D.R. Horton(DHI) - 2025 Q1 - Quarterly Report

Financial Performance - Consolidated revenues decreased 1% to $7.6 billion compared to$7.7 billion, with pre-tax income down 11% to $1.1 billion[108][116] - Net sales orders decreased 1$6.7 billion[116] - Homes closed decreased 1% to 19,059 homes, and average closing price slightly decreased to $374,900[116] - Home sales revenue for the quarter was$7.1 billion from 19,059 homes closed, a decrease from $7.3 billion from 19,340 homes closed in the prior year[136] - Net income for the three months ended December 31, 2024, was$774.4 million, while net income for the year ended September 30, 2024, was $4,148.9 million[246] Sales and Orders - Sales order backlog decreased 21$4.3 billion[116] - Cancellations of sales orders totaled 3,929, with a cancellation rate of 18%, down from 19% in the previous year[127][128] - The average selling price of net sales orders was $373,000, a decrease of 1$217.8 million compared to $195.3 million, but rental pre-tax income decreased to$11.9 million from $31.3 million[121] - Single-family rental operations closed 311 homes in Q4 2024, down 18$182.3 million, with pre-tax income down to $48.6 million from$66.0 million[121] - Financial services pre-tax income decreased by 26% to $48.6 million in Q4 2024 from$66.0 million in Q4 2023[183] - Total revenues from financial services operations decreased by 5% to $182.3 million in Q4 2024 from$192.6 million in Q4 2023[188] Margins and Expenses - Homebuilding gross margin was 22.7%, slightly down from 22.9%[116] - SG&A expenses increased by 6% to $636.6 million in Q4 2024, representing 8.9$17.9 million in Q4 2024, primarily due to higher average interest rates and increased debt[149] Inventory and Land - As of December 31, 2024, total inventory amounted to $20.65 billion, a slight increase from$20.03 billion on September 30, 2024[163][168] - The company controlled 639,800 lots as of December 31, 2024, with 154,400 lots owned and 485,400 lots under purchase contracts[164] - Approximately 25,700 homes in inventory were unsold as of December 31, 2024, with 10,400 of those completed[167] Debt and Equity - Stockholders' equity was $24.9 billion, down from$25.3 billion[116] - Debt to total capital ratio improved to 17.0% from 18.9%[116] - The company had outstanding notes payable totaling $5.1 billion, with$1.5 billion due within 12 months[199] Share Repurchase and Dividends - The company repurchased 6.8 million shares at a total cost of $1.1 billion during the three months ended December 31, 2024, with$2.5 billion remaining under the stock repurchase authorization[208] - The company declared a quarterly cash dividend of $0.40 per common share, payable on February 14, 2025[237] Legal and Compliance - The company is involved in a lawsuit filed by the Maryland Department of Environment regarding stormwater compliance issues, but does not expect a material loss from this matter[265] - A consent decree related to stormwater compliance issues from 2014 was resolved in April 2024, with costs not expected to exceed$1 million[264] Market Conditions and Outlook - The company anticipates that seasonal patterns will continue to impact home closings and revenue generation, particularly in the third and fourth quarters of the fiscal year[250] - The company expects incentive levels to remain elevated, assuming similar market conditions and no significant changes in mortgage interest rates[141]