D.R. Horton, Inc., America’s Builder, Reports Fiscal 2026 Second Quarter Earnings and Declares Quarterly Dividend of $0.45 Per Share

ARLINGTON, Texas--(BUSINESS WIRE)--$DHI #earnings--D.R. Horton, Inc. (NYSE:DHI), America’s Builder, today reported its second fiscal quarter results. All comparisons in this release are to the respective prior year period, unless noted otherwise. Fiscal 2026 Second Quarter Highlights As of or for the quarter ended March 31, 2026 Net income attributable to D.R. Horton of $647.9 million or $2.24 per diluted share Consolidated pre-tax income of $867.4 million, with a pre-tax profit margin of 11.5% Consolidated revenues of $7.6 billion Home sales revenues of $7.0 billion on 19,486 homes closed Net sales orders increased 11% to 24,992 homes with an order value of $9.2 billion Debt to total capital of 21.7% Book value per share increased 5% to $82.91 Repurchased 6.0 million shares of common stock for $903.6 million and paid cash dividends of $129.7 million Consolidated Results Three months ended March 31, 2026 Net income attributable to D.R. Horton for its second fiscal quarter decreased 20% to $647.9 million, and earnings per diluted share decreased 13% to $2.24. Consolidated pre-tax income totaled $867.4 million on revenues of $7.6 billion, resulting in a pre-tax profit margin of 11.5%. Second quarter consolidated pre-tax profit margin and home sales gross margin both include a 40 basis point benefit from a favorable litigation outcome and lower warranty costs. Six months ended March 31, 2026 Net income attributable to D.R. Horton for the first six months of fiscal 2026 decreased 25% to $1.2 billion, and earnings per diluted share decreased 18% to $4.27. Consolidated pre-tax income totaled $1.7 billion on revenues of $14.4 billion, resulting in a pre-tax profit margin of 11.5%. Consolidated pre-tax profit margin and home sales gross margin for the first six months of fiscal 2026 both include a 50 basis point benefit from a favorable litigation outcome and lower warranty costs. Cash provided by operations was $441.5 million during the six months ended March 31, 2026. Total liquidity at quarter end was $6.0 billion, and the Company's debt to total capital ratio was 21.7%. Debt to total capital ratio consists of notes payable divided by stockholders' equity plus notes payable. The Company has $600 million of homebuilding senior notes maturing in the next twelve months. For the trailing twelve months ended March 31, 2026, the Company's return on equity (ROE) was 13.2% and return on assets (ROA) was 8.9%. 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. David Auld, Executive Chairman, said: “The D.R. Horton team delivered a solid second quarter, highlighted by a pre-tax profit margin of 11.5%, above the high end of our guidance range. Consistent with our balanced approach to capital allocation and strong cash flow generation, we returned $1.0 billion to shareholders through share repurchases and dividends during the quarter. “Affordability constraints and cautious consumer sentiment continue to impact new home demand; however, our tenured operators executed with discipline, driving an 11% year‑over‑year increase in net sales orders, while reducing unsold completed homes by 35% from a year ago. We expect our sales incentives to remain elevated in fiscal 2026, with incentive levels dependent on demand, mortgage interest rates and other market conditions. Based on our performance year to date, we remain on track to deliver results within our original fiscal 2026 guidance. “Our strong liquidity, low leverage, national scale, affordable product offerings and controlled lot supply provide significant financial and operational flexibility. We remain focused on disciplined capital allocation and are well-positioned to deliver value to our homebuyers while enhancing long-term value for our shareholders." Homebuilding Three months ended March 31, 2026 Homebuilding revenue for the second quarter decreased 2% to $7.1 billion, and homes closed increased 1% to 19,486 homes. Homebuilding pre-tax income decreased 19% to $757.9 million, and pre-tax profit margin was 10.7%. Net sales orders increased 11% to 24,992 homes with an order value of $9.2 billion. The Company’s cancellation rate (cancelled sales orders divided by gross sales orders) for the quarter was 16%, consistent with the prior year quarter. Six months ended March 31, 2026 Homebuilding revenue for the first six months of fiscal 2026 decreased 5% to $13.6 billion, and homes closed decreased 3% to 37,304 homes. Homebuilding pre-tax income decreased 25% to $1.5 billion, and pre-tax profit margin was 10.8%. Net sales orders increased 7% to 43,292 homes with an order value of $15.8 billion. The cancellation rate for the first six months of fiscal 2026 was 17%, consistent with the prior year period. At quarter end, the Company had 38,200 homes in inventory, of which 22,900 were unsold. 5,500 of the Company’s unsold homes were completed, including 800 that had been completed for greater than six months. Of the Company’s homes closed during the six months ended March 31, 2026, 67% were on lots developed by Forestar or third parties, up from 65% during the prior year period. The Company’s homebuilding return on inventory (ROI) for the trailing twelve months ended March 31, 2026 was 17.6%. 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. Non-Homebuilding Segments Three months ended March 31, 2026 Rental: Rental operations revenues were $211.8 million from the sale of 566 single-family rental homes and 216 multi-family rental units with pre-tax income of $12.3 million, resulting in a pre-tax profit margin of 5.8%. Forestar: Forestar sold 2,938 lots and generated $374.3 million of revenue and $43.9 million of pre-tax income, resulting in a pre-tax profit margin of 11.7%. Financial Services: Financial services revenues were $192.8 million with pre-tax income of $51.7 million, resulting in a pre-tax profit margin of 26.8%. Six months ended March 31, 2026 Rental: Rental operations revenues were $321.3 million from the sale of 963 single-family rental homes and 216 multi-family rental units with pre-tax income of $12.5 million, resulting in a pre-tax profit margin of 3.9%. Forestar: Forestar sold 4,882 lots and generated $647.3 million of revenue and $64.8 million of pre-tax income, resulting in a pre-tax profit margin of 10.0%. Financial Services: Financial services revenues were $377.4 million with pre-tax income of $109.7 million, resulting in a pre-tax profit margin of 29.1%. Share Repurchases and Dividends During the second quarter of fiscal 2026, the Company repurchased 6.0 million shares of common stock for $903.6 million, for a total of 10.4 million shares repurchased for $1.6 billion during the six months ended March 31, 2026. Common shares outstanding at March 31, 2026 totaled 284.9 million, down 8% from a year ago, and the Company’s remaining stock repurchase authorization was $1.7 billion. The Company paid cash dividends of $129.7 million during the second quarter of fiscal 2026, for a total of $261.2 million of dividends paid during the six months ended March 31, 2026. Subsequent to quarter end, the Company declared a quarterly cash dividend of $0.45 per share payable on May 14, 2026 to stockholders of record on May 7, 2026. Guidance Based on the Company’s results for the first six months of fiscal 2026 and current market conditions, D.R. Horton is updating its guidance for fiscal 2026 as follows: Consolidated revenues in the range of $33.5 billion to $34.5 billion Homes closed by homebuilding operations of 86,000 homes to 87,500 homes The company is reiterating its fiscal 2026 guidance as follows: Income tax rate of approximately 24.5% Consolidated cash flow provided by operations of at least $3.0 billion Share repurchases of approximately $2.5 billion Dividend payments of approximately $500 million The Company plans to also provide guidance for its third quarter of fiscal 2026 on its conference call today. Conference Call and Webcast Details The Company will host a conference call today (Tuesday, April 21) at 8:30 a.m. Eastern Time. The dial-in number is 888-506-0062 (reference entry code 659301), and the call will also be webcast from the Company’s website at investor.drhorton.com. Third Quarter Conference Call As previously announced, the Company plans to release financial results for its third quarter of fiscal 2026 on Tuesday, July 21, 2026 before the market opens, with a conference call at 8:30 a.m. Eastern Time. Details on how to access the 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 47-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 $200,000 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 March 31, 2026, D.R. Horton closed 83,832 homes in its homebuilding operations, in addition to 3,593 single-family rental homes and 2,359 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 StatementsRead the full story here

D.R. Horton, Inc., America’s Builder, Reports Fiscal 2026 Second Quarter Earnings and Declares Quarterly Dividend of $0.45 Per Share

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