LGI Homes (LGIH) Q4 2024 earnings summary

Executive summary

• Achieved $2.2 billion in revenue and 6,028–6,131 home closings for full year 2024, with a record 151 active communities, up 29% year-over-year, and a focus on entry-level buyers and efficient construction.

• Maintained operational discipline, cost management, and targeted marketing to drive growth despite challenging macroeconomic conditions and affordability headwinds.

• Expanded to 36 markets in 21 states, controlling 70,899 lots at year-end.

• Net income for 2024 was $196.1 million, down 1.6% year-over-year, with EPS of $8.33.

• Average sales price per home closed increased 4.2% to $365,394.

Financial highlights

• Q4 2024 revenue was $557.4 million, down 8.4% year-over-year, with 1,533 home closings and average sales price up 5.1%.

• Full-year revenue was $2.2 billion, down 6.6% year-over-year; home closings down 10.4%.

• Full-year gross margin was 24.2% (up 120 bps); adjusted gross margin 26.3% (up 160 bps).

• Q4 gross margin was 22.9%; adjusted gross margin 25.2%.

• Q4 net income was $50.9 million, or $2.16 per basic share.

Outlook and guidance

• 2025 guidance: 6,200–7,000 home closings, 160–170 active selling communities, average sales price $360,000–$370,000.

• Gross margin guidance: 23.2%–24.2%; adjusted gross margin: 25.5%–26.5%.

• SG&A expense expected at 14%–15% of revenue; tax rate at 24.5%.

• Community count growth weighted toward the back half of 2025.

• Plans to double business size by deepening positions in existing markets and maintaining wholesale operations.