LGI Homes, Inc. reported a significant decline in financial performance for the second quarter of 2025, with home sales revenues dropping 19.8% to $483.5 million compared to $602.5 million in the same period last year. The company closed 1,323 homes during the quarter, a decrease of 20.1% from 1,655 homes closed in the prior year. The average sales price per home increased slightly by 0.4% to $365,446. The overall decrease in revenues and home closings was attributed to ongoing affordability challenges and muted consumer sentiment, which have impacted the housing market.
For the first half of 2025, LGI Homes reported total revenues of $834.9 million, down 16.0% from $993.3 million in the first half of 2024. The company’s net income for the quarter was $31.5 million, a decrease of 46.2% from $58.6 million in the previous year. The decline in profitability was driven by lower gross margins, which fell to 22.9% from 25.0%, and increased costs associated with higher lot prices and capitalized interest. The company’s operating income also decreased by 41.3% to $39.6 million.
In terms of operational developments, LGI Homes had 146 active communities as of June 30, 2025, an increase from 128 communities a year earlier. The company has been strategically expanding its geographic footprint, with operations in multiple states including Texas, Arizona, and Florida. However, the total number of lots owned or controlled decreased to 64,756 from 70,899 at the end of 2024, reflecting a disciplined approach to land acquisition amid market conditions.
The company has also made strategic financial moves, including an amendment to its June 2025 Credit Agreement on August 1, 2025, which adjusted various financial covenants to enhance liquidity and flexibility. As of June 30, 2025, LGI Homes had $59.6 million in cash and cash equivalents, and it plans to continue utilizing its credit facilities to support operations and potential land acquisitions. Looking ahead, the company remains cautious about the housing market, particularly in light of high mortgage rates and economic uncertainties, but aims to bridge affordability gaps through financial incentives for buyers.
About LGI Homes, Inc.
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