LGI Homes (LGIH) investor relations material

Executive summary

• Q3 deliveries rose 10.4% YoY to 1,222 homes; total revenue increased 10.2% to $444.5 million, and net income rose 24.6% to $24.6 million.

• Active communities ended Q3 at 151, up 7.1% YoY; full-year 2026 closing guidance narrowed to 4,600–4,800 homes as affordability pressures weighed on demand.

Financial highlights

• Homebuilding revenue was $437.5 million, up 10.3% YoY; total revenue was $444.5 million, including $7 million from lot sales and leasing operations.

• Net income was $24.6 million versus $19.7 million; diluted EPS was $1.05 versus $0.85.

• Q3 home closings were 1,189, up 11.6% YoY; ASP was $367,962, down 1.2%.

• Adjusted EBITDA was $52.7 million, or 11.9% of revenue; SG&A declined 2.5% to $62.1 million and improved 180 bps to 14% of revenue.

• 9M revenue was $1,293.4 million versus $1,275.1 million; net income was $53.7 million versus $55.2 million, while adjusted net income was $57.2 million excluding $4.7 million of inventory impairment.

Outlook and guidance

• FY2026 home closing guidance narrowed to 4,600–4,800; active-community guidance remains 150–160.

• FY2026 ASP guidance is $360,000–$370,000; homebuilding gross margin guidance is 19%–21%, adjusted gross margin 22.5%–24.5%, and SG&A 15%–16% of revenue.

• Effective tax rate guidance is ~26.5%; outlook excludes potential additional U.S. tariffs and duties on homebuilding products.

• Q4 gross margins are expected to be similar to Q3; management expects more than 180 active communities by year-end 2027, a net count.