LGI Homes (NASDAQ:LGIH) Announces Quarterly Earnings Results

LGI Homes (NASDAQ:LGIH) posted its quarterly earnings data on Tuesday. The financial services provider reported $0.97 EPS for the quarter, beating the consensus estimate of $0.96 by $0.01, FiscalAI reports. The business had revenue of $473.97 million for the quarter, compared to the consensus estimate of $479.60 million. LGI Homes had a return on equity of 5.50% and a net margin of 5.93%.LGI Homes’s revenue for the quarter was down 15.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.15 earnings per share.

Here are the key takeaways from LGI Homes’ conference call:

• Q4 deliveries and revenue: Delivered 1,362 homes (1,301 contributing to revenue) and reported revenue of $474 million in Q4, and closed the company’s 80,000th home in December — highlighting scale and execution.
• Orders and backlog acceleration: Net orders rose 39% YoY and backlog grew 133% to 1,394 homes (>$501 million), including a signed agreement for a wholesale buyer to acquire 480 homes that will deliver in 2026.
• Margin pressure and guidance: Q4 gross margin (ex inventory charges) was 19.2% and adjusted gross margin 22.3%, below last year due to buydowns, discounts on aged inventory and higher borrowing costs; 2026 guidance plans for gross margin of 18–20% (adjusted 21–23%).
• Elevated cancellations and longer closings: Cancellation rate rose to 43.3% as buyers take longer to secure financing, save for down payments, or sell existing homes, a dynamic management expects to persist and that increases uncertainty around pull?through.
• Deleveraging and liquidity actions: Year-end debt was $1.7 billion (including $528 million revolver draw) with net debt-to-capital of 43.2% (down 160 bps), $335 million total liquidity, and plans to monetize select lots and reduce debt toward a 35–45% target range.

LGI Homes Stock Down 4.4%

Shares of LGIH opened at $58.15 on Wednesday. The company has a quick ratio of 0.58, a current ratio of 18.02 and a debt-to-equity ratio of 0.84. The business has a fifty day moving average of $50.46 and a 200 day moving average of $52.33. The company has a market cap of $1.34 billion, a PE ratio of 12.84 and a beta of 1.90. LGI Homes has a 52-week low of $39.70 and a 52-week high of $84.94.

Trending Headlines about LGI Homes

Here are the key news stories impacting LGI Homes this week:

• Positive Sentiment: Management issued 2026 guidance calling for 4,600–5,400 closings with stable pricing, giving revenue/volume visibility for the year and reducing uncertainty around demand recovery. LGI Homes outlines 2026 guidance with 4,600–5,400 closings and stable pricing as affordability pressures persist
• Positive Sentiment: Backlog growth was highlighted by management, which supports near?term revenue despite affordability headwinds — a potential stabilizer for deliveries and cash flow. LGIH Q4 deep dive: Incentives and backlog growth define performance amidst affordability challenges
• Positive Sentiment: Market expansion: LGI’s California “Terrata” debut signals entry into higher?value markets and could diversify revenue mix over time. Investors may view this as longer?term upside if execution goes well. Did LGI Homes’ (LGIH) California Terrata Debut Just Shift Its Investment Narrative?
• Neutral Sentiment: Q4 EPS narrowly beat estimates at $0.97 vs. $0.96 consensus — a modest positive but not enough to offset other concerns. LGI Homes Inc (LGIH) Q4 2025 Earnings Call Highlights: Strong Revenue Growth Amidst Margin Pressures
• Negative Sentiment: Revenue missed expectations ($473.97M vs. $479.6M est.) and was down ~15% year?over?year; incentive spending to combat affordability compressed gross margins and net margin remains thin, which is pressuring near?term profitability. LGI Homes (NASDAQ:LGIH) Misses Q4 CY2025 Revenue Estimates

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the company. Citizens Jmp boosted their target price on LGI Homes from $85.00 to $95.00 and gave the stock a “market outperform” rating in a research report on Wednesday, January 7th. Citigroup reiterated an “outperform” rating on shares of LGI Homes in a research note on Wednesday, January 7th. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of LGI Homes in a research note on Monday, December 29th. Two equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $74.63.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd grew its position in LGI Homes by 75.5% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 551 shares of the financial services provider’s stock valued at $28,000 after acquiring an additional 237 shares during the last quarter. Russell Investments Group Ltd. boosted its stake in shares of LGI Homes by 106.6% during the second quarter. Russell Investments Group Ltd. now owns 591 shares of the financial services provider’s stock valued at $30,000 after purchasing an additional 305 shares during the period. Los Angeles Capital Management LLC purchased a new position in LGI Homes in the 4th quarter worth about $29,000. Kemnay Advisory Services Inc. purchased a new position in LGI Homes in the 4th quarter worth about $32,000. Finally, Northwestern Mutual Wealth Management Co. lifted its holdings in LGI Homes by 7,240.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,101 shares of the financial services provider’s stock valued at $47,000 after buying an additional 1,086 shares in the last quarter. Hedge funds and other institutional investors own 84.89% of the company’s stock.

About LGI Homes

LGI Homes, Inc (NASDAQ: LGIH) is a residential homebuilder primarily focused on serving first-time and first-time move-up homebuyers in the United States. The company specializes in the acquisition, development and sale of affordable single-family homes and townhomes. LGI Homes operates through an integrated model that encompasses land sourcing, lot development, home construction, and post-closing customer support including warranty services.

In addition to its core homebuilding activities, LGI Homes offers ancillary services to streamline the homebuying process for its customers.