LGI Homes, Inc.

LGI Homes, Inc. (Nasdaq: LGIH) builds and sells homes, combining retail sales to homebuyers with wholesale transactions. Its reported total home closings also include sales of homes that are currently or were previously leased. Those are excluded from its separate new-home closing count.

The latest results cover the quarter and nine months ended September 30, 2026. The company operated 151 selling communities at quarter-end, versus 141 a year earlier and the same 151 at June 30.

Current operating results

Homebuilding gross profit rose to $88.5 million from $85.1 million despite the lower margin. Selling, general and administrative expenses declined to $62.1 million from $63.6 million. Other income increased to $6.2 million from $3.1 million, helping lift pretax profit to $33.3 million from $26.7 million.

Adjusted homebuilding gross profit adds back capitalized interest and purchase-accounting charges. It was $103.7 million in the quarter, compared with $88.5 million under GAAP. The nine-month measure also excludes inventory impairment charges.

Orders, backlog and forecasts

Nine-month net orders were 2,869, versus 4,098 a year earlier. Subtracting the original first-half figures of 2,260 and 2,528 gives quarterly totals of 609 and 1,570. Net orders include retail and wholesale contracts after cancellations.

September backlog was 685 homes valued at $273.7 million, versus 1,305 homes and $498.7 million a year earlier. Bulk-sale homes accounted for 85 and 60 of those totals. Backlog excluding bulk sales therefore fell to 600 from 1,245. Contracts remain subject to cancellation and financing conditions.

The annual closing forecast narrowed to 4,600–4,800 homes from the 4,600–5,400 range used in February and August. Average selling-price guidance stayed at $360,000–$370,000. GAAP homebuilding gross margin remained at 19%–21%, with adjusted margin at 22.5%–24.5%.

Cash, debt and financing

Operating cash flow for the first nine months was positive $98.0 million, versus a $226.7 million outflow. The inventory cash-flow adjustment used $52.5 million, compared with $318.1 million, while accounts payable contributed $51.2 million versus $4.7 million. Together those changes explain most of the improvement.

The cash improvement also extended into the latest quarter. Subtracting the original first-half cash-flow totals from the nine-month figures produces $38.9 million generated during Q3, versus $13.2 million used a year earlier.

September cash was $69.4 million, up from $61.1 million in June. Notes payable had a $1.544 billion carrying value, versus $1.581 billion in June and $1.657 billion at year-end. Net debt as a share of net debt plus equity was 40.6%. The company reported compliance with its debt covenants.

Reported liquidity of $447.7 million included $378.3 million of available credit. Real-estate inventory stood at $3.487 billion, versus $3.556 billion at year-end. During the nine months, $113.8 million of rental homes moved from inventory to property and equipment without a cash transaction, so the inventory balance change is not interchangeable with the cash-flow adjustment.

An October 9 credit amendment extended most revolving commitments to October 2030; other portions retain earlier maturities. Stock repurchases and dividends remain restricted through December 31, 2026. Read our comparison of deliveries, new orders and the forecast cut for the latest change in the sales pipeline.