Company: LGIH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001580670-25-000016
Chunk: 50

Company: LGI Homes, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1
Chunk 50
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 to predict or beyond our control. Although the risks summarized below are organized by heading, and each risk is summarized separately, many of the risks are interrelated. These risks and uncertainties, together with other factors described elsewhere in this report, have the potential to affect our business, financial condition, results of operations, cash flows, strategies or prospects in a material and adverse manner.

Risk Factors Summary

Our business is subject to a number of risks, including risks that may prevent us from achieving our business objectives or may adversely affect our business, financial condition, results of operations, cash flows, strategies or prospects. These risks are discussed more fully below and include, but are not limited to, risks related to:

•Operational Risks Related to Our Business:

◦our ability to acquire finished lots and land parcels suitable for residential homebuilding at reasonable prices;

◦labor and raw material shortages and price fluctuations that could delay or increase the cost of home construction or land development;

◦the impact of an epidemic or pandemic;

•Industry and Economic Risks:

◦higher mortgage interest rates, and the tightening of mortgage lending standards and mortgage financing requirements;

◦a significant downturn in our housing markets or in the homebuilding industry;

◦the homebuilding industry is highly competitive;

◦new and existing laws and regulations or other governmental actions, including environmental, health and safety laws and regulations;

◦increasing attention to environmental, social and governance matters;

◦the seasonal nature of our business;

•Strategic Risks Related to Our Business:

◦our growth or expansion strategies may not be successful;

•Risks Related to Our Organization and Structure:

◦we depend on key management personnel and other experienced employees;

◦our use of leverage in executing our business strategy;

◦we are a holding company, and we are accordingly dependent upon distributions from our subsidiaries to service our debt and pay dividends, if any, taxes and other expenses;

•General Risks:

◦we may be subject to litigation, arbitration or other claims;

◦information system failures, cyber incidents or breaches in security by us or third parties upon which we rely;

◦complex and evolving U.S. laws and regulations regarding privacy and data protection; and

◦access to financing sources may not be available on favorable terms, or at all.

Operational Risks Related to Our Business

The long-term sustainability and growth in our home closings depends in part upon our ability to acquire finished lots and land parcels suitable for residential homebuilding at reasonable