LGI Homes Reports Q3 2026 Revenue Growth Amidst Declining Net Orders and Higher Cancellation Rates
LGI Homes (LGIH) reported third-quarter 2026 results characterized by a strong revenue increase of 10.2% to $444.5 million, driven primarily by higher home closings and significant growth in the wholesale channel. Net income rose 24.6% year-over-year to $24.6 million, resulting in earnings of $1.05 per share. The company benefited from disciplined cost management and a self-developed land strategy, which helped expand adjusted homebuilding gross margins to 23.7%. Despite the top-line growth, the company faces significant headwinds regarding affordability and interest rates. Net orders plummeted 61.2% compared to the previous year, and the cancellation rate climbed sharply from 33.6% to 53.8%. These pressures have led to a substantial decrease in the ending backlog and prompted management to narrow their full-year closings guidance to between 4,600 and 4,800 homes.
Tickers: $LGIH
Topics: Gross Margin Homebuilding Interest Rates Net Income Revenue Growth