mphillips007 D.R. Horton, Inc. (NYSE:DHI) is an American home construction company. Founded in 1978, D.R. Horton is now a $47 billion (by market cap) homebuilding major that employs over 13,000 people. By volume, D.R. Horton is the largest homebuilder in the United States. The company operates in 119 different markets across 33 states. D.R. Horton has three key tailwinds working in its favor. First, there's a structural imbalance between supply and demand. It's been estimated that the US has a supply defici ...

Otis Worldwide Corporation (OTIS) reported mixed results in first-quarter 2024, wherein its earnings surpassed the Zacks Consensus Estimate but net sales missed the same. The top and bottom lines grew on a year-over-year basis.Its quarterly results reflected 14 consecutive quarters of organic sales growth and the results were marked by a high-teens growth in adjusted earnings per share (EPS). Thanks to the strength in modernization, the company witnessed orders growth of more than 10%, leading to mid-teens ...

NVR, Inc. (NVR) reported impressive first-quarter 2024 results, with earnings and Homebuilding revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was backed by improved demand trends, which resulted in higher order volumes.Shares of this leading homebuilder inched up 0.4% during the trading session on Apr 23, 2024.Inside the NumbersThe company reported earnings of $116.41 per share, which topped the consensus mark of $106.03 by 9.8%. ...

Homebuilding Performance - Homebuilding revenues increased 13% to $8.5 billion compared to $7.5 billion[143] - Homes closed increased 15% to 22,548 homes, while the average closing price decreased 1% to $375,500[143] - Net sales orders increased 14% to 26,456 homes, with the value of net sales orders increasing 17% to $10.1 billion[143] - Homebuilding revenues increased 11% to $15.8 billion compared to $14.2 billion[154] - Homes closed increased 13% to 41,888 homes, while the average closing price decreased 2% to $375,800[154] - Net sales orders increased 22% to 44,525 homes, with a value increase of 24% to $16.9 billion[154] - Home sales revenue for the three months ended March 31, 2024, was $8.5 billion, a 15% increase from $7.4 billion in the prior year period, with 22,548 homes closed compared to 19,664 homes closed previously[174] - Homebuilding revenues in the Southwest region increased by 39% for the three months ended March 31, 2024, primarily due to increases in the number of homes closed[193] - The number of homes closed increased by 15% for the three months ended March 31, 2024, with growth observed in all regions[174] - Homebuilding revenues in the East Region increased by 19% and 15% for the three and six months ended March 31, 2024, respectively, with pre-tax income of $254.5 million and $459.1 million[197] - In the North Region, homebuilding revenues rose by 16% and 15% for the three and six months ended March 31, 2024, respectively, generating pre-tax income of $114.7 million and $200.8 million[198] Financial Performance - Consolidated revenues increased 14% to $9.1 billion compared to $8.0 billion[150] - Net income attributable to D.R. Horton increased 24% to $1.2 billion compared to $942.2 million[150] - Net income attributable to D.R. Horton increased 11% to $2.1 billion, with diluted net income per share up 15% to $6.34[158] - Pre-tax income for the three months ended March 31, 2024, was $1.5 billion, an increase from $1.2 billion in the prior year, representing a 25% growth[222] - Income tax expense for the three months ended March 31, 2024, was $344.8 million, compared to $295.7 million in the prior year, reflecting a 16.6% increase[223] - Net income for the six months ended March 31, 2024, was $1,883.0 million, down from $3,984.2 million for the year ended September 30, 2023, reflecting a decrease of about 52.8%[262] Profitability Metrics - Homebuilding pre-tax income was $1.4 billion compared to $1.1 billion, with a pre-tax margin of 16.0%[143] - Gross profit from home sales increased to $2.0 billion in the three months ended March 31, 2024, with a gross profit margin of 23.2%, up 160 basis points from the prior year[178] - Homebuilding pre-tax income for the six months ended March 31, 2024, was $2.5 billion, representing a 13% increase from $2.2 billion in the prior year[190] - Selling, general and administrative (SG&A) expenses increased by 13% to $614.1 million for the three months ended March 31, 2024, and by 14% to $1.2 billion for the six months ended March 31, 2024[184] Rental and Financial Services - Rental revenues increased 66% to $371.3 million compared to $224.1 million[144] - Financial services revenues increased 18% to $418.2 million, with pre-tax income up 39% to $144.0 million[157] - Forestar's pre-tax income increased 64% to $58.9 million compared to $35.9 million[147] - Total rental revenues increased to $371.3 million and $566.5 million during the three and six months ended March 31, 2024, respectively, compared to $224.1 million and $551.6 million in the prior year periods[205] Inventory and Land Management - Approximately 27,600 homes in inventory were unsold at March 31, 2024, with 7,300 of those homes completed[204] - The company managed its inventory of owned land and lots relative to demand, actively controlling the number of unsold, completed homes[201] - The total remaining purchase price of lots controlled through land and lot purchase contracts was $23.1 billion at March 31, 2024, compared to $21.1 billion at September 30, 2023[204] - As of March 31, 2024, the company had $8.8 million of land held for sale, expected to be sold within the next twelve months[181] Debt and Cash Management - Cash and cash equivalents for the homebuilding segment totaled $2.2 billion at March 31, 2024[230] - The ratio of debt to total capital was 20.0% at March 31, 2024, compared to 18.3% at September 30, 2023[227] - The company had $2.1 billion principal amount of homebuilding senior notes outstanding, maturing from October 2024 through October 2027[233] - Cash decreased to $2,115.6 million as of March 31, 2024, from $2,848.3 million as of September 30, 2023, a decline of about 25.7%[261] Risk Management and Compliance - The company has not experienced any significant changes in its internal controls over financial reporting during the quarter ended March 31, 2024[277] - The company is involved in lawsuits and contingencies but does not expect these to have a material adverse effect on its financial position[280] - A Consent Decree related to stormwater compliance was issued on April 8, 2024, with costs not expected to exceed $1 million[281] - The company manages interest rate risk through forward sales of mortgage-backed securities, which are classified as hedging instruments[271]

Although current expectations indicate that U.S. interest rates may not decrease significantly soon, there’s skepticism about maintaining high rates over an extended period. If interest rates eventually decrease, financing for new homes would become cheaper, stimulating demand for home purchases and, thus, homebuilder stocks.While inflation remains a concern, prolonged high interest rates could elevate inflation as businesses and consumers adjust expectations and spending accordingly.If your rent goes up du ...

D.R. Horton just delivered a rock-solid earnings report. Here's why the stock can keep moving higher.For those hoping for relief on the mortgage rate front, Fed Chair Jerome Powell had some bad news earlier this week.Powell, who had said in March that the central bank was still on track for three rate cuts this year, warned that inflation was not coming down as expected. He said that "Recent data have clearly not given us greater confidence" that inflation is coming down, and hinted once again that rates wo ...

Core Insights - D.R. Horton, Inc. (DHI) reported strong second-quarter fiscal 2024 results, with earnings and revenues exceeding expectations, leading to a 5% increase in shares during pre-market trading [1][2] Earnings, Revenues & Margin Discussion - Adjusted earnings were $3.52 per share, surpassing the Zacks Consensus Estimate of $3.08 by 14.3% and increasing 28.9% year-over-year from $2.73 [2] - Total revenues reached $9.12 billion, a 14% year-over-year increase, exceeding the consensus estimate of $8.27 billion by 10.2% [2] - The consolidated pre-tax profit margin for the quarter was 16.8% [2] Segment Details - Homebuilding revenues amounted to $8.5 billion, up 13% from the prior year, with home sales at $8.47 billion, reflecting a 13.7% increase [3] - Home closings rose 15% year-over-year to 22,548 homes, while net sales orders increased 14% to 26,456 homes, with the value of net orders up 17% to $10.1 billion [3] - The cancellation rate on gross sales orders decreased to 15% from 18% a year ago [3] - The order backlog at the end of the quarter was 17,873 homes, down 7% year-over-year, with a backlog value of $7 billion, down 5% [3] - Financial Services revenues increased 4.3% to $225.6 million, while Forestar contributed $333.8 million in revenues, up from $301.5 million a year ago [3][4] Balance Sheet Details - Cash, cash equivalents, and restricted cash totaled $3.06 billion as of March 31, 2024, down from $3.87 billion at the end of fiscal 2023 [5] - Total homebuilding liquidity was $5.7 billion, with debt totaling $5.9 billion and a debt to total capital ratio of 20% [5] - The trailing 12-month return on equity was 22.2% [5] Share Repurchase and Future Outlook - D.R. Horton repurchased 2.7 million shares for $402.2 million during the quarter, with remaining stock repurchase authorization of $901.1 million as of March 31, 2024 [6] - The company raised its fiscal 2024 revenue guidance to $36.7-$37.7 billion, up from $36-$37.3 billion, and expects homes closed to be between 89,000-91,000 units [7]

D.R. Horton, Inc. (NYSE:DHI) Q2 2024 Earnings Conference Call April 18, 2024 8:30 AM ET Company Participants Jessica Hansen - Senior Vice President, Investor Relations and Communications Paul Romanowski - President and Chief Executive Officer Michael Murray - Executive Vice President and Chief Operating Officer Bill Wheat - Executive Vice President and Chief Financial Officer Conference Call Participants Carl Reichardt - BTIG John Lovallo - UBS Stephen Kim - Evercore ISI Matthew Bouley - Barclays Michael Re ...

Economic Indicators - Initial Jobless Claims for last week were reported at 212K, below the expected 215K, indicating a return to pre-pandemic norms [1] - Continuing Claims stood at 1.812 million, slightly above the previous week's 1.810 million, reflecting stability in the labor market [2] - The April Philly Fed survey reported a surprising 15.5, the highest in two years, surpassing the estimate of 1.5-2.5 and indicating positive manufacturing trends [3] Company Earnings - D.R. Horton (DHI) reported fiscal Q2 earnings of $3.52 per share, exceeding the Zacks consensus of $3.08, with revenues of $9.11 billion beating estimates of $8.27 billion [4] - D.R. Horton raised its full-year revenue guidance by 3.6%, positively impacting its stock price [4] - Netflix (NFLX) is expected to report Q1 earnings with a projected 56% year-over-year earnings growth and a 13.5% increase in revenues [4]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Fiscal 2024 Second Quarter Performance](index=1&type=section&id=Fiscal%202024%20Second%20Quarter%20Performance) D.R. Horton reported strong Q2 FY2024 results with significant increases in net income, consolidated pre-tax income, and revenues, driven by higher homes closed and net sales orders | Metric | Q2 FY24 (Millions) | YoY Change | Per Diluted Share | YoY Change (Per Share) | | :-------------------------------- | :----------------- | :--------- | :---------------- | :----------------------- | | Net Income | $1,200 | +24% | $3.52 | +29% | | Consolidated Pre-Tax Income | $1,500 | +23% | - | - | | Consolidated Revenues | $9,100 | +14% | - | - | | Homes Closed (Units) | 22,548 | +15% | - | - | | Homes Closed (Value) | $8,500 | +14% | - | - | | Net Sales Orders (Units) | 26,456 | +14% | - | - | | Net Sales Orders (Value) | $10,100 | +17% | - | - | | Rental Operations Pre-Tax Income | $33.3 | -4% | - | - | | Rental Operations Revenues | $371.3 | +66% | - | - | - Repurchased **2.7 million shares** of common stock for **$402.2 million** and paid cash dividends of **$99.2 million**[1](index=1&type=chunk) [Six Months Ended March 31, 2024 Performance](index=1&type=section&id=Six%20Months%20Ended%20March%2031%2C%202024%20Performance) For the first six months of fiscal 2024, the company continued its growth trajectory with increased net income, diluted EPS, and consolidated revenues compared to the prior year period | Metric | 6M FY24 (Millions) | YoY Change | Per Diluted Share | YoY Change (Per Share) | | :-------------------------------- | :----------------- | :--------- | :---------------- | :----------------------- | | Net Income Attributable to D.R. Horton | $2,100 | +11% | $6.34 | +15% | | Consolidated Revenues | $16,800 | +11% | - | - | - Return on Equity (ROE) was **22.2%** for the trailing twelve months ended March 31, 2024[2](index=2&type=chunk) - Homebuilding Return on Inventory (ROI) was **29.9%** for the trailing twelve months ended March 31, 2024[2](index=2&type=chunk) [Financial Position and Liquidity](index=1&type=section&id=Financial%20Position%20and%20Liquidity) The company maintains a strong financial position with substantial liquidity and a low debt-to-total-capital ratio, providing significant financial flexibility | Metric | Amount (Millions) | | :-------------------------- | :---------------- | | Consolidated Cash Balance | $3,100 | | Available Credit Facilities | $2,600 | | Total Liquidity | $5,700 | | Total Debt | $5,900 | | Debt to Total Capital Ratio | 20.0% | - No senior note maturities in fiscal 2024[3](index=3&type=chunk) [Management Commentary and Strategic Focus](index=1&type=section&id=Management%20Commentary%20and%20Strategic%20Focus) Chairman Donald R. Horton highlighted solid Q2 results, driven by increased sales orders despite elevated inflation and mortgage rates, and emphasized the company's focus on affordable product offerings, flexible lot supply, maximizing returns, generating strong cash flows, and returning capital to shareholders - Net sales orders increased **46%** from the first quarter and **14%** from the prior year quarter, supported by limited supply of affordable homes and favorable demographics[4](index=4&type=chunk) - The company is increasing its fiscal 2024 guidance for homes closed and consolidated revenues[4](index=4&type=chunk) - Strategic focus includes maximizing returns, generating strong cash flows, maintaining strong liquidity and low leverage, and consistently returning capital to shareholders through increasing dividends and share repurchases[5](index=5&type=chunk) [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) [Homebuilding Operations](index=2&type=section&id=Homebuilding%20Operations) D.R. Horton's homebuilding segment demonstrated robust growth in Q2 and the first six months of fiscal 2024, with significant increases in revenue, homes closed, and pre-tax income, alongside an improved pre-tax profit margin [Revenue and Closings](index=2&type=section&id=Revenue%20and%20Closings) | Metric | Q2 FY24 (Millions) | YoY Change | 6M FY24 (Millions) | YoY Change | | :----------------- | :----------------- | :--------- | :----------------- | :--------- | | Homebuilding Revenue | $8,500 | +13% | $15,800 | +11% | | Homes Closed (Units) | 22,548 | +15% | 41,888 | +13% | [Profitability](index=2&type=section&id=Profitability) | Metric | Q2 FY24 (Millions) | YoY Change | Q2 FY24 Margin | Q2 FY23 Margin | 6M FY24 (Millions) | YoY Change | 6M FY24 Margin | 6M FY23 Margin | | :------------------------- | :----------------- | :--------- | :------------- | :------------- | :----------------- | :--------- | :------------- | :------------- | | Homebuilding Pre-Tax Income | $1,400 | +27% | 16.0% | 14.3% | $2,500 | +14% | 15.6% | 15.2% | - Net cash provided by homebuilding operations for the six months ended March 31, 2024, was **$408.3 million**[7](index=7&type=chunk) [Sales Orders and Backlog](index=2&type=section&id=Sales%20Orders%20and%20Backlog) | Metric | Q2 FY24 (Units) | YoY Change | Q2 FY24 (Value) | YoY Change | 6M FY24 (Units) | YoY Change | 6M FY24 (Value) | YoY Change | | :-------------------- | :-------------- | :--------- | :-------------- | :--------- | :-------------- | :--------- | :-------------- | :--------- | | Net Sales Orders | 26,456 | +14% | $10,100 | +17% | 44,525 | +22% | $16,900 | +24% | - The cancellation rate for Q2 FY24 was **15%**, down from **18%** in the prior year quarter[8](index=8&type=chunk) | Metric | March 31, 2024 (Units) | YoY Change | March 31, 2024 (Value) | YoY Change | | :-------------------- | :--------------------- | :--------- | :--------------------- | :--------- | | Sales Order Backlog | 17,873 | -7% | $7,000 | -5% | [Inventory and Land Position](index=2&type=section&id=Inventory%20and%20Land%20Position) - At March 31, 2024, the Company had **45,000 homes** in inventory, of which **27,600** were unsold and **7,300** were completed[9](index=9&type=chunk) - The homebuilding land and lot portfolio totaled **617,200 lots**, with **23%** owned and **77%** controlled through land and lot purchase contracts[9](index=9&type=chunk) - **62%** of homes closed during the three and six months ended March 31, 2024, were on lots developed by Forestar or third parties[9](index=9&type=chunk) [Rental Operations](index=2&type=section&id=Rental%20Operations) Rental operations saw increased revenues in Q2 FY24, driven by higher sales of single-family and multi-family rental units, though pre-tax income for the six-month period decreased [Financial Performance](index=2&type=section&id=Financial%20Performance) | Metric | Q2 FY24 (Millions) | YoY Change | 6M FY24 (Millions) | YoY Change | | :------------------------- | :----------------- | :--------- | :----------------- | :--------- | | Rental Operations Revenues | $371.3 | +66% | $566.5 | +3% | | Rental Operations Pre-Tax Income | $33.3 | -4% | $64.6 | -55% | [Single-Family Rental Properties](index=2&type=section&id=Single-Family%20Rental%20Properties) | Metric | Q2 FY24 (Units) | YoY Change | Q2 FY24 (Value) | 6M FY24 (Units) | YoY Change | 6M FY24 (Value) | | :-------------------------- | :-------------- | :--------- | :-------------- | :-------------- | :--------- | :-------------- | | Single-Family Rental Homes Sold | 1,109 | +54% | $301.3 | 1,488 | +5% | $417.3 | - At March 31, 2024, single-family rental property inventory was **$1.3 billion**, consisting of **5,230 homes** (**4,450 completed**) and **2,740 lots** (**1,070 finished**)[11](index=11&type=chunk) [Multi-Family Rental Properties](index=2&type=section&id=Multi-Family%20Rental%20Properties) | Metric | Q2 FY24 (Units) | YoY Change | Q2 FY24 (Value) | 6M FY24 (Units) | YoY Change | 6M FY24 (Value) | | :-------------------------- | :-------------- | :--------- | :-------------- | :-------------- | :--------- | :-------------- | | Multi-Family Rental Units Sold | 424 | N/A | $70.0 | 724 | +141% | $149.2 | - At March 31, 2024, multi-family rental property inventory was **$1.8 billion**, consisting of **10,990 units** (**8,040 under active construction**, **2,950 completed**)[12](index=12&type=chunk) [Forestar (Lot Development)](index=3&type=section&id=Forestar%20(Lot%20Development)) Forestar, D.R. Horton's majority-owned subsidiary, reported strong growth in lots sold, revenue, and pre-tax income, with improved pre-tax profit margins in both the second quarter and the first six months of fiscal 2024 | Metric | Q2 FY24 (Units) | YoY Change | Q2 FY24 (Value) | YoY Change | Q2 FY24 Margin | 6M FY24 (Units) | YoY Change | 6M FY24 (Value) | YoY Change | 6M FY24 Margin | | :-------------------- | :-------------- | :--------- | :-------------- | :--------- | :------------- | :-------------- | :--------- | :-------------- | :--------- | :------------- | | Lots Sold | 3,289 | +10% | - | - | - | 6,439 | +23% | - | - | - | | Revenue | - | - | $333.8 | +11% | - | - | - | $639.7 | +23% | - | | Pre-Tax Income | - | - | $58.9 | +64% | 17.6% | - | - | $110.1 | +73% | 17.2% | [Financial Services](index=3&type=section&id=Financial%20Services) Financial services revenues increased in Q2 and the first six months of fiscal 2024, with a notable improvement in pre-tax income and profit margin for the six-month period, despite a slight dip in Q2 pre-tax income | Metric | Q2 FY24 (Millions) | YoY Change | Q2 FY24 Margin | Q2 FY23 Margin | 6M FY24 (Millions) | YoY Change | 6M FY24 Margin | 6M FY23 Margin | | :-------------------- | :----------------- | :--------- | :------------- | :------------- | :----------------- | :--------- | :------------- | :------------- | | Revenues | $225.6 | +4% | - | - | $418.2 | +18% | - | - | | Pre-Tax Income | $78.0 | -9% | 34.6% | 39.6% | $144.0 | +39% | 34.4% | 29.4% | [Capital Allocation](index=3&type=section&id=Capital%20Allocation) [Dividends](index=3&type=section&id=Dividends) D.R. Horton paid $99.2 million in cash dividends in Q2 FY24 and declared a quarterly cash dividend of $0.30 per common share - Cash dividends paid during Q2 FY24 totaled **$99.2 million**, bringing the six-month total to **$199.1 million**[16](index=16&type=chunk) - A quarterly cash dividend of **$0.30 per common share** was declared, payable on May 9, 2024[16](index=16&type=chunk) [Share Repurchases](index=3&type=section&id=Share%20Repurchases) The company actively repurchased common stock in Q2 and the first six months of fiscal 2024, with a significant remaining authorization for future repurchases | Metric | Q2 FY24 | 6M FY24 | | :-------------------------- | :-------------------- | :-------------------- | | Shares Repurchased | 2.7 million shares | 6.1 million shares | | Value of Repurchases | $402.2 million | $800.5 million | | Remaining Authorization (March 31, 2024) | - | $901.1 million | [Fiscal 2024 Guidance Update](index=3&type=section&id=Fiscal%202024%20Guidance%20Update) [Fiscal 2024 Guidance Update](index=3&type=section&id=Fiscal%202024%20Guidance%20Update) D.R. Horton updated its fiscal 2024 guidance, increasing projections for consolidated revenues and homes closed, while reiterating its cash flow guidance from homebuilding operations | Metric | Updated Fiscal 2024 Guidance | | :---------------------------------- | :--------------------------- | | Consolidated Revenues | $36.7 billion to $37.7 billion | | Homes Closed (Homebuilding) | 89,000 homes to 91,000 homes | | Share Repurchases | Approximately $1.6 billion | | Income Tax Rate | Approximately 23.5% to 24.0% | - The Company reiterates its fiscal 2024 guidance for cash flow provided by homebuilding operations of approximately **$3.0 billion**[18](index=18&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) [About D.R. Horton, Inc.](index=4&type=section&id=About%20D.R.%20Horton%2C%20Inc.) D.R. Horton is the largest U.S. homebuilder by volume since 2002, operating in 119 markets across 33 states, offering diverse product portfolios including single-family and multi-family rental properties, and providing mortgage, title, and insurance services. It is also the majority owner of Forestar Group Inc - D.R. Horton has been the largest homebuilder by volume in the United States since 2002, closing over **1,000,000 homes** in its 45-year history[20](index=20&type=chunk) - Operations span **119 markets** in **33 states**, constructing and selling high-quality homes with prices generally ranging from **$200,000** to over **$1,000,000**, as well as single-family and multi-family rental properties[20](index=20&type=chunk) - The company provides mortgage financing, title services, and insurance agency services for homebuyers and is the majority-owner of Forestar Group Inc[20](index=20&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The document contains forward-looking statements based on reasonable assumptions, but actual outcomes may differ materially due to various factors, including economic conditions, capital markets, interest rates, supply chain issues, and regulatory changes - Forward-looking statements are subject to risks and uncertainties, and actual outcomes may be materially different from expectations[21](index=21&type=chunk) - Key factors that may cause actual results to differ include the cyclical nature of the industries, adverse developments in capital markets, changes in mortgage financing, risks associated with inventory, ability to effect growth strategies, inflationary/higher interest rate environments, supply shortages, public health issues, weather, and governmental regulations[22](index=22&type=chunk) [Conference Call and Contact Information](index=3&type=section&id=Conference%20Call%20and%20Contact%20Information) Details for the Q2 FY24 earnings conference call and webcast, along with investor relations contact information - A conference call was scheduled for April 18, 2024, at 8:30 a.m. Eastern Time, with webcast available at investor.drhorton.com[19](index=19&type=chunk) - Investor relations contact is Jessica Hansen, Senior Vice President - Communications[23](index=23&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheet shows an increase in total assets, primarily driven by inventories, and a corresponding increase in total liabilities and equity from September 30, 2023, to March 31, 2024 | Metric | March 31, 2024 (Millions) | September 30, 2023 (Millions) | | :---------------------------------- | :-------------------------- | :---------------------------- | | Total Assets | $34,398.2 | $32,582.4 | | Total Inventory | $24,840.0 | $22,373.3 | | Total Liabilities | $10,101.8 | $9,444.5 | | Stockholders' Equity | $23,815.5 | $22,696.2 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations reflect strong revenue growth and increased net income for both the second quarter and the first six months of fiscal 2024 compared to the prior year periods | Metric | Q2 FY24 (Millions) | Q2 FY23 (Millions) | YoY Change | 6M FY24 (Millions) | 6M FY23 (Millions) | YoY Change | | :------------------------------------ | :----------------- | :----------------- | :--------- | :----------------- | :----------------- | :--------- | | Revenues | $9,107.2 | $7,972.9 | +14.2% | $16,833.1 | $15,230.6 | +10.5% | | Income before Income Taxes | $1,528.5 | $1,245.3 | +22.7% | $2,776.0 | $2,512.5 | +10.5% | | Net Income Attributable to D.R. Horton | $1,172.1 | $942.2 | +24.4% | $2,119.5 | $1,900.9 | +11.5% | | Diluted Net Income per Common Share | $3.52 | $2.73 | +29.0% | $6.34 | $5.50 | +15.3% | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended March 31, 2024, the company experienced a net cash outflow from operating activities, a decrease in cash used in investing activities, and a reduced net cash outflow from financing activities, resulting in an overall net decrease in cash | Cash Flow Activity | 6M FY24 (Millions) | 6M FY23 (Millions) | | :------------------------------------ | :----------------- | :----------------- | | Net Cash (Used in) Provided by Operating Activities | $(470.1) | $1,473.6 | | Net Cash Used in Investing Activities | $(66.0) | $(180.6) | | Net Cash Used in Financing Activities | $(270.6) | $(791.3) | | Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | $(806.7) | $501.7 | | Cash, Cash Equivalents and Restricted Cash at End of Period | $3,093.4 | $3,074.6 | [Segment Financial Information](index=8&type=section&id=Segment%20Financial%20Information) [Segment Assets and Liabilities](index=8&type=section&id=Segment%20Assets%20and%20Liabilities) Segment-level balance sheet data for March 31, 2024, and September 30, 2023, shows the distribution of assets and liabilities across Homebuilding, Rental, Forestar, and Financial Services segments, with Homebuilding holding the largest share of assets and liabilities | Segment | Assets (March 31, 2024, Millions) | Liabilities (March 31, 2024, Millions) | | :---------------- | :-------------------------------- | :----------------------------------- | | Homebuilding | $25,552.4 | $5,917.7 | | Rental | $3,228.0 | $1,408.5 | | Forestar | $2,598.7 | $1,125.7 | | Financial Services | $3,213.3 | $2,111.9 | [Segment Operating Results](index=9&type=section&id=Segment%20Operating%20Results) Segment operating results for Q2 and the first six months of fiscal 2024 detail revenues, costs, and pre-tax income contributions from Homebuilding, Rental, Forestar, and Financial Services, highlighting the Homebuilding segment as the primary driver of profitability | Segment | Q2 FY24 Pre-Tax Income (Millions) | 6M FY24 Pre-Tax Income (Millions) | | :---------------- | :------------------------------ | :------------------------------ | | Homebuilding | $1,357.6 | $2,453.7 | | Rental | $33.3 | $64.6 | | Forestar | $58.9 | $110.1 | | Financial Services | $78.0 | $144.0 | - Net cash provided by homebuilding operating activities for the six months ended March 31, 2024, was **$408.3 million**, while rental operations used **$(653.9) million**[28](index=28&type=chunk) [Homebuilding Operational Data by Region](index=11&type=section&id=Homebuilding%20Operational%20Data%20by%20Region) [Sales Order Backlog](index=11&type=section&id=Sales%20Order%20Backlog) The sales order backlog for the homebuilding segment decreased across most regions as of March 31, 2024, compared to the prior year, both in terms of homes and value | Region | March 31, 2024 (Homes) | March 31, 2023 (Homes) | YoY Change (Homes) | March 31, 2024 (Value, Millions) | March 31, 2023 (Value, Millions) | YoY Change (Value) | | :------------- | :--------------------- | :--------------------- | :----------------- | :------------------------------- | :------------------------------- | :----------------- | | Northwest | 733 | 745 | -1.6% | $393.3 | $400.1 | -1.7% | | Southwest | 1,755 | 1,429 | +22.8% | $894.4 | $731.0 | +22.3% | | South Central | 4,261 | 5,206 | -18.1% | $1,446.0 | $1,757.7 | -17.7% | | Southeast | 4,990 | 6,541 | -23.7% | $1,893.1 | $2,478.3 | -23.7% | | East | 4,019 | 3,514 | +14.4% | $1,503.7 | $1,281.5 | +17.3% | | North | 2,115 | 1,802 | +17.4% | $908.8 | $751.4 | +20.9% | | **Total** | **17,873** | **19,237** | **-7.1%** | **$7,039.3** | **$7,400.0** | **-4.9%** | [Net Sales Orders](index=11&type=section&id=Net%20Sales%20Orders) Net sales orders for the homebuilding segment increased significantly across all regions in both the second quarter and the first six months of fiscal 2024, indicating strong demand | Region | Q2 FY24 (Homes) | Q2 FY23 (Homes) | YoY Change (Homes) | Q2 FY24 (Value, Millions) | Q2 FY23 (Value, Millions) | YoY Change (Value) | | :------------- | :-------------- | :-------------- | :----------------- | :------------------------ | :------------------------ | :----------------- | | Northwest | 1,617 | 1,379 | +17.3% | $833.1 | $724.1 | +15.0% | | Southwest | 3,068 | 1,995 | +53.8% | $1,512.3 | $953.7 | +58.6% | | South Central | 7,021 | 6,021 | +16.6% | $2,287.2 | $1,941.5 | +17.8% | | Southeast | 6,985 | 6,679 | +4.6% | $2,489.8 | $2,397.5 | +3.8% | | East | 4,978 | 4,482 | +11.1% | $1,785.1 | $1,570.8 | +13.6% | | North | 2,787 | 2,586 | +7.8% | $1,155.7 | $1,042.3 | +10.9% | | **Total** | **26,456** | **23,142** | **+14.3%** | **$10,063.2** | **$8,629.9** | **+16.6%** | | Region | 6M FY24 (Homes) | 6M FY23 (Homes) | YoY Change (Homes) | 6M FY24 (Value, Millions) | 6M FY23 (Value, Millions) | YoY Change (Value) | | :------------- | :-------------- | :-------------- | :----------------- | :------------------------ | :------------------------ | :----------------- | | Northwest | 2,796 | 2,283 | +22.5% | $1,428.9 | $1,183.9 | +20.7% | | Southwest | 5,231 | 3,249 | +61.0% | $2,547.3 | $1,534.2 | +66.0% | | South Central | 11,853 | 9,827 | +20.6% | $3,841.8 | $3,115.6 | +23.3% | | Southeast | 11,786 | 10,596 | +11.2% | $4,194.9 | $3,789.9 | +10.7% | | East | 8,279 | 6,795 | +21.8% | $2,960.3 | $2,416.4 | +22.5% | | North | 4,580 | 3,774 | +21.4% | $1,879.5 | $1,513.2 | +24.2% | | **Total** | **44,525** | **36,524** | **+21.9%** | **$16,852.7** | **$13,553.2** | **+24.3%** | [Homes Closed](index=11&type=section&id=Homes%20Closed) Homes closed by the homebuilding segment increased across all regions in both the second quarter and the first six months of fiscal 2024, contributing to overall revenue growth | Region | Q2 FY24 (Homes) | Q2 FY23 (Homes) | YoY Change (Homes) | Q2 FY24 (Value, Millions) | Q2 FY23 (Value, Millions) | YoY Change (Value) | | :------------- | :-------------- | :-------------- | :----------------- | :------------------------ | :------------------------ | :----------------- | | Northwest | 1,476 | 1,280 | +15.3% | $739.9 | $690.7 | +7.1% | | Southwest | 2,665 | 1,873 | +42.3% | $1,282.9 | $905.5 | +41.7% | | South Central | 6,098 | 5,579 | +9.3% | $1,958.4 | $1,804.1 | +8.6% | | Southeast | 6,118 | 5,751 | +6.4% | $2,185.2 | $2,104.6 | +3.8% | | East | 4,060 | 3,352 | +21.1% | $1,441.1 | $1,206.3 | +19.5% | | North | 2,131 | 1,829 | +16.5% | $859.2 | $738.5 | +16.3% | | **Total** | **22,548** | **19,664** | **+14.7%** | **$8,466.7** | **$7,449.7** | **+13.7%** | | Region | 6M FY24 (Homes) | 6M FY23 (Homes) | YoY Change (Homes) | 6M FY24 (Value, Millions) | 6M FY23 (Value, Millions) | YoY Change (Value) | | :------------- | :-------------- | :-------------- | :----------------- | :------------------------ | :------------------------ | :----------------- | | Northwest | 2,610 | 2,262 | +15.4% | $1,313.6 | $1,210.8 | +8.5% | | Southwest | 4,883 | 3,580 | +36.4% | $2,334.2 | $1,708.2 | +36.6% | | South Central | 11,219 | 10,416 | +7.7% | $3,622.4 | $3,440.2 | +5.3% | | Southeast | 11,612 | 11,038 | +5.2% | $4,175.4 | $4,099.1 | +1.9% | | East | 7,641 | 6,367 | +20.0% | $2,709.1 | $2,349.7 | +15.3% | | North | 3,923 | 3,341 | +17.4% | $1,588.4 | $1,350.9 | +17.6% | | **Total** | **41,888** | **37,004** | **+13.2%** | **$15,743.1** | **$14,158.9** | **+11.2%** | [Land and Lot Position](index=12&type=section&id=Land%20and%20Lot%20Position) The homebuilding segment's total land and lot position increased as of March 31, 2024, with a continued strategy of controlling a majority of lots through purchase contracts rather than outright ownership | Metric | March 31, 2024 (Lots) | September 30, 2023 (Lots) | Change | | :-------------------------- | :-------------------- | :------------------------ | :----- | | Total Land/Lots Owned | 143,900 | 141,100 | +2,800 | | Total Land/Lots Controlled | 473,300 | 427,300 | +46,000 | | **Total Owned and Controlled** | **617,200** | **568,400** | **+48,800** | - At March 31, 2024, **23%** of lots were owned and **77%** were controlled through land and lot purchase contracts[38](index=38&type=chunk) - Lots controlled included approximately **34,300 lots** owned or controlled by Forestar, with **17,300** under contract to purchase and **17,000** with a right of first offer[38](index=38&type=chunk) [Homes in Inventory](index=12&type=section&id=Homes%20in%20Inventory) The total number of homes in inventory for the homebuilding segment increased as of March 31, 2024, compared to September 30, 2023, with notable increases in the South Central and East regions | Region | March 31, 2024 (Homes) | September 30, 2023 (Homes) | Change | | :------------- | :--------------------- | :------------------------- | :----- | | Northwest | 2,800 | 2,800 | 0 | | Southwest | 4,500 | 4,700 | -200 | | South Central | 11,900 | 10,800 | +1,100 | | Southeast | 12,200 | 12,100 | +100 | | East | 8,500 | 7,100 | +1,400 | | North | 5,100 | 4,500 | +600 | | **Total** | **45,000** | **42,000** | **+3,000** |