Company: LGIH
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001580670-25-000058
Chunk: 142

Company: LGI Homes, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 142
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 2024.  Net income before income taxes for the three months ended June 30, 2025 was $42.0 million, a decrease of $34.8 million, or 45.3%, from $76.9 million for the three months ended June 30, 2024.  The overall decreases in operating income and net income before income taxes were primarily due to overall lower home closings at a lower absorption rate, lower gross margin and higher indirect overhead expenses associated with the increase in average community count during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.  Our reportable segments contributed to net income before income taxes during the three months ended June 30, 2025 as follows: Central - $9.1 million, or 21.5%; Southeast - $18.2 million, or 43.2%; Northwest - $2.2 million, or 5.2%; West - $10.7 million, or 25.5%; and Florida - $1.9 million, or 4.6%.  

Income Taxes. Income tax provision for the three months ended June 30, 2025 was $10.5 million, a decrease of $7.8 million, or 42.6%, from income tax provision of $18.3 million for the three 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 25.0% for the three months ended June 30, 2025 from 23.8% for the three months ended June 30, 2024 was primarily a result of an increase in the rate for state income taxes, net of the federal benefit, and the compensation limitation under Section 162(m) of the Internal Revenue Code, as amended.

Net Income. Net income for the three months ended June 30, 2025 was $31.5 million, a decrease of $27.0 million, or 46.2%, from $58.6 million for the three months ended June 30, 2024. The decrease in net income was primarily attributed to overall lower home sales revenues and gross margin during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.

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Six Months Ended June 30,