Company: LGIH
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001580670-25-000043
Chunk: 32

Company: LGI Homes, Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 1
Chunk 32
---
, straining affordability and constraining demand. Against this backdrop, we continued to offer buyers attractive financial incentives to bridge the affordability gap and put homeownership within reach of as many customers as possible. During the three months ended March 31, 2025, we had 996 home closings, compared to 1,083 home closings during the three months ended March 31, 2024. As mortgage rates declined in February and March, both leads and home sales improved materially compared to January, and we ended the quarter with 1,040 homes in backlog. 

In April 2025, the U.S. government announced a baseline tariff of 10% on products imported from all countries and an additional individualized reciprocal tariff on the countries with which the United States has the largest trade deficits. Increased tariffs by the United States have led and may continue to lead to the imposition of retaliatory tariffs by foreign jurisdictions. Additionally, the U.S. government has announced and rescinded multiple tariffs on several foreign jurisdictions, which has increased uncertainty regarding the ultimate effect of the tariffs on economic conditions. Current uncertainties about tariffs and their effects on trading relationships may affect costs for and availability of raw materials or contribute to inflation in the markets in which we operate. Although we are continuing to monitor the economic effects of such announcements, as well as opportunities to mitigate their related impacts, costs and other effects associated with the tariffs remain uncertain. To date, we have not seen any impacts from tariffs on product availability or costs. We are working closely with our suppliers to mitigate any potential impacts as well as broadening our sourcing network.  To date, we have not experienced any disruptions in our labor base related to immigration policies of the new administration in Washington D.C. 

We sell homes under the LGI Homes and Terrata Homes brands. Our 146 active communities at March 31, 2025 included 17 Terrata Homes communities. At March 31, 2024, we had 120 active communities, including 16 Terrata Homes communities.

Recent Developments

On April 28, 2025, we entered into the Sixth Amendment, which amended the 2024 Credit Agreement.  The Sixth Amendment, among other things, (a) extended the maturity of the commitments of certain lenders under the Credit Agreement to April 28, 2029, (b) added certain financial institutions as issuers of letters of credit and (c) reset the tangible net worth financial covenant for the period from and after the date of the Sixth Amendment.