LGI Homes Inc ( (LGIH) ) has released its Q4 earnings. Here is a breakdown of the information LGI Homes Inc presented to its investors.
LGI Homes, Inc., headquartered in The Woodlands, Texas, is a prominent player in the homebuilding industry, known for its innovative approach to designing, constructing, and selling homes across multiple U.S. markets. The company has been recognized for its quality construction and customer service, making it one of America’s fastest-growing companies.
In its latest earnings report, LGI Homes announced its financial results for the fourth quarter and full year of 2024, highlighting a strong finish despite a challenging economic environment. The company reported a record high number of active communities and made significant strides in improving profitability, with gross margins reaching pre-pandemic levels.
Key financial metrics from the report include a decrease in home sales revenues by 6.6% to $2.2 billion for the full year, with home closings down by 8.9% to 6,131 homes. Despite these declines, the average sales price per home increased by 4.2% to $365,394. The company also achieved a gross margin of 24.2% and an adjusted gross margin of 26.3%, reflecting improvements over the previous year. LGI Homes ended the year with 151 active selling communities, a 29.1% increase from 2023.
Looking ahead to 2025, LGI Homes remains cautious due to ongoing affordability challenges but projects home closings between 6,200 and 7,000, with an average sales price ranging from $360,000 to $370,000. The company aims to maintain profitability metrics in line with historical averages, supported by a robust land pipeline.
Overall, LGI Homes is focused on sustaining its growth and profitability through operational discipline and strategic investments, positioning itself well to navigate the uncertainties of the coming year.