LGI Homes, Inc. announced strong second-quarter results, with 1,323 homes sold at an average price of $365,446, generating $483.5 million in revenue. Gross margin and adjusted gross margin both increased to 22.9% and 25.5%, respectively. The company repurchased 367,568 shares of common stock. However, net orders declined due to affordability challenges.
For the six months ended June 30, 2025, LGI Homes reported home sales revenues of $834.9 million, with 2,319 homes closed at an average price of $360,028. The company had a total of 146 active selling communities and an ending backlog of 808 homes valued at $322.5 million at June 30, 2025.
In response to market uncertainties, LGI Homes withdrew its full-year 2025 guidance and is now only providing guidance for the third quarter. The company expects home closings between 1,100 and 1,300, with an average sales price per home closed between $360,000 and $365,000. LGI Homes remains confident in the long-term outlook of the housing market.
LGI Homes’ balance sheet highlights include repurchasing 367,568 shares of common stock, total liquidity of $322.6 million, and a net debt to capitalization ratio of 45.0% at June 30, 2025. The company continues to focus on cost savings and efficiency improvements while navigating market challenges.
Adjusted Gross Margin is a key financial measure used by LGI Homes to evaluate operating performance. The company defines adjusted gross margin as gross margin less capitalized interest and purchase accounting adjustments. The adjusted gross margin percentage was 25.5% for the second quarter of 2025, reflecting improved operational efficiency.
LGI Homes’ backlog data for the six months ended June 30, 2025, showed a net order of 2,528 homes, a cancellation rate of 24.2%, and an ending backlog of 808 homes valued at $322,466. Despite market uncertainties, LGI Homes remains focused on delivering strong results and capitalizing on long-term opportunities.
Read more at GlobeNewswire: LGI Homes, Inc. Reports Second Quarter 2025 Results