Willem Robert Rooney's questions to LGI Homes Inc (LGIH) leadership • Q4 2024
Question
Willem Robert Rooney inquired about the conservatism in the 2025 guidance, asking which aspects had the most flexibility, and also asked about the expected cadence of community count growth throughout the year.
Answer
CEO Eric Lipar identified the Average Sales Price (ASP) as likely the most conservative element of the guidance, noting that the backlog ASP is already higher and that price increases will be necessary to offset cost inflation. He also suggested closings guidance was conservative. Regarding community count, Lipar stated that after a significant ramp-up to 151 communities at the end of 2024, the growth cadence in 2025 would likely be more weighted towards the second half of the year.