LGI Homes
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LGI Homes (LGIH) investor relations material

LGI Homes Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary17 Feb, 2026

Executive summary

  • Delivered 4,788 homes in 2025, generating $1.7 billion in revenue, with a focus on affordability, entry-level buyers, and efficient construction processes.

  • Achieved the milestone of closing the 80,000th home in December, reflecting scale and longevity.

  • Maintained operations in 36 markets across 21 states, controlling 60,842 lots at year-end.

  • Continued expansion through organic growth and selective M&A, aiming to double business size and become a top 5 builder.

  • Maintained focus on affordability, inventory management, and customer support amid market volatility.

Financial highlights

  • Q4 2025 revenue was $474 million, up 19.5% sequentially but down 15% year-over-year; full-year revenue was $1.7 billion, down 22.6% year-over-year.

  • Q4 gross margin was 17.7% (adjusted 22.3%); full-year gross margin was 20.7% (adjusted 24.0%).

  • Q4 net income was $17.3 million ($0.75/share); full-year net income was $72.6 million ($3.13/share), down 63% year-over-year.

  • SG&A expenses for Q4 were $65.6 million (13.8% of revenue); full-year SG&A as a percentage of revenue rose to 16.1%.

  • Year-end liquidity was $335 million, with $61 million cash and $274 million revolver availability.

Outlook and guidance

  • 2026 guidance: 4,600–5,400 home closings, 150–160 active communities, average sales price $355,000–$365,000.

  • Gross margin expected at 18–20%, adjusted gross margin 21–23%; SG&A projected at 15–16% of revenue.

  • Effective tax rate expected to be approximately 26.5%.

  • Wholesale closings projected at 10–15% of total for 2026.

  • Plans to double business size by deepening market positions, maintaining wholesale operations, and targeted acquisitions.

What portion of 2026 closings guidance is from wholesale?
How does self-developed land support 2026 margins?
What factors contributed to the 2025 cancellation rate?
Wholesale closings outlook given policy talks
Justify high cancellation rate strategy
Details on lot monetization for debt reduction
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Frequently asked questions

LGI Homes, Inc. designs, constructs, and sells homes in the United States. Its entry-level homes include attached, townhome, duplex, and detached single-family residential projects containing total floor area ranges from 1,200 to 1,700 square feet under the LGI Homes brand name as well as active adult homes and vacant land opportunities containing total floor area ranging from 1,200 to 2,400 square feet under the LGI Homes brand name. The company's luxury series homes comprise single-family detached residential projects containing total floor area ranging from 3,500 to 5,600 square feet under the Terrata Homes brand name. It markets its homes through In-House Sales Team and wholesalers. LGI Homes is based in The Woodlands, Texas.

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