Core Insights - LGI Homes, Inc. is expanding its presence in the Tampa, Florida area by introducing new scattered lot homesites in Spring Hill, enhancing its footprint in the Nature Coast region [1][2] - The new homesites aim to meet the increasing demand for flexible, private, and move-in ready homes in established neighborhoods, thereby diversifying LGI's offerings [2][4] Company Overview - LGI Homes is headquartered in The Woodlands, Texas, and operates in 36 markets across 21 states, having closed over 75,000 homes since its founding in 2003 [6] - The company has consistently delivered profitable financial results and has been recognized for its quality construction and customer service, including being named to Newsweek's list of the World's Most Trustworthy Companies [6] Product Offering - The new homes in Spring Hill range from 1,032 to 1,981 square feet, featuring two to four bedrooms and up to three bathrooms, all equipped with LGI's CompleteHome™ package [3][4] - Homes start in the $290,000s, providing affordability while maintaining a high standard of living [5] Market Position - Spring Hill's location along the Nature Coast is appealing to families, retirees, and outdoor enthusiasts, making it a strategic area for LGI Homes to target [4] - The company emphasizes a streamlined homebuying experience and unmatched value in both scattered lot homes and its existing community, Royal Highlands [4]

Core Insights - LGI Homes, Inc. has commenced sales in Creekside Estates, a new community in Terrell, Texas, featuring 141 lots designed for homebuyers seeking a blend of small-town living and proximity to Dallas [1][5] Company Overview - LGI Homes is recognized as a pioneer in the homebuilding industry, operating in 36 markets across 21 states and has closed over 75,000 homes since its inception in 2003 [9] - The company has consistently delivered profitable financial results and has been acknowledged for its quality construction and customer service, including being named to Newsweek's list of the World's Most Trustworthy Companies [9] - LGI Homes has received numerous workplace awards, including the Top Workplaces USA 2024 Award, reflecting its commitment to employee satisfaction [9] Community Features - Creekside Estates offers amenities such as a children's playground, swimming pool, and a new park with additional playgrounds and walking trails scheduled for completion in 2026 [2] - The community is connected to Arlie E White Memorial Park, which includes various recreational facilities, enhancing the lifestyle options for residents [2] Home Offerings - The homes in Creekside Estates are designed for growing families, featuring 3, 4, and 5-bedroom floor plans with modern finishes and energy-efficient features [3] - Each home includes LGI Homes' CompleteHome™ package, which features energy-efficient appliances, granite countertops, and luxury vinyl plank flooring at affordable prices [3] Educational Opportunities - Creekside Estates is zoned to the highly rated Terrell Independent School District, which includes the innovative ExCEL Center for advanced learning and an on-site elementary school for convenient access [4] Pricing Information - Home prices in Creekside Estates start from $308,900 for a 3-bedroom, 2-bathroom home and go up to $373,900 for a 5-bedroom, 2.5-bathroom home [12]

Company Overview - LGI Homes and its luxury brand, Terrata Homes, are expanding their home offerings in Cape Coral, Florida, with a new sales office to support continued homebuilding efforts [1] - LGI Homes has successfully closed over 75,000 homes since its founding in 2003 and has delivered profitable financial results every year [6] - The company is recognized for its quality construction and exceptional customer service, earning accolades such as being named to Newsweek's list of the World's Most Trustworthy Companies [6] Product Offerings - LGI Homes is providing newly constructed homes in northern Cape Coral, featuring single-story floor plans ranging from three to five bedrooms and sizes from 1,140 to 1,862 square feet, with prices ranging from the $340s to the $420s [2] - Each LGI home includes an attached two-car garage, professional landscaping, and the CompleteHome™ interior package, which offers premium features at no additional cost [2] - Terrata Homes offers luxury homes with three to five bedrooms, ranging from 1,670 to 3,496 square feet, with prices from the $440s to the $650s, featuring high-end finishes and open-concept layouts [4] Market Position - The expansion in Cape Coral reflects LGI Homes' decade-long commitment to the area's growth and the increasing demand for both affordable and luxury housing options [1][2] - The introduction of Terrata Homes aims to cater to homebuyers seeking an elevated living experience, enhancing the company's market presence in the luxury segment [4]

Core Points - LGI Homes, Inc. closed 450 homes in April 2025, indicating strong sales performance [1] - As of April 30, 2025, the company had 147 active selling communities, showcasing its extensive market presence [1] Company Overview - LGI Homes, Inc. is headquartered in The Woodlands, Texas, and operates in 36 markets across 21 states [2] - The company has closed over 75,000 homes since its founding in 2003 and has delivered profitable financial results every year [2] - LGI Homes is recognized for its quality construction and exceptional customer service, being named to Newsweek's list of the World's Most Trustworthy Companies [2] - The company employs over 1,000 individuals and has received numerous workplace awards, including the Top Workplaces USA 2025 Award [2]

The Spring Plan by LGI Homes at Peach Crossings The Spring Plan by LGI Homes at Peach Crossings features five bedrooms, three bathrooms, and an expansive living area. WINTER HAVEN, Fla., May 02, 2025 (GLOBE NEWSWIRE) -- LGI Homes is excited to announce the opening of Peach Crossings, a brand-new, 52-lot community now selling in Winter Haven. Nestled in the heart of Polk County, one of Florida’s most desirable and fastest-growing regions, homebuyers at Peach Crossings can choose from five never-before-s ...

Core Insights - LGI Homes, Inc. has launched its luxury brand Terrata Homes at Hallimore Ranch in Rosenberg, Texas, marking the largest development for Terrata Homes with 518 lots [1][7] - The new development features seven modern floor plans designed for contemporary homebuyers, emphasizing space, style, and convenience [1][4] Company Overview - LGI Homes is headquartered in The Woodlands, Texas, and operates in 36 markets across 21 states, having closed over 75,000 homes since its inception in 2003 [8] - The company has consistently delivered profitable financial results and has been recognized for its quality construction and customer service [8] Development Details - Hallimore Ranch introduces modern-contemporary architectural designs with upscale aesthetics, including stone and smooth stucco façades, black-framed windows, and sleek garage doors [2][3] - The homes range from 2,154 to 3,166 square feet and include three to six-bedroom floor plans, catering to various family sizes and lifestyles [4] Community Features - The development is strategically located off US-59, near Brazos Town Center and Sugar Land, offering a blend of upscale living and small-town charm [5] - Planned amenities for Hallimore Ranch include a 3.4-acre park, walking trails, a children's playground, and a splash pad, with over $5 million allocated for these features [6] Market Positioning - Homes at Hallimore Ranch are priced starting from the mid-$400s, reflecting the company's commitment to providing value in desirable locations [7]

Financial Performance - Home sales revenues decreased by 10.1% to $351.4 million from $390.9 million year-over-year[86] - Homes closed decreased by 8.0% to 996 homes from 1,083 homes year-over-year[86] - Average sales price per home closed decreased by 2.2% to $352,831 from $360,897 year-over-year[86] - Net income decreased by 76.6% to $4.0 million from $17.1 million year-over-year[86] - EBITDA for the three months ended March 31, 2025, was $14.9 million, a decrease of $15.5 million, or 51.1%, from $30.4 million for the same period in 2024, with an EBITDA margin of 4.2% compared to 7.8% in 2024[106] - Operating income for the three months ended March 31, 2025, was $0.2 million, a decrease of $18.6 million, or 99.1%, from $18.7 million for the same period in 2024[97] Margins and Expenses - Gross margin as a percentage of home sales revenues decreased to 21.0% from 23.4%[86] - Gross margin for the three months ended March 31, 2025, was $73.7 million, a decrease of $17.7 million, or 19.4%, from $91.4 million for the same period in 2024, with a gross margin percentage of 21.0% compared to 23.4% in 2024[92] - Selling expenses for the three months ended March 31, 2025, were $42.3 million, an increase of $1.2 million, or 3.0%, from $41.1 million for the same period in 2024[93] - General and administrative expenses for the three months ended March 31, 2025, were $31.2 million, a decrease of $0.3 million, or 1.1%, from $31.5 million for the same period in 2024[94] Orders and Backlog - The company ended the quarter with a backlog of 1,040 homes[80] - Net orders decreased by 21.4% to 1,437 homes for the three months ended March 31, 2025, compared to 1,828 homes for the same period in 2024[110] - Ending backlog decreased by 22.1% to 1,040 homes as of March 31, 2025, compared to 1,335 homes as of March 31, 2024[109] - The value of the ending backlog was $406.2 million as of March 31, 2025, down from $519.5 million as of March 31, 2024[110] Community and Lot Inventory - The average community count increased to 148.0 from 116.7 year-over-year[87] - The company had 146 active communities as of March 31, 2025, compared to 120 active communities a year earlier[82] - The company had 146 active communities as of March 31, 2025, compared to 151 as of December 31, 2024[111] - The company owned and controlled 67,792 lots as of March 31, 2025, down from 70,899 lots at December 31, 2024[85] - Lot inventory decreased to 67,792 lots as of March 31, 2025, from 70,899 lots as of December 31, 2024[112] Cash and Debt Management - As of March 31, 2025, the company had $57.6 million in cash and cash equivalents[121] - The company entered into a $1.1825 billion revolving credit facility, maturing on April 28, 2029, with 82.2% of the commitments due at that time[127] - As of March 31, 2025, borrowings under the credit agreement totaled approximately $1.6 billion, with $302.4 million available to borrow[129] - The company issued $400.0 million of 2032 Senior Notes with a 7.000% interest rate, maturing on November 15, 2032[132] - The company issued $400.0 million of 2028 Senior Notes with an 8.750% interest rate, maturing on December 15, 2028[134] - As of March 31, 2025, outstanding letters of credit, surety bonds, and financial guarantees totaled $427.2 million[137] Cash Flow - Net cash used in operating activities was $127.1 million for the three months ended March 31, 2025, primarily due to a $186.6 million decrease in real estate inventory[139] - Net cash provided by financing activities was $131.8 million during the three months ended March 31, 2025, driven by $172.5 million of borrowings under the 2024 Credit Agreement[143] - The company reported a net cash used in investing activities of $0.2 million for the three months ended March 31, 2025[142] Market Conditions and Risks - Inflation may adversely impact the company due to higher costs in land, financing, labor, materials, and construction[145] - The company operates with interest rate sensitivity, which may affect homebuyer financing and overall housing demand[153] - As of March 31, 2025, the company had $544.4 million of variable rate indebtedness outstanding under the 2024 Credit Agreement[156] - The interest rate for the variable rate indebtedness was SOFR plus 1.85%, with SOFR at 4.32% as of March 31, 2025[156] - A hypothetical 100 basis point increase in the average interest rate above the SOFR floor would increase the company's annual interest cost by approximately $5.4 million[156] - The company believes that future interest rate risks related to existing indebtedness will not have a material adverse impact on its financial position, results of operations, or liquidity[157]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $351.4 million, a 10.1% decrease year-over-year, driven by an 8% decline in home closings and a 2.2% decline in average sales price (ASP) [10][11] - Gross margin for Q1 2025 was 21%, down from 23.4% in the same period last year, primarily due to a one-time expense related to the forward commitment incentive program [11][12] - Net income for Q1 2025 was $4 million, or $0.17 per share, compared to a higher figure in the previous year [14] Business Line Data and Key Metrics Changes - The company delivered 996 homes in Q1 2025 at an average sales price of $352,831 [5][10] - The company recognized a one-time expense of $8.6 million related to the forward commitment incentive program, impacting revenue and gross margins [10][11] - The cancellation rate for Q1 was 16.3%, slightly improved from 16.8% in the same period last year [14] Market Data and Key Metrics Changes - The company ended Q1 with 1,040 homes in backlog, representing over $406.2 million [14] - The top markets based on closings per community were Richmond (5.3), Charlotte (4.6), Raleigh (4.3), Atlanta (3.8), and Nashville (3.6) [6] Company Strategy and Development Direction - The company is focused on addressing the persistent shortage of entry-level homes, which is seen as a societal challenge and a long-term growth opportunity [9] - The company plans to maintain its full-year guidance of closing between 21,000 to 23,000 homes, with an average selling price between $360,000 and $370,000 [18] - The company is adjusting its gross margin expectations downward by 100 to 150 basis points due to anticipated cost increases from tariffs and market uncertainties [18] Management's Comments on Operating Environment and Future Outlook - Management noted that affordability remains the biggest challenge for buyers, with rate volatility affecting their purchasing confidence [4][5] - Despite recent headwinds, management expressed confidence in the long-term outlook for the housing market, citing strong underlying demographic fundamentals [9] - Management highlighted that the sales pace improved in March, indicating a potential recovery as the spring selling season began [5][36] Other Important Information - The company ended Q1 with $1.6 billion in debt and a debt-to-cap ratio of 44.3% [16] - The company repurchased 41,685 shares for $3.1 million during the quarter, with $177.7 million remaining on its stock buyback authorization [16][72] Q&A Session Summary Question: Can you provide more details on the gross margin trajectory for the upcoming quarters? - Management indicated that gross margins are expected to ramp up as volume increases, with adjustments made due to tariffs and market conditions [21][22][85] Question: What is driving the need for increased incentives? - Management noted that the competitive market dynamics and the need to assist buyers with closing costs and rate buy-downs are driving the increase in incentives [26][29] Question: How confident is the company in achieving its full-year closing targets? - Management expressed confidence in achieving the closing targets, citing improved sales trends in March and ongoing demand [36][39] Question: How is the company responding to competitors cutting prices? - Management stated that the company is cautious about discounting prices and focuses on providing value through incentives rather than steep discounts [78][81] Question: What interest rates are being offered through the forward commitment program? - Management mentioned that they are currently buying down rates to the mid-5% range for FHA loans with good credit [80]

Financial Data and Key Metrics Changes - Revenue for the first quarter was $351.4 million, a 10.1% decrease year over year, driven by an 8% decline in home closings and a 2.2% decline in average sales price [11][12] - Gross margin was 21% compared to 23.4% in the same period last year, primarily due to a one-time expense and an increase in wholesale closings [12] - Net income for the first quarter was $4 million, or $0.17 per share [15] Business Line Data and Key Metrics Changes - The company delivered 996 homes in the first quarter at an average sales price of $352,831 [5][11] - The company recognized a one-time expense of $8.6 million related to the forward commitment incentive program, impacting revenue and gross margins [11][12] - The cancellation rate was 16.3%, slightly improved from 16.8% in the same period last year [15] Market Data and Key Metrics Changes - The company ended the first quarter with 1,040 homes in backlog, representing over $406.2 million [15] - The top markets based on closings per community were Richmond, Charlotte, Raleigh, Atlanta, and Nashville [7] Company Strategy and Development Direction - The company is focused on addressing the persistent shortage of entry-level homes, which is expected to drive sustained demand for homeownership [9] - The company plans to maintain its full-year guidance for home closings and average selling prices despite market challenges [19] - The company is proactively managing costs related to tariffs and is adjusting gross margin expectations accordingly [19] Management's Comments on Operating Environment and Future Outlook - Management noted that affordability remains the biggest challenge for buyers, with rate volatility affecting their purchasing confidence [4][5] - The company expressed confidence in the long-term outlook for the housing market, citing strong underlying demographic fundamentals [9] - Management acknowledged the need to monitor market conditions closely, particularly regarding demand and pricing [40] Other Important Information - The company ended the quarter with $1.6 billion in debt and a debt-to-cap ratio of 44.3% [17] - The company repurchased 41,685 shares for $3.1 million during the quarter [18] Q&A Session Summary Question: Can you provide more details on the gross margin trajectory for the upcoming quarters? - Management indicated that gross margins are expected to ramp up as volume increases, with adjustments made due to tariff-related costs and market conditions [24][26] Question: What is driving the need for higher incentives? - Management noted that the need for incentives is driven by market dynamics, including a slower sales pace and increased competition [29][30] Question: How confident is the company in achieving its full-year closing targets? - Management expressed confidence in achieving closing targets, citing improved sales trends in March and ongoing demand [37][38] Question: How is the company responding to competitors cutting prices? - Management stated that while they do not typically engage in steep discounts, they are focused on providing compelling incentives to maintain competitiveness [79] Question: What is the current status of the stock buyback program? - The company has $177 million remaining on its stock buyback authorization and plans to prioritize share repurchases given the current stock valuation [71]

Company Performance - LGI Homes reported quarterly earnings of $0.46 per share, missing the Zacks Consensus Estimate of $0.75 per share, and down from $0.72 per share a year ago, indicating a significant earnings surprise of -38.67% [1][2] - The company posted revenues of $351.42 million for the quarter, missing the Zacks Consensus Estimate by 3.70%, and down from $390.85 million year-over-year [3] Market Position - LGI Homes shares have declined approximately 33.7% since the beginning of the year, contrasting with the S&P 500's decline of -6% [4] - The current Zacks Rank for LGI Homes is 5 (Strong Sell), indicating expectations of underperformance in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $1.95 on revenues of $595.31 million, and for the current fiscal year, it is $8.47 on revenues of $2.52 billion [8] - The Real Estate - Development industry, to which LGI Homes belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, suggesting a challenging environment for the company [9]