What is LGI Homes's west — inventory impairment?

LGI Homes (LGIH) reported west — inventory impairment of $2.4M in Q1 2026.

What does west — inventory impairment mean?

Represents the non-cash charge recognized when the carrying value of real estate inventory within a specific geographic segment exceeds its estimated fair value. This metric serves as a critical indicator of market health and potential oversupply or pricing pressure within the region. Investors monitor this to assess management's ability to accurately value land and construction assets in volatile housing markets.

LGI Homes LGIH West — Inventory impairment

Other segment segments

Central

$2.3M—

Similar metrics at other companies

BZHWest — Inventory impairments and abandonments

$1.17M+122%

HOVWest — Impairment Of Real Estate

$1.98M+51.9%

TMHCWest and East Homebuilding Segment — Inventory impairment charges

$8.2M—

BZHWest — Estimated Fair Value of Impaired Inventory at Time of Impairment

$5.07M—

BZHWest — Inventory

$1.07B-3.6%

BZHWest — Total impairment charges on land held for sale

$0—

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 west — inventory impairment?: LGI Homes (LGIH) reported west — inventory impairment of $2.4M in Q1 2026.
What does west — inventory impairment mean?: Represents the non-cash charge recognized when the carrying value of real estate inventory within a specific geographic segment exceeds its estimated fair value. This metric serves as a critical indicator of market health and potential oversupply or pricing pressure within the region. Investors monitor this to assess management's ability to accurately value land and construction assets in volatile housing markets.