LGI Homes, Inc. Reports First Quarter 2025 Results

About this update from Lgi Homes, Inc.

[{"type":"text","content":"THE WOODLANDS, Texas, April 29, 2025 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ: LGIH) today announced financial results for the three months ended March 31, 2025. “During the quarter, we continued to see strong demand for new homes,” said Eric Lipar, Chairman and Chief Executive Officer of LGI Homes. “Affordability remained the biggest challenge for buyers, and rate volatility affected not only their ability to purchase a home, but also their confidence in moving forward with that decision. Given this challenging and uncertain backdrop, we were pleased with the solid results we delivered in the first quarter. “In the first quarter, we delivered 996 homes at an average sales price of $352,831, resulting in total revenue of $351.4 million. Our first quarter financial results included a one-time, $8.6 million expense related to the completion of our forward commitment incentive program. Excluding this expense, our first quarter financial results reflected our commitment to the disciplined and long-term approach we have taken on pricing and incentives. “We remain confident in our original full year 2025 guidance of closing between 6,200 and 7,000 homes in 160 to 170 active communities by year end, at an average sales price per home closed between $360,000 and $370,000. “We continue to monitor tariffs and potential impacts that higher costs could have on margins. In March, we began receiving notices of price increases from some suppliers related to tariffs. With this in mind, we are proactively trimming our full year gross margin guidance by 150 basis points at the low end and 100 basis points at the high end to account for these additional costs and the potential for additional market volatility. As a result, we now expect gross margin to range between 21.7% and 23.2% and adjusted gross margin between 24.0% and 25.5%.” Mr. Lipar concluded, “Despite the recent headwinds, we are confident in the long-term outlook for the housing market. The persistent shortage of entry level homes across the country represents a societal challenge that underscores the importance of affordable, new residential construction. Additionally, underlying demographic fundamentals will only amplify this need, laying the groundwork for a long runway of sustained demand for entry-level homes. These structural dynamics provide us with clarity and conviction as ...

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