Landsea Homes (LSEA) Q2 2024 earnings summary

Executive summary

• Achieved $431.1 million in Q2 2024 revenue, up 47% year-over-year, with 760 home deliveries and a 2% rise in average sales price to $550,000, exceeding guidance.

• Adjusted net income was $13.3 million ($0.36 per share); reported net income was $2.9 million ($0.08 per share), impacted by one-time acquisition and restructuring costs.

• Adjusted EBITDA grew 58% to $42.8 million; backlog at quarter-end was 694 homes valued at $391.1 million.

• Strong demand trends, increased community count (up 47–49% year-over-year), and successful integration of acquisitions, especially Antares in Texas, drove growth.

• Book value per share increased to $17.94.

Financial highlights

• Home sales revenue rose 43–43.5% to $418.2 million; total revenue up 47% to $431.1 million year-over-year.

• Home sales gross margin was 14.9%, with adjusted gross margin at 21.1%, both down year-over-year due to higher incentives.

• SG&A ratio improved to 13% of home sales revenue.

• Liquidity at quarter-end was $330 million, with $106 million in cash and $224 million available under the revolver.

• Ending active community count was 85, up 49% year-over-year.

Outlook and guidance

• Q3 deliveries expected between 625–700; Q4 between 1,000–1,100, with ASP projected at $495,000–$510,000 for both quarters.

• Adjusted gross margins guided to 20–21% in Q3 and 23–24% in Q4; GAAP gross margins to improve to 18–19% in Q4.

• Focus remains on cash flow generation, reducing leverage, and maximizing backlog.

• Plans to drive higher returns through improved cycle times and cost reductions.

• Incentives and mortgage rate buydowns will continue to support sales pace.