LGI Homes posted USD 557.4 million in revenue for Q4 2024, with gross profit of USD 127.5 million and a gross margin of 22.9%. Operating income stood at USD 45.6 million, yielding an operating margin of 8.18%, and net income reached USD 50.9 million (net margin 9.13%) with diluted EPS of USD 2.15. Year-over-year (YoY) revenue declined by 8.4% and net income declined by 2.3%, while quarter-over-quarter (QoQ) revenue fell 14.5% and net income declined 26.9%. The company generated USD 57.0 million in cash from operating activities and USD 56.4 million in free cash flow in the quarter, supporting a cash balance of USD 53.2 million at period-end. Total debt stood at USD 1.48 billion with net debt of USD 1.43 billion, and stockholders’ equity was USD 2.04 billion, underscoring a solvent balance sheet despite leverage.
A notable feature of the quarter is the very lengthy days inventory outstanding (DIO) at approximately 709 days, contributing to an elevated working capital profile and suggesting a substantial inventory build tied to land development and/or homes in progress. The current ratio is robust at 14.68, but the inventory-heavy profile implies potential near-term monetization risk and working capital sensitivity to housing demand trends. Management commentary for QQ4 2024 is not provided in the supplied data; consequently, forward-looking guidance and thematic quotes from the earnings call could not be incorporated. Overall, the earnings show respectable profitability and cash generation within a modestly sized balance sheet, but the inventory dynamics and cyclical housing backdrop warrant a cautious investment stance in the near term.