LGI Homes, Inc.

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 Fatter, Executive Vice President of Investor Relations and Capital Markets.

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, outlooks, plans, objectives, and guidance for future periods. 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. 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. On this call, we'll discuss non-GAAP financial measures that are not intended to be considered in isolation or as substitutes 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 30th, 2025 that we expect to file with the SEC later today. 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 Leeper, 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.

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. Additionally, heightened economic uncertainty has created a softer sales environment in which buyers are still exploring the idea of homeownership but are taking longer to make decisions and, in some cases, choosing to delay their purchases. 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. Our financial results demonstrate our success at maintaining profitability by offering compelling but balanced financing incentives and offsetting their impact by raising prices in higher-performing communities. These initiatives, along with the incremental profit captured on self-developed lots, enabled us to deliver an adjusted gross margin of 25.5%, of 190 basis points sequentially at the high end of the guidance range provided on our last call. On the cost side, we've been focused on driving operating efficiency and improving cost discipline. Additionally, we made progress optimizing our advertising investments and concentrating dollars on the channels that generate the highest number of leads. These and other initiatives enabled the company to deliver a pre-tax 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. During the second quarter, our top markets 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 teams in these markets on their strong performance last quarter. 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. One final highlight. On May 15th, 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 nonprofit 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.