Despite year-over-year contractions in home closings, net orders, and home closings revenue, LGI Homes exceeded internal expectations across metrics in the first quarter. The results signal the Texas-based builder is experiencing a similar demand stabilization indicated by commentary from other public peers in the reporting period.
“Our teams executed well throughout the quarter and the early weeks of the spring selling season have reinforced our confidence in the year ahead,” said chairman and CEO Eric Lipar. “Our teams remained focused on driving leads, managing inventory, and executing on sales initiatives that directly contributed to ending the quarter with 1,699 homes in backlog, up 63.4% compared to the same period last year and 21.9% sequentially.”
In the first quarter, LGI Homes delivered a total 916 homes—881 homes closings with a revenue of $319.7 million and the profits from the sale of 35 currently or previously leased homes.
Compared to the first quarter of 2025, the 881 home closings represented a 11.5% decrease. Home closings revenue declined by approximately 10% compared to the prior year period. Regionally, the central region remained the strongest for LGI Homes, contributing 33.6% of home closings and 28% of closings revenue in the first quarter. The share of revenue contributed by the southeast region declined to 22.6% from 29% in the first quarter of 2025, while the share of revenue contributed by LGI’s west region increased to 23.7% from 19% a year ago. The share of closings from the southeast region declined to 25% from 31.3% a year ago, while the share of closings from the west region increased to 19.5% from 16%.
“Our average sales price per home closed increased 2.9% to $362,924, demonstrating our ability to preserve pricing while continuing to support affordability through targeted price discounts and financing strategies,” Lipar said.
LGI Homes generated 1,221 net orders in the first quarter, down from 1,437 in the first quarter of 2025. The builder’s cancellation rate increased significantly to 45.6% from 16.3% in the prior-year period. At quarter’s end, LGI Homes owned 51,193 lots and controlled 7,835 lots via option.
During the quarter, LGI Homes reported adjusted profit of $5.6 million, or $0.24 per share, an increase from adjusted profit of $4 million, or $0.17 per share, in the first quarter of 2025. The results also bested Wall Street profit per share projections by more than $0.10.
“Our first quarter results reflect the strength of our operating model and the dedication of our teams across the country,” Lipar said. “The structural advantages of our self-developed land pipeline, combined with our disciplined approach to pricing and inventory management, continue to support our margins and position us to perform through varying market conditions.”
Following the first quarter, LGI Homes shared it is targeting home closings between 4,600 and 5,400 for the full 2026 fiscal year. The builder reported 4,788 closings in fiscal 2025 and ranked 20th on the 2026 Builder 100 list.
