LGI Homes Revenue Rises 10.2% to $444.5 Million, Cuts Closing Outlook
Key Facts
LGI Homes reported a 10.2% year-over-year increase in third-quarter 2026 total revenue to $444.5 million and lowered its expected home closings for the year to between 4,600 and 4,800. In its earnings release, the company said the revised outlook reflects slower sales activity during the quarter, as ongoing housing affordability pressures continued to weigh on demand. Revenue, meanwhile, came in below an estimate of $468.08 million. The results therefore combine year-over-year growth in revenue and closings with a narrower outlook for full-year closings.
Homebuilding revenue was $437.5 million, up 10.3% from the same quarter a year earlier, and was generated by 1,189 new homes closed during the period. Total quarterly closings were 1,222 homes, up 10.4% from 1,107 homes in the third quarter of 2025, and included 33 homes that are currently or were previously rentals. The difference between the number of homes that generated homebuilding revenue and total closings reflects the inclusion of those rental homes in closings. In September alone, the company closed 386 homes, up 9.0% from 354 homes in September 2025. It ended the quarter with 151 active selling communities, up 7.1% from the same period a year earlier.
The average sales price per home closed was $367,962 in the third quarter, down 1.2% year over year. At the same time, the homebuilding gross margin was 20.2%, and the adjusted margin was 23.7%. The company said both margins exceeded the midpoint of their previous guidance ranges and increased 40 basis points from the second quarter. It attributed the margin improvement to the benefits of owning largely self-developed land carried on its balance sheet, and to its approach of balancing affordability and profitability. It added that its teams managed costs efficiently, while the ratio of selling, general and administrative expenses to total revenue improved 180 basis points from a year earlier, with expenses lower in absolute terms.
The company left the rest of its 2026 guidance unchanged, including an expected average sales price range of $360,000 to $370,000, a homebuilding gross margin of 19.0% to 21.0%, and an adjusted margin of 22.5% to 24.5%. In the second quarter, the company reported total revenue of $516.05 million and earnings per share of $1.16, according to the same report. Those figures cover the previous period, while the reported results relate to third-quarter closings and full fiscal-year guidance.
On the balance sheet, the net debt-to-capital ratio was 40.6% as of September 30, 2026, an improvement of 420 basis points year over year. Total liquidity on the same date was $447.7 million, including $69.4 million in cash and cash equivalents and $378.3 million available under the revolving credit facility. In trading on November 2, the stock closed at $47.42. The company had announced that its third-quarter earnings call would begin on November 3, 2026, at 12:30 p.m. Eastern time. The call is set to discuss the reported results for the period ended September 30, along with the annual guidance that the company left mostly unchanged.