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Jun 30
LGI Homes Q2 2025 Earnings Report
LGI Homes, Inc. reported its financial results for the second quarter ended June 30, 2025, delivering solid profitability metrics and repurchasing shares.
Key Takeaways
LGI Homes reported second-quarter 2025 revenue of $483.5 million and net income of $31.5 million, with diluted EPS of $1.36. The company delivered 1,323 homes at an average sales price of $365,446. Despite resilient demand, affordability challenges led to a sequential decline in net orders, prompting the company to withdraw full-year guidance and provide only third-quarter guidance.
Home sales revenues reached $483.5 million in Q2 2025, driven by 1,323 home closings.
Net income for the quarter was $31.5 million, resulting in diluted earnings per share of $1.36.
Gross margin improved sequentially to 22.9%, with adjusted gross margin at 25.5%, indicating improved profitability.
The company repurchased 367,568 shares of common stock for $20.6 million during the quarter, and withdrew full-year guidance due to market uncertainty.
LGI Homes
LGI Homes
LGI Homes Revenue by Geographic Location
Revenue by Geographic Location
Central Revenue
CapyFin.comSoutheast Revenue
CapyFin.comNorthwest Revenue
CapyFin.comWest Revenue
CapyFin.comFlorida Revenue
CapyFin.com Forward Guidance
LGI Homes has withdrawn its full-year 2025 guidance due to market uncertainty and is providing guidance only for the third quarter of 2025. The company expects home closings between 1,100 and 1,300, with an average sales price between $360,000 and $365,000.
Positive Outlook
- Expected home closings between 1,100 and 1,300 for Q3 2025.
- Anticipated average sales price per home closed between $360,000 and $365,000 for Q3 2025.
- Gross margin as a percentage of home sales revenues expected between 21.5% and 22.5% for Q3 2025.
- Adjusted gross margin (non-GAAP) as a percentage of home sales revenues expected between 24.0% and 25.0% for Q3 2025.
- Effective tax rate of approximately 24.5% anticipated for Q3 2025.
Challenges Ahead
- Withdrawal of full-year 2025 guidance due to market visibility challenges.
- Outlook assumes general economic conditions, including interest rates and mortgage availability, are similar to those experienced to date in 2025.
- Outlook does not account for any additional changes to U.S. trade policies, including tariffs and duties on homebuilding products.
- Market conditions, including affordability challenges and economic uncertainty, continue to impact buyer willingness to transact.
- The company's spec-focused business model makes visibility into the fourth quarter a challenge.
Revenue & Expenses
Visualization of income flow from segment revenue to net income