"Our team delivered a solid finish to the year and further strengthened the foundation that supports our long-term growth plans," said Eric Lipar, Chairman and Chief Executive Officer of LGI Homes.
"During the quarter, we closed 1,362 homes, including 61 currently and previously leased homes. Of this total, 1,301 homes contributed directly to our reported revenue of $474.0 million. Supported by our strong performance in December, we averaged 3.1 closings per community per month in the fourth quarter, the highest pace of the year.
"Our self‑developed land position continued to provide structural margin support, helping offset the impact of financing incentives and price adjustments offered on older inventory. As a result, fourth-quarter adjusted gross margin was 22.3%.
"Fourth-quarter orders benefited from an agreement with a wholesale buyer to deliver 480 homes over the course of 2026, which contributed to a 133% increase in our backlog. Excluding that wholesale contract, backlog at year‑end was still up 53% compared to 2024.
"Looking ahead, our 2026 guidance reflects the conditions we are seeing in the market today and assumes they persist through the balance of the year. We are projecting full‑year home closings between 4,600 and 5,400, at an average sales price between $355,000 and $365,000 with gross margin expected to range between 18.0% and 20.0% and adjusted gross margin between 21.0% and 23.0%."
Mr. Lipar concluded, "Throughout the year, we remained disciplined in our operations, rightsized inventory, and leveraged the cost advantages of our self‑developed land pipeline. As we move into 2026, we do so with resilience, focus, and a deep commitment to navigating the market with the same discipline that guided us throughout 2025. Our strategy remains focused on affordability and aligning with today's homebuyer needs while maintaining the long‑term fundamentals that differentiate LGI Homes. I'm grateful for the dedication of our team and confident we are well‑positioned to capitalize on opportunities in the year ahead."
Fourth Quarter 2025 Highlights
Home sales revenues of $474.0 million
Home closings of 1,301
Total home closings of 1,362, including 61 currently and previously leased homes
Average sales price per home closed of $364,310
Gross margin as a percentage of home sales revenues of 17.7%
Gross margin excluding inventory impairment* as a percentage of home sales revenues of 19.2%
Adjusted gross margin* as a percentage of home sales revenues of 22.3%
Net income before income taxes of $24.0 million
Net income of $17.3 million or $0.75 basic EPS and $0.75 diluted EPS
Adjusted net income* of $22.4 million, or $0.97 adjusted basic EPS* and $0.97 adjusted diluted EPS*
Full Year 2025 Highlights
Home sales revenues of $1.7 billion
Home closings of 4,685
Total home closings of 4,788, including 103 currently and previously leased homes
Average sales price per home closed of $364,035
Gross margin as a percentage of home sales revenues of 20.7%
Gross margin excluding inventory impairment* as a percentage of home sales revenues of 21.1%
Adjusted gross margin* as a percentage of home sales revenues of 24.0%
Net income before income taxes of $98.5 million
Net income of $72.6 million or $3.13 basic EPS and $3.12 diluted EPS
Adjusted net income* of $77.6 million, or $3.35 adjusted basic EPS* and $3.34 adjusted diluted EPS*
Active selling communities at December 31, 2025 of 144
Total owned and controlled lots at December 31, 2025 of 60,842
Ending backlog at December 31, 2025 of 1,394 homes
Ending backlog value at December 31, 2025 of $501.3 million
*Please see "Non-GAAP Measures" for reconciliations of Gross Margin Excluding Inventory Impairment (a non-GAAP measure) and Adjusted Gross Margin (a non-GAAP measure) to Gross Margin, and Adjusted Net Income (a non-GAAP measure) to Net Income, the most directly comparable GAAP measures, and for calculations of adjusted basic EPS and adjusted diluted EPS.
Balance Sheet Highlights
Total liquidity of $334.8 million at December 31, 2025, including cash and cash equivalents of $61.2 million and $273.6 million of availability under the Company's revolving credit facility
Net debt to capital ratio* of 43.2% at December 31, 2025
*Please see "Non-GAAP Measures" for a reconciliation of net debt to capital ratio (a non-GAAP measure) to debt to capital ratio, the most directly comparable GAAP measure.
2026 Outlook
Subject to the caveats in the Forward-Looking Statements section of this press release and the assumptions noted below, the Company is providing the following guidance for the full year 2026. The Company expects:
Home closings between 4,600 and 5,400
Active selling communities at the end of 2026 between 150 and 160
Average sales price per home closed between $355,000 and $365,000
Gross margin as a percentage of home sales revenues between 18.0% and 20.0%, adjusted for estimated capitalized interest and estimated purchase accounting of approximately 3.0%, which results in Adjusted gross margin (non-GAAP) as a percentage of home sales revenues between 21.0% and 23.0%
SG&A as a percentage of home sales revenues between 15.0% and 16.0%
Effective tax rate of approximately 26.5%
This outlook assumes that general economic conditions, including input costs, materials, product and labor availability, interest rates, and mortgage availability, in the remainder of 2026 are similar to those experienced to date in 2026 and that the average sales price per home closed, construction costs, availability of land and land development costs for the remainder of 2026 are consistent with the Company's recent experience. In addition, this outlook assumes that governmental regulations relating to land development and home construction are similar to those currently in place and does not take into account any additional changes to U.S. trade policies, including the imposition of tariffs and duties on homebuilding products.
Earnings Conference Call
The Company will host a conference call via live webcast for investors and other interested parties beginning at 12:30 p.m. Eastern Time on Tuesday, February 17, 2026 (the "Earnings Call").
Participants may access the live webcast by visiting the Investor Relations section of the Company's website at https://investor.lgihomes.com.
An archive of the Earnings Call webcast will be available for replay on the Company's website for one year from the date of the Earnings Call.
About LGI Homes, Inc.
Headquartered in The Woodlands, Texas, LGI Homes, Inc. is a pioneer in the homebuilding industry, successfully applying an innovative and systematic approach to the design, construction and sale of homes across 36 markets in 21 states. LGI Homes has closed over 80,000 homes since its founding in 2003 and has delivered profitable financial results every year. Nationally recognized for its quality construction and exceptional customer service, LGI Homes was named to Newsweek's list of the World's Most Trustworthy Companies. LGI Homes' commitment to excellence extends to its more than 1,000 employees, earning the Company numerous workplace awards at the local, state, and national level, including the Top Workplaces USA 2025 Award. For more information about LGI Homes and its unique operating model focused on making the dream of homeownership a reality for families across the nation, please visit the Company's website at www.lgihomes.com.
Forward-Looking Statements
Any statements made in this press release or on the Earnings Call that are not statements of historical fact, including statements about the Company's beliefs, outlook and expectations, are forward-looking statements within the meaning of the federal securities laws, and should be evaluated as such. Forward-looking statements include information concerning expected 2026 home closings, active selling communities, average sales price per home closed, gross margin as a percentage of home sales revenues, adjusted gross margin as a percentage of homes sales revenues, SG&A as a percentage of home sales revenues and effective tax rate, as well as market conditions and possible or assumed future results of operations, including descriptions of the Company's business plan and strategies. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "will" or, in each case, their negative, or other variations or comparable terminology. For more information concerning factors that could cause actual results to differ materially from those contained in the forward-looking statements, please refer to the "Risk Factors" section in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, including the "Cautionary Statement about Forward-Looking Statements" subsection within the "Risk Factors" section, the "Risk Factors" and "Cautionary Statement about Forward-Looking Statements" sections in the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025, June 30, 2025, and September 30, 2025, and subsequent filings by the Company with the Securities and Exchange Commission ("SEC"), including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 when it is filed with the SEC. The Company bases these forward-looking statements or outlook on its current expectations, plans and assumptions that it has made in light of its experience in the industry, as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances and at such time. As you read and consider this press release or listen to the Earnings Call, you should understand that these statements are not guarantees of future performance or results. The forward-looking statements, including the Company's 2026 outlook, are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements or outlook. Although the Company believes that these forward-looking statements and outlook are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect the Company's actual results to differ materially from those expressed in the forward-looking statements and outlook. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. If the Company does update one or more forward-looking statements, there should be no inference that it will make additional updates with respect to those or other forward-looking statements.
LGI HOMES, INC.CONSOLIDATED BALANCE SHEETS(Unaudited)(In thousands, except share data)
December 31,
2025
2024
ASSETS
Cash and cash equivalents
$
61,247
$
53,197
Accounts receivable
32,467
28,717
Real estate inventory
3,520,563
3,387,853
Pre-acquisition costs and deposits
28,950
36,049
Property and equipment, net
107,145
57,038
Other assets
154,948
174,391
Deferred tax assets, net
9,904
9,271
Goodwill
12,018
12,018
Total assets
$
3,927,242
$
3,758,534
LIABILITIES AND EQUITY
Accounts payable
$
16,179
$
33,271
Accrued expenses and other liabilities
157,971
207,317
Notes payable
1,656,803
1,480,718
Total liabilities
1,830,953
1,721,306
COMMITMENTS AND CONTINGENCIES
EQUITY
Common stock, par value $0.01, 250,000,000 shares authorized, 27,789,678 shares issued and 23,133,086 shares outstanding as of December 31, 2025 and 27,644,413 shares issued and 23,397,074 shares outstanding as of December 31, 2024
277
276
Additional paid-in capital
347,308
337,161
Retained earnings
2,158,339
2,085,787
Treasury stock, at cost, 4,656,592 shares as of December 31, 2025 and 4,247,339 shares as of December 31, 2024
(409,635
)
(385,996
)
Total equity
2,096,289
2,037,228
Total liabilities and equity
$
3,927,242
$
3,758,534
LGI HOMES, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)(In thousands, except share and per share data)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Home sales revenues
$
473,967
$
557,396
$
1,705,504
$
2,202,598
Cost of sales
389,854
429,885
1,351,958
1,669,310
Selling expenses
42,547
50,754
162,149
199,950
General and administrative
23,051
31,170
111,621
121,192
Operating income
18,515
45,587
79,776
212,146
Other income, net
(5,506
)
(21,497
)
(18,710
)
(46,767
)
Net income before income taxes
24,021
67,084
98,486
258,913
Income tax provision
6,700
16,214
25,934
