Adjusted gross margin was 25.5%, up 190 basis points sequentially and at the high end of guidance, despite a gross margin decline to 22.9% due to higher wholesale closings and costs.
Backlog at quarter end was 808 homes valued at $322.5 million, with 11.3% related to wholesale contracts.
Cancellation rate increased to 32.7% from 22.2% last year, influenced by slower sales pace and a large wholesale contract cancellation.
Debt outstanding was $1.7 billion with a debt-to-capital ratio of 45.8%, and liquidity totaled $322.6 million including cash and credit facility availability.
Land portfolio decreased 7.4% year-over-year to 64,756 lots, with a focus on rebalancing inventory and moderating home starts to align with sales pace.
LGI Homes delivered 1,323 homes in Q2 2025 with an average sales price of $365,000, generating revenue of $484 million, a 19.8% year-over-year decrease driven by a 20.1% decline in home closings.
Pretax net income margin was 8.7%, with earnings per share of $1.36 for the quarter.
SG&A expenses totaled $71 million or 14.7% of revenue, with selling expenses decreasing due to more efficient advertising spend.
ADP closed fiscal 2025 with 8% revenue growth in Q4, 40 basis points adjusted EBIT margin expansion, and 8% adjusted EPS growth.
Employer Services new business bookings grew 3% to approximately $2.1 billion, below expectations but still showing growth despite macro uncertainty.
Employer Services pays per control increased 1% in Q4 and fiscal 2025.
Employer Services retention increased 10 basis points to 92.1%, approaching a record high of 92.2%.
ES margins expanded 50 basis points in Q4 and 100 basis points for full year, exceeding expectations.
Fiscal 2025 revenue totaled $20.6 billion.
For the full year, ADP delivered 7% revenue growth, 50 basis points adjusted EBIT margin expansion, and 9% adjusted EPS growth.
PEO new business bookings growth accelerated in Q4 and full year, contributing to 7% PEO revenue growth at the high end of expectations.
PEO revenue grew 7% in Q4; average worksite employees increased 3% to 761,000; PEO margins contracted 20 basis points in Q4 and 60 basis points for full year due to higher zero-margin pass-through benefits and state unemployment insurance costs.
Q4 Employer Services revenue increased 8% reported, 6% organic constant currency; full year ES revenue grew 7% reported, 6% organic constant currency.
Dafinchi