings per share.
What were LGI Homes’ key operating metrics for Q1 2026?
In Q1 2026, LGI Homes closed 881 homes contributing to revenue and 916 total closings including leased homes. The company achieved an average sales price of $362,924 and reported an adjusted gross margin of 23.4%, highlighting pricing and cost discipline across its segments.
What is LGI Homes’ backlog as of March 31, 2026?
As of March 31, 2026, LGI Homes reported an ending backlog of 1,699 homes with a contract value of $660.5 million. This backlog includes retail homes under contract and wholesale contracts, and reflects 442 units related to bulk sales agreements in its wholesale business.
What full-year 2026 guidance did LGI Homes (LGIH) provide?
For full-year 2026, LGI Homes expects 4,600–5,400 home closings, 150–160 active selling communities at year-end, and average sales price between $355,000 and $365,000. The company also anticipates SG&A of 15.0–16.0% of home sales revenues and an effective tax rate near 26.5%.
How is LGI Homes’ 2026 margin outlook changing?
LGI Homes raised its 2026 gross margin outlook to 18.5–20.5% of home sales revenues and adjusted gross margin to 22.0–24.0%. These ranges factor in estimated capitalized interest and purchase accounting, reflecting stronger-than-expected first quarter margin performance while remaining subject to economic and cost conditions.
What is LGI Homes’ liquidity and leverage position at March 31, 2026?
At March 31, 2026, LGI Homes reported total liquidity of $355.0 million, including $60.9 million in cash and cash equivalents and $294.2 million of availability under its revolving credit facility. The company’s net debt to capital ratio was 44.0%, based on net debt and total equity.