LGI Homes Q3 revenue falls, backlog rises 19.9%

LGI Homes

04/11/2025 12:17

Overview

LGI Homes Q3 revenue at $396.6 mln, reflecting a decline from previous year

Net income for Q3 at $19.7 mln, with EPS of $0.85

Company closed 1,065 homes in Q3, with backlog up 19.9% yr/yr

Outlook

LGI Homes expects Q4 home closings between 1,300 and 1,500

Average sales price per home in Q4 expected between $365,000 and $375,000

Q4 gross margin expected between 21% and 22%

Result Drivers

NET ORDERS INCREASE - Co reports 8.1% yr/yr and 43.9% sequential increase in net orders due to strategic sales initiatives and inventory management

BACKLOG GROWTH - Ending backlog increased 19.9% yr/yr, reflecting strong demand and effective strategic initiatives

AFFORDABILITY FOCUS - Co emphasizes affordability and aligning with buyer payment capabilities as key to driving sales

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Home Sales Revenue
$396.60 mln
Q3 Net Income
$19.70 mln
Q3 Gross Margin
21.50%
Q3 Adjusted Gross Margin
24.50%
Q3 Pretax Profit
$26.70 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the homebuilding peer group is "buy."

Wall Street's median 12-month price target for LGI Homes Inc is $85.00, about 52.1% above its November 3 closing price of $40.73

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNXbX1TRY

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(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.)