HORTON D R INC /DE/ SEC 10-Q Report

D.R. Horton, Inc., a leading homebuilding company, has released its Form 10-Q report for the third quarter of the fiscal year 2025. The report highlights the company's financial and operational performance amidst ongoing affordability constraints and cautious consumer sentiment. Despite a challenging market environment, D.R. Horton continues to demonstrate resilience through strategic initiatives and operational efficiency.

Financial Highlights

• Revenues: $9,225.7 million, a decrease of 7% compared to $9,965.7 million in the prior year period, reflecting ongoing affordability constraints and cautious consumer sentiment.
• Cost of Sales: $7,016.5 million, down from $7,323.7 million, indicating a reduction in cost of sales in line with decreased revenues.
• Income before Income Taxes: $1,358.1 million, a decrease of 25% from $1,799.0 million, reflecting a lower pre-tax operating margin of 14.7% compared to 18.1% in the prior year period.
• Net Income: $1,033.1 million, a decrease of 24% from $1,366.8 million, with net income attributable to D.R. Horton of $1,024.6 million.
• Diluted Net Income Per Share: $3.36, a decrease of 18% from $4.10, reflecting the impact of decreased net income and a reduction in weighted average shares outstanding.

Business Highlights

• Revenue Segments: The homebuilding segment generated $22.9 billion in revenue, with significant contributions from the Northwest, Southwest, South Central, Southeast, East, and North regions. The rental segment contributed $835.0 million, while Forestar's lot development operations added $991.9 million, including $810.0 million from sales to D.R. Horton. Financial services generated $623.0 million in revenue.
• Geographical Performance: The Southeast region experienced a decrease in revenue, reflecting a broader trend of reduced home sales across several regions. The South Central region, including Texas, showed resilience with substantial contributions to overall homebuilding revenue.
• Sales Units: The company closed 61,495 homes during the nine months ended June 30, 2025, a 7% decrease from the prior year. The average closing price of these homes was $372,200. Net sales orders totaled 63,345 homes, with a backlog of 14,075 homes valued at $5.3 billion.
• Future Outlook: Management anticipates maintaining elevated sales incentives to support demand, with potential increases depending on market conditions and mortgage interest rates. The company plans to continue prioritizing the purchase of finished lots from Forestar and other developers to optimize returns and capital efficiency.

SEC Filing: HORTON D R INC /DE/ [ DHI ] - 10-Q - Jul. 23, 2025