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LGI Homes narrowed its full-year home-closing outlook Tuesday, saying slower sales and pressure on buyers’ budgets weighed on demand, even as third-quarter revenue and profit rose.
The Texas-based builder now expects to close 4,600 to 4,800 homes in 2026, according to its results released at 7 a.m. Eastern time on November 3. It kept the rest of its annual outlook unchanged.
LGI shares were up 1.22%, or 58 cents, at $48.00 in Nasdaq’s premarket quote timestamped 7:48 a.m. Eastern time Tuesday, following the release. That is a timestamped market snapshot, not a live price.
More closings, lower average price
The company closed 1,189 new homes in the quarter ended September 30, up 11.6% from a year earlier. Including 33 currently or previously leased homes, total closings reached 1,222, up 10.4%. Those are different measures of the quarter’s deliveries.
Homebuilding revenue rose 10.3% to $437.5 million, while total revenue, including land and other revenue, reached $444.5 million. Net income was $24.6 million, or $1.05 a diluted share, compared with $19.7 million, or 85 cents a share, a year earlier.
The average price per new home closed fell 1.2% to $367,962. Homebuilding gross margin was 20.2%, compared with 21.5% a year earlier. LGI ended the quarter with 151 active communities.
Why it matters for buyers and builders
For buyers, LGI’s message is that affordability remains a constraint even when a builder sells more homes. Its lower average closing price is a company-wide sales average, not a promise of a discount on a particular home. Buyers still need to compare the full monthly payment, fees and any incentives on the home they are considering.
For builders, the report shows the balance between increasing sales and protecting profit. LGI delivered more new homes than a year earlier, but earned a smaller gross margin on homebuilding revenue and said it needed to adjust its annual closings outlook to slower sales activity. CEO Eric Lipar said the company had broadened its sales process to work with prospective customers who need more time to qualify.
The company’s outlook is a forecast, not a guarantee. Its earnings call is scheduled for 12:30 p.m. Eastern time Tuesday.
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