D.R. Horton cuts 2025 revenue forecast on weak demand for homes
April 17 (Reuters) - U.S. homebuilder D.R. Horton (DHI.N), opens new tab lowered its full-year revenue forecast and missed second-quarter profit and revenue estimates on Thursday due to weak demand for homes.
Shares of the company fell 3.2% before the bell.
"The 2025 spring selling season started slower than expected as potential homebuyers have been more cautious due to continued affordability constraints and declining consumer confidence," said D.R. Horton CEO Paul Romanowski.
Rising economic uncertainty in the U.S., resulting from President Donald Trump's tariff policies, could further pressure homebuilders as consumer affordability is impacted amid a high interest-rate environment.
In January, the homebuilder flagged higher costs from its buydown incentives and lower home sales gross margin in the second quarter on a sequential basis.
It now expects full-year revenue to be between $33.3 billion and $34.8 billion, compared with its earlier forecast of $36 billion to $37.5 billion.
It sees about 85,000 to 87,000 transaction closings from homebuilding operations, down from its earlier forecast of 90,000 to 92,000 homes.
The Arlington, Texas-based company's second-quarter revenue fell 15% from a year ago to $7.73 billion, compared with analysts' estimate of $8.03 billion, according to data compiled by LSEG.
On an adjusted basis, it earned $2.58 per share in the quarter ended March 31, compared with analysts' average estimate of $2.63 a share.
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