Latest news with #DavidAuld
Yahoo
23-07-2025
- Business
- Yahoo
DR Horton (DHI) Jumps 17% After Earnings Beat
We recently published . D.R. Horton, Inc. (NYSE:DHI) is one of Tuesday's top performers. DR Horton grew its share prices by 16.98 percent on Tuesday to close at $153.5 apiece after beating its earnings guidance for the third quarter of fiscal year 2025. In its earnings release, D.R. Horton, Inc. (NYSE:DHI) said revenues during the period settled at $9.22 billion, lower than the $9.96 billion registered in the same period last year, but were well above analyst consensus. Meanwhile, attributable net income dropped by 24 percent to $1.02 billion from $1.35 billion year-on-year. Commenting on the company's performance, D.R. Horton, Inc. (NYSE:DHI) Executive Chairman David Auld said that new home demand continued to be impacted by ongoing affordability constraints and cautious consumer sentiment. A construction site of a multi-family residential complex, a modern urban skyline in the background. He said he expected sales incentives to remain elevated in the fourth quarter of the year. That said, D.R. Horton, Inc. (NYSE:DHI) lowered the high-end range of its full-year revenue guidance for the fourth quarter to $34.2 billion from $34.8 billion previously, with homes closed now expected to settle at only 85,000 versus the 87,000 prior. While we acknowledge the potential of DHI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-07-2025
- Business
- Yahoo
DR Horton, PulteGroup's Solid Results Lift Homebuilder Stocks
Justin Sullivan / Getty Images Homebuilder stocks, which had a difficult first half of the year, are rebounding on solid quarterly results Shares of D.R. Horton (DHI) and PulteGroup (PHM) rose on Tuesday after each homebuilder's latest quarterly results came in better than expected, also lifting other homebuilder stocks. D.R. Horton's fiscal third-quarter revenue came in at $9.23 billion while it earned $3.36 per share, each well above the analyst consensus compiled by Visible Alpha. PulteGroup's own second-quarter results also beat estimates by a narrower margin at $4.4 billion and earnings per share of $3.03. 'New home demand continues to be impacted by ongoing affordability constraints and cautious consumer sentiment," D.R. Horton Executive Chairman David Auld said. "We expect our sales incentives to remain elevated and increase further during the fourth quarter, the extent to which will depend on the strength of demand during the remainder of summer, changes in mortgage interest rates and other market conditions." D.R. Horton trimmed its full-year revenue forecast to $33.7 billion to $34.2 billion from $33.3 billion to $34.8 billion previously, as it now expects to close on 85,000 to 85,500 homes this year, with the top end lowered from 87,000 previously. Home Buyers 'Dealing With a Range of Issues,' PulteGroup Says PulteGroup CEO Ryan Marshall said the company "saw consumers dealing with a range of issues from high interest rates and challenged affordability to macro concerns about the strength of the economy" during the spring selling season. PulteGroup shares were up 9% in recent trading, while D.R. Horton shares rose 13%. Tuesday's moves put each stock into the green for the year, while other homebuilders like Lennar (LEN) and KB Home (KBH) also rose. Homebuilder stocks had a difficult first half of the year as the housing market stayed stagnant in the first quarter and the Trump administration's tariffs looked like they would raise construction costs across the industry. Last month, Lennar and KB Home each topped revenue estimates in their second-quarter reports, while Lennar's profits fell short and KB Home cut its full-year outlook amid concerns about a weak spring selling season. Read the original article on Investopedia
Yahoo
22-07-2025
- Business
- Yahoo
D.R. Horton's (NYSE:DHI) Q2 Sales Top Estimates, Stock Soars
Homebuilder D.R. Horton (NYSE:DHI) beat Wall Street's revenue expectations in Q2 CY2025, but sales fell by 7.4% year on year to $9.23 billion. The company expects the full year's revenue to be around $33.95 billion, close to analysts' estimates. Its GAAP profit of $3.36 per share was 16.6% above analysts' consensus estimates. Is now the time to buy D.R. Horton? Find out in our full research report. D.R. Horton (DHI) Q2 CY2025 Highlights: Revenue: $9.23 billion vs analyst estimates of $8.79 billion (7.4% year-on-year decline, 5% beat) EPS (GAAP): $3.36 vs analyst estimates of $2.88 (16.6% beat) Adjusted EBITDA: $1.32 billion vs analyst estimates of $1.26 billion (14.3% margin, 4.4% beat) The company reconfirmed its revenue guidance for the full year of $33.95 billion at the midpoint Operating Margin: 13.7%, down from 17.2% in the same quarter last year Free Cash Flow Margin: 7.5%, up from 6.4% in the same quarter last year Backlog: $5.3 billion at quarter end, down 19.1% year on year Market Capitalization: $40.31 billion David Auld, Executive Chairman, said, 'The D.R. Horton team delivered a strong third quarter, highlighted by earnings per diluted share of $3.36. Consolidated pre-tax income for the quarter was $1.4 billion on revenues of $9.2 billion, with a pre-tax profit margin of 14.7%. We leveraged our operational results and strong balance sheet to return $1.3 billion to shareholders through share repurchases and dividends during the quarter, and we have reduced our outstanding share count by 9% from a year ago." Company Overview One of the largest homebuilding companies in the U.S., D.R. Horton (NYSE:DHI) builds a variety of new construction homes across multiple markets. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, D.R. Horton's 12.8% annualized revenue growth over the last five years was excellent. Its growth beat the average industrials company and shows its offerings resonate with customers. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. D.R. Horton's recent performance shows its demand has slowed significantly as its revenue was flat over the last two years. D.R. Horton also reports its backlog, or the value of its outstanding orders that have not yet been executed or delivered. D.R. Horton's backlog reached $5.3 billion in the latest quarter and averaged 17.1% year-on-year declines over the last two years. Because this number is lower than its revenue growth, we can see the company hasn't secured enough new orders to maintain its growth rate in the future. This quarter, D.R. Horton's revenue fell by 7.4% year on year to $9.23 billion but beat Wall Street's estimates by 5%. Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. This projection doesn't excite us and implies its newer products and services will not lead to better top-line performance yet. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating Margin D.R. Horton has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 17.8%. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it's a show of well-managed operations if they're high when gross margins are low. Looking at the trend in its profitability, D.R. Horton's operating margin decreased by 3.7 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. In Q2, D.R. Horton generated an operating margin profit margin of 13.7%, down 3.5 percentage points year on year. Since D.R. Horton's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. D.R. Horton's EPS grew at an astounding 17.7% compounded annual growth rate over the last five years, higher than its 12.8% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't improve. We can take a deeper look into D.R. Horton's earnings quality to better understand the drivers of its performance. A five-year view shows that D.R. Horton has repurchased its stock, shrinking its share count by 17.1%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For D.R. Horton, its two-year annual EPS declines of 5.8% mark a reversal from its (seemingly) healthy five-year trend. We hope D.R. Horton can return to earnings growth in the future. In Q2, D.R. Horton reported EPS at $3.36, down from $4.10 in the same quarter last year. Despite falling year on year, this print easily cleared analysts' estimates. Over the next 12 months, Wall Street expects D.R. Horton's full-year EPS of $12.48 to shrink by 6.3%. Key Takeaways from D.R. Horton's Q2 Results We were impressed by how significantly D.R. Horton blew past analysts' revenue, EPS, and EBITDA expectations this quarter. On the other hand, its backlog missed. Still, this print had some key positives. The stock traded up 7% to $140.37 immediately following the results. Is D.R. Horton an attractive investment opportunity right now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. 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Yahoo
22-07-2025
- Business
- Yahoo
D.R. Horton beats Q3 expectations as home closings exceed guidance
-- D.R. Horton, Inc. reported fiscal third-quarter earnings that surpassed analyst expectations, with adjusted earnings per share of $3.36 exceeding estimates by $0.46 and revenue of $9.23 billion outpacing the $8.8 billion consensus. The company delivered 23,160 homes during the quarter, exceeding the high end of its guidance range despite ongoing affordability challenges in the housing market. However, net income attributable to D.R. Horton decreased 24% to $1.0 billion compared to $1.4 billion in the same quarter last year, while revenue declined 7% from $10.0 billion in the prior-year period. The company's shares edged down 0.4% following the announcement. "The D.R. Horton team delivered a strong third quarter, highlighted by earnings per diluted share of $3.36," said David Auld, Executive Chairman. "We leveraged our operational results and strong balance sheet to return $1.3 billion to shareholders through share repurchases and dividends during the quarter, and we have reduced our outstanding share count by 9% from a year ago." Net sales orders for the quarter were essentially flat at 23,071 homes compared to 23,001 homes in the same quarter of fiscal 2024, though order value decreased 3% to $8.4 billion. The company maintained a home sales gross margin of 21.8%, while its pre-tax profit margin was 14.7%. D.R. Horton updated its fiscal 2025 guidance, projecting consolidated revenues between $33.7 billion and $34.2 billion, in line with the analyst consensus of $34.04 billion. The company expects to close between 85,000 and 85,500 homes for the full fiscal year. The homebuilder noted that new home demand continues to be impacted by affordability constraints and cautious consumer sentiment. Management expects sales incentives to remain elevated and potentially increase further during the fourth quarter, depending on summer demand, mortgage interest rate changes, and other market conditions. Related articles D.R. Horton beats Q3 expectations as home closings exceed guidance Clients buying into summer rally, bracing for later pullback, says BofA's Hartnett Apollo economist warns: AI bubble now bigger than 1990s tech mania Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
Business Wire
22-07-2025
- Business
- Business Wire
D.R. Horton, Inc., America's Builder, Reports Fiscal 2025 Third Quarter Earnings and Declares Quarterly Dividend of $0.40 Per Share
ARLINGTON, Texas--(BUSINESS WIRE)--D.R. Horton, Inc. (NYSE:DHI), America's Builder, today reported that net income per diluted share attributable to D.R. Horton for its third fiscal quarter ended June 30, 2025 decreased 18% to $3.36 compared to $4.10 in the same quarter of fiscal 2024. Net income attributable to D.R. Horton in the third quarter of fiscal 2025 decreased 24% to $1.0 billion compared to $1.4 billion in the same quarter of fiscal 2024. For the nine months ended June 30, 2025, net income per diluted share attributable to D.R. Horton decreased 18% to $8.53 compared to $10.43 in the same period of fiscal 2024. Net income attributable to D.R. Horton for the nine months ended June 30, 2025 decreased 23% to $2.7 billion compared to $3.5 billion in the same period of fiscal 2024. Consolidated revenues in the third quarter of fiscal 2025 decreased 7% to $9.2 billion compared to $10.0 billion in the same quarter of fiscal 2024. For the nine months ended June 30, 2025, consolidated revenues decreased 8% to $24.6 billion compared to $26.8 billion in the same period of fiscal 2024. The Company's return on equity (ROE) was 16.1% for the trailing twelve months ended June 30, 2025, and return on assets (ROA) was 11.1% for the same period. ROE is calculated as net income attributable to D.R. Horton for the trailing twelve months divided by average stockholders' equity, where average stockholders' equity is the sum of ending stockholders' equity balances of the trailing five quarters divided by five. ROA is calculated as net income attributable to D.R. Horton for the trailing twelve months divided by average consolidated assets, where average consolidated assets is the sum of total asset balances for the trailing five quarters divided by five. During the nine months ended June 30, 2025, net cash provided by operations was $949.1 million. The Company's consolidated cash balance at June 30, 2025 was $2.6 billion and the available capacity on its credit facilities was $2.9 billion, for total liquidity of $5.5 billion. In May, the Company issued $500 million of homebuilding senior notes due 2030. Debt at June 30, 2025 totaled $7.2 billion, with $500 million of homebuilding senior notes maturing in the next twelve months. The Company's debt to total capital ratio at June 30, 2025 was 23.2%. Debt to total capital ratio consists of notes payable divided by stockholders' equity plus notes payable. David Auld, Executive Chairman, said, 'The D.R. Horton team delivered a strong third quarter, highlighted by earnings per diluted share of $3.36. Consolidated pre-tax income for the quarter was $1.4 billion on revenues of $9.2 billion, with a pre-tax profit margin of 14.7%. We leveraged our operational results and strong balance sheet to return $1.3 billion to shareholders through share repurchases and dividends during the quarter, and we have reduced our outstanding share count by 9% from a year ago. 'Our net sales orders in the third quarter were flat with the prior year quarter and increased 3% sequentially. We closed more homes than the high end of our guidance range, while maintaining a home sales gross margin of 21.8%. Our tenured operators continue to respond to market conditions with discipline to drive traffic and incremental sales, while carefully balancing pace versus price to maximize returns. 'New home demand continues to be impacted by ongoing affordability constraints and cautious consumer sentiment. We expect our sales incentives to remain elevated and increase further during the fourth quarter, the extent to which will depend on the strength of demand during the remainder of summer, changes in mortgage interest rates and other market conditions. 'Our strong liquidity, low leverage, experienced operators and national scale provide us with significant financial and operational flexibility. We are well-positioned with our affordable product offerings and flexible lot supply and are focused on maximizing returns in each of our communities. We are maintaining our disciplined approach to capital allocation to enhance the long-term value of D.R. Horton, including consistently returning capital to our shareholders through share repurchases and dividends.' Homebuilding Operations Homebuilding revenue for the third quarter of fiscal 2025 decreased 7% to $8.6 billion compared to $9.2 billion in the same quarter of fiscal 2024. Homes closed in the quarter decreased 4% to 23,160 homes compared to 24,155 homes closed in the same quarter of fiscal 2024. Homebuilding revenue for the first nine months of fiscal 2025 decreased 8% to $23.0 billion compared to $25.0 billion in the same period of fiscal 2024. Homes closed in the first nine months of fiscal 2025 decreased 7% to 61,495 homes compared to 66,043 homes closed in the same period of fiscal 2024. Homebuilding pre-tax income in the third quarter of fiscal 2025 decreased 25% to $1.2 billion with a pre-tax profit margin of 13.8% compared to $1.6 billion of pre-tax income and a 17.0% pre-tax profit margin in the same quarter of fiscal 2024. Homebuilding pre-tax income for the first nine months of fiscal 2025 decreased 22% to $3.1 billion with a pre-tax profit margin of 13.7% compared to $4.0 billion of pre-tax income and a 16.1% pre-tax profit margin in the same period of fiscal 2024. The Company's homebuilding return on inventory (ROI) was 22.1% for the trailing twelve months ended June 30, 2025. Homebuilding ROI is calculated as homebuilding pre-tax income for the trailing twelve months divided by average inventory, where average inventory is the sum of ending homebuilding inventory balances for the trailing five quarters divided by five. During the nine months ended June 30, 2025, net cash provided by homebuilding operations was $1.7 billion. Net sales orders for the third quarter ended June 30, 2025 totaled 23,071 homes compared to 23,001 homes in the same quarter of fiscal 2024. Net sales order value decreased 3% to $8.4 billion compared to $8.7 billion in the same quarter of fiscal 2024. The Company's cancellation rate (cancelled sales orders divided by gross sales orders) for the third quarter of fiscal 2025 was 17% compared to 18% in the prior year quarter. Net sales orders for the first nine months of fiscal 2025 decreased 6% to 63,345 homes and 8% in value to $23.4 billion compared to 67,526 homes and $25.6 billion in the same period of fiscal 2024. The Company's sales order backlog of homes under contract at June 30, 2025 decreased 16% to 14,075 homes and 19% in value to $5.3 billion compared to 16,792 homes and $6.6 billion at June 30, 2024. At June 30, 2025, the Company had 38,400 homes in inventory, of which 25,000 were unsold. 7,300 of the Company's unsold homes at June 30, 2025 were completed, of which 800 had been completed for greater than six months. The Company's homebuilding land and lot portfolio totaled 601,400 lots at the end of the quarter, of which 24% were owned and 76% were controlled through land and lot purchase contracts. Of the Company's homes closed during the nine months ended June 30, 2025, 65% were on lots developed by Forestar or third parties, up from 63% during the same period of fiscal 2024. Rental Operations The Company's rental operations generated $54.8 million of pre-tax income on revenues of $380.7 million in the third quarter of fiscal 2025 compared to $64.2 million of pre-tax income on revenues of $413.7 million in the same quarter of fiscal 2024. For the nine months ended June 30, 2025, rental operations pre-tax income was $89.4 million on revenues of $835.0 million compared to pre-tax income of $128.8 million on revenues of $980.2 million in the prior year period. During the third quarter of fiscal 2025, the Company sold 1,065 single-family rental homes for $313.5 million compared to 790 homes sold for $258.5 million in the prior year quarter. During the nine months ended June 30, 2025, the Company sold 1,895 single-family rental homes for $545.8 million compared to 2,278 homes sold for $675.9 million in the prior year period. At June 30, 2025, the consolidated balance sheet included $667.8 million of single-family rental property inventory consisting of 2,770 homes, of which 2,300 homes were completed, and 1,050 lots, of which 615 lots were finished. During the third quarter of fiscal 2025, the Company sold 328 multi-family rental units for $66.1 million compared to 610 units sold for $155.2 million in the prior year quarter. During the nine months ended June 30, 2025, the Company sold 1,132 multi-family rental units for $280.1 million compared to 1,334 units sold for $304.3 million in the prior year period. At June 30, 2025, the consolidated balance sheet included $2.5 billion of multi-family rental property inventory consisting of 13,190 units, of which 5,560 units were under active construction and 7,630 units were completed. Forestar Forestar Group Inc. (NYSE:FOR) ('Forestar') is a publicly traded residential lot development company that is a majority-owned subsidiary of D.R. Horton. Forestar's results of operations for the periods presented are fully consolidated in the Company's financial statements with the percentage not owned by the Company reported as noncontrolling interests. For the third quarter ended June 30, 2025, Forestar sold 3,605 lots and generated $390.5 million of revenue compared to 3,255 lots and $318.4 million of revenue in the prior year quarter. For the nine months ended June 30, 2025, Forestar sold 9,349 lots and generated $991.9 million of revenue compared to 9,694 lots and $958.0 million of revenue in the prior year period. Forestar's pre-tax income in the third quarter of fiscal 2025 was $43.6 million with a pre-tax profit margin of 11.2% compared to $51.6 million of pre-tax income and a 16.2% pre-tax profit margin in the same quarter of fiscal 2024. For the nine months ended June 30, 2025, Forestar's pre-tax income was $106.2 million with a pre-tax profit margin of 10.7% compared to $161.6 million of pre-tax income and a 16.9% pre-tax profit margin in the same period of fiscal 2024. Financial Services For the third quarter ended June 30, 2025, financial services revenues were $227.8 million compared to $242.3 million in the same quarter of fiscal 2024. Financial services pre-tax income for the quarter was $81.3 million with a pre-tax profit margin of 35.7% compared to $91.3 million of pre-tax income and a 37.7% pre-tax profit margin in the prior year quarter. For the nine months ended June 30, 2025, financial services revenues were $623.0 million compared to $660.5 million in the same period of fiscal 2024. Financial services pre-tax income was $203.0 million with a pre-tax profit margin of 32.6% compared to $235.3 million of pre-tax income and a 35.6% pre-tax profit margin in the prior year period. Dividends During the third quarter of fiscal 2025, the Company paid cash dividends of $122.4 million, for a total of $376.4 million of dividends paid during the nine months ended June 30, 2025. Subsequent to quarter end, the Company declared a quarterly cash dividend of $0.40 per common share that is payable on August 14, 2025 to stockholders of record on August 7, 2025. Share Repurchases The Company repurchased 9.7 million shares of common stock for $1.2 billion during the third quarter of fiscal 2025, for a total of 26.2 million shares repurchased for $3.6 billion during the nine months ended June 30, 2025. The Company's number of common shares outstanding at June 30, 2025 was 298.9 million, down 9% from 327.4 million shares outstanding at June 30, 2024. The Company's remaining stock repurchase authorization at June 30, 2025 was $4.0 billion. Guidance Based on the Company's results for the first nine months of fiscal 2025 and current market conditions, D.R. Horton is updating its guidance for fiscal 2025 as follows: Consolidated revenues in the range of $33.7 billion to $34.2 billion Homes closed by homebuilding operations of 85,000 homes to 85,500 homes Share repurchases in the range of $4.2 billion to $4.4 billion The Company is reiterating its fiscal 2025 guidance as follows: Income tax rate of approximately 24.0% Consolidated cash flow provided by operations of greater than $3.0 billion Dividend payments of approximately $500 million The Company plans to also provide guidance for its fourth quarter of fiscal 2025 on its conference call today. Conference Call and Webcast Details The Company will host a conference call today (Tuesday, July 22) at 8:30 a.m. Eastern Time. The dial-in number is 888-506-0062 (reference entry code 586904), and the call will also be webcast from the Company's website at Fourth Quarter Conference Call The Company plans to release financial results for its fourth quarter and fiscal year ended September 30, 2025 on Tuesday, October 28, 2025 before the market opens. The Company will host a conference call that morning at 8:30 a.m. Eastern Time. Details on how to access the conference call will be available at a later date. About D.R. Horton, Inc. D.R. Horton, Inc., America's Builder, has been the largest homebuilder by volume in the United States since 2002 and has closed more than 1.2 million homes in its over 46-year history. D.R. Horton has operations in 126 markets in 36 states across the United States and is engaged in the construction and sale of high-quality homes through its diverse product portfolio with sales prices generally ranging from $250,000 to over $1,000,000. The Company also constructs and sells both single-family and multi-family rental properties. During the twelve-month period ended June 30, 2025, D.R. Horton closed 85,142 homes in its homebuilding operations, in addition to 3,587 single-family rental homes and 2,000 multi-family rental units in its rental operations. D.R. Horton also provides mortgage financing, title services and insurance agency services for its homebuyers and is the majority-owner of Forestar Group Inc., a publicly traded national residential lot development company. Forward-Looking Statements Portions of this document may constitute 'forward-looking statements' as defined by the Private Securities Litigation Reform Act of 1995. Although D.R. Horton believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to D.R. Horton on the date this release was issued. D.R. Horton does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements in this release include that our tenured operators continue to respond to market conditions with discipline to drive traffic and incremental sales, while carefully balancing pace versus price to maximize returns in each of our communities; we expect our sales incentives to remain elevated and increase further during the fourth quarter, the extent to which will depend on the strength of demand during the remainder of summer, changes in mortgage interest rates and other market conditions; our strong liquidity, low leverage, experienced operators and national scale provide us with significant financial and operational flexibility; we are well-positioned with our affordable product offerings and flexible lot supply and are focused on maximizing returns in each of our communities; and we are maintaining our disciplined approach to capital allocation to enhance the long-term value of D.R. Horton, including consistently returning capital to our shareholders through share repurchases and dividends. The forward-looking statements also include all metrics in the Guidance section. Factors that may cause the actual results to be materially different from the future results expressed by the forward-looking statements include, but are not limited to: the cyclical nature of the homebuilding, rental and lot development industries and changes in economic, real estate or other conditions; adverse developments affecting the capital markets and financial institutions, which could limit our ability to access capital, increase our cost of capital and impact our liquidity and capital resources; reductions in the availability of mortgage financing provided by government agencies, changes in government financing programs, a decrease in our ability to sell mortgage loans on attractive terms or an increase in mortgage interest rates; the risks associated with our land, lot and rental inventory; our ability to effect our growth strategies, acquisitions, investments or other strategic initiatives successfully; the impact of an inflationary, deflationary or higher interest rate environment; risks of acquiring land, building materials and skilled labor and challenges obtaining regulatory approvals; the effects of public health issues such as a major epidemic or pandemic on the economy and our businesses; the effects of weather conditions and natural disasters on our business and financial results; home warranty and construction defect claims; the effects of health and safety incidents; reductions in the availability of performance bonds; increases in the costs of owning a home; the effects of information technology failures, data security breaches, and the failure to satisfy privacy and data protection laws and regulations; the effects of governmental regulations and environmental matters on our land development and housing operations; the effects of governmental regulations on our financial services operations; the effects of competitive conditions within the industries in which we operate; our ability to manage and service our debt and comply with related debt covenants, restrictions and limitations; the effects of negative publicity; the effects of the loss of key personnel; and the effects of actions by activist stockholders. Additional information about issues that could lead to material changes in performance is contained in D.R. Horton's annual report on Form 10-K and its most recent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission. D.R. HORTON, INC. AND SUBSIDIARIES (UNAUDITED) Three Months Ended June 30, Nine Months Ended June 30, 2025 2024 2025 2024 (In millions, except per share data) Revenues $ 9,225.7 $ 9,965.7 $ 24,572.6 $ 26,798.8 Cost of sales 7,016.5 7,323.7 18,553.1 19,817.7 Selling, general and administrative expense 944.3 923.6 2,721.1 2,639.2 Other (income) expense (93.2 ) (80.6 ) (236.7 ) (233.1 ) Income before income taxes 1,358.1 1,799.0 3,535.1 4,575.0 Income tax expense 325.0 432.2 831.0 1,068.8 Net income 1,033.1 1,366.8 2,704.1 3,506.2 Net income attributable to noncontrolling interests 8.5 13.2 24.2 33.2 Net income attributable to D.R. Horton, Inc. $ 1,024.6 $ 1,353.6 $ 2,679.9 $ 3,473.0 Net income per share attributable to D.R. Horton, Inc. Diluted $ 3.36 $ 4.10 $ 8.53 $ 10.43 Weighted average shares outstanding Basic 304.1 328.4 312.7 330.9 Diluted 304.9 330.1 314.1 333.0 Other Consolidated Financial Data Interest charged to cost of sales $ 38.4 $ 35.3 $ 100.9 $ 96.1 Depreciation and amortization $ 25.2 $ 22.4 $ 73.9 $ 63.5 Interest incurred $ 71.3 $ 54.5 $ 173.2 $ 147.6 Expand D.R. HORTON, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended June 30, 2025 2024 (In millions) OPERATING ACTIVITIES Net income $ 2,704.1 $ 3,506.2 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 73.9 63.5 Stock-based compensation expense 101.1 92.7 Deferred income taxes 101.2 29.9 Inventory and land option charges 100.8 34.4 Changes in operating assets and liabilities: Increase in construction in progress and finished homes (146.1 ) (863.0 ) Increase in residential land and lots – developed, under development, held for development and held for sale (1,481.1 ) (2,012.1 ) Increase in rental properties (230.8 ) (375.7 ) Increase in other assets (136.5 ) (154.4 ) Increase in mortgage loans held for sale (290.2 ) (58.9 ) Increase (decrease) in accounts payable, accrued expenses and other liabilities 152.7 (34.4 ) Net cash provided by operating activities 949.1 228.2 INVESTING ACTIVITIES Expenditures for property and equipment (93.6 ) (133.3 ) Proceeds from sale of assets 18.4 14.9 Payments related to business acquisitions, net of cash acquired (53.1 ) (37.9 ) Other investing activities 4.8 (4.8 ) Net cash used in investing activities (123.5 ) (161.1 ) FINANCING ACTIVITIES Proceeds from notes payable 3,012.0 1,270.0 Repayment of notes payable (1,891.1 ) (640.4 ) Borrowings on mortgage repurchase facilities, net 170.4 21.8 Proceeds from stock associated with certain employee benefit plans 8.5 12.2 Cash paid for shares withheld for taxes (64.2 ) (82.9 ) Cash dividends paid (376.4 ) (297.5 ) Repurchases of common stock (3,576.3 ) (1,230.3 ) Net proceeds from issuance of Forestar common stock — 19.7 Net other financing activities 12.4 (19.8 ) Net cash used in financing activities (2,704.7 ) (947.2 ) Net decrease in cash, cash equivalents and restricted cash (1,879.1 ) (880.1 ) Cash, cash equivalents and restricted cash at beginning of period 4,544.0 3,900.1 Cash, cash equivalents and restricted cash at end of period $ 2,664.9 $ 3,020.0 SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES: Notes payable issued for inventory $ 5.5 $ 43.4 Reduction of notes payable upon deconsolidation of variable interest entity $ — $ (127.8 ) Stock issued under employee incentive plans $ 147.2 $ 173.2 Repurchases of common stock not settled $ 23.2 $ 1.5 Expand D.R. HORTON, INC. AND SUBSIDIARIES (UNAUDITED) June 30, 2025 (In millions) Assets Cash and cash equivalents $ 1,962.4 $ 160.3 $ 189.2 $ 268.0 $ 34.1 $ 2,614.0 Restricted cash 24.3 1.9 — 24.7 — 50.9 Inventories: Construction in progress and finished homes 9,142.4 — — — (118.1 ) 9,024.3 Residential land and lots 11,955.8 — 2,823.5 — (209.9 ) 14,569.4 Rental properties — 3,141.6 — — (9.2 ) 3,132.4 21,098.2 3,141.6 2,823.5 — (337.2 ) 26,726.1 Mortgage loans held for sale — — — 2,767.7 — 2,767.7 Deferred income taxes, net 121.6 (14.7 ) — — (40.4 ) 66.5 Property and equipment, net 525.4 1.6 7.7 4.0 21.0 559.7 Other assets 3,176.3 43.7 100.0 227.6 (100.1 ) 3,447.5 Goodwill 134.3 — — — 29.2 163.5 $ 27,042.5 $ 3,334.4 $ 3,120.4 $ 3,292.0 $ (393.4 ) $ 36,395.9 Liabilities Accounts payable $ 1,163.7 $ 347.7 $ 67.2 $ 0.3 $ (190.1 ) $ 1,388.8 Accrued expenses and other liabilities 2,754.9 39.8 500.1 367.6 (497.0 ) 3,165.4 Notes payable 3,651.7 1,020.0 872.8 1,704.2 — 7,248.7 $ 7,570.3 $ 1,407.5 $ 1,440.1 $ 2,072.1 $ (687.1 ) $ 11,802.9 Expand September 30, 2024 (In millions) Assets Cash and cash equivalents $ 3,623.0 $ 157.6 $ 481.2 $ 242.3 $ 12.3 $ 4,516.4 Restricted cash 4.8 2.2 — 20.6 — 27.6 Inventories: Construction in progress and finished homes 8,986.1 — — — (110.3 ) 8,875.8 Residential land and lots 11,044.9 — 2,266.2 — (189.7 ) 13,121.4 Rental properties — 2,902.4 — — 3.6 2,906.0 20,031.0 2,902.4 2,266.2 — (296.4 ) 24,903.2 Mortgage loans held for sale — — — 2,477.5 — 2,477.5 Deferred income taxes, net 211.6 (14.7 ) — — (29.4 ) 167.5 Property and equipment, net 500.2 1.1 7.1 4.0 18.6 531.0 Other assets 2,976.5 74.5 85.6 212.3 (31.3 ) 3,317.6 Goodwill 134.3 — — — 29.2 163.5 $ 27,481.4 $ 3,123.1 $ 2,840.1 $ 2,956.7 $ (297.0 ) $ 36,104.3 Liabilities Accounts payable $ 1,046.1 $ 474.2 $ 85.9 $ 0.8 $ (261.5 ) $ 1,345.5 Accrued expenses and other liabilities 2,552.0 67.8 452.8 234.6 (290.5 ) 3,016.7 Notes payable 2,926.8 750.7 706.4 1,533.8 — 5,917.7 $ 6,524.9 $ 1,292.7 $ 1,245.1 $ 1,769.2 $ (552.0 ) $ 10,279.9 Expand _________________ (1) Amounts include the balances of the Company's other businesses and the elimination of intercompany transactions. Expand D.R. HORTON, INC. AND SUBSIDIARIES SEGMENT INFORMATION (UNAUDITED) Three Months Ended June 30, 2025 (In millions) Revenues Home sales $ 8,561.0 $ — $ — $ — $ — $ 8,561.0 Land/lot sales and other 19.8 — 390.5 — (354.1 ) 56.2 Rental property sales — 380.7 — — — 380.7 Financial services — — — 227.8 — 227.8 8,580.8 380.7 390.5 227.8 (354.1 ) 9,225.7 Cost of sales Home sales (2) 6,691.6 — — — (62.2 ) 6,629.4 Land/lot sales and other 17.0 — 308.9 — (288.0 ) 37.9 Rental property sales — 295.6 — — (0.6 ) 295.0 Inventory and land option charges 51.9 0.4 1.9 — — 54.2 6,760.5 296.0 310.8 — (350.8 ) 7,016.5 Selling, general and administrative expense 670.0 61.4 37.4 171.0 4.5 944.3 Other (income) expense (36.0 ) (31.5 ) (1.3 ) (24.5 ) 0.1 (93.2 ) Income before income taxes $ 1,186.3 $ 54.8 $ 43.6 $ 81.3 $ (7.9 ) $ 1,358.1 Expand Nine Months Ended June 30, 2025 (In millions) Revenues Home sales $ 22,887.9 $ — $ — $ — $ — $ 22,887.9 Land/lot sales and other 63.1 — 991.9 — (828.3 ) 226.7 Rental property sales — 835.0 — — — 835.0 Financial services — — — 623.0 — 623.0 22,951.0 835.0 991.9 623.0 (828.3 ) 24,572.6 Cost of sales Home sales (2) 17,828.4 — — — (165.3 ) 17,663.1 Land/lot sales and other 33.7 — 774.1 — (675.8 ) 132.0 Rental property sales — 657.8 — — (0.6 ) 657.2 Inventory and land option charges 93.2 4.3 3.9 — (0.6 ) 100.8 17,955.3 662.1 778.0 — (842.3 ) 18,553.1 Selling, general and administrative expense 1,944.5 165.8 111.8 485.4 13.6 2,721.1 Other (income) expense (83.0 ) (82.3 ) (4.1 ) (65.4 ) (1.9 ) (236.7 ) Income before income taxes $ 3,134.2 $ 89.4 $ 106.2 $ 203.0 $ 2.3 $ 3,535.1 Summary Cash Flow Information Cash provided by (used in) operating activities $ 1,738.6 $ (294.5 ) $ (453.9 ) $ (20.1 ) $ (21.0 ) $ 949.1 Expand _____________________ (1) Amounts include the results of the Company's other businesses and the elimination of intercompany transactions. (2) Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. Expand D.R. HORTON, INC. AND SUBSIDIARIES SEGMENT INFORMATION (UNAUDITED) Three Months Ended June 30, 2024 (In millions) Revenues Home sales $ 9,231.2 $ — $ — $ — $ — $ 9,231.2 Land/lot sales and other 10.3 — 318.4 — (250.2 ) 78.5 Rental property sales — 413.7 — — — 413.7 Financial services — — — 242.3 — 242.3 9,241.5 413.7 318.4 242.3 (250.2 ) 9,965.7 Cost of sales Home sales (2) 7,017.3 — — — (72.5 ) 6,944.8 Land/lot sales and other 5.6 — 246.2 — (201.1 ) 50.7 Rental property sales — 319.3 — — (5.9 ) 313.4 Inventory and land option charges 12.6 1.5 0.7 — — 14.8 7,035.5 320.8 246.9 — (279.5 ) 7,323.7 Selling, general and administrative expense 656.5 55.0 29.3 178.0 4.8 923.6 Other (income) expense (22.7 ) (26.3 ) (9.4 ) (27.0 ) 4.8 (80.6 ) Income before income taxes $ 1,572.2 $ 64.2 $ 51.6 $ 91.3 $ 19.7 $ 1,799.0 Expand Nine Months Ended June 30, 2024 (In millions) Revenues Home sales $ 24,974.2 $ — $ — $ — $ — $ 24,974.2 Land/lot sales and other 37.6 — 958.0 — (811.7 ) 183.9 Rental property sales — 980.2 — — — 980.2 Financial services — — — 660.5 — 660.5 25,011.8 980.2 958.0 660.5 (811.7 ) 26,798.8 Cost of sales Home sales (2) 19,130.8 — — — (195.0 ) 18,935.8 Land/lot sales and other 23.0 — 729.6 — (657.8 ) 94.8 Rental property sales — 763.4 — — (10.7 ) 752.7 Inventory and land option charges 31.2 2.2 1.0 — — 34.4 19,185.0 765.6 730.6 — (863.5 ) 19,817.7 Selling, general and administrative expense 1,874.1 163.8 86.5 500.6 14.2 2,639.2 Other (income) expense (73.2 ) (78.0 ) (20.7 ) (75.4 ) 14.2 (233.1 ) Income before income taxes $ 4,025.9 $ 128.8 $ 161.6 $ 235.3 $ 23.4 $ 4,575.0 Summary Cash Flow Information Cash provided by (used in) operating activities $ 971.9 $ (656.8 ) $ (277.6 ) $ 156.9 $ 33.8 $ 228.2 Expand _____________________ (1) Amounts include the results of the Company's other businesses and the elimination of intercompany transactions. (2) Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. Expand D.R. HORTON, INC. AND SUBSIDIARIES SALES, CLOSINGS AND BACKLOG HOMEBUILDING SEGMENT (Dollars in millions) NET SALES ORDERS Three Months Ended June 30, Nine Months Ended June 30, 2025 2024 2025 2024 Homes Value Homes Value Homes Value Homes Value Northwest 1,294 $ 683.6 1,458 $ 729.5 3,703 $ 1,980.1 4,254 $ 2,158.4 Southwest 2,396 1,129.3 2,488 1,215.3 6,941 3,322.4 7,719 3,762.5 South Central 6,131 1,868.0 5,880 1,917.8 16,648 5,152.2 17,733 5,759.6 Southeast 5,475 1,830.1 6,089 2,165.1 15,077 5,094.2 17,875 6,360.1 East 4,887 1,696.5 4,546 1,614.6 13,228 4,579.8 12,825 4,574.9 North 2,888 1,214.8 2,540 1,073.4 7,748 3,305.8 7,120 2,952.9 23,071 $ 8,422.3 23,001 $ 8,715.7 63,345 $ 23,434.5 67,526 $ 25,568.4 Expand HOMES CLOSED Three Months Ended June 30, Nine Months Ended June 30, 2025 2024 2025 2024 Homes Value Homes Value Homes Value Homes Value Northwest 1,270 $ 698.8 1,427 $ 720.7 3,549 $ 1,892.3 4,037 $ 2,034.3 Southwest 2,396 1,166.2 2,673 1,313.7 6,937 3,369.7 7,556 3,647.8 South Central 6,239 1,938.2 6,104 2,009.0 15,943 4,954.7 17,323 5,631.4 Southeast 5,682 1,923.2 6,669 2,415.9 15,339 5,255.5 18,281 6,591.3 East 4,835 1,668.3 4,748 1,709.0 12,507 4,336.5 12,389 4,418.1 North 2,738 1,166.3 2,534 1,062.9 7,220 3,079.2 6,457 2,651.3 23,160 $ 8,561.0 24,155 $ 9,231.2 61,495 $ 22,887.9 66,043 $ 24,974.2 Expand SALES ORDER BACKLOG As of June 30, 2025 2024 Homes Value Homes Value Northwest 689 $ 372.0 764 $ 402.2 Southwest 1,218 576.3 1,570 795.9 South Central 3,459 1,091.2 4,037 1,354.8 Southeast 2,833 974.1 4,410 1,642.4 East 3,465 1,255.7 3,817 1,409.2 North 2,411 1,068.8 2,194 949.5 14,075 $ 5,338.1 16,792 $ 6,554.0 Expand D.R. HORTON, INC. AND SUBSIDIARIES LAND AND LOT POSITION September 30, 2024 Northwest 11,100 17,800 28,900 13,000 18,600 31,600 Southwest 20,300 30,800 51,100 22,200 29,200 51,400 South Central 36,400 116,000 152,400 39,000 109,600 148,600 Southeast 30,400 114,800 145,200 29,500 134,300 163,800 East 31,500 116,100 147,600 32,500 129,300 161,800 North 16,200 60,000 76,200 16,300 59,400 75,700 145,900 455,500 601,400 152,500 480,400 632,900 24 % 76 % 100 % 24 % 76 % 100 % Expand _____________ (1) Lots controlled at June 30, 2025 included approximately 42,700 lots owned or controlled by Forestar, 24,200 of which our homebuilding divisions had under contract to purchase and 18,500 of which our homebuilding divisions had a right of first offer to purchase. Lots controlled at September 30, 2024 included approximately 37,700 lots owned or controlled by Forestar, 20,500 of which our homebuilding divisions had under contract to purchase and 17,200 of which our homebuilding divisions had a right of first offer to purchase. Expand _____________ (1) Homes in inventory exclude model homes and homes related to our rental operations. Expand
