LGI HomesLGIH
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LGI Homes beat Q2 estimates and raised full-year gross margin and ASP guidance for the second straight quarter.
Impact on stocks 1
Consumer Discretionary
LGI HomesLGI Homes raised its full-year guidance for the second straight quarter after reporting second-quarter 2026 results on August 4. The homebuilder delivered 1,440 homes in the quarter, up 8.8% from a year earlier, on total revenue of $516 million, with homebuilding gross margin of 19.8% and adjusted gross margin of 23.2%, both ahead of the midpoint of its prior guidance range. Management now expects full-year homebuilding gross margin of 19.0% to 21.0%, adjusted gross margin of 22.5% to 24.5%, and an average sales price per home closed of $360,000 to $370,000, while keeping its full-year closings guidance at 4,600 to 5,400 homes. The company cut debt by $128.6 million in the quarter, ending June with a debt-to-capital ratio of 42.6%, a 220 basis point improvement from a year earlier, and liquidity of $468 million, and posted second-quarter net income of $27 million, or $1.16 per diluted share. Still, first-half homebuilding revenue fell 1.6% year over year to $821.2 million and standard home closings dropped 3.1% to 2,246, with total closings for the half up 1.6% to 2,356 only because that figure includes 110 currently and previously leased homes, while short interest sits at 21.29% of float.
LGI HomesLGI Homes beat Q2 estimates and raised full-year gross margin and ASP guidance for the second straight quarter.