LGI Homes Inc (LGIH) 2025 Q2 法說會逐字稿

Welcome to the LGI Homes second quarter 2025 conference call. Today's call is being recorded, and a replay will be available on the company's website at www.lgihomes.com. After management's prepared comments, there will be an opportunity to ask questions. At this time, I'll turn the call over to Joshua Fattor, Executive Vice President of Investor Relations and Capital Markets.

歡迎參加 LGI Homes 2025 年第二季電話會議。今天的電話會議將被錄音，重播將在公司網站 www.lgihomes.com 上提供。管理層發表準備好的評論後，將有機會提問。現在，我將把電話轉給投資者關係和資本市場執行副總裁 Joshua Fattor。

Thanks, and good afternoon. I'll remind listeners that this call contains forward-looking statements, including management's views on the company's business strategy, outlook, plans, objectives, and guidance for future periods.

謝謝，下午好。我要提醒聽眾，本次電話會議包含前瞻性陳述，包括管理階層對公司業務策略、展望、計畫、目標和未來時期指導的看法。

Such statements reflect management's current expectations and involve assumptions and estimates that are subject to risks and uncertainties that could cause those expectations to prove to be incorrect. You should review our filings with the SEC for a discussion of the risks, uncertainties, and other factors that could cause actual results to differ from those presented today.

此類聲明反映了管理層目前的預期，並涉及受風險和不確定性影響的假設和估計，這些風險和不確定性可能導致這些預期被證明是錯誤的。您應該查看我們向美國證券交易委員會提交的文件，以了解可能導致實際結果與今天呈現的結果不同的風險、不確定性和其他因素。

All forward-looking statements must be considered in light of those related risks and you shouldn't place undue reliance on such statements, which reflect management's current viewpoints and are not guarantees of future performance.

所有前瞻性陳述均須根據相關風險進行考慮，您不應過度依賴此類陳述，這些陳述反映了管理層當前的觀點，並不能保證未來的業績。

On this call, we'll discuss non-GAAP financial measures that are not intended to be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP can be found in the press release we issued this morning and in our quarterly report on Form 10-Q for the quarter ended June 30, 2025, that we expect to file with the SEC later today.

在本次電話會議上，我們將討論非公認會計準則財務指標，這些指標並非旨在單獨考慮或取代依照公認會計準則呈現的財務資訊。非 GAAP 財務指標與按照 GAAP 編制的最具可比性的指標的對帳表可以在我們今天早上發布的新聞稿和我們預計在今天晚些時候向美國證券交易委員會提交的截至 2025 年 6 月 30 日的季度報告（表格 10-Q）中找到。

This filing will be accessible on the SEC's website and on the Investor Relations section of our website. I'm joined today by Eric Lipar, LGI Homes' Chief Executive Officer and Chairman of the Board; Charles Merdian, Chief Financial Officer and Treasurer. I'll now turn the call over to Eric.

該文件可在美國證券交易委員會網站和我們網站的投資者關係部分查閱。今天與我一起出席的還有 LGI Homes 執行長兼董事會主席 Eric Lipar 和財務長兼財務主管 Charles Merdian。我現在將電話轉給 Eric。

Thanks, Josh. Good afternoon, and welcome to our second quarter earnings call. We delivered solid results last quarter despite a challenging market. While the desire for homeownership has proven resilience, elevated mortgage rates contributed to the affordability pressures weighing on entry-level buyers.

謝謝，喬希。下午好，歡迎參加我們的第二季財報電話會議。儘管市場充滿挑戰，但我們上季度仍取得了穩健的業績。儘管人們對住房的渴望已顯示出韌性，但抵押貸款利率上升加劇了入門級購屋者的負擔能力壓力。

Additionally, heightened economic uncertainty has created a softer sales environment, which buyers are still exploring the idea of home ownership, but are taking longer to make decisions and in some cases, choosing to delay their purchases.

此外，經濟不確定性加劇導致銷售環境疲軟，買家仍在探索擁有房屋的想法，但需要更長的時間來做決定，在某些情況下，甚至選擇推遲購買。

Despite these challenges, we remain confident in the long-term outlook for the housing market driven by strong demographic trends and a persistent structural shortage of homes, a shortage that is being compounded as more buyers delay the purchase of their first home. It was against this backdrop that we delivered 1,323 homes in the second quarter at an average sales price of $365,000, resulting in revenue of $484 million.

儘管面臨這些挑戰，我們仍然對房地產市場的長期前景充滿信心，這得益於強勁的人口趨勢和持續的結構性住房短缺，隨著越來越多的買家推遲購買首套住房，住房短缺問題正在加劇。在此背景下，我們在第二季度交付了 1,323 套房屋，平均售價為 365,000 美元，收入達到 4.84 億美元。

Our financial results demonstrate our success in maintaining profitability by offering compelling, but balanced financing incentives and offsetting their impact by raising prices and higher performing communities.

我們的財務結果表明，我們透過提供引人注目但均衡的融資激勵措施，並透過提高價格和提高社區績效來抵消其影響，成功地保持了盈利能力。

These initiatives, along with the incremental profit captured on self-developed lots, enabled us to deliver an adjusted gross margin of 25.5%, up 190 basis points sequentially and at the high end of the guidance range provided on our last call.

這些舉措，加上自主開發地塊獲得的增量利潤，使我們實現了 25.5% 的調整後毛利率，比上一季度增長 190 個基點，達到我們上次電話會議提供的指導範圍的高端。

On the cost side, we've been focused on driving operating efficiency and improving cost discipline. Additionally, we made progress optimizing our advertising investments in concentrating dollars on the channels that generate the highest number of leads.

在成本方面，我們一直專注於提高營運效率和改善成本紀律。此外，我們在優化廣告投資方面取得了進展，將資金集中在產生最多潛在客戶的管道上。

These and other initiatives enabled the company to deliver a pretax net income margin of 8.7% and earnings per share of $1.36. We ended the second quarter with 146 active communities, a 14% increase over the prior year.

這些舉措及其他舉措使公司實現了8.7%的稅前淨利潤率和1.36美元的每股盈餘。截至第二季度，我們擁有146個活躍社區，較前一年成長14%。

During the second quarter, our top market on a closings per community basis were Atlanta with 6.8% Nashville with 5.4%, Wilmington with 5.3%, Richmond with 4.7%, and Charlotte with 4.5%, Congratulations to the teams in these markets on their strong performance last quarter.

在第二季度，以每個社區的成交量計算，我們排名靠前的市場是亞特蘭大（6.8%）、納許維爾（5.4%）、威爾明頓（5.3%）、里士滿（4.7%）和夏洛特（4.5%）。恭喜這些市場的團隊在上個季度的出色表現。

We're pleased with our second quarter performance and remain focused on continued improvement. Our teams across the country remain committed to converting leads and delivering an exceptional customer experience and we expect to see ongoing progress in the coming quarters.

我們對第二季的業績感到滿意，並將繼續致力於持續改善。我們遍佈全國的團隊始終致力於轉換潛在客戶並提供卓越的客戶體驗，我們預計未來幾季將持續進展。

One final highlight. On May 15, we held our Annual Service Impact Day. Nationwide, our teams volunteered more than 8,500 hours working with over 60 organizations around the country. We're grateful to our non-profit partners for their indispensable work and for allowing us to contribute to their projects. We're equally proud of our employees whose generosity and community spirit made this year's Service Impact Day a success. With that, I'll invite Charles to provide additional details on our financial results.

最後一個亮點。5 月 15 日，我們舉辦了年度服務影響日。在全國範圍內，我們的團隊志工服務了超過 8,500 小時，與全國 60 多個組織合作。我們感謝我們的非營利合作夥伴所做的不可或缺的工作，並允許我們為他們的專案做出貢獻。我們同樣為我們的員工感到自豪，他們的慷慨和社區精神使今年的服務影響日取得了成功。有了這些，我將邀請查爾斯提供有關我們財務業績的更多細節。

Thanks, Eric, and good afternoon. Revenue in the second quarter was $483.5 million based on 1,323 homes closed at an average sales price of $365,446. The 19.8% year-over-year decrease in revenue was driven by a 20.1% decline in home closings and was slightly offset by a 0.4% increase in our average sales price.

謝謝，埃里克，下午好。第二季營收為 4.835 億美元，基於 1,323 套房屋成交，平均售價為 365,446 美元。營收年減 19.8% 是由於房屋成交量下降 20.1%，但平均銷售價格上漲 0.4% 略微抵消了下降。

The modest increase in our ASP was driven by geographic mix, partially offset by a higher percentage of wholesale closings in the second quarter. Of our total closings, 237 homes were sold through our wholesale channel, representing 17.9% of closings compared to 7.1% last year. Although demand has tapered recently, the wholesale channel continues to be a compelling way to balance our completed home inventory.

我們的平均售價適度上漲是由地理組合推動的，但第二季批發成交比例的提高部分抵消了這一上漲。在我們的總成交量中，有 237 套房屋是透過批發管道售出的，佔成交量的 17.9%，而去年為 7.1%。儘管最近需求有所減少，但批發管道仍然是平衡我們已完成的房屋庫存的有效方法。

Despite early indications that tariffs would negatively affect margins, their impact in the second quarter was minimal. Our second quarter gross margin was 22.9% compared to 21% in the prior quarter and 25% during the same period last year. Sequentially, gross margin dollars were up over 50%.

儘管早期跡象顯示關稅會對利潤率產生負面影響，但對第二季的影響卻微乎其微。我們第二季的毛利率為 22.9%，而上一季為 21%，去年同期為 25%。毛利率較上季成長超過 50%。

The year-over-year decrease as a percentage of revenue was primarily due to a higher percentage of wholesale closings and to a lesser extent, higher lot costs and higher capitalized interest as a percentage of revenue as well as reduced operating leverage when compared to last year's performance.

收入百分比較去年同期下降主要是由於批發成交比例較高，以及與去年相比地塊成本和資本化利息佔收入百分比較高（較小程度上），以及營運槓桿降低。

Adjusted gross margin was 25.5% compared to 23.6% in the prior quarter and 27% during the same period last year. Adjusted gross margin excluded $11.8 million of capitalized interest charged to cost of sales and $1 million related to purchase accounting together representing 260 basis points compared to 200 basis points last year.

調整後毛利率為 25.5%，上一季為 23.6%，去年同期為 27%。調整後的毛利率不包括計入銷售成本的 1,180 萬美元資本化利息和與採購會計相關的 100 萬美元，合計為 260 個基點，而去年為 200 個基點。

Combined selling, general, and administrative expenses for the second quarter totaled $71 million or 14.7% of revenue. Selling expenses were $41.6 million or 8.6% of revenue compared with 8.8% in the same period last year. The decrease was primarily related to more efficient advertising spend. General and administrative expenses were $29.4 million or 6.1% of revenue compared to 5.1% in the same period last year.

第二季的銷售、一般和管理費用總計 7,100 萬美元，佔營收的 14.7%。銷售費用為 4,160 萬美元，佔營收的 8.6%，去年同期為 8.8%。下降主要與更有效的廣告支出有關。一般及行政開支為 2,940 萬美元，佔營收的 6.1%，去年同期為 5.1%。

Pretax net income was $42 million or 8.7% of revenue, and our effective tax rate was 25% compared to 23.8% in the same period last year. For the quarter, we generated net income of $31.5 million or $1.36 per basic and diluted share. Gross orders in the second quarter were 1,620 and net orders were 1,091.

稅前淨收入為 4,200 萬美元，佔收入的 8.7%，有效稅率為 25%，而去年同期為 23.8%。本季度，我們的淨收入為 3,150 萬美元，即每股基本收入和稀釋收入 1.36 美元。第二季總訂單量為1,620份，淨訂單量為1,091份。

Net orders declined sequentially, reflecting a muted demand environment throughout most of the second quarter. However, we are encouraged by more recent trends, notably in the back half of June and continuing into July, which point to an improving sales environment as we transition into the second half of the year.

淨訂單量較上季下降，反映出第二季大部分時間需求環境低迷。然而，最近的趨勢令我們感到鼓舞，特別是 6 月下半月以及 7 月的趨勢，這表明隨著我們進入下半年，銷售環境正在改善。

Our cancellation rate in the second quarter was 32.7% compared to 22.2% in the same period last year, reflecting the slower sequential sales pace during the quarter. We ended the second quarter with 808 homes in our backlog, representing $322.5 million in value. And of those homes, 91 or 11.3% of our total backlog were related to wholesale contracts with institutional buyers compared to 181 or 13% in the same period last year.

我們第二季的取消率為 32.7%，而去年同期為 22.2%，反映出本季的連續銷售速度有所放緩。截至第二季末，我們的積壓房屋有 808 套，價值 3.225 億美元。在這些房屋中，91 套（佔總積壓訂單的 11.3%）與機構買家的批發合約有關，而去年同期這一數字為 181 套（佔 13%）。

Turning to our land position. At June 30, our portfolio consisted of 64,756 owned and controlled lots, a decrease of 7.4% year over year and 4.5% sequentially. Of those lots, 53,555 or 82.7% were owned and 11,201 lots or 17.3% were controlled.

轉向我們的陸地位置。截至 6 月 30 日，我們的投資組合包括 64,756 個自有和控制地塊，年減 7.4%，季減 4.5%。其中，自有地塊 53,555 塊，佔 82.7%，控制地塊 11,201 塊，佔 17.3%。

Of our owned lots, 7,374 were raw land or land under development, 22% of which were in active development that we expect to deliver over the next several years. The remaining 16,181 owned lots were finished. And of those finished lots, 12,145 were vacant and 4,036 were related to homes under construction.

在我們擁有的土地中，有 7,374 塊為未開發土地或正在開發的土地，其中 22% 處於活躍開發階段，我們預計將在未來幾年內交付。其餘16,181個自有地塊已完工。在這些已完工的地塊中，有 12,145 塊為空置地塊，4,036 塊為在建房屋地塊。

The total number of homes under construction was down 13.6% year over year and 4.4% sequentially as we continue to focus on rebalancing inventory in select markets to meet current sales trends. During the quarter, we started 1,135 homes and ended June with 1,512 homes in progress. We expect to continue to moderate starts in the coming quarters to align the current pace of sales, ensuring efficient inventory levels. I'll now turn the call over to Josh for a discussion of our capital position.

由於我們繼續專注於重新平衡特定市場的庫存以滿足當前的銷售趨勢，在建房屋總數同比下降 13.6%，環比下降 4.4%。本季度，我們開工建造了 1,135 套房屋，截至 6 月底，在建房屋數量為 1,512 套。我們預計未來幾季將繼續適度開工，以調整目前的銷售速度，確保高效率的庫存水準。現在我將把電話轉給喬希，討論我們的資本狀況。

Thanks, Charles. We ended the quarter with $1.7 billion of debt outstanding, including $662.6 million drawn on our revolver, resulting in a debt-to-capital ratio of 45.8% and a net debt-to-capital ratio of 45%. As inventory levels decreased and development spend trends down in the coming quarters, we expect to reduce our overall leverage. Total liquidity at the end of the quarter was $322.6 million, including $59.6 million of cash and $263 million available under our credit facility.

謝謝，查爾斯。本季末，我們的未償債務為 17 億美元，其中包括使用循環信貸提取的 6.626 億美元，導致債務資本比率為 45.8%，淨債務資本比率為 45%。隨著未來幾季庫存水準下降和開發支出趨勢下降，我們預期整體槓桿率將會降低。本季末的總流動資金為 3.226 億美元，其中包括 5,960 萬美元的現金和 2.63 億美元的信貸額度。

During the quarter, we repurchased 367,568 shares of our common stock for $20.6 million and had $157.3 million remaining under our repurchase authorization. At June 30, our stockholders' equity was $2.1 billion, and our book value per share was $89.22, an increase of 9% compared to the same period last year. At this point, I'll turn the call back over to Eric.

本季度，我們以 2,060 萬美元回購了 367,568 股普通股，回購授權金額剩餘 1.573 億美元。截至 6 月 30 日，我們的股東權益為 21 億美元，每股帳面價值為 89.22 美元，比去年同期成長 9%。現在，我將把電話轉回給 Eric。

Thanks, Josh. The soft demand conditions experienced throughout most of the second quarter materialized into weaker July closings than previously anticipated. Later today, we plan to issue a press release announcing that we closed 382 homes in the month of July across 143 active communities. As Charles noted, lead and order trends picked up near the end of June, driven by several new sales initiatives and July sales trended positively in the right direction.

謝謝，喬希。第二季大部分時間需求疲軟，導致 7 月成交量低於先前預期。今天晚些時候，我們計劃發布一份新聞稿，宣布我們在 7 月關閉了 143 個活躍社區的 382 棟房屋。正如查爾斯所指出的，在幾項新的銷售舉措的推動下，6 月底銷售線索和訂單趨勢有所回升，7 月的銷售趨勢也朝著正確的方向發展。

Turning to our outlook. Our SPAC-driven business model in today's environment make visibility into the fourth quarter a challenge. As a result, we're limiting our guidance to the third quarter at this time and intend to reintroduce annual guidance when market conditions stabilize. Based on our current backlog and view of the inventory available to close for Q3 2025, we expect to close between 1,100 and 1,300 homes at an ASP between $360,000 to $365,000 in approximately 145 communities.

轉向我們的展望。在當今環境下，我們以 SPAC 為主導的商業模式使得第四季的可視性成為一項挑戰。因此，我們目前將指導限制在第三季度，並打算在市場狀況穩定時重新引入年度指導。根據我們目前的積壓訂單和對 2025 年第三季可供成交的庫存的看法，我們預計將在約 145 個社區以 360,000 美元至 365,000 美元的平均售價成交 1,100 至 1,300 套房屋。

We expect a slight reduction in gross margins as we offer compelling incentives and additional discounts to move aged inventory. Therefore, third quarter gross margin is expected to range between 21.5% and 22.5% and adjusted gross margin between 24% and 25%.

由於我們提供了極具吸引力的激勵措施和額外折扣來清理陳舊庫存，我們預計毛利率會略有下降。因此，預計第三季毛利率在21.5%至22.5%之間，調整後毛利率在24%至25%之間。

Finally, SG&A expense will range between 15% and 16%, and we expect our tax rate to be approximately 24.5%. I want to close by thanking all of our LGI Homes employees across the country. Your relentless focus on connecting directly with motivated buyers while sustaining our profitability was instrumental to our performance last quarter. I'm grateful for your continued dedication to our company and the customers we serve. We'll now open the call for questions.

最後，銷售、一般及行政費用將在 15% 至 16% 之間，我們預計稅率約為 24.5%。最後，我要感謝全國所有的 LGI Homes 員工。您堅持不懈地專注於直接與積極的買家建立聯繫，同時保持我們的盈利能力，這對我們上個季度的業績至關重要。我感謝您對我們公司和我們服務的客戶的持續奉獻。我們現在開始提問。

(Operator Instructions)

（操作員指示）

Trevor Allinson, Wolfe Research.

特雷弗·阿林森（Trevor Allinson），沃爾夫研究公司。

First one, just on pace and price. You guys have been very clear in the past talking about a need to get paid on the gross margin line and your gross margin was certainly better than we were anticipating in the quarter. At the same time, your absorption pace on orders fell to about 2.5.

第一個，只考慮速度和價格。你們過去曾非常明確地談論過需要在毛利率線上獲得報酬，而且你們的毛利率肯定比我們本季預期的要好。同時，你的訂單吸收速度下降到2.5左右。

The question is, is there a minimum absorption pace where it doesn't make sense for you guys to drop below that number, even in the elastic market and you need to step on incentives a bit to maintain that certain level. What is that level for you guys?

問題是，是否存在一個最低吸收速度，低於這個數字對你們來說是沒有意義的，即使在彈性市場中，你們也需要稍微加大激勵力度來維持一定的水平。對你們來說那是什麼水準？

Yeah. Hey Trevor, this is Eric. Thanks for the question. I think we analyzed the community by community across the United States. Certainly, orders in Q2 was not where we want them to be.

是的。嘿，特雷弗，我是艾瑞克。謝謝你的提問。我認為我們對美國各個社區進行了分析。當然，第二季的訂單量並沒有達到我們的預期。

We always want more pace, leading to our discussion on gross margin. We're forecasting slightly lower gross margin because we are leaning into incentives, especially on the older aged inventory. So it is a balance. And I think the other discussion on our gross margin is really capitalizing on all of our land development profit.

我們總是希望加快步伐，從而引發我們對毛利率的討論。我們預測毛利率會略低，因為我們傾向於採取激勵措施，尤其是針對舊庫存。所以這是一種平衡。我認為關於我們毛利率的另一個討論實際上是利用我們所有的土地開發利潤。

We're in really good shape, and our land positions we feel. We have a lot of good value there. So even though we're incentivizing heavily and pushing pace as much as we can, we still think our gross margin should be elevated compared to our peer groups that are more asset light.

我們的狀況非常好，而且我們的土地位置也很好。我們在那裡擁有很多有價值的東西。因此，儘管我們大力激勵並盡可能加快步伐，我們仍然認為，與資產更輕的同行相比，我們的毛利率應該會提高。

Okay. Thanks, Eric. That was really helpful. And then Second question, you talked about some encouraging trends in late June and throughout July. Can you give us some numbers around what you're seeing? And then what do you think is driving that improvement? Was it the decline in rates in late June? Or do you believe it's the actions that you guys are putting in place here just for some additional demand that's improving your sales trends here?

好的。謝謝，埃里克。這真的很有幫助。第二個問題，您談到了 6 月底和整個 7 月的一些令人鼓舞的趨勢。您能為我們提供一些您所看到的數字嗎？那麼您認為推動這種改善的因素是什麼？是六月底利率下降嗎？或者你認為您在這裡採取的行動只是為了增加一些需求，從而改善您們的銷售趨勢？

Yeah. Great question as well, Trevor. I think it's both, a better rate environment and certainly helping, especially last weekend, we saw a material drop in rates, the 10-year focused on driving through to the mortgage rates. And also the team across the country is really doing a good job.

是的。特雷弗，這也是個很好的問題。我認為兩者都有，更好的利率環境肯定有幫助，特別是上週末，我們看到利率大幅下降，10 年期利率集中下降到抵押貸款利率。而且全國各地的團隊也確實做得很好。

We're really leaning into focusing on all of the digital leads that we receive and really following up those customers make sure we're focused on the customers that are inquiring because demand is still there and really shutting out a lot of the noise in the market.

我們真正傾向於關注我們收到的所有數位線索，並真正跟進這些客戶，確保我們專注於正在詢問的客戶，因為需求仍然存在，並且真正消除了市場上的許多噪音。

So I think those two in combination increased incentives on older inventory really made it for a positive July. It's too early to tell. We haven't got everybody in July through loan application yet and got all the necessary approvals. We can't give specific numbers. I think that's also where we are on the guidance of 1,100 to 1,300 closings. The upside on that is going to come from a stronger July and a good start to sales in Q3.

因此，我認為這兩項措施結合起來，增加了對舊庫存的激勵，確實使 7 月表現積極。現在下結論還為時過早。我們還沒有讓所有人在七月通過貸款申請並獲得所有必要的批准。我們無法給出具體的數字。我認為這也是我們預期的 1,100 至 1,300 家門市的成交量。其優點在於七月份銷售表現更加強勁，第三季銷售開局良好。

Michael Rehaut, JPMorgan.

摩根大通的麥可雷豪特。

This is Andrew Azzi on for Mike. I just wanted to follow-up a little bit on the June and July comment and kind of why you're encouraged that come in the press release. It seems that sales pace would be relatively -- are there any account dynamics because if you kind of take sales, if you take community count flat to up a bit, it seems that a sales basis is relatively stable at these levels are even down a bit. So I just want to see if you can expand on that.

我是安德魯‧阿齊 (Andrew Azzi)，代替麥克 (Mike)。我只是想稍微跟進一下 6 月和 7 月的評論，以及為什麼鼓勵您在新聞稿中發表這些評論。看起來銷售速度會相對較快 - 是否存在任何帳戶動態，因為如果您進行銷售，如果您將社區數量持平或略有上升，似乎銷售基礎在這些水平上相對穩定，甚至略有下降。所以我只是想看看你是否可以進一步闡述這一點。

Yeah, Andrew, this is Eric. I think I got the question. You were breaking up a little bit, but more on the sales pace and in July, again, the numbers are just showing is better than June. And second quarter sales and closing numbers certainly are not where we want them to be. So we are watching every community looking at incentives, looking at our aged inventory and the results were just better in July.

是的，安德魯，這是艾瑞克。我想我明白了這個問題。您剛才談到了一些問題，但更多的是關於銷售速度，而且 7 月的數據再次顯示比 6 月更好。第二季的銷售額和收盤數字肯定沒有達到我們想要的水平。因此，我們關注每個社區的激勵措施，並關注我們的陳舊庫存，七月的結果更好一些。

The team gets a lot of credit for that. We've really leaned into our training, leaned into the leadership the overall news around tariffs and some of the uncertainty, maybe that's abated a little bit. We're not exactly sure, but the demand is there and orders were better in July.

該團隊因此獲得了很多讚譽。我們確實傾向於我們的培訓，傾向於領導層有關關稅的整體新聞和一些不確定性，也許這些已經減弱。我們並不十分確定，但需求確實存在，而且七月的訂單情況也更好。

I appreciate that. And thanks for bearing with my core connection. I guess one last one if we hit on the share repurchase was obviously nice to see. How do you expect that to trend for the rest of the year from these levels?

我很感激。感謝您忍受我的核心連結。我想，如果我們最後討論股票回購，那顯然是件好事。從這些水平來看，您預計今年剩餘時間的趨勢會如何？

You got Josh on the line. We're just kind of sticking to what we did during the quarter at this point. We have $157.3 million remaining, and it's just going to be something that's constantly on our radar. Right now, we're being honest. We're really focused on our overall leverage and debt outstanding.

喬希正在和你通話。目前，我們只是堅持本季所做的事情。我們還剩下 1.573 億美元，我們會持續關注此事。現在，我們很誠實。我們真正關注的是我們的整體槓桿率和未償還債務。

That's a priority for us right now. We came in right at the top end of the guidance range we provided in the past, about 35% to 45%. So that's really where we're going to be. We're going to be targeting our efforts at this point, but the share repurchases are always something that's on the table and the price is obviously an extraordinary discount, which makes it very compelling.

這是我們目前的首要任務。我們達到了過去提供的指導範圍的最高端，約為 35% 至 45%。這就是我們真正要去的地方。我們將在此時集中精力，但股票回購始終是我們一直在考慮的事情，而且價格顯然是一個非常大的折扣，這使得它非常引人注目。

Kenneth Zener, Seaport.

肯尼斯‧澤納 (Kenneth Zener)，海港。

The question about pace, I think about pace as starts, given your focus on inventory units, which then you try to sell? It seems because 2Q orders or starts were pretty moderate, with a two-handle. I'm not -- seasonality usually doesn't come into effect with you guys. But I mean, from a modeling perspective, can you see that running below two, which I was looking back at your history, I'm not sure I've even seen it so. But I mean, would you accept that running below two, the pace?

關於速度的問題，我認為速度是開始的，考慮到您關注的是庫存單位，然後您會嘗試銷售哪些？似乎因為第二季的訂單或開工量相當適中，並且有兩個手柄。我不是——季節性通常不會對你們產生影響。但我的意思是，從建模的角度來看，你能看到運行低於 2 嗎，我回顧了你的歷史，我不確定我是否見過這種情況。但我的意思是，你能接受以低於 2 的速度跑步嗎？

Well, that's not what we expect, Ken. I mean, we wouldn't expect that. We would expect Q2 to be the low orders per community and closings per community. But that being said, we never know what to expect. That's a little bit out of our control, but we would expect better results than that.

嗯，這不是我們所期望的，肯。我的意思是，我們沒想到這一點。我們預計第二季每個社區的訂單量和每個社區的成交量都將較低。但話雖如此，我們永遠不知道會發生什麼事。這有點超出我們的控制範圍，但我們期望得到更好的結果。

Okay. I mean this is very helpful that you're commenting on this. And then closings starts, where do you expect your kind of year-end inventory units to be relative to the prior year? Is that something that you could see kind of being flat or you're down about 14% in the quarter -- second quarter? Does that kind of tie off with how you're thinking your end count will be?

好的。我的意思是，您對此發表評論非常有幫助。然後開始結帳，您預計年末庫存單位相對於上一年會是多少？您認為第二季的銷售量會持平嗎？還是會下降約 14%？這是否與您設想的最終計數結果相符？

Hey Ken, this is Charles. Yes, we will start fewer homes than we closed in the third quarter. We'll evaluate kind of on a month-to-month basis on where we start houses based on the specific markets. We ended the quarter with about 2,300 completed homes, which is more than we typically would carry given our order pace.

嘿，肯，我是查爾斯。是的，我們開工的房屋數量將少於第三季關閉的房屋數量。我們將根據具體市場，按月評估我們開始建造房屋的地點。本季結束時，我們已完成約 2,300 套房屋，以我們的訂單速度，這個數字超過了我們通常的交付量。

So we're focused on selling out of those completed homes, Eric had mentioned incentives on aged inventory that's going to help reduce the overall inventory levels down, and our target is between six and seven months’ supply. We're a little heavy at the end of this quarter. So we would expect to kind of end the year at about six to seven months based on 2026 expected closings is how we would think about it.

因此，我們專注於銷售那些已完成的房屋，埃里克曾提到對舊庫存的激勵措施，這將有助於降低整體庫存水平，我們的目標是六到七個月的供應量。本季末我們的負擔有點重。因此，根據 2026 年的預期收盤情況，我們預計今年的收盤時間將在六到七個月左右。

Okay. And then I believe in the guidance, you guys were like 160 community count fiscal year in 1Q's guidance, and now you're giving 3Q at 145. Am I tracking that correct?

好的。然後我相信指導意見，你們在第一季的指導中給出了 160 個社區財政年度的計數，而現在你們給出的第三季度的計數是 145。我追蹤的正確嗎？

Correct.

正確的。

Does that -- I mean, were there a few -- it's logical to assume you're not going to pop up, but then there's always community timing, which can be very random. -- does there -- is there any kind of structural change that we should infer between where guidance is for 3Q and where it was at 4Q?

那是不是 - 我的意思是，有幾個 - 假設你不會突然出現是合乎邏輯的，但是總會有社區時間，這可能是非常隨機的 - 是否存在 - 我們應該推斷出第三季度的指導和第四季度的指導之間是否存在任何結構性變化？

No, no structural change, Ken, I think we're just focused on Q3 guidance because that gives us the biggest visibility. You mentioned it. There's always a lot of challenges with getting these new communities open from a timing standpoint and where our sales pace is at today. We're really analyzing whether we should open the community, possibly a community, which sales teams can be associated with the community. So we just got a lot better visibility into Q3 than Q4 at this time.

不，沒有結構性變化，肯，我認為我們只是專注於第三季度的指導，因為這給了我們最大的可見性。你有提到過。從時間角度以及我們目前的銷售速度來看，開放這些新社群總是面臨許多挑戰。我們確實在分析是否應該開放社區，可能是一個社區，哪些銷售團隊可以與該社區連結。因此，我們目前對第三季的了解比對第四季的了解要好得多。

Right. And I do think one quarter forward is the proper way to do it. So we're happy to see that in the press release.

正確的。我確實認為提前一個季度是正確的做法。因此我們很高興在新聞稿中看到這一點。

Alex Rygiel, Texas Capital Securities.

德州資本證券公司的 Alex Rygiel。

Can you talk a little bit about the sale of finished lots moving forward.

能否談談成品地塊未來銷售的情況？

The sale of finished lots to other developers or other builders, Alex, is that the question.

亞歷克斯，問題在於將完工的土地出售給其他開發商或其他建築商。

Yeah. Should we expect the pace to be similar to the second quarter or do you see that increasing?

是的。我們是否應該預期其速度與第二季相似，或者您認為其速度是否會加快？

Alex, this is Charles. I'll take it first. I think we were a little lighter in this quarter. I think our other income was pretty limited related to finished lot sales. We did close on a commercial track, which is in our quarter -- this quarter, it's pretty volatile or unpredictable, I guess, is maybe the best way to explain it. We have certain lots in select communities that we've identified that we have excess finished lot inventory.

亞歷克斯，這是查爾斯。我先拿去。我認為本季我們的業務稍微輕鬆一些。我認為我們與成品銷售相關的其他收入相當有限。我們確實在商業軌道上取得了成功，這是我們本季的情況——本季相當不穩定或難以預測，我想，這也許是最好的解釋方式。我們在選定的社區中擁有某些地塊，並且已確定這些地塊擁有過剩的成品庫存。

So we are evaluating each one of those on a community-by-community basis. So not really a lot that we can give in terms of guidance in terms of how it may relate to profitability or cash flow generation, but it is something that we're working towards to make sure that, that is helping to evaluate our leverage balance and inventory balances overall.

因此，我們正在根據每個社區的具體情況對這些問題進行評估。因此，就其與獲利能力或現金流產生之間的關係而言，我們實際上無法提供太多指導，但我們正在努力確保這有助於評估我們的槓桿平衡和整體庫存平衡。

And then secondly, the cancellation rate in the quarter was a little on the high end. Can you talk about maybe what in particular impacted that in the current quarter? And if any actions have been taken as sort of diminished that?

其次，本季的取消率略高。您能否談談本季具體有哪些因素產生了影響？如果採取任何措施來減少這種情況呢？

Yeah, sure. Yes, I think I'd start with the cancellation rate can be fairly up and down depending on timing of where gross orders come in at. So we did have a declining gross order pace, which tends to inflate the cancellation rate when the trend turns. In other words, the cancellation rate tends to be a little bit lower when gross orders tend to accelerate.

是的，當然。是的，我認為取消率可能會根據總訂單的到達時間而大幅波動。因此，我們的總訂單速度確實在下降，當趨勢轉變時，這往往會導致取消率上升。換句話說，當總訂單量趨於加速時，取消率往往會略低一些。

We also had a large wholesale contract that canceled. It was booked in the first quarter and then canceled in the second quarter, which was part of our first quarter backlog. So that had an impact on our overall cancellation rate. Without that cancellation, we would have been in the mid to high 20s, which would have been more normalized.

我們還有一個大型批發合約被取消了。它在第一季被預訂，然後在第二季被取消，這是我們第一季積壓訂單的一部分。所以這對我們的整體取消率產生了影響。如果沒有那次取消，我們的收入將會達到 2500 到 30 萬美元，這將更加正常化。

Jay McCanless, Wedbush.

傑伊麥坎利斯，韋德布希。

I guess the first one, could you talk about where incentives are as a percentage of ASP now versus this time last year?

我想是第一個問題，您能否談談現在與去年同期相比激勵措施佔 ASP 的百分比是多少？

Yeah, I think it's slightly higher, Jay. We can get those exact numbers for you because there's closing cost incentives, there's also price reductions. So I would say it's 50 basis points to 100 basis points higher than last year is what it feels like operationally .

是的，我認為稍微高一點，傑伊。我們可以為您提供這些準確的數字，因為有成交成本激勵，還有價格降低。所以我想說，從營運角度來看，它比去年高出 50 個基點到 100 個基點。

And then the second question I had, when we look at the 15% to 16% for SG&A, is that just less revenue leverage? Or are you guys increasing the amount of co-broker or other incentives that show up in the SG&A to get those specs sold?

然後我的第二個問題是，當我們看到 SG&A 費用為 15% 到 16% 時，這是否只是較低的收入槓桿？或者你們會增加銷售、一般及行政費用中的聯合經紀人或其他激勵措施的金額，以銷售這些規格？

Yeah, I can take this. This is Charles. I think coming off of 14.7% from this quarter, I mean, I think the high end of the guidance range for the quarter at 1,300 kind of puts us at a similar ratio. So just factoring the extra 100 basis points if we come in at the bottom end of the range.

是的，我可以接受。這是查爾斯。我認為，從本季度的 14.7% 來看，我認為本季指導範圍的高端 1,300 使我們達到了類似的比例。因此，如果我們處於該範圍的底端，則只需考慮額外的 100 個基點。

And then I know you guys pulled the fiscal '25 guide, but I guess directionally, how are you all thinking about community count for the rest of this year and then to '26 and community count is a big piece of the revenue equation for you guys with your SPAC model?

然後我知道你們拿出了 25 財年指南，但我想從方向上看，你們是如何考慮今年剩餘時間以及 26 年的社區數量的，而社區數量對於你們的 SPAC 模型的收入方程式來說是一個很大的組成部分？

Yeah. I think, Jay -- this is Eric. Directionally, it should be increasing. There's no question. I mean, the communities that we have guided to before are still there. It's just a question of timing, decision on spending capital to get those communities open, looking at the marketing and taking it month by month and quarter by quarter. So we're real comfortable at the end of Q3 ending up at approximately 145, but also growing community down into 2026.

是的。我想，傑伊——這是艾瑞克。從方向上看，它應該是增加的。毫無疑問。我的意思是，我們之前引導過的社群仍然存在。這只是一個時間問題，決定投入資金來開放這些社區，專注於行銷並逐月、逐季進行。因此，我們對第三季末的規模感到非常滿意，最終規模約為 145 人，而且到 2026 年，社區規模還會不斷擴大。

Okay. And then the last one for me. Josh, you talked about doing some share repurchases this quarter, which was good to see, but also about debt reduction, I guess, what takes precedent? And where do you want the leverage ratio to be in the next couple of quarters?

好的。對我來說這是最後一個。喬希，你談到了本季進行的一些股票回購，這很好，但也談到了債務削減，我想，先例是什麼？您希望未來幾季的槓桿率達到多少？

Yeah. Jay, I think it's probably getting ahead of ourselves to say exactly where we want it to be. I'll say that delevering is absolutely a focus for us, right? We're coming in. We've always measured this right on a net debt to cap ratio.

是的。傑伊，我認為現在就說出我們想要的具體位置可能有點操之過急。我想說，去槓桿絕對是我們關注的重點，對嗎？我們進來了。我們一直以淨債務與資本比率來衡量這一點。

And so we really did just sort of nail it right on the nose at 45% at the high end of the 35% to 45% range. And so we'd like to get that a little bit lower as we rightsize our inventory to the current environment.

因此，我們確實準確地將 45% 定在了 35% 至 45% 範圍的高端。因此，我們希望在根據當前環境調整庫存規模時，將這一數字稍微降低一些。

Obviously, we started fewer homes when we closed this past quarter. So that's a strategy will continue in the coming quarters as we rebound that inventory. And I think the other stat I'd put in people's minds, and this might help you for every 500 units, we lower the inventory. That equates to about $100 million less than completed inventory. And so that's capital that we can allocate into either one of those strategies.

顯然，上個季度我們關閉的房屋數量減少了。因此，隨著庫存反彈，我們將在未來幾季繼續實施這項策略。我認為我要向人們灌輸的另一個統計數據可能會對你們有所幫助，那就是每增加 500 個單位，我們就會降低庫存。這相當於比已完成的庫存少了約 1 億美元。這就是我們可以分配到其中任何一種策略的資本。

Alex Barron, Housing Research Center.

住房研究中心的亞歷克斯·巴倫。

Historically, you guys have had probably one of the highest margins and highest sales pace in the group. And right now, I guess, Obviously, the environment is a bit weaker, but I'm kind of wondering how you guys are thinking about going forward? It seems like you're still emphasizing margins, but I'm wondering if you guys are reconsidering whether maybe going forward, it's more of a matter of having slightly lower margins to kind of pick up the pace? Or how are you guys thinking about it right now?

從歷史上看，你們可能是集團中利潤率和銷售速度最高的公司之一。而現在，我想，顯然，環境有點弱，但我想知道你們是如何考慮未來發展的？看起來你們仍然在強調利潤率，但我想知道你們是否正在重新考慮，未來是否可能需要稍微降低利潤率來加快步伐？或者你們現在是怎麼想的？

Yeah. I think, Alex, it's a great question and consistent with a couple of other questions we have. But margins is we spent a lot of money on land developments, a lot of capital that we put into land development. And we believe in order to do that, you have to capture a respectable margin. And then it's all about pace.

是的。亞歷克斯，我認為這是一個非常好的問題，並且與我們提出的其他幾個問題是一致的。但利潤是我們在土地開發上花費了大量資金，我們在土地開發上投入了大量資金。我們相信，為了做到這一點，你必須獲得可觀的利潤。接下來就是節奏的問題了。

I mean the company is not focused on margin. Margin is a byproduct of being in the real estate business and you need to make an acceptable margins for the continuation of the business. But we are 100% focused on pace.

我的意思是公司不注重利潤。利潤是從事房地產業務的副產品，您需要獲得可接受的利潤才能繼續經營。但我們 100% 專注於節奏。

I think the pace relative to historical averages is all around affordability. Our average sales price is a lot higher than it used to be. Taxes are higher, insurance is higher. The monthly payments is higher, rates are higher. And it's just a strain on affordability is what's driving the lower absorption pace.

我認為相對於歷史平均值的速度完全取決於可負擔性。我們的平均銷售價格比以前高出許多。稅金更高，保險更高。每月還款額越高，利率越高。而正是負擔能力的壓力才是導致吸收速度下降的原因。

We're all dealing with it. Our particular buyer, which is probably at the lower end of the FHA spectrum and it's currently paying rent. I guess feeling the strain more than some of the other buyer segments and has been over the last couple of years, but we are 100% focused on pace.

我們都在處理這個問題。我們的特定買家可能處於 FHA 範圍的低端，目前正在支付租金。我想我們比其他一些買家群體感受到的壓力更大，而且在過去幾年裡一直如此，但我們 100% 專注於步伐。

Got it. And in terms of affordability, is there anything you guys are thinking of doing differently like maybe more attached housing or smaller square footage type houses or anything like that?

知道了。在負擔能力方面，你們有沒有考慮採取不同的措施，例如建造更多的聯排房屋或面積較小的房屋，或者諸如此類的？

Absolutely. We're laser-focused on affordability. I think the two components that comes into play on is the incentives to drive that rates lower and prices as much as we can while protecting that margin that we need to make for the continuation of our business and then smaller square footages on the houses is something that we've employed over the last couple of years.

絕對地。我們非常注重價格的可負擔性。我認為發揮作用的兩個因素是激勵措施，以盡可能降低利率和價格，同時保護我們繼續開展業務所需的利潤，然後是較小的房屋面積，這是我們在過去幾年中一直採用的方法。

We're looking at our land development opportunities, future sections, whether we can do more attached product, whether we can do smaller lot size to get that developed finished lot costs as low as we possibly can that leads into more housing affordability.

我們正在尋找土地開發機會、未來地段、是否可以生產更多附屬產品、是否可以生產更小的地塊面積，以盡可能降低已開發的成品地塊成本，從而提高住房的可負擔性。

This concludes our Q&A section. I would now like to turn the call back to Eric for closing remarks.

我們的問答部分到此結束。現在我想請 Eric 做最後發言。

Thank you, and thank you for participating in today's call and your continued interest in LGI Homes. Have a great day.

謝謝，感謝您參加今天的電話會議並持續關注 LGI Homes。祝你有美好的一天。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。