LGI Homes, Inc.

Q2 total revenue was $516 million, including $502 million of homebuilding revenue and $14.5 million from land sales and leasing. New home closings were 1.36 thousand, up 4% year over year, and total homes delivered were 1.44 thousand, up 9% year over year. Gross margin was 19.8% and adjusted gross margin was 23.2%; adjusted EBITDA was $58.7 million, pretax income was $36.6 million, and net income was $27 million, or $1.16 per share. On the balance sheet, debt declined by about $129 million sequentially to just under $1.6 billion, liquidity was $468 million, and book value per share was $91.73. For full year 2026, management expects closings of 4.6 thousand to 5.4 thousand homes, 150 to 160 active communities, ASP of $360 thousand to $370 thousand, SG&A at 15% to 16% of revenue, homebuilding gross margin of 19% to 21%, and adjusted homebuilding gross margin of 22.5% to 24.5%.

Eric Thomas Lipar emphasized that the company is navigating a dynamic but resilient market by focusing on affordability, disciplined inventory management, and capital allocation. He highlighted stronger community count, improving land opportunities, and a growing development pipeline that supports 2027 openings and longer-term growth. His tone was confident but measured, repeatedly noting that customers remain payment sensitive and that the company is still using incentives.

Charles Michael Merdian said total revenue was $516 million, with $502 million from homebuilding and $14.5 million from land and leasing. He noted SG&A was $72.7 million, or 14.1% of revenue, adjusted EBITDA was $58.7 million, and net income was $27 million, or $1.16 per share. He also cited backlog of 1.3 thousand homes valued at $526 million, lot inventory of 57.4 thousand lots, and debt reduction of about $129 million sequentially, while Joshua Fattor added that liquidity was $468 million, debt-to-capital was 42.6%, net debt-to-capital was 41.6%, and stockholders' equity was over $2.1 billion.

Analysts focused on why gross margin guidance was raised again despite higher mortgage rates, and management pointed to a favorable mix, lower house costs, less older inventory, and conservative initial assumptions around incentives. Questions also centered on demand trends and July performance; management said July was in line to slightly better than expected, but higher rates, negative news flow, and gas prices remained headwinds. Analysts asked about land-market improvements and wholesale demand, and management said more finished-lot and later-stage opportunities are appearing, while wholesale interest has picked up after the Road to Housing Act but has not yet fully translated into orders.