LGI Homes, Inc.LGIH

LGI Homes, Inc. Segments Disclosure

10-KFiled Feb 20, 20263 min read
SEGMENT INFORMATION
We operate one principal homebuilding business that is organized and reports by division. We have seven operating segments (our Central, Midwest, Southeast, Mid-Atlantic, Northwest, West and Florida divisions) that we aggregate into five qualifying reportable segments at December 31, 2025: our Central, Southeast, Northwest, West, and Florida divisions. These segments reflect the way we evaluate our business performance and manage our operations.
For reporting purposes, our homebuilding operations are aggregated into five reportable segments as follows:
Central:        Texas, Oklahoma, Minnesota
Southeast:    Georgia, Alabama, Tennessee, North Carolina, South Carolina,
West Virginia, Maryland, Pennsylvania, Virginia
Northwest:    Colorado, Washington, Oregon
West:        Arizona, New Mexico, Nevada, California, Utah
Florida:        Florida
In determining the most appropriate reportable segments, we consider operating segments’ economic and other characteristics, including home floor plans, average selling prices, gross margin percentage, geographical proximity, production construction processes, suppliers, subcontractors, regulatory environments, customer type and underlying demand and supply. Each operating segment follows the same accounting policies and is managed by our management team. We have no inter-segment sales, as all sales are to external customers. Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity for the periods presented.
Our Chief Executive Officer and Chairman of the Board and our President and Chief Operating Officer have been determined to be our chief operating decision-makers (“CODMs”). The CODMs primarily evaluate the segments’ operating performance and allocate resources for all of our reportable segments based on net income before income taxes. For all of the segments, the CODMs use segment net income before income tax expense in the annual budget and forecasting process. These operating results are reviewed against actual and forecasted figures, with net income before income taxes being the key operating metric used to measure profit or loss.
Financial information relating to our reportable segments was as follows (in thousands):
Year Ended December 31,
202520242023
Revenues:
Central$419,240 $564,608 $730,688 
Southeast472,150 538,170 556,808 
Northwest188,969 258,407 251,171 
West387,232 472,655 381,102 
Florida237,913 368,758 438,811 
Total home sales revenues$1,705,504 $2,202,598 $2,358,580 
Cost of sales:
Central$329,825 $433,932 $556,664 
Southeast363,880 389,626 416,579 
Northwest158,824 199,217 197,637 
West296,863 359,406 304,550 
Florida202,566 287,129 340,963 
Total cost of sales$1,351,958 $1,669,310 $1,816,393 
Other segment items(1):
Central$65,640 $63,988 $87,728 
Southeast60,571 63,265 61,235 
Northwest26,995 33,277 29,850 
West56,837 61,036 47,429 
Florida41,875 51,274 49,524 
Corporate(2)
3,142 1,535 4,667 
Total other segment items$255,060 $274,375 $280,433 
Net income (loss) before income taxes:
Central$23,776 $66,688 $86,296 
Southeast47,699 85,279 78,994 
Northwest3,150 25,913 23,684 
West33,532 52,213 29,123 
Florida(6,529)30,355 48,324 
Corporate(3,142)(1,535)(4,667)
Total net income before income taxes$98,486 $258,913 $261,754 
(1)Other segment items reflects other sources of income and expense, including selling expenses, general and administrative expenses and other income, net.
(2)The Corporate balance consists of general and administrative unallocated costs for various shared service functions and non-strategic other income.
December 31,
20252024
Assets:
Central$1,162,355 $1,096,500 
Southeast801,556 733,339 
Northwest598,193 567,088 
West800,548 759,042 
Florida452,555 480,921 
Corporate (1)
112,035 121,644 
Total assets$3,927,242 $3,758,534 
(1)The Corporate balance consists primarily of investments in unconsolidated entities.

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 26, 2025
2023Feb 20, 2024
2022Feb 21, 2023
2021Feb 15, 2022
2020Feb 25, 2021
2019Feb 25, 2020
2018Feb 26, 2019
2017Feb 27, 2018
2016Mar 7, 2017
2015Mar 9, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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