Company: LGIH
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001580670-25-000058
Chunk: 108

Company: LGI Homes, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 108
---
2025, a decrease of $5.7 million from $13.7 million for the six months ended June 30, 2024. The decrease in other income, net of other expenses, primarily reflects the decrease in income associated with our investment in unconsolidated entities and the decrease in interest income, partially offset by gains realized from the sale of residential lots not directly associated with our core homebuilding operations. 

Operating Income and Net Income before Income Taxes. Operating income for the six months ended June 30, 2025 was $39.8 million, a decrease of $46.5 million, or 53.9%, from $86.3 million for the six months ended June 30, 2024. Net income before income taxes for the six months ended June 30, 2025 was $47.8 million, a decrease of $52.2 million, or 52.2%, from $100.0 million for the six months ended June 30, 2024. The overall decreases in operating income and net income before 

28

income taxes were primarily due to overall lower home closings at a lower absorption rate, lower gross margin and higher advertising and other costs associated with the increase in average community count during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.  Our reportable segments contributed to net income before income taxes during the six months ended June 30, 2025 as follows: Central - $6.0 million, or 12.5%; Southeast - $26.3 million, or 55.0%; Northwest - $3.4 million, or 7.1%; West - $13.2 million, or 27.7%; and Florida - $(0.5) million, or (1.1)%.  

Income Taxes. Income tax provision for the six months ended June 30, 2025 was $12.2 million, a decrease of $12.1 million, or 49.7%, from income tax provision of $24.4 million for the six months ended June 30, 2024. The decrease in our income tax provision is primarily due to the overall decrease in net income before income taxes. The increase in our effective tax rate to 25.6% for the six months ended June 30, 2025 from 24.4% for the six months ended June 30, 2024 was primarily