LGI Homes Lifts Full-Year Margin Outlook to 22%-24% After Q1 23.4% Margin
LGI Homes reported Q1 generated $319.7 million in home sales revenue from 881 closings and recognized 23.4% adjusted gross margin. Backlog rose 63.4% year-over-year to 1,699 homes, prompting the company to raise full-year adjusted gross margin guidance to 22.0%-24.0%.
1. Q1 Financial Results
LGI Homes delivered $319.7 million in home sales revenue from 881 closings in Q1 2026 and achieved adjusted net income of $5.6 million, or $0.24 per share. The average sales price per home closed rose 2.9% to $362,924, and adjusted gross margin reached 23.4%, while sales of 35 leased homes added other income.
2. Backlog and Operational Highlights
The company ended the quarter with 1,699 homes in backlog, a 63.4% increase year-over-year and 21.9% sequential gain, reflecting strong demand and disciplined land pipeline management. Total home deliveries including leased units were 916, underscoring execution strength across 36 markets.
3. Raised Guidance and Outlook
Following margin outperformance, LGI Homes raised full-year adjusted gross margin guidance to 22.0%–24.0% and reiterated home closings forecast of 4,600–5,400 and average sales price between $355,000 and $365,000. This outlook assumes stable input costs, interest rates and regulatory environment for the remainder of 2026.