Homebuilder LGI Homes Q4 revenue falls

Overview

• Homebuilder's Q4 revenue was $474 mln, down from last year

• Adjusted gross margin for Q4 was 22.3%

• Company's backlog increased 133% due to wholesale agreement

Outlook

• LGI Homes projects 2026 home closings between 4,600 and 5,400

• Company expects 2026 average sales price per home between $355,000 and $365,000

• LGI Homes sees 2026 adjusted gross margin between 21.0% and 23.0%

Result Drivers

• HIGH CLOSING PACE - LGI Homes averaged 3.1 closings per community per month in Q4, the highest pace of the year

• LAND DEVELOPMENT - Self-developed land position provided structural margin support, offsetting financing incentives and price adjustments

• BACKLOG INCREASE - Agreement with wholesale buyer led to a 133% increase in backlog

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the homebuilding peer group is "hold"

• Wall Street's median 12-month price target for LGI Homes Inc is $85.00, about 39.7% above its February 13 closing price of $60.83

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX7xHdtx

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