LGI Homes, Inc. (NASDAQ: LGIH) has announced its financial results for the fourth quarter and full year ended December 31, 2025, highlighting a robust performance that sets the stage for growth in 2026. The company closed 1,362 homes in the fourth quarter, contributing significantly to its overall revenue and backlog.

1. Key Financial Highlights

Fourth Quarter Performance

Home Sales Revenue: $474.0 million

Home Closings: 1,301 homes (total of 1,362 including 61 leased homes)

Average Sales Price per Home: $364,310

Gross Margin: 17.7% of home sales revenues

Adjusted Gross Margin: 22.3%

Net Income: $17.3 million, translating to $0.75 per share (both basic and diluted)

Eric Lipar, Chairman and CEO of LGI Homes, expressed satisfaction with the quarter’s achievements, noting that the company averaged 3.1 closings per community per month, marking the highest pace for 2025.

Full Year Results

Home Sales Revenue: $1.7 billion

Home Closings: 4,685 homes (total of 4,788 including 103 leased)

Average Sales Price per Home: $364,035

Gross Margin: 20.7%

Adjusted Gross Margin: 24.0%

Net Income: $72.6 million or $3.13 per share (basic) and $3.12 per share (diluted)

The company achieved a net income before income taxes of $98.5 million for the year, reflecting its effective management strategies and operational discipline.

2. Strengthening Backlog and Growth Outlook

One of the most notable developments in LGI Homes' fourth quarter was a significant increase in backlog due to a new wholesale agreement to deliver 480 homes throughout 2026, resulting in a 133% surge in backlog. Even excluding this contract, the backlog grew by 53% compared to the previous year.

2026 Guidance

Looking ahead, LGI Homes provided guidance for 2026:

Projected Home Closings: Between 4,600 and 5,400

Average Sales Price per Home: Between $355,000 and $365,000

Gross Margin: Expected to range between 18.0% and 20.0%

Adjusted Gross Margin: Anticipated between 21.0% and 23.0%

Selling, General and Administrative Expenses: Expected to be between 15.0% and 16.0% of home sales revenues

Mr. Lipar reiterated the company’s commitment to maintaining operational discipline while focusing on affordability and meeting the evolving needs of homebuyers.

3. Financial Stability and Future Prospects

As of December 31, 2025, LGI Homes reported total liquidity of $334.8 million, which includes $61.2 million in cash and cash equivalents, and $273.6 million available under its revolving credit facility. The company also maintained a net debt to capital ratio of 43.2%, indicating a balanced approach to leveraging in its operations.

Conclusion

With a strong finish to 2025 and an optimistic outlook for 2026, LGI Homes is well-positioned to capitalize on market opportunities while navigating the challenges that come with the ever-evolving housing landscape. The commitment to affordability and strategic land development will continue to be the cornerstones of the company's growth strategy in the years ahead.

LGI Homes will host an earnings conference call at 12:30 p.m. Eastern Time today, February 17, 2026, to further discuss these results and the future outlook for the company.

Original press release