LGI Homes Reports Strong Demand Amid Market Challenges

LGI Homes Inc ( (LGIH) ) has released its Q1 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 homebuilder known for its innovative approach to designing, constructing, and selling homes across 36 markets in 21 states, focusing on making homeownership accessible to families nationwide.

In its first-quarter 2025 earnings report, LGI Homes reported strong demand for new homes despite challenges such as affordability and rate volatility. The company delivered 996 homes at an average sales price of $352,831, generating total revenue of $351.4 million.

Key financial highlights include a gross margin of 21.0% and an adjusted gross margin of 23.6%. The company faced a one-time $8.6 million expense related to its forward commitment incentive program. LGI Homes also reported a net income of $4.0 million, or $0.17 per share, and ended the quarter with a backlog of 1,040 homes valued at $406.2 million.

Looking ahead, LGI Homes remains optimistic about the housing market’s long-term prospects, driven by a persistent shortage of entry-level homes and strong demographic fundamentals. The company plans to close between 6,200 and 7,000 homes in 2025, with an average sales price between $360,000 and $370,000, while adjusting its gross margin guidance to account for potential cost increases and market volatility.