LGIH · 10-Q · 2026Q1 · Full report
Backlog and Order Trends
LGI Homes, Inc. · 2026-04-28 · Importance 100 · Surprise 100
Ending backlog increased to 1,699 homes valued at $660.511 million at March 31, 2026, up from 1,040 homes valued at $406.166 million at March 31, 2025 (units +63.4%, value +62.6%). Net orders for Q1 2026 were 1,221 homes, down 15.0% versus 1,437 in Q1 2025, while the cancellation rate rose sharply to 45.6% from 16.3% year-over-year, citing financing challenges and buyer sensitivity. Management attributes the backlog expansion largely to slower conversion of homes under contract to closings and a higher volume of homes under contract at quarter end; a significant portion of backlog is further along in construction and expected to close near-term. Management warns elevated cancellation rates and market changes could materially affect conversion pace and future gross margins.
Key facts
- The cancellation rate increased to 45.6% in the three months ended March 31, 2026 from 16.3% in the three months ended March 31, 2025.
- Ending backlog grew to 1,699 homes with an aggregate value of $660.511 million at March 31, 2026 compared to 1,040 homes valued at $406.166 million at March 31, 2025.
- Net orders for the three months ended March 31, 2026 were 1,221 homes, a decrease of 15.0% from 1,437 homes for the three months ended March 31, 2025.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | probable | +36.2% | Ending backlog grew to 1,699 homes with an aggregate value of $660.511 million at March 31, 2026 compared to 1,040 homes valued at… |
| revenue | negative | realized | — | The cancellation rate increased to 45.6% in the three months ended March 31, 2026 from 16.3% in the three months ended March 31, 2025. |
| revenue | negative | realized | — | Net orders for the three months ended March 31, 2026 were 1,221 homes, a decrease of 15.0% from 1,437 homes for the three months ended… |