Forestar (US:FOR)2025-04-17 17:19Financial 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]