Looking back on home builders stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including LGI Homes (NASDAQ: LGIH) and its peers.

Traditionally, homebuilders have built competitive advantages with economies of scale that lead to advantaged purchasing and brand recognition among consumers. Aesthetic trends have always been important in the space, but more recently, energy efficiency and conservation are driving innovation. However, these companies are still at the whim of the macro, specifically interest rates that heavily impact new and existing home sales. In fact, homebuilders are one of the most cyclical subsectors within industrials.

The 12 home builders stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 1.2%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.2% since the latest earnings results.

LGI Homes (NASDAQ: LGIH)

Based in Texas, LGI Homes (NASDAQ: LGIH) is a homebuilding company specializing in constructing affordable, entry-level single-family homes in desirable communities across the United States.

LGI Homes reported revenues of $557.4 million, down 8.4% year on year. This print fell short of analysts’ expectations by 11%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates.

“In the face of a mixed macroeconomic backdrop, our strong finish in the fourth quarter enabled us to meet, and in many cases exceed, our strategic goals for 2024,” said Eric Lipar, Chairman and Chief Executive Officer of LGI Homes.

LGI Homes delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 12.3% since reporting and currently trades at $66.66.

Read our full report on LGI Homes here, it’s free.

Best Q4: Champion Homes (NYSE: SKY)

Founded in 1951, Champion Homes (NYSE: SKY) is a manufacturer of modular homes and buildings in North America.

Champion Homes reported revenues of $644.9 million, up 15.3% year on year, outperforming analysts’ expectations by 9.2%. The business had an incredible quarter with a solid beat of analysts’ sales volume estimates and an impressive beat of analysts’ EPS estimates.

The market seems content with the results as the stock is up 2.6% since reporting. It currently trades at $95.24.

Is now the time to buy Champion Homes? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Toll Brothers (NYSE: TOL)

Started by two brothers who started by building and selling just one home in Pennsylvania, today Toll Brothers (NYSE: TOL) is a luxury homebuilder across the United States.

Toll Brothers reported revenues of $1.86 billion, down 4.6% year on year, falling short of analysts’ expectations by 2.9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

As expected, the stock is down 13.4% since the results and currently trades at $105.69.

Read our full analysis of Toll Brothers’s results here.

TopBuild (NYSE: BLD)

Established in 2015 following a spinoff from Masco Corporation, TopBuild (NYSE: BLD) is a distributor and installer of insulation and other building products.

TopBuild reported revenues of $1.31 billion, up 2% year on year. This result was in line with analysts’ expectations. Aside from that, it was a slower quarter as it recorded full-year revenue guidance missing analysts’ expectations.

TopBuild had the weakest full-year guidance update among its peers. The stock is up 1.1% since reporting and currently trades at $305.40.

Read our full, actionable report on TopBuild here, it’s free.

Installed Building Products (NYSE: IBP)

Founded in 1977, Installed Building Products (NYSE: IBP) is a company specializing in the installation of insulation, waterproofing, and other complementary building products for residential and commercial construction.

Installed Building Products reported revenues of $750.2 million, up 4.1% year on year. This number came in 1.6% below analysts' expectations. Overall, it was a slower quarter as it also produced a significant miss of analysts’ organic revenue estimates.

The stock is flat since reporting and currently trades at $171.46.

Read our full, actionable report on Installed Building Products here, it’s free.

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