LGI Homes (LGIH) stock is surging 10.26% in pre-market trading on Tuesday following the release of its third-quarter 2025 financial results. Despite challenging market conditions, the homebuilder reported results that met guidance and showed promising signs of recovery in sales activity.
While LGI Homes' Q3 revenue declined 39.2% year-over-year to $396.6 million, investors were encouraged by the company's growing backlog and increased net orders. The company ended the quarter with a backlog of 1,305 homes valued at $498.7 million, representing a significant 19.9% increase compared to the same period last year. Furthermore, net orders saw an 8.1% year-over-year increase and an impressive 43.9% sequential rise, indicating momentum in sales activities.
Looking ahead, LGI Homes provided an optimistic outlook for the fourth quarter, expecting to close between 1,300 and 1,500 homes, which would represent a 26% increase at the midpoint compared to Q3. Eric Lipar, Chairman and CEO of LGI Homes, expressed confidence in the company's strategy, stating, "We are encouraged by the momentum built in the third quarter and remain confident in our strategy and optimistic about the long-term outlook for the housing market." This positive sentiment, coupled with the company's focus on affordability and meeting buyers' needs, appears to be driving investor enthusiasm and contributing to the stock's pre-market surge.
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