Landsea Homes Corporation ( (LSEA) ) has released its Q1 earnings. Here is a breakdown of the information Landsea Homes Corporation presented to its investors.
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Landsea Homes Corporation is a publicly traded residential homebuilder based in Dallas, Texas, known for designing and building sustainable master-planned communities across the United States, including regions like New York, Boston, and California. The company focuses on creating homes that reflect modern living with a commitment to sustainability and innovation.
In its first-quarter 2025 earnings report, Landsea Homes Corporation reported a slight increase in home sales revenue by 2.3% to $299.4 million, alongside a significant rise in new home deliveries by 27.3% to 643 homes. Despite these positive sales figures, the company experienced a net loss of $7.1 million, translating to a $0.20 loss per share.
Key financial metrics highlighted in the report include a total revenue increase of 6% to $310.8 million, driven by the growth in home deliveries. However, the average selling price decreased by 20%, reflecting a shift in the geographic mix of sales towards regions with lower average prices like Texas and Florida. The adjusted home sales gross margin improved slightly to 20.0%, up from 19.4% in the previous year, despite the overall gross margin declining to 13.0% due to higher discounts and interest costs.
The company also reported an increase in net new home orders by 11.1% to 679 homes, although the total backlog of homes decreased by 32% compared to the previous year. Landsea Homes continues to pursue an asset-light strategy, with 55% of its lots controlled rather than owned, aiming to enhance operational efficiency and flexibility.
Looking ahead, Landsea Homes remains focused on its strategic goals of expanding its market presence and maintaining its commitment to sustainability and innovation in homebuilding. The management’s outlook reflects a cautious yet optimistic approach, balancing growth opportunities with the challenges posed by economic conditions and market dynamics.