Landsea Homes Corp: Acquisition and Financial Performance Overview

Landsea Homes Corp, a construction service provider known for designing and building communities and homes in the United States, has recently been in the spotlight due to significant corporate developments and financial performance updates.

Acquisition by New Home Co.

On May 12, 2025, New Home Co. announced its acquisition of Landsea Homes Corp for $1.2 billion. This strategic move is set to position the combined entity as a top 25 national homebuilder, as highlighted by multiple sources including CEO.ca and Yahoo Finance. The acquisition has led to a downgrade in Landsea Homes’ stock rating, as reported by Investing.com, reflecting market reactions to the deal.

Financial Performance in Q1 2025

Landsea Homes Corp reported its first quarter 2025 results, revealing a mixed financial performance. According to reports from multiple sources such as Globenewswire and Stock Titan, the company saw a 27.3% increase in home deliveries, reaching 643 homes. Net new orders also rose by 11.1% to 679 homes. However, home sales revenue grew modestly by 2.3% to $299.4 million, falling short of expectations as noted by Feedburner.

The company’s adjusted gross margin improved by 60 basis points to 20.0%, and the cancellation rate improved to 9% from 10% year-over-year. These figures indicate operational efficiencies and a positive trend in customer retention.

Market and Trading Activity

Trading for Landsea Homes Corp was temporarily halted on May 12, 2025, amid pending announcements related to the acquisition, as reported by Feedburner. The stock resumed trading shortly after, with Apollo Funds (APO) backing the acquisition, as noted in another Feedburner report.

Company Fundamentals

As of May 8, 2025, Landsea Homes Corp’s close price was $6.55, with a 52-week high of $14.04 on September 18, 2024, and a low of $5.41 on April 8, 2025. The company operates in the Consumer Discretionary sector and is listed on the Nasdaq. Its market capitalization stands at approximately $216.16 million, with a price-to-earnings ratio of 7.89.

These developments mark a significant chapter in Landsea Homes Corp’s history, as it integrates into New Home Co., potentially enhancing its market position and operational capabilities.