During the fiscal third quarter, Landsea Homes delivered strong results across all aspects of the business, posting significant double-digit growth in profit, home sales revenue, deliveries, net new home orders, and community count.

“We saw solid demand in our markets during the quarter, as our high-performance homes and attractive financing incentives to aid with affordability continued to appeal to home buyers,” CEO John Ho said. “Housing fundamentals continue to favor the public builders, driven by a lack of existing home inventory, steady demand, and a resilient economy. We believe these factors serve as an excellent backdrop for our company, as we look to grow our existing operations.”

Landsea Homes, the No. 42 company on the Builder 100 list, posted total revenue of $338.5 million in the third quarter, up 22% on a year-over-year basis. Home sales revenue increased 26.2% year over year to $325.6 million. New homes delivered in the period increased 40.4% to 629 homes, with an average sales price of $518,000.

Net new home orders in the period increased 28.8% to 626 homes with an average sales price of $491,000 and a monthly absorption pace of 2.5 sales per active community. As a percentage of gross orders, cancellations totalled 11% in the third quarter, up slightly from 9% in the third quarter of 2023.

As a result, Landsea Homes delivered a third quarter profit of $11.1 million, or $0.30 per share, increases of 29% and 36%, respectively, on a year-over-year basis.

“We are starting to see the benefits of our increased size through better terms and pricing from our trade partners and suppliers,” Ho said. “We believe this dynamic will continue to benefit our company at the local and national level as we become a bigger player within the industry.”

Landsea’s expansion into new markets in the past—including Florida, Texas, Colorado, and Arizona—has primarily been through acquisition. During the company’s earnings call, Ho said the integration efforts for acquired companies is “now largely behind [Landsea],” setting the stage for efforts by Landsea Homes to expand its scale beyond its current portfolio within these markets.

Mike Forsum, president and chief operating officer, highlighted the Austin and Dallas-Fort Worth markets as two examples of future growth. Landsea’s acquisition of Antares Homes in April and the subsequent integration of operations added three new communities in Austin and 18 in Dallas-Fort Worth.

“The heavy lifting of integrating our acquisition of Antares Homes in Dallas onto the Landsea Homes platform is already behind us and we are excited about the opportunities that lie ahead of us due to this acquisition,” Forsum said during the Landsea earnings call.

Aided by the 21 communities added due to the Antares Homes acquisition, Landsea Homes increased its community count by 40% year over year in the third quarter to 83. Forsum said the company has returned to pre-COVID construction cycle times in most markets and lowered overall building costs between 3% and 5% across its operating markets in the third quarter.

During the quarter, Forsum said consumer preferences began to shift back to “dirt homes as opposed to spec homes” as buyers are once again becoming more comfortable with the lead times associated with built-to-order homes. However, Landsea will continue to offer spec homes to compete against both the resale market and other builders’ quick move-in inventory.

On the land front, Landsea Homes owned or controlled 11,868 homes at the end of the third quarter, up from 11,203 at the end of the third quarter of 2023. The company continues to move toward a land-light model, controlling 56% of its lots at the end of the third quarter and owning just 44%.