Revenue and home closings contracted on a year-over-year basis at LGI Homes but met the home builder’s guidance for the period and surpassed Wall Street projections for the period.
The No. 18 company on the 2025 Builder 100 list generated $396.6 million in revenue on 1,065 closings in the fiscal third quarter, down from a revenue of $651.9 million on 1,757 closings in the third quarter of 2024.
“Our teams remained focused on driving leads, managing inventory, and executing on sales initiatives that directly contributed to an 8.1% year-over-year increase and 43.9% sequential increase in net orders,” LGI Homes CEO Eric Lipar said. “As a result, we ended the third quarter with 1,305 homes in backlog, up 19.9% compared to the same period last year and 61.5% sequentially.”
In the third quarter, LGI Homes reported an average sales price for closings of $372,424. The builder’s monthly absorption rate declined to 2.5 in the third quarter of 2025 from 4.4 in the third quarter of 2024.
The builder generated a profit of $19.7 million, or $0.85 per share, in the third quarter, down from a profit of $69.6 million, or $2.96 per share, in the same period a year ago. The builder missed Wall Street projections of $1.00 profit per share.
The builder ended the third quarter with 62,564 total lots owned or controlled. Of the builder’s lots, approximately 85% were owned.
“As we enter the final stretch of the year, we are encouraged by the momentum built in the third quarter and remain confident in our strategy and optimistic about the long-term outlook for the housing market,” Lipar said. “The persistent shortage of entry-level homes and favorable demographics trends continue to support demand for the attainable housing solutions LGI provides.”
For the fourth quarter, LGI Homes projects home closings between 1,300 and 1,500 with an average sales price between $365,000 and $375,000.
“We remain focused on affordability and meeting buyers at a monthly payment where they are able and willing to transact,” Lipar said.
