Forestar (US:FOR)2025-07-22 16:11Financial Performance - Net income for Q3 fiscal 2025 decreased 15% to $32.9 million, or $0.65 per diluted share, compared to $38.7 million, or $0.76 per diluted share, in Q3 fiscal 2024[3] - For the nine months ended June 30, 2025, net income decreased 33% to $81.0 million, or $1.59 per diluted share, compared to $121.8 million, or $2.40 per diluted share, in the same period of fiscal 2024[4] - The company maintained its previous revenue guidance of $1.50 billion to $1.55 billion for fiscal 2025[12] Revenue and Sales - Revenues for Q3 fiscal 2025 increased 23% to $390.5 million from $318.4 million in the same quarter of fiscal 2024[3] - Total revenues for Q3 2025 reached $390.5 million, a 22.6% increase from $318.4 million in Q3 2024[25] - Total revenues for the nine months ended June 30, 2025, were $991.9 million, a 3.5% increase from $958.0 million in the same period of 2024[25] Lot Sales and Position - Lots sold during Q3 fiscal 2025 increased 11% to 3,605 lots compared to 3,255 lots in the same quarter of fiscal 2024[6] - Residential lots sold in Q3 2025 totaled 3,605, up from 3,255 in Q3 2024, representing a 10.7% increase[25] - The company's lot position at June 30, 2025 was 102,300 lots, with 25,700 lots, or 38%, under contract to be sold, representing approximately $2.3 billion of future revenue[8] Liquidity and Financial Health - Total liquidity at the end of the quarter was $792.0 million, consisting of $189.2 million in unrestricted cash and $602.8 million of available borrowing capacity[10] - The company's return on equity was 10.1% for the trailing twelve months ended June 30, 2025[5] - Book value per share increased 11% to $33.04[9] Lot Ownership and Development - Lots owned as of June 30, 2025, increased to 68,300 from 57,800 on September 30, 2024, reflecting an 18.1% growth[26] - Total lots owned and controlled rose to 102,300 as of June 30, 2025, compared to 95,100 on September 30, 2024, indicating a 7.3% increase[26] - Owned lots under contract to sell to D.R. Horton increased to 24,200 from 20,500 year-over-year[26] - Owned lots fully developed reached 10,000 as of June 30, 2025, up from 6,300 on September 30, 2024, a significant increase of 58.7%[26] Contract Liabilities - The company reported a decrease in contract liabilities by $1.3 million in Q3 2025 compared to a decrease of $0.2 million in Q3 2024[25] - The company has 34,000 lots controlled under land and lot purchase contracts as of June 30, 2025, down from 37,300 on September 30, 2024[26] Guidance and Expectations - The company expects to deliver between 14,500 and 15,000 lots for fiscal 2025, down from previous guidance of 15,000 to 15,500 lots[12] - Average sales price per lot increased to $106,600 in Q3 2025, compared to $94,000 in Q3 2024, marking a 13.4% rise[25]