D.R. Horton Earnings Call Transcripts
Fiscal Year 2026
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Q2 saw strong pre-tax income and revenue, with net sales orders up 11% year-over-year and a 35% reduction in unsold completed homes. Guidance for FY2026 was narrowed due to lower closings and ASP, but margins remain stable and capital returns robust.
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Q1 2026 saw $798M pre-tax income on $6.9B revenue, with net sales orders up 3% year-over-year and strong cash flow. Guidance for FY 2026 remains robust, with elevated incentives and a focus on capital efficiency amid affordability challenges.
Fiscal Year 2025
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Q4 and FY25 saw strong cash flow, disciplined capital allocation, and solid returns despite affordability challenges. FY26 guidance anticipates stable revenues, elevated incentives, and continued focus on efficiency and shareholder returns.
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Q3 results featured $1 billion net income and 21.8% gross margin, with incentives rising to support sales amid affordability challenges. FY2025 guidance was reaffirmed, and share repurchase plans increased, while inventory and cost controls remain a focus.
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Q2 saw lower sales and revenue due to affordability pressures, but margins and returns remained strong. Guidance for Q3 and FY25 anticipates stable margins, increased share repurchases, and continued focus on capital efficiency and market share.
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Investor sentiment is cautious, with margin performance and core growth as key concerns. Demand is steady but sensitive to rates, with affordability addressed through incentives and smaller homes. Share repurchases are at record levels, supported by a strong balance sheet.
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Q1 2025 saw solid results with $845M net income and $7.6B revenue, but margins declined due to higher incentives. Guidance for FY25 remains strong, with 90,000–92,000 homes expected to close and increased share repurchases planned.
Fiscal Year 2024
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Q4 saw solid results with $1.7B pre-tax income and $10B revenue, but net income and margins declined due to higher incentives and affordability challenges. FY25 guidance anticipates flat revenues and margins, with continued focus on affordability, incentives, and shareholder returns.
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Third quarter 2024 saw EPS rise 5% to $4.10 and revenues reach $10B, with strong margins and cash flow. Guidance for Q4 and full-year 2024 remains robust, with increased share repurchases and dividends planned. Affordability and lot costs remain key challenges.