What is LGI Homes's central — inventory impairment?

LGI Homes (LGIH) reported central — inventory impairment of $2.3M in Q1 2026.

What does central — inventory impairment mean?

Represents the non-cash charge recognized when the carrying value of real estate inventory exceeds its estimated fair value. This metric indicates potential market softening or overvaluation of land assets within the specific geographic segment. Monitoring this helps investors assess the quality of the land bank and the effectiveness of capital allocation strategies.

LGI Homes LGIH Central — Inventory impairment

Other segment segments

West

$2.4M—

Similar metrics at other companies

TMHCCentral — Real estate inventory and land deposits

$1.21B-2.9%

GRBKCentral — Total inventory

$688.22M-7.4%

MHOImpairment Of Real Estate

$11.92M—

KBHInventory impairments and land option contract abandonments

$2.16M+48.1%

DFHInventory and lot deposit impairment

$1.65M+81.9%

KNFCentral — Less write-offs charged against the allowance

$11K-38.9%

Other financials

Income statement

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Revenue$319.7M-9.0%

Gross profit$59.9M-18.7%

Operating income-$582.0K-444%

Net income$2.2M-45.9%

EPS (diluted)$0.09-47.1%

Balance sheet

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Cash & equivalents$60.9M+5.7%

Total debt$5.0M-17.3%

Total equity$2.1B+2.9%

Total assets$4.0B+3.1%

Cash flow

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Operating cash flow-$55.5M+56.3%

CapEx$696.0K-16.2%

Free cash flow-$56.2M+56.1%

Valuation

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Market cap$1.43B+26.9%

Enterprise value$1.37B+27.8%

P/E20.2×+14.0×

P/S0.9×+0.3×

Profitability

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Gross margin20.3%-3.5pp

Operating margin4.7%-4.2pp

Net margin4.2%-4.2pp

FCF margin-10.5%-12.7pp

Returns & leverage

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Return on equity3.4%-5.9pp

Debt / equity0×0.0×

Where this comes from

Reported directly by LGI Homes in its filing.

Tagged under the XBRL concept us-gaap:InventoryWriteDown.

The official record: LGI Homes’s 10-Q, filed April 28, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is LGI Homes's central — inventory impairment?: LGI Homes (LGIH) reported central — inventory impairment of $2.3M in Q1 2026.
What does central — inventory impairment mean?: Represents the non-cash charge recognized when the carrying value of real estate inventory exceeds its estimated fair value. This metric indicates potential market softening or overvaluation of land assets within the specific geographic segment. Monitoring this helps investors assess the quality of the land bank and the effectiveness of capital allocation strategies.