LGIH · 10-Q · 2026Q1 · Full report

Letters, Surety Bonds, Guarantees

LGI Homes, Inc. · 2026-04-28 · Importance 38 · Surprise 24

Outstanding letters of credit, surety bonds and financial guarantees totaled $380.1 million as of March 31, 2026, securing performance under construction contracts, development agreements and other arrangements. These obligations fluctuate with pending development activities and are generally not released until development and construction are completed, even though significant improvements at some sites are complete. If any such bonds or letters of credit are drawn upon, the Company would be obligated to reimburse the issuer, but the Company stated it does not believe it is probable that the outstanding letters of credit, surety bonds or financial guarantees as of March 31, 2026 will be drawn upon. The $380.1 million of outstanding guarantees represents a significant contingent obligation given the Company's ongoing development activity.

Key facts

• Outstanding letters of credit, surety bonds and financial guarantees totaled $380.1 million as of March 31, 2026.
• LGI Homes does not believe it is probable that any outstanding letters of credit, surety bonds or financial guarantees as of March 31, 2026 will be drawn upon.
• Under letters of credit, surety bonds and financial guarantees LGI Homes is committed to perform certain development and construction activities and provide certain guarantees in the normal course of business.

Impact estimates