LGI Homes, Inc. reported a decrease in financial performance for the fiscal year ending December 31, 2024, with home sales revenues falling by 6.6% to $2.2 billion, down from $2.4 billion in 2023. The company closed 6,028 homes during the year, a 10.4% decline from the previous year's 6,729 closings. Despite the drop in home closings, the average sales price per home increased by 4.2% to $365,394, compared to $350,510 in 2023. The gross margin as a percentage of home sales revenues improved to 24.2%, up from 23.0% in the prior year, indicating a slight enhancement in profitability despite lower overall sales volume.
The company experienced significant operational changes, including an increase in active communities from 117 to 151, representing a 29.1% rise. However, the total number of owned and controlled lots decreased marginally to 70,899 from 71,081. The decline in home closings was attributed to a lower absorption rate, which was partially offset by a higher average community count. Additionally, LGI Homes reported a net income of $196.1 million, a decrease of 1.6% from $199.2 million in 2023, reflecting the impact of reduced home sales and increased operational costs.
Strategically, LGI Homes has continued to expand its geographic footprint, now operating in 36 markets across 21 states. The company has also maintained a flexible land acquisition strategy, focusing on purchasing finished lots and raw land for development. In 2024, LGI Homes closed 552 wholesale transactions, accounting for 9.2% of total home closings, down from 10.1% in 2023. The company anticipates that wholesale business will represent approximately 10% of annual home closings in 2025.
Looking ahead, LGI Homes remains cautious about market conditions, particularly regarding inflation and rising mortgage interest rates, which could impact homebuyer affordability and demand. The company has indicated that it will continue to focus on entry-level homebuyers and maintain its commitment to operational efficiency. The management expects to navigate the challenges posed by the current economic environment while leveraging its expanded community count and strategic land acquisitions to drive future growth.
About LGI Homes, Inc.
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.