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LGI Homes (NASDAQ: LGIH) posts $516M Q2 revenue, raises 2026 outlook

Filing Impact
(Very High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

LGI Homes, Inc. reported second quarter 2026 results with total revenues of $516.0 million, including homebuilding revenues of $501.5 million. The company delivered 1,440 homes, an 8.8% increase year-over-year, and achieved a homebuilding gross margin of 19.8% and adjusted homebuilding gross margin of 23.2%. Net income was $27.0 million, or $1.16 basic and diluted EPS.

For the six months ended June 30, 2026, homebuilding revenues were $821.2 million, with 2,356 total home closings and average sales price per home of $365,649. LGI Homes ended the quarter with 151 active communities, total liquidity of $468.0 million, and a net debt to capital ratio of 41.6%. Debt was reduced by $128.6 million, bringing the debt-to-capital ratio to 42.6%.

On the strength of first-half performance, the company raised its 2026 outlook for profitability and pricing, guiding to homebuilding gross margin of 19.0%–21.0%, adjusted homebuilding gross margin of 22.5%–24.5%, and average sales price per home of $360,000–$370,000, while reiterating expected home closings of 4,600–5,400 and year-end active communities of 150–160.

Positive

  • None.

Negative

  • None.

Filing Explained

At June 30, 1,298 contracted homes worth $525,549 thousand were not yet closed, while six-month cancellations reached 47.4%.

This Form 8-K reports a completed second-quarter reporting event; as of June 30, the company disclosed 57,406 owned or controlled lots, separate from the 2,246 homes closed during the first half.

Ending backlog was 1,298 homes valued at $525,549 thousand. The filing defines backlog as signed purchase contracts whose buyers met preliminary financing criteria but whose homes had not yet closed, so the amount is contracted value rather than completed sales.

For the six months ended June 30, the cancellation rate was 47.4%, while net orders were 2,260; the filing also identified 269 backlog units tied to bulk-sales agreements.

Although the release called the results strong, six-month homebuilding revenue was $821,247 thousand, down 1.6%, and GAAP net income was $29,144 thousand versus $35,527 thousand a year earlier.

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.
Q2 2026 total revenues $516.0 million Total revenues for the three months ended June 30, 2026
Q2 2026 net income $26.984 million Net income for the three months ended June 30, 2026
Q2 2026 EPS $1.16 basic and diluted EPS Earnings per share for the three months ended June 30, 2026
Q2 2026 total home closings 1,440 homes Total home closings including leased homes in Q2 2026
Q2 2026 homebuilding gross margin 19.8% Homebuilding gross margin as a percentage of homebuilding revenues in Q2 2026
Q2 2026 adjusted homebuilding gross margin 23.2% Adjusted homebuilding gross margin as a percentage of homebuilding revenues in Q2 2026
Total liquidity $468.0 million Cash and cash equivalents plus revolver availability at June 30, 2026
Net debt to capital ratio 41.6% Net debt to capital ratio as of June 30, 2026
homebuilding gross margin financial
"Homebuilding gross margin of 19.8% and adjusted homebuilding gross margin of 23.2%"
Homebuilding gross margin is the percentage of sales a builder keeps after covering the direct costs to build houses—materials, labor and subcontractors—but before paying for overhead like marketing, administration or interest. Think of it as the profit made on each house before the company’s other bills; higher margins mean the builder is more efficient or has stronger pricing power, which helps investors judge profitability and resilience to rising costs.
adjusted homebuilding gross margin financial
"adjusted homebuilding gross margin of 23.2% both exceeded the midpoint of our"
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* of 41.6% at June 30, 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"
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 – homes (3) 1,298 ... Ending backlog – value (3) $ 525,549"
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.
bulk sales agreements financial
"As of June 30, 2026, the Company had 269 units related to bulk sales agreements"
Q2 2026 homebuilding revenues $501.5 million increase of 3.7%
Q2 2026 total home closings 1,440 homes increase of 8.8%
Q2 2026 home closings (excluding leased) 1,365 homes increase of 3.2%
Q2 2026 average sales price per home closed $367,407 increase of 0.5%
Six months 2026 homebuilding revenues $821.2 million decrease of 1.6%
Six months 2026 total home closings 2,356 homes increase of 1.6%
Six months 2026 adjusted net income $32.6 million
Q2 2026 net income $26.984 million
Guidance

For full year 2026, the company expects home closings between 4,600 and 5,400, year-end active selling communities between 150 and 160, average sales price per home closed between $360,000 and $370,000, homebuilding gross margin of 19.0%–21.0%, adjusted homebuilding gross margin of 22.5%–24.5%, SG&A as a percentage of total revenues between 15.0% and 16.0%, and an effective tax rate of approximately 26.5%.

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FAQ

How did LGI Homes (LGIH) perform financially in Q2 2026?
LGI Homes reported Q2 2026 total revenues of $516.0 million, including homebuilding revenues of $501.5 million. Net income was $27.0 million, equivalent to $1.16 basic and diluted EPS, supported by a 19.8% homebuilding gross margin.

How many homes did LGI Homes (LGIH) close in Q2 2026 and at what prices?
In Q2 2026, LGI Homes closed 1,440 total homes, including 1,365 home closings excluding leased units. The average sales price per home closed was $367,407, reflecting an increase of 0.5% compared with the prior-year period.

What 2026 guidance did LGI Homes (LGIH) provide for home closings and communities?
For full year 2026, LGI Homes expects home closings between 4,600 and 5,400 and 150 to 160 active selling communities at year-end. This outlook assumes economic and regulatory conditions remain similar to those experienced so far in 2026.

How is LGI Homes (LGIH) guiding margins and average sales price for 2026?
LGI Homes expects 2026 homebuilding gross margin of 19.0%–21.0% and adjusted homebuilding gross margin of 22.5%–24.5%. It also raised guidance for average sales price per home closed to $360,000–$370,000 for the full year.

What does LGI Homes’ (LGIH) balance sheet look like at June 30, 2026?
At June 30, 2026, LGI Homes reported total assets of $3.92 billion, total equity of $2.13 billion, and total liquidity of $468.0 million. The company’s net debt to capital ratio was 41.6%, and debt-to-capital ratio was 42.6%.
0001580670false00015806702026-08-042026-08-040001580670exch:XNGS2026-08-042026-08-04

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): August 4, 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 August 4, 2026, LGI Homes, Inc. (the “Company”) issued a press release announcing its financial results for the three months ended June 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 August 4, 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: August 4, 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 Strong Second Quarter 2026 Results and Increases Full-Year 2026 Average Sales Price and Homebuilding Gross Margin Guidance Ranges
THE WOODLANDS, Texas, August 4, 2026 (GLOBE NEWSWIRE) - LGI Homes, Inc. (NASDAQ: LGIH) today announced financial results for the second quarter and the six months ended June 30, 2026.
“We delivered strong results during the second quarter, exceeding expectations across key metrics while navigating a dynamic operating environment,” said Eric Lipar, Chairman and Chief Executive Officer of LGI Homes.

“During the quarter, we delivered 1,440 homes, an 8.8% increase year-over-year, generating total revenues of $516.0 million and homebuilding revenues of $501.5 million.

“We ended the quarter with 151 active communities, achieving the low end of our full-year guidance just six months into the year, and representing an increase of 3.4% compared to the same time last year.

“Homebuilding gross margin of 19.8% and adjusted homebuilding gross margin of 23.2% both exceeded the midpoint of our previously increased guidance range, reflecting our disciplined approach to pricing, incentives, and inventory management and the continued benefits of our self-development platform.

“We made significant progress strengthening our balance sheet during the quarter, reducing debt by $128.6 million and ending the period with a debt-to-capital ratio of 42.6%, a 220 basis point improvement year-over-year.

“On the strength of our outperformance in the first half of the year, we are raising our full-year gross margin guidance for the second consecutive quarter. We now expect our homebuilding gross margin will range between 19.0% and 21.0% and adjusted homebuilding gross margin between 22.5% and 24.5%. We are also raising the guidance for our full-year average sales price per home closed to between $360,000 and $370,000.”

Mr. Lipar concluded, “With strong visibility into the second half of the year, we are confident in achieving all of our objectives for 2026 and remain focused on balancing sales pace, profitability, and inventory management as we create long-term value for our shareholders.”
Second Quarter 2026 Highlights
•Homebuilding revenues of $501.5 million, an increase of 3.7%
•Total home closings of 1,440, including 75 currently and previously leased homes, an increase of 8.8%
•Home closings of 1,365, an increase of 3.2%
•Average sales price per home closed of $367,407, an increase of 0.5%
•Homebuilding gross margin as a percentage of homebuilding revenues of 19.8%
•Adjusted homebuilding gross margin* as a percentage of homebuilding revenues of 23.2%
•Net income before income taxes of $36.6 million
•Net income of $27.0 million or $1.16 basic EPS and $1.16 diluted EPS

Six Months Ended June 30, 2026 Highlights
•Homebuilding revenues of $821.2 million, a decrease of 1.6%
1

•Total home closings of 2,356, including 110 currently and previously leased homes, an increase of 1.6%
•Home closings of 2,246, a decrease of 3.1%
•Average sales price per home closed of $365,649, an increase of 1.6%
•Homebuilding gross margin as a percentage of homebuilding revenues of 19.4%
•Homebuilding gross margin excluding inventory impairment* as a percentage of homebuilding revenues of 20.0%
•Adjusted homebuilding gross margin* as a percentage of homebuilding revenues of 23.3%
•Net income before income taxes of $40.9 million
•Net income of $29.1 million or $1.26 basic EPS and $1.25 diluted EPS
•Adjusted net income* of $32.6 million, or $1.41 adjusted basic EPS* and $1.40 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 $468.0 million at June 30, 2026, including cash and cash equivalents of $61.1 million and $406.9 million of availability under the Company’s revolving credit facility
•Net debt to capital ratio* of 41.6% at June 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 updating its average sales price per home closed, homebuilding gross margin, and adjusted homebuilding gross margin as a percentage of homebuilding 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 $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 take into account any additional changes to U.S. trade policies, including the imposition of tariffs and duties on homebuilding products.
2

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, August 4, 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.
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 and June 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.
3

LGI HOMES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share data)

June 30,December 31,
20262025
ASSETS
Cash and cash equivalents$61,081 $61,247 
Accounts receivable33,850 32,467 
Real estate inventory3,512,613 3,555,602 
Pre-acquisition costs and deposits19,248 28,950 
Property and equipment, net149,579 107,145 
Other assets119,812 119,909 
Deferred tax assets, net10,392 9,904 
Goodwill12,018 12,018 
Total assets$3,918,593 $3,927,242 
LIABILITIES AND EQUITY
Accounts payable$58,750 $16,179 
Accrued expenses and other liabilities146,280 157,971 
Notes payable, net1,580,907 1,656,803 
Total liabilities1,785,937 1,830,953 
COMMITMENTS AND CONTINGENCIES
EQUITY
Common stock, par value $0.01, 250,000,000 shares authorized, 27,904,864 shares issued and 23,248,272 shares outstanding as of June 30, 2026 and 27,789,678 shares issued and 23,133,086 shares outstanding as of December 31, 2025
279 277 
Additional paid-in capital354,476 347,308 
Retained earnings2,187,483 2,158,339 
Treasury stock, at cost, 4,656,592 shares as of June 30, 2026 and December 31, 2025
(409,582)(409,635)
Total equity2,132,656 2,096,289 
Total liabilities and equity$3,918,593 $3,927,242 
4


LGI HOMES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share data)



Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Revenues
Homebuilding revenues$501,511 $483,485 $821,247 $834,905 
Land and other revenues14,537 $4,757 $27,677 $36,725 
Total revenues516,048 $488,242 $848,924 $871,630 
Cost of sales
Homebuilding costs402,117 372,877 661,924 650,584 
Land and other costs12,235 5,725 24,175 32,729 
Total cost of sales414,352 378,602 686,099 683,313 
Selling expenses44,149 41,599 76,799 83,941 
General and administrative28,571 29,401 56,432 60,603 
Other income, net(7,615)(3,400)(11,316)(3,991)
Net income before income taxes36,591 42,040 40,910 47,764 
Income tax provision9,607 10,507 11,766 12,237 
Net income$26,984 $31,533 $29,144 $35,527 
Earnings per share:
Basic$1.16 $1.36 $1.26 $1.52 
Diluted$1.16 $1.36 $1.25 $1.52 
Weighted average shares outstanding:
Basic23,201,571 23,221,565 23,191,411 23,308,534 
Diluted23,279,553 23,265,062 23,248,046 23,364,957 
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 June 30, 2026As of June 30, 2026
Reportable SegmentHomebuilding RevenuesHome ClosingsASPAverage Community CountAverage Monthly Absorption RateCommunity Count at End of Period
Central$127,777 419 $304,957 50.02.850 
Southeast108,145 323 334,814 29.73.630 
Northwest59,605 121 492,603 17.02.417 
West134,609 299 450,197 28.73.529 
Florida71,375 203 351,601 24.32.825 
Total$501,511 1,365 $367,407 149.73.0151 

5

Three Months Ended June 30, 2025As of June 30, 2025
Reportable SegmentHomebuilding RevenuesHome ClosingsASPAverage Community CountAverage Monthly Absorption RateCommunity Count at End of Period
Central$112,986 360 $313,850 47.3 2.546 
Southeast150,110 456 329,189 33.7 4.535 
Northwest53,487 100 534,870 16.0 2.116 
West100,339 230 436,257 24.7 3.125 
Florida66,563 177 376,062 24.3 2.424 
Total$483,485 1,323 $365,446 146.0 3.0146 

Homebuilding 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)

Six Months Ended June 30, 2026As of June 30, 2026
Reportable SegmentHomebuilding RevenuesHome ClosingsASPAverage Community CountAverage Monthly Absorption RateCommunity Count at End of Period
Central$216,937 715 $303,408 48.5 2.550 
Southeast180,468 542 332,967 29.7 3.030 
Northwest96,611 187 516,636 15.7 2.017 
West210,459 471 446,834 27.7 2.829 
Florida116,772 331 352,785 23.6 2.325 
Total$821,247 2,246 $365,649 145.2 2.6151

Six Months Ended June 30, 2025As of June 30, 2025
Reportable SegmentHomebuilding RevenuesHome ClosingsASPAverage Community CountAverage Monthly Absorption RateCommunity Count at End of Period
Central$214,132 690 $310,336 49.2 2.346 
Southeast251,792 768 327,854 31.5 4.135 
Northwest87,724 165 531,661 16.3 1.716 
West167,295 389 430,064 25.2 2.625 
Florida113,962 307 371,212 24.8 2.124 
Total$834,905 2,319 $360,028 147.0 2.6146 

Owned and Controlled Lots
The table below shows (i) home closings by reportable segment for the six months ended June 30, 2026 and (ii) the Company’s owned or controlled lots by reportable segment as of June 30, 2026.
6

Six Months Ended June 30, 2026As of June 30, 2026
Reportable SegmentHome Closings
Owned (1)
ControlledTotal
Central715 18,272 256 18,528 
Southeast542 12,868 1,212 14,080 
Northwest187 5,795 1,142 6,937 
West471 8,621 3,145 11,766 
Florida331 4,966 1,129 6,095 
Total2,246 50,522 6,884 57,406 
(1)Of the 50,522 owned lots as of June 30, 2026, 33,775 were raw/under development lots and 16,747 were finished lots. Finished lots included 1,858 completed homes, including information centers, and 1,899 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):
Six Months Ended June 30,
Backlog Data
2026 (4)
2025 (5)
Net orders (1)
2,260 2,528 
Cancellation rate (2)
47.4 %24.2 %
Ending backlog – homes (3)
1,298 808 
Ending backlog – value (3)
$525,549 $322,466 
(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 June 30, 2026, the Company had 269 units related to bulk sales agreements associated with its wholesale business.
(5)As of June 30, 2025, the Company had 91 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 June 30,Six Months Ended June 30,
2026202520262025
Net income$26,984 $31,533 $29,144 $35,527 
Basic weighted average number of shares outstanding23,201,571 23,221,565 23,191,411 23,308,534 
Basic earnings per share$1.16 $1.36 $1.26 $1.52 
Diluted weighted average number of shares outstanding23,279,553 23,265,062 23,248,046 23,364,957 
Diluted earnings per share$1.16 $1.36 $1.25 $1.52 


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Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Net income$26,984 $31,533 $29,144 $35,527 
Inventory impairment— — 4,681 — 
Tax impact due to above reconciling item— — (1,225)— 
Adjusted net income$26,984 $31,533 $32,600 $35,527 
Basic weighted average number of shares outstanding23,201,571 23,221,565 23,191,411 23,308,534 
Adjusted basic earnings per share $1.16 $1.36 $1.41 $1.52 
Diluted weighted average number of shares outstanding23,279,553 23,265,062 23,248,046 23,364,957 
Adjusted diluted earnings per share$1.16 $1.36 $1.40 $1.52 
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):
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Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Homebuilding revenues$501,511 $483,485 $821,247 $834,905 
Homebuilding costs402,117 372,877 661,924 650,584 
Homebuilding gross margin$99,394 $110,608 $159,323 $184,321 
Inventory impairment
— — 4,681 — 
Homebuilding gross margin excluding inventory impairment$99,394 $110,608 $164,004 $184,321 
Capitalized interest amortized to cost of sales16,472 11,836 26,448 20,103 
Purchase accounting adjustments (1)
544 1,042 933 1,851 
Adjusted homebuilding gross margin$116,410 $123,486 $191,385 $206,275 
Homebuilding gross margin % (2)
19.8 %22.9 %19.4 %22.1 %
Homebuilding gross margin % excluding inventory impairment (2)
19.8 %22.9 %20.0 %22.1 %
Adjusted homebuilding gross margin % (2)
23.2 %25.5 %23.3 %24.7 %
(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 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 (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, unaudited):

June 30, 2026December 31, 2025
Total debt (Notes payable)
$1,580,907 $1,656,803 
Total equity
2,132,656 2,096,289 
Total capital
$3,713,563 $3,753,092 
Debt to capital ratio
42.6 %44.1 %
Total debt (Notes payable)
$1,580,907 $1,656,803 
Less: Cash and cash equivalents
61,081 61,247 
Net debt
$1,519,826 $1,595,556 
Total equity
2,132,656 2,096,289 
Total net capital
$3,652,482 $3,691,845 
Net debt to capital ratio (1)
41.6 %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
(281) 210-2586
investorrelations@lgihomes.com
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Source: View Original Filing on SEC EDGAR

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