0001580670false00015806702025-02-252025-02-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (date of earliest event reported): February 25, 2025
LGI HOMES, INC.
(Exact name of registrant as specified in its charter)
Delaware001-3612646-3088013
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(IRS Employer
Identification Number)
 
1450 Lake Robbins Drive, Suite 430,The Woodlands,Texas77380
(Address of principal executive offices)(Zip Code)
(281) 362-8998
(Registrant’s Telephone Number, Including Area Code)

N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareLGIHNASDAQ Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
                                    Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02Results of Operations and Financial Condition.
On February 25, 2025, LGI Homes, Inc. (the “Company”) issued a press release announcing its financial results for the three months and fiscal year ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
None of the information furnished in this Item 2.02 and the accompanying exhibit will be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor will it be deemed incorporated by reference into any filing by the Company under the Securities Act of 1933, as amended.
Item 7.01Regulation FD Disclosure.
The information set forth in Item 2.02 above and in Exhibit 99.1 to this Current Report on Form 8-K is incorporated herein by reference.
None of the information furnished in this Item 7.01 and the accompanying exhibit will be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor will it be deemed incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended.
Item 9.01Financial Statements and Exhibits.
            
(d)Exhibits.
99.1
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
Dated: February 25, 2025
LGI HOMES, INC.
By:/s/ Eric Lipar
Eric Lipar
Chief Executive Officer and Chairman of the Board



EXHIBIT 99.1
LGI Homes, Inc. Reports Fourth Quarter and Full Year 2024 Results and Issues Guidance for 2025
THE WOODLANDS, Texas, February 25, 2025 (GLOBE NEWSWIRE) - LGI Homes, Inc. (NASDAQ: LGIH) today announced financial results for the fourth quarter and year ended December 31, 2024.
“In the face of a mixed macroeconomic backdrop, our strong finish in the fourth quarter enabled us to meet, and in many cases exceed, our strategic goals for 2024,” said Eric Lipar, Chairman and Chief Executive Officer of LGI Homes.
“Our strong execution in the fourth quarter resulted in full year closings of 6,131 homes, including the bulk sale of 103 leased, single-family homes. We successfully ended the year with a record high 151 active communities, an impressive increase of 29.1%. We made significant progress improving profitability. Our full year gross margin was 24.2% and adjusted gross margin was 26.3%. These results represented increases of 120 and 160 basis points over 2023, respectively, and were aligned with our pre-pandemic, historical levels. Our pre-tax net income margin was 11.8%, up 70 basis points from the prior year. Finally, we continued making strategic investments to drive our growth in the years ahead.
“Our near-term outlook for 2025 is tempered by our belief that the affordability challenges encountered in 2024 will continue into this year. Our current guidance reflects our conservatism in the face of this uncertainty and is based on what we believe is attainable if conditions this year are similar to our experience in 2024 and year-to-date. With this in mind, we are projecting full year closings between 6,200 and 7,000 homes, at an average sales price between $360,000 and $370,000. We will continue to lean into incentives while maintaining profitability metrics in-line with our historical averages, supported by a self-developed land pipeline that enables us to deliver margins at or near the top of our peer group. With this in mind, we are projecting full year gross margin between 23.2% and 24.2% and adjusted gross margin between 25.5% and 26.5%.”
Mr. Lipar concluded, “As we look out to 2025, we are staying the course and remain committed to driving profitability through operational discipline and positioning LGI Homes for sustainable success. I thank our team members for their dedication and congratulate them all on the successful results they delivered in 2024. I'm confident in the talent and experience we’ve built here at LGI Homes and believe we are well-positioned to navigate whatever comes our way in 2025.”
Fourth Quarter 2024 Highlights (comparisons to fourth quarter 2023)
•Home sales revenues decreased 8.4% to $557.4 million
•Home closings decreased 12.8% to 1,533 homes
•Average sales price per home closed increased 5.1% to $363,598
•Gross margin as a percentage of home sales revenues decreased 50 basis points to 22.9%.
•Adjusted gross margin (non-GAAP) as a percentage of home sales revenues increased 10 basis points to 25.2%
•Net income before income taxes decreased 2.1% to $67.1 million
•Net income decreased 2.3% to $50.9 million, or $2.16 basic EPS and $2.15 diluted EPS
Full Year 2024 Highlights (comparisons to full year 2023)
•Home sales revenues decreased 6.6% to $2.2 billion
•Home closings decreased 10.4% to 6,028 homes. Including the bulk sale of 103 leased, single-family homes, home closings decreased 8.9% to 6,131 homes
•Average sales price per home closed increased 4.2% to $365,394
•Gross margin as a percentage of home sales revenues increased 120 basis points to 24.2%


•Adjusted gross margin (non-GAAP) as a percentage of home sales revenues increased 160 basis points to 26.3%
•Net income before income taxes decreased 1.1% to $258.9 million
•Net income decreased 1.6% to $196.1 million, or $8.33 basic EPS and $8.30 diluted EPS
•Active selling communities at December 31, 2024 increased 29.1% to 151
•Total owned and controlled lots at December 31, 2024 of 70,899
•Ending backlog at December 31, 2024 of 599 homes
•Ending backlog value at December 31, 2024 of $236.5 million
Please see “Non-GAAP Measures” for a reconciliation of Adjusted Gross Margin (a non-GAAP measure) to Gross Margin, the most directly comparable GAAP measure.
Balance Sheet Highlights
•Net debt to capitalization of 41.2% at December 31, 2024
•Total liquidity of $323.7 million at December 31, 2024, including cash and cash equivalents of $53.2 million and $270.5 million of availability under the Company’s revolving credit facility
Full Year 2025 Outlook
Subject to the caveats in the Forward-Looking Statements section of this press release and the assumptions noted below, the Company is providing the following guidance for the full year 2025. The Company expects:
•Home closings between 6,200 and 7,000
•Active selling communities at the end of 2025 between 160 and 170
•Average sales price per home closed between $360,000 and $370,000
•Gross margin as a percentage of home sales revenues between 23.2% and 24.2%
•Adjusted gross margin (non-GAAP) as a percentage of home sales revenues between 25.5% and 26.5% with capitalized interest accounting for substantially all of the difference between gross margin and adjusted gross margin
•SG&A as a percentage of home sales revenues between 14.0% and 15.0%
•Effective tax rate of approximately 24.5%
This outlook assumes that general economic conditions, including input costs, materials, product and labor availability, interest rates and mortgage availability, in the remainder of 2025 are similar to those experienced to date in 2025 and that the average sales price per home closed, construction costs, availability of land and land development costs in the remainder of 2025 are consistent with the Company’s recent experience. In addition, this outlook assumes that governmental regulations relating to land development and home construction are similar to those currently in place and does not take into account any changes to U.S. trade policies, including the imposition of tariffs and duties on homebuilding products.
Earnings Conference Call
The Company will host a conference call via live webcast for investors and other interested parties beginning at 12:30 p.m. Eastern Time on Tuesday, February 25, 2025 (the “Earnings Call”).
Participants may access the live webcast by visiting the Investor Relations section of the Company’s website at https://investor.lgihomes.com.
An archive of the Earnings Call webcast will be available for replay on the Company’s website for one year from the date of the Earnings Call.


About LGI Homes, Inc.
Headquartered in The Woodlands, Texas, LGI Homes, Inc. is a pioneer in the homebuilding industry, successfully applying an innovative and systematic approach to the design, construction and sale of homes across 36 markets in 21 states. As one of America’s fastest growing companies, LGI Homes has closed over 75,000 homes since its founding in 2003 and has delivered profitable financial results every year. Nationally recognized for its quality construction and exceptional customer service, LGI Homes was named to Newsweek’s list of the World’s Most Trustworthy Companies. LGI Homes’ commitment to excellence extends to its more than 1,000 employees, earning the Company numerous workplace awards at the local, state, and national level, including the Top Workplaces USA 2024 Award. For more information about LGI Homes and its unique operating model focused on making the dream of homeownership a reality for families across the nation, please visit the Company’s website at www.lgihomes.com.
Forward-Looking Statements
Any statements made in this press release or on the Earnings Call that are not statements of historical fact, including statements about the Company’s beliefs and expectations, are forward-looking statements within the meaning of the federal securities laws, and should be evaluated as such. Forward-looking statements include information concerning projected 2025 home closings, active selling communities, average sales price per home closed, gross margin as a percentage of home sales revenues, adjusted gross margin as a percentage of homes sales revenues, SG&A as a percentage of home sales revenues, and effective tax rate, as well as market conditions and possible or assumed future results of operations, including descriptions of the Company's business plan and strategies. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “projection,” “should,” “will” or, in each case, their negative, or other variations or comparable terminology. For more information concerning factors that could cause actual results to differ materially from those contained in the forward-looking statements please refer to the “Risk Factors” section in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, including the “Cautionary Statement about Forward-Looking Statements” subsection within the “Risk Factors” section, the “Risk Factors” and “Cautionary Statement about Forward-Looking Statements” sections in the Company’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024 and subsequent filings by the Company with the Securities and Exchange Commission (“SEC”), including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 when it is filed with the SEC. The Company bases these forward-looking statements or projections on its current expectations, plans and assumptions that it has made in light of its experience in the industry, as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances and at such time. As you read and consider this press release or listen to the Earnings Call, you should understand that these statements are not guarantees of future performance or results. The forward-looking statements and projections are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements or projections. Although the Company believes that these forward-looking statements and projections are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect the Company’s actual results to differ materially from those expressed in the forward-looking statements and projections. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. If the Company does update one or more forward-looking statements, there should be no inference that it will make additional updates with respect to those or other forward-looking statements.


LGI HOMES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share data)
 December 31,
 20242023
ASSETS
Cash and cash equivalents$53,197 $48,978 
Accounts receivable28,717 41,319 
Real estate inventory3,387,853 3,107,648 
Pre-acquisition costs and deposits36,049 30,354 
Property and equipment, net57,038 45,522 
Other assets174,391 113,849 
Deferred tax assets, net9,271 8,163 
Goodwill12,018 12,018 
Total assets$3,758,534 $3,407,851 
LIABILITIES AND EQUITY
Accounts payable$33,271 $31,616 
Accrued expenses and other liabilities207,317 271,872 
Notes payable1,480,718 1,248,332 
Total liabilities1,721,306 1,551,820 
COMMITMENTS AND CONTINGENCIES
EQUITY
Common stock, par value $0.01, 250,000,000 shares authorized, 27,644,413 shares issued and 23,397,074 shares outstanding as of December 31, 2024 and 27,521,120 shares issued and 23,581,648 shares outstanding as of December 31, 2023
276 275 
Additional paid-in capital337,161 321,062 
Retained earnings2,085,787 1,889,716 
Treasury stock, at cost, 4,247,339 shares and 3,939,472 shares, respectively
(385,996)(355,022)
Total equity2,037,228 1,856,031 
Total liabilities and equity$3,758,534 $3,407,851 



LGI HOMES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended December 31,Year Ended December 31,
2024202320242023
Home sales revenues$557,396 $608,414 $2,202,598 $2,358,580 
Cost of sales429,885 465,785 1,669,310 1,816,393 
Selling expenses50,754 49,771 199,950 191,582 
General and administrative31,170 33,016 121,192 117,350 
   Operating income45,587 59,842 212,146 233,255 
Other income, net(21,497)(8,706)(46,767)(28,499)
   Net income before income taxes67,084 68,548 258,913 261,754 
Income tax provision16,214 16,459 62,842 62,527 
   Net income$50,870 $52,089 $196,071 $199,227 
Earnings per share:
Basic$2.16 $2.21 $8.33 $8.48 
Diluted$2.15 $2.19 $8.30 $8.42 
Weighted average shares outstanding:
Basic23,497,275 23,565,640 23,529,724 23,507,136 
Diluted23,620,777 23,737,448 23,610,457 23,648,548 



Non-GAAP Measures
In addition to the results reported in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company has provided information in this press release relating to adjusted gross margin.
Adjusted Gross Margin
Adjusted gross margin is a non-GAAP financial measure used by management as a supplemental measure in evaluating operating performance. The Company defines adjusted gross margin as gross margin less capitalized interest and adjustments resulting from the application of purchase accounting included in the cost of sales. Management believes this information is useful because it isolates the impact that capitalized interest and purchase accounting adjustments have on gross margin. However, because adjusted gross margin information excludes capitalized interest and purchase accounting adjustments, which have real economic effects and could impact results, the utility of adjusted gross margin information as a measure of the Company’s operating performance may be limited. In addition, other companies may not calculate adjusted gross margin information in the same manner that the Company does. Accordingly, adjusted gross margin information should be considered only as a supplement to gross margin information as a measure of the Company’s performance.



The following table reconciles adjusted gross margin to gross margin, which is the GAAP financial measure that management believes to be most directly comparable (dollars in thousands, unaudited):
Three Months Ended December 31,Year Ended December 31,
2024202320242023
Home sales revenues$557,396 $608,414 $2,202,598 $2,358,580 
Cost of sales429,885 465,785 1,669,310 1,816,393 
Gross margin127,511 142,629 533,288 542,187 
Capitalized interest charged to cost of sales11,884 8,893 42,071 33,368 
Purchase accounting adjustments (1)
900 981 4,034 6,492 
Adjusted gross margin$140,295 $152,503 $579,393 $582,047 
Gross margin % (2)
22.9 %23.4 %24.2 %23.0 %
Adjusted gross margin % (2)
25.2 %25.1 %26.3 %24.7 %
(1)Adjustments result from the application of purchase accounting for acquisitions and represent the amount of the fair value step-up adjustments included in cost of sales for real estate inventory sold after the acquisition dates.
(2)Calculated as a percentage of home sales revenues.

Home Sales Revenues, Home Closings, Average Sales Price Per Home Closed (ASP), Average Community Count, Average Monthly Absorption Rate, and Closing Community Count by Reportable Segment
(Revenues in thousands, unaudited)
Three Months Ended December 31, 2024
Reportable SegmentRevenuesHome ClosingsASPAverage Community CountAverage
Monthly
Absorption Rate
Central$122,999 394 $312,180 48.0 2.7 
Southeast131,102 404 324,510 30.0 4.5 
Northwest71,154 139 511,899 16.7 2.8 
West120,775 292 413,613 24.7 3.9 
Florida111,366 304 366,336 24.3 4.2 
Total$557,396 1,533 $363,598 143.7 3.6 
Three Months Ended December 31, 2023
Reportable SegmentRevenuesHome ClosingsASPAverage Community CountAverage
Monthly
Absorption Rate
Central$166,108 517 $321,292 36.7 4.7 
Southeast159,190 500 318,380 27.0 6.2 
Northwest38,286 78 490,846 10.3 2.5 
West124,527 320 389,147 16.0 6.7 
Florida120,303 343 350,738 22.3 5.1 
Total$608,414 1,758 $346,083 112.3 5.2 



Year Ended December 31, 2024
As of December 31, 2024
Reportable SegmentRevenuesHome ClosingsASPAverage Community CountAverage
Monthly
Absorption Rate		Community Count at End of Period
Central$564,608 1,757 $321,348 44.8 3.3 50
Southeast538,170 1,635 329,156 27.2 5.0 31
Northwest258,407 483 535,004 14.3 2.8 18
West472,655 1,140 414,610 21.7 4.4 26
Florida368,758 1,013 364,026 22.5 3.8 26
Total$2,202,598 6,028 $365,394 130.5 3.8 151
Year Ended December 31, 2023
As of December 31, 2023
Reportable SegmentRevenuesHome ClosingsASPAverage Community CountAverage Monthly
Absorption Rate		Community Count at End of Period
Central$730,688 2,241 $326,054 35.7 5.2 40
Southeast556,808 1,716 324,480 24.8 5.8 28
Northwest251,171 511 491,528 10.2 4.2 11
West381,102 992 384,175 14.0 5.9 16
Florida438,811 1,269 345,793 19.2 5.5 22
Total$2,358,580 6,729 $350,510 103.9 5.4 117

Owned and Controlled Lots
The table below shows (i) home closings by reportable segment for the year ended December 31, 2024 and (ii) the Company’s owned or controlled lots by reportable segment as of December 31, 2024.
 Year Ended December 31, 2024As of December 31, 2024
Reportable SegmentHome Closings
Owned (1)
ControlledTotal
Central1,757 20,099 3,542 23,641 
Southeast1,635 13,870 4,434 18,304 
Northwest483 5,161 3,000 8,161 
West1,140 8,829 4,119 12,948 
Florida1,013 5,358 2,487 7,845 
Total6,028 53,317 17,582 70,899 
(1)Of the 53,317 owned lots as of December 31, 2024, 37,432 were raw/under development lots and 15,885 were finished lots.



Backlog Data
As of the dates set forth below, the Company’s net orders, cancellation rate, and ending backlog homes and value were as follows (dollars in thousands, unaudited):   
Year Ended December 31,
2024 (4)
2023 (5)
2022 (6)
Net orders (1)
6,037 6,617 5,268 
Cancellation rate (2)
22.8 %25.4 %24.4 %
Ending backlog - homes (3)
599 590 702 
Ending backlog - value (3)
$236,511 $224,851 $252,002 
(1)Net orders are new (gross) orders for the purchase of homes during the period, less cancellations of existing purchase contracts during the period.
(2)Cancellation rate for a period is the total number of purchase contracts cancelled during the period divided by the total new (gross) orders for the purchase of homes during the period.
(3)Ending backlog consists of retail homes at the end of the period that are under a purchase contract that has been signed by homebuyers who have met preliminary financing criteria but have not yet closed and wholesale contracts with varying terms. Ending backlog is valued at the contract amount.
(4)As of December 31, 2024, the Company had 146 units related to bulk sales agreements associated with its wholesale business.
(5)As of December 31, 2023, the Company had 60 units related to bulk sales agreements associated with its wholesale business.
(6)As of December 31, 2022, the Company had 157 units related to bulk sales agreements associated with its wholesale business.


CONTACT:     Joshua D. Fattor
Executive Vice President, Investor Relations and Capital Markets
(281) 210-2586
investorrelations@lgihomes.com



v3.25.0.1
Cover Page Cover Page
Feb. 25, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 25, 2025
Entity Registrant Name LGI HOMES, INC.
Entity Central Index Key 0001580670
Amendment Flag false
Entity Incorporation, State or Country Code DE
Entity File Number 001-36126
Entity Tax Identification Number 46-3088013
Entity Address, Address Line One 1450 Lake Robbins Drive,
Entity Address, Address Line Two Suite 430,
Entity Address, City or Town The Woodlands,
Entity Address, State or Province TX
Entity Address, Postal Zip Code 77380
City Area Code 281
Local Phone Number 362-8998
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Entity Emerging Growth Company false
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol LGIH
Security Exchange Name NASDAQ
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