LGI Homes (LGIH) Q4 2025 earnings summary

Executive summary

• Delivered 4,788 homes in 2025, generating $1.7 billion in revenue, with a focus on affordability, entry-level buyers, and efficient construction processes.

• Achieved the milestone of closing the 80,000th home in December, reflecting scale and longevity.

• Maintained operations in 36 markets across 21 states, controlling 60,842 lots at year-end.

• Continued expansion through organic growth and selective M&A, aiming to double business size and become a top 5 builder.

• Maintained focus on affordability, inventory management, and customer support amid market volatility.

Financial highlights

• Q4 2025 revenue was $474 million, up 19.5% sequentially but down 15% year-over-year; full-year revenue was $1.7 billion, down 22.6% year-over-year.

• Q4 gross margin was 17.7% (adjusted 22.3%); full-year gross margin was 20.7% (adjusted 24.0%).

• Q4 net income was $17.3 million ($0.75/share); full-year net income was $72.6 million ($3.13/share), down 63% year-over-year.

• SG&A expenses for Q4 were $65.6 million (13.8% of revenue); full-year SG&A as a percentage of revenue rose to 16.1%.

• Year-end liquidity was $335 million, with $61 million cash and $274 million revolver availability.

Outlook and guidance

• 2026 guidance: 4,600–5,400 home closings, 150–160 active communities, average sales price $355,000–$365,000.

• Gross margin expected at 18–20%, adjusted gross margin 21–23%; SG&A projected at 15–16% of revenue.

• Effective tax rate expected to be approximately 26.5%.

• Wholesale closings projected at 10–15% of total for 2026.

• Plans to double business size by deepening market positions, maintaining wholesale operations, and targeted acquisitions.