LGI Homes Inc. Reports Second Quarter 2025 Financial Results
LGI Homes Inc. (LGIH) has released its financial results for the second quarter of 2025, highlighting both achievements and ongoing challenges in a fluctuating housing market. The company delivered 1,323 homes, with an average selling price of $365,446, generating total revenue of approximately $483.5 million, marking a 19.8% decline compared to the same period last year.
Financial Highlights
Despite the revenue dip, LGI Homes saw improvements in profit margins. The adjusted gross margin increased by 190 basis points sequentially to 25.5%, and the gross margin stood at 22.9%, up from 21% in the previous quarter. The company's pretax net income margin was reported at 8.7%, translating to a net income of $31.5 million and earnings per share of $1.36.
Operational Metrics
The company's active community count rose to 146, reflecting a 14% growth year-over-year. However, the cancellation rate increased to 32.7%, compared to 22.2% last year, indicating rising buyer hesitations. The backlog comprised 808 homes valued at $322.5 million.