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Mar 31, 2025
LGI Homes Q1 2025 Earnings Report
Results for the three months ended March 31, 2025
Key Takeaways
LGI Homes reported solid results for the first quarter of 2025 despite affordability challenges and rate volatility, delivering 996 homes for $351.4 million in revenue. Net income was impacted by a one-time $8.6 million expense. The company reiterated most of its full-year guidance but adjusted its gross margin outlook downward due to potential tariff impacts.
Reported home sales revenues of $351.4 million for the first quarter of 2025.
Delivered 996 homes with an average sales price of $352,831.
Net income for the quarter was $4.0 million, or $0.17 per diluted share, including a one-time $8.6 million expense.
Reiterated full-year guidance for home closings and average sales price, but trimmed gross margin outlook due to potential tariff impacts.
Revenue by Geographic Location
Forward Guidance
LGI Homes reiterated its full-year 2025 guidance for home closings and average sales price but updated its gross margin outlook, trimming it by 100 to 150 basis points due to potential tariff impacts and market volatility.
Positive Outlook
- Reiterated full-year home closing guidance (6,200 - 7,000).
- Reiterated full-year average sales price guidance ($360,000 - $370,000).
- Expects 160 to 170 active selling communities by year end.
- Confident in the long-term outlook for the housing market.
- Underlying demographic fundamentals support sustained demand for entry-level homes.
Challenges Ahead
- Potential impacts of tariffs and higher costs on margins.
- Began receiving notices of price increases from some suppliers related to tariffs.
- Proactively trimmed full year gross margin guidance (now 21.7% - 23.2%).
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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