LGI Homes (LGIH) FY2025 results: revenue $1.7 billion, down 22.6% on the year
LGI Homes, Inc. (LGIH) reported revenue of $1.7 billion for fiscal 2025, the year ended 31 December 2025, down 22.6% on the year before. Net income was $73 million, down 63.0%, and diluted earnings per share $3.12. The figures are the company's own, from the 10-K it filed with the SEC on 20 February 2026.
Revenue
$1.7 billion
-22.6% on the year
FY2018FY2025
Operating margin
4.7%
9.6% a year earlier
FY2018FY2025
Net income
$73 million
-63.0% on the year
FY2018FY2025
Diluted EPS
$3.12
-62.4% on the year
FY2018FY2025
this yearthe year beforeHover a bar for its figure.
The year in brief
What management said about the year
Guidance figures: 7 new.
Fourth-quarter revenue and closings fell: Fourth-quarter home sales revenues were $474.0 million, against $557.4 million a year earlier. Closings were 1,301, against 1,533, and 1,362 including leased homes.
Fourth-quarter net income and EPS fell: Net income was $17.3 million, or $0.75 diluted EPS, against $50.9 million and $2.15 a year earlier. Adjusted net income was $22.4 million, or $0.97 adjusted diluted EPS, excluding a $6.7 million inventory impairment.
Backlog rose to 1,394 homes: Ending backlog at December 31, 2025 was 1,394 homes valued at $501.3 million, against 599 homes and $236.5 million a year earlier. Backlog increased 133%.
Adjusted gross margin was 22.3%: Fourth-quarter adjusted gross margin was 22.3%, against 25.2%. Gross margin was 17.7%, against 22.9%, and 19.2% excluding the $6.7 million inventory impairment.
Incentives and price adjustments on older inventory: Management said self-developed land supported margins, helping offset financing incentives and price adjustments on older inventory.
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2025
FY2024
FY2023
On the year
Last 8 years
Operating cash flow
-140
-144
-57.0
Capital expenditure
0.9
2.0
1.4
-52.7%
Free cash flow
-141
-146
-58.4
Free cash flow margin
-8.3%
-6.6%
-2.5%
Cash from investing
27.9
15.6
-13.6
+78.9%
Cash from financing
120
132
87.6
-9.3%
Depreciation and amortisation
4.3
3.1
2.4
+39.1%
Share-based compensation
6.0
10.5
8.9
-42.8%
Buybacks
23.6
31.0
0.0
-23.7%
Diluted shares, weighted
23m
24m
24m
-1.5%
Shares outstanding at period end
23m
23m
24m
-1.1%
Balance sheet
$ million
FY2025
FY2024
FY2023
On the year
Last 8 years
Shareholders' equity
2,096
2,037
1,856
+2.9%
Debt
1,657
1,481
1,248
+11.9%
Other liabilities
174
241
303
-27.6%
Total liabilities and equity
3,927
3,759
3,408
+4.5%
Fixed assets
107
57.0
45.5
+87.8%
Goodwill
12.0
12.0
12.0
+0.1%
Cash and equivalents
61.2
53.2
49.0
+15.1%
Other assets
3,747
3,636
3,301
+3.0%
Total assets
3,927
3,759
3,408
+4.5%
10-K for the year ended 31 December 2025, filed 20 February 2026: the filing.