Financial Data and Key Metrics Changes - The company reported net income of $31.6 million or $0.62 per diluted share on revenues of $351 million, compared to $45 million or $0.89 per diluted share in the prior year quarter [7][12] - Revenues increased by 5% from $333.8 million in the prior year quarter [12] - Gross profit margin decreased to 16.6% from 19.9% in the same quarter last year, primarily due to nonrecurring high-margin items in the prior year [12][13] - Pre-tax income was $40.7 million compared to $58.9 million in the second quarter of last year [13] Business Line Data and Key Metrics Changes - Lots sold increased by 4% to 3,411 lots with an average sales price of $101,700 [14] - Lots under contract to sell increased by 41% from a year ago to 25,400 lots, representing 37% of the company's own lot position [7][24] - The current backlog represents $2.3 billion of future revenue [8][24] Market Data and Key Metrics Changes - The home building industry is facing headwinds from affordability constraints and declining consumer confidence, leading to a slower than expected start to the spring selling season [9][32] - The company has entered 10 new markets in the last year and increased community count by 21% [8][16] Company Strategy and Development Direction - The company aims to consolidate market share in the fragmented lot development industry while moderating the pace of land acquisition [10][34] - The focus remains on developing lots for new homes at affordable price points, with 79% of investments this quarter directed towards land development [10][26] - The company expects to invest approximately $1.9 billion in land acquisition and development in fiscal 2025, subject to market conditions [27] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued headwinds from homeowner affordability constraints and cautious homebuyers affecting lot deliveries [32] - The company is confident in long-term demand for finished lots and its ability to gain market share [34] - Management noted that the availability of contractors and necessary materials remains positive, with stabilized land development costs [19] Other Important Information - The company ended the quarter with approximately $800 million in liquidity, including $174 million in unrestricted cash [28] - Total debt was $873 million, with no senior note maturities until May 2026, and a net debt to capital ratio of 29.8% [29][30] Q&A Session Summary Question: Guidance change context - The guidance change is mostly prospective, reflecting community-level inventory buildup, with no anticipated margin changes [38][40] Question: Flexibility of raw land sellers - There is more flexibility on terms but not much on price, as sellers are holding firm [44] Question: Impact of tariffs on land development costs - Currently, there are no significant cost increases from trade partners, and it is too early to assess tariff impacts [55] Question: Demand characterization in Texas and Florida - Demand is weaker in Florida and stable in Texas, with strong activity in sales centers despite affordability challenges [56][57] Question: Sensitivity of land development spend to demand - The company can moderate spend based on demand changes and has a robust pipeline of projects [64] Question: Competitors' pullback and market share - The company sees opportunities to consolidate market share as competitors pull back [66] Question: Federal deregulation impact on lot supply - It is too early to determine the impact of federal deregulation on lot supply [75] Question: Long-term margin expectations - Margins have been stable in the 21% to 23% range, with no significant pressure anticipated [77]

Financial Performance - Net income for Q2 fiscal 2025 decreased 30% to $31.6 million, or $0.62 per diluted share, compared to $45.0 million, or $0.89 per diluted share in Q2 fiscal 2024[2] - For the first six months of fiscal 2025, net income decreased 42% to $48.1 million, with revenues decreasing 6% to $601.3 million compared to the same period in fiscal 2024[3] - The company expects to deliver between 15,000 and 15,500 lots generating $1.5 billion to $1.55 billion of revenue for fiscal 2025, down from previous guidance of 16,000 to 16,500 lots generating $1.6 billion to $1.65 billion[12] Revenue and Sales - Revenues for Q2 fiscal 2025 increased 5% to $351.0 million from $333.8 million in the same quarter of fiscal 2024[2] - Total revenues for Q1 2025 reached $351.0 million, a 5.1% increase from $333.8 million in Q1 2024[25] - Lot banking projects generated $8.0 million in revenue for Q1 2025, significantly up from $0.7 million in Q1 2024[25] Lot Sales and Position - Lots sold during Q2 fiscal 2025 increased 4% to 3,411 lots compared to 3,289 lots in the same quarter of fiscal 2024[5] - Residential lots sold in Q1 2025 totaled 3,411, up from 3,289 in Q1 2024, representing a 3.7% increase[25] - The total lots owned as of March 31, 2025, increased to 68,400, up from 57,800 on September 30, 2024, marking a 18.0% growth[26] - Total lots owned and controlled reached 105,900 as of March 31, 2025, compared to 95,100 on September 30, 2024, indicating a 11.3% increase[26] - Owned lots under contract to sell to D.R. Horton rose to 24,700, up from 20,500, which is a 20.0% increase[26] - Owned lots fully developed increased to 9,500 as of March 31, 2025, compared to 6,300 on September 30, 2024, representing a 50.8% growth[26] Financial Position and Liquidity - The company ended the quarter with $174.3 million of unrestricted cash and $617.7 million of available borrowing capacity, totaling $792.0 million in liquidity[9] - Debt at March 31, 2025, totaled $872.5 million, with a net debt to total capital ratio of 29.8%[10] - Return on equity was 10.7% for the trailing twelve months ended March 31, 2025[4] - Book value per share increased 11% to $32.36[8] Future Outlook - The company anticipates continued growth in residential lot sales and is focused on expanding its development projects[25] - The company reported a decrease in contract liabilities, with a reduction of $2.1 million in Q1 2024[25]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From To Commission File Number: 001-33662 FORESTAR GROUP INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdict ...

Exhibit 99.1 FORESTAR REPORTS FISCAL 2025 FIRST QUARTER RESULTS ARLINGTON, Texas (Business Wire) - January 21, 2025 — Forestar Group Inc. ("Forestar") (NYSE: FOR), a leading national residential lot developer, today reported financial results for its first fiscal quarter ended December 31, 2024. Fiscal 2025 First Quarter Highlights Financial Results Net income for the first quarter of fiscal 2025 decreased 57% to $16.5 million, or $0.32 per diluted share, compared to $38.2 million, or $0.76 per diluted shar ...

Financial Data and Key Metrics - No specific financial data or key metrics changes were provided in the content [1][2][3][4][5][6] Business Line Data and Key Metrics - No specific business line data or key metrics changes were provided in the content [1][2][3][4][5][6] Market Data and Key Metrics - No specific market data or key metrics changes were provided in the content [1][2][3][4][5][6] Company Strategy and Industry Competition - No specific details on company strategy, development direction, or industry competition were provided in the content [1][2][3][4][5][6] Management Commentary on Operating Environment and Future Outlook - The company included forward-looking statements in the call, which are based on reasonable assumptions but are subject to material differences in actual outcomes [3] - Additional information on factors that could lead to material changes in performance is contained in the company's annual and quarterly reports filed with the SEC [4] Other Important Information - The earnings release is available on the company's website, and the 10-Q filing is planned for later in the week [4] - An updated investor presentation will be posted on the Investor Relations site after the call [5] Q&A Session Summary - No Q&A session details were provided in the content [1][2][3][4][5][6]

Forestar Group (NYSE: FOR ) is a residential lot supply company that sells parcels of land to homebuilders for their developments . The company primarily buys lots for D.R. Horton, who's been the largest homebuilder in the U.S. for overI'm an insurance Case Manager with a deep interest in investing. My investment philosophy is all about buying high quality stocks and great businesses. My favorite businesses are those led by disciplined capital allocators, earn exceptional returns on capital, and can compoun ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From To Commission File Number: 001-33662 Forestar Group Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 26-1336998 (State or Ot ...

Forestar Group Inc. (NYSE:FOR) Q4 2024 Earnings Conference Call October 29, 2024 11:00 AM ET Company Participants Katie Smith - Director of Finance and IR Andy Oxley - President and CEO Jim Allen - CFO Mark Walker - COO Conference Call Participants Carl Reichardt - BTIG Asher Sohnen - Citigroup Trevor Allinson - Wolfe Research Alex Barron - Housing Research Center Operator Good morning, and welcome to Forestar's Fourth Quarter and Fiscal 2024 Earnings Conference Call. At this time all participants are in a ...

FORESTAR Investor Presentation Q4 2024 FORWARD-LOOKING STATEMENTS 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 effect of D.R. Horton's controlling level of ownership on us and the holders of our securities; our ability to realize the potential benefits of the strategic relationship with D.R. Horton; the effect of our strategic relationship with D.R. Horton on our ability to mainta ...

FORESTAR REPORTS FOURTH QUARTER AND FISCAL 2024 RESULTS ARLINGTON, Texas (Business Wire) - October 29, 2024 — Forestar Group Inc. ("Forestar") (NYSE: FOR), a leading national residential lot developer, today reported financial results for its fourth quarter and fiscal year ended September 30, 2024. Fiscal 2024 Fourth Quarter Highlights All comparisons are year-over-year • Net income increased 13% to $81.6 million or $1.60 per diluted share • Pre-tax income increased 14% to $108.5 million, with a pre-tax pro ...