Legacy Housing (LEGH) Q2 2025 earnings summary

Executive summary

• Net revenue for Q2 2025 increased 18.0% year-over-year to $50.2 million, driven by higher product sales, average selling prices, and loan interest income, with notable growth in inventory finance and retail channels.

• Product sales volume rose 21.3% year-over-year, especially in inventory finance and retail channels.

• Net income declined 9.2% to $14.7 million, and EPS fell 9.0% to $0.61, mainly due to higher expenses, lower other income, and a tough comparison with a prior-year land sale.

• Product gross margin improved to 32.4% from 31.9% year-over-year, reflecting disciplined pricing and cost management.

• Share repurchases continued, with 260,635 shares bought for $5.8 million in Q2, and $8.1 million remaining authorized.

Financial highlights

• Q2 2025 net revenue: $50.2M (+18.0% YoY); net income: $14.7M (-9.2% YoY); EPS: $0.61 basic, $0.60 diluted.

• Net revenue per product sold increased 10.5% year-over-year, driven by a higher mix of retail sales.

• Book value per share rose 11.2% to $21.32 year-over-year.

• Operating expenses for Q2 2025 rose 26.0% YoY, mainly from higher cost of product sales and SG&A.

• Gross margin for Q2 2025: 48.3% (net revenue $50.2M, cost of product sales $25.9M).

Outlook and guidance

• Management remains confident in long-term business value despite market uncertainty, inflation, and tariff-related risks.

• Focus remains on building backlog, increasing production, and expanding retail and land development projects, especially in Texas and Georgia.

• Expectation for SG&A to normalize after one-time accruals in Q2.

• Management expects cash flow from operations, cash on hand, and available credit to fund operations and growth for at least the next 12–18 months.

• Cautious optimism for the remainder of 2025, with some choppiness expected in certain geographies.