LG Homes Hits Stride in Q3 2026 with Strong Growth and Profitability
LG Homes has reported a solid third quarter for 2026, driven by strong execution in the highly competitive housing market. The company's team has continued to deliver well, growing closings, total revenue, and homebuilding revenue compared to last year while maintaining profitability.
The company delivered 1,222 homes in the quarter, up over 10% from the prior year, with a year-to-date total of 3,578 homes, up over 4% compared to last year. The average selling price was $368,000, down slightly from the prior year primarily due to wholesale closings and geographic mix.
As a result of higher closings, homebuilding revenue and total revenue each increased 10% over the prior year. Profitability remained strong throughout the quarter, with homebuilding gross margin at 20.2% and adjusted homebuilding gross margin at 23.7%, both up 40 basis points over the prior quarter.
The company's on-balance-sheet, predominantly owned land strategy, together with its in-house development capabilities, reflects the long-term decisions made to set LG Homes apart from much of the industry. This remains a competitive advantage, generating strong margins while giving flexibility to adapt to changing market conditions.
Community growth is also a key driver of results and an important part of the company's long-term strategy. The company reached an all-time high of 153 active communities in August and ended the quarter with 151, an increase of over 7% compared to last year.
This increase helped drive year-over-year growth in closings and revenue, remaining one of the best indicators of future growth as it expands the ability to serve more customers and increase earnings over time. The company averaged 2.6 home closings per community per month during the quarter, with top markets including Atlanta, Charlotte, Austin, and Fort Pierce.
The company has also continued to strengthen its balance sheet by paying down $36 million on its credit facility and reducing its net debt-to-capital ratio by 100 basis points sequentially. This brings the total reduction over the last year to 420 basis points, demonstrating a commitment to financial discipline and stability.
