LGI Homes says Q2 hit by economic uncertainty,  withdraws full-year guidance

LGI Homes

05/08/2025 12:18

Overview

LGI Homes Q2 revenue at $483.5 mln, delivering 1,323 homes

Gross margin improved to 22.9%, adjusted gross margin at 25.5%

Co withdraws full-year guidance due to market uncertainty

Outlook

LGI Homes expects Q3 home closings between 1,100 and 1,300

Company sees average Q3 home sales price between $360,000 and $365,000, vs $365,446 in Q2

LGI Homes anticipates Q3 gross margin between 21.5% and 22.5%

Company withdraws full-year 2025 guidance due to market uncertainty

Result Drivers

COST SAVINGS - LGI Homes attributes increased gross margin to ongoing cost savings and efficiency improvements

AFFORDABILITY CHALLENGES - Affordability issues tied to interest rates and economic uncertainty led to a decline in net orders

OPTIMISM FOR Q3 - Recent trends in late June and July suggest a better sales environment for the third quarter

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Home Sales Revenue
$483.50 mln
Q2 Net Income
$31.50 mln
Q2 Gross Margin
22.9%
Q2 Adjusted Gross Margin
25.5%
Q2 Pretax Profit
$42 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 $89.00, about 38.6% above its August 4 closing price of $54.64

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

Press Release: ID:nGNX1QNftR

(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.)