LGI Homes, Inc.

Welcome to the LGI Homes second quarter 2026 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 Josh Fattor, Executive Vice President of Finance 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, outlook, 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 FDC 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 on our quarterly report on Form 10-Q for the period ended June 30th, 2026 that will be filed with the SEC 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 Lieber, LGI Homes Chief Executive Officer and Chairman of the Board and Charles Merdian, Chief Financial Officer and Treasurer. I'll now turn the call over to Eric. Thanks, Josh.

Good afternoon and welcome to our earnings call. During the second quarter, our team delivered strong results while continuing to navigate a dynamic operating environment. We delivered a total of 1,440 homes during the quarter, an increase of 9% over the prior year. Of this total, 1,365 homes contributed directly to home building revenue of $502 million, an increase of 4% compared to the prior year. The additional 75 closings were currently or previously leased homes, the gains from which were reflected in other income. Year to date, we have delivered a total of 2,356 homes, an increase of 2% over the same period last year, leaving us well positioned to achieve our full year closing guidance. Our average selling price for new homes increased to over $367,000 while we continue to support affordability through targeted price discounts on older inventory and financing incentives. We ended the quarter with 151 active communities already achieving the low end of our full year guidance range just six months into the year and representing an increase of 3.4% from a year ago. We are beginning to see some improvement in the land market with a broader set of opportunities becoming available and transaction economics improving. We are finding more deals where pricing and terms align with our disciplined underwriting standards, particularly as new projects are brought to market later in the development process. This provides greater certainty around cost and demand assumptions, enabling us to underwrite using today's market conditions and more readily achieve risk-adjusted returns. Beyond 2026, our development pipeline positions us well for additional community openings in 2027 and continued community count growth. As we continue to grow our community count, we've invested in the capabilities of our organization. We've strengthened sales leadership, expanded leadership development initiatives, and continued refining our product along with the systems and processes that support our sales organization. We believe these capabilities will build upon our proven ability to deliver exceptional customer experience in high-quality homes, which together contribute to the strong customer satisfaction and low warranty costs that are hallmarks of the LGI Homes brand. During the quarter, we averaged 3.2 total closings per community per month. Our strongest performing markets on a closings per community basis were Atlanta at 5.0, Southern California at 4.7, Charlotte at 4.2, Las Vegas at 3.9, and Albuquerque at 3.8 closings per community per month. We delivered a home building gross margin of 19.8% and an adjusted home building gross margin of 23.2%, both of which were above the midpoint of the increased guidance range we provided on our last call. Our predominantly self-developed on-balance sheet land position remains an important advantage, supporting higher profitability and providing operational flexibility regardless of housing market conditions. Our adjusted EBITDA for the quarter was $59 million, or 11.4% of total revenue, reflecting prudent cost discipline, sound decision-making, and a sustained focus on the fundamentals. Demand for new homes during the second quarter was mixed, but still proved more resilient than many would have expected. We ended the quarter with 1,298 homes in backlog, up 61% compared to the prior year. The increase reflects both continued interest in homeownership and a longer buying process as customers navigate affordability challenges and financing qualification requirements. In addition to delivering growth and solid profitability, we continue to strengthen our balance sheet. During the quarter, we paid down approximately $130 million on our credit facility, reducing our leverage ratio by 220 basis points to 42.6%. This progress was driven by disciplined capital allocation, thoughtful management of our development investments, strategic balance sheet initiatives, and continued success monetizing non-core and aged inventory, positioning us to capitalize on opportunities as market conditions improve. As we look ahead, we believe our strong balance sheet, liquidity and operating platform position us well to evaluate opportunities in an increasingly active M&A environment. Our focus continues to be on smaller strategic acquisitions that can enhance our existing platform and strengthen our position in attractive markets. Consistent with our approach to capital allocation, we remain focused on opportunities that are strategically aligned, culturally compatible, financially accretive, and capable of creating long-term shareholder value. Last week, members of our board had the opportunity to visit communities within our Charlotte operation and see firsthand the exceptional work being done by the team. Charlotte continues to be one of our top performing markets, driven by the team's relentless focus on execution, customer service, and operational excellence. Their impact on our overall success has been significant. I want to congratulate and thank everyone in the Carolinas for their hospitality and continued commitment to delivering best-in-class results. Finally, on July 9th, LGi Homes Common Stock was listed and began trading on NASDAQ Texas. LGi Homes was founded in Texas, we're headquartered here in the Woodlands, and many of the families we've helped become homeowners call this state home. We're pleased to be one of the early companies on this new exchange and believe it's a good reflection of our ongoing commitment to our home state. Now I'll invite Charles to provide additional details on our financial results.