LGI Homes (LGIH) Q4 2025 earnings summary

Executive summary

• Delivered 1,362 homes in Q4 2025, with 1,301 contributing to $474 million in revenue; closed 4,788 homes for $1.7 billion in full-year revenue.

• Achieved a milestone of 80,000 homes closed; maintained resilience in margins despite affordability and rate volatility pressures.

• Net orders increased 39% year-over-year in Q4; backlog grew 133% to 1,394 homes, valued at $501 million, up 112% year-over-year, driven by a wholesale contract for 480 homes in 2026.

• Ended 2025 with 144 active communities, averaging 3.1 closings per community per month in Q4, the highest pace of the year.

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

Financial highlights

• Q4 revenue was $474 million, up 19.5% sequentially; average selling price was $364,000, slightly down year-over-year.

• Q4 gross margin (ex-inventory charges) was 19.2%; adjusted gross margin was 22.3%.

• Q4 net income was $17.3 million ($0.75/share); excluding impairments, $22.4 million ($0.97/share).

• Full-year net income was $72.6 million ($3.13/share); excluding impairments, $77.6 million ($3.35/share).

• SG&A expenses for Q4 were $65.6 million (13.8% of revenue), down 90 bps year-over-year; full-year SG&A was $273.8 million (16.1% of revenue), up 150 bps.

Outlook and guidance

• 2026 guidance: 4,600–5,400 home closings, 150–160 active communities at year-end.

• Average sales price expected between $355,000 and $365,000; gross margin guidance 18%–20%, adjusted gross margin 21%–23%.

• SG&A expected at 15%–16% of revenue; tax rate around 26.5%.

• Wholesale closings expected to be 10%–15% of total in 2026.

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