LGI Homes' Q1 adjusted EPS beats estimates, raises margin outlook

LGI Homes

28/04/2026 12:17

Overview

U.S. homebuilder's Q1 adjusted EPS beat analyst expectations, supported by strong margin performance

Q1 home sales revenue declined yr/yr as home closings fell to 881

Company raised full-year gross margin and adjusted gross margin outlooks

Outlook

LGI Homes raises 2026 gross margin outlook to 18.5%-20.5%

Company lifts 2026 adjusted gross margin forecast to 22.0%-24.0%

LGI Homes expects 2026 home closings between 4,600 and 5,400

Result Drivers

PRICING AND AFFORDABILITY STRATEGIES - Co said average sales price per home closed rose 2.9% as it preserved pricing while supporting affordability through targeted discounts and financing strategies

COST DISCIPLINE - Adjusted gross margin exceeded guidance, which co attributed to continued focus on cost discipline and inventory management

BACKLOG GROWTH - Backlog of homes rose 63.4% yr/yr, which co said was driven by sales initiatives and inventory management

Company press release: ID:nGNX9CrY4b

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Home Sales Revenue
$319.70 mln
Q1 Adjusted EPS
Beat
$0.24
$0.02 (4 Analysts)
Q1 Net Income
$2.20 mln
Q1 Gross Margin
18.70%
Q1 Adjusted Gross Margin
23.4%
Q1 Pretax Profit
$4.30 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the homebuilding peer group is "hold"

Wall Street's median 12-month price target for LGI Homes Inc is $93.00, about 105.2% above its April 27 closing price of $45.32

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 10 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)