D.R. Horton(US:DHI)2025-07-23 21:20Financial Performance - Consolidated revenues decreased 8% to $24.6 billion compared to $26.8 billion for the nine months ended June 30, 2025[121] - Net income attributable to D.R. Horton decreased 24% to $1.0 billion compared to $1.4 billion[130] - Net income attributable to D.R. Horton decreased 23% to $2.7 billion compared to $3.5 billion[139] - Pre-tax income for the three months ended June 30, 2025, was $54.8 million, down from $64.2 million in the prior year, reflecting a decrease in revenues[196] - Revenues for the nine months ended June 30, 2025, were $22.77 billion, with a net income of $2.39 billion[267] Home Sales and Closures - Homes closed decreased 7% to 23,160 homes, and the average closing price of those homes decreased 3% to $369,600[130] - Homes closed decreased 7% to 61,495 homes, with an average closing price decrease of 2% to $372,200[139] - Net sales orders decreased 6% to 63,345 homes, with a value decrease of 8% to $23.4 billion[139] - For the three months ended June 30, 2025, homes closed decreased by 4% to 23,160 homes, generating $8.56 billion in revenue, a 7% decline from $9.23 billion in the prior year[157] Margins and Profitability - Home sales gross margin decreased to 21.8% compared to 24.0% due to increased sales incentives[123] - Homebuilding pre-tax income decreased 22% to $3.1 billion, representing 13.7% of homebuilding revenues compared to 16.1%[139] - Gross profit from home sales for the three months ended June 30, 2025, was $1.9 billion, representing a gross margin of 21.8%, a decrease of 220 basis points from the prior year[161] - The gross profit margin for rental operations was 22.2% for the three months ended June 30, 2025, slightly down from 22.5% in the prior year[194] Rental Revenues - Rental revenues decreased to $380.7 million compared to $413.7 million[134] - Rental revenues decreased to $835.0 million compared to $980.2 million[139] - Rental revenues decreased to $380.7 million for the three months ended June 30, 2025, compared to $413.7 million in the same period of 2024, representing a decline of 8%[195] Debt and Equity - Stockholders' equity was $24.1 billion compared to $25.3 billion at September 30, 2024[130] - Debt to total capital increased to 23.2% compared to 18.9% at September 30, 2024[130] - The company's debt to total capital ratio increased to 23.2% at June 30, 2025, compared to 18.9% at September 30, 2024[223] - At June 30, 2025, the company had outstanding notes payable totaling $7.3 billion, with $2.4 billion due within 12 months[222] Inventory and Backlog - As of June 30, 2025, the total homes in backlog decreased by 16% to 14,075 homes, with a backlog value of $5.34 billion, down 19% from the previous year[152] - The overall homebuilding segment's total inventory as of June 30, 2025, was $21,098.2 million, compared to $20,031.0 million as of September 30, 2024[184] - The company controlled a total of 601,400 lots as of June 30, 2025, with 38,400 homes in inventory, compared to 632,900 lots and 37,400 homes in inventory on September 30, 2024[190] Regional Performance - The number of homes closed in the Southeast region decreased by 15% to 5,682 homes, with a revenue drop of 20% to $1.92 billion[154] - Homebuilding revenues in the Northwest region decreased by 4% and 7% for the three and nine months ended June 30, 2025, respectively, with pre-tax income of $116.4 million and $286.3 million[175] - The Southwest region experienced a 10% and 7% decrease in homebuilding revenues for the three and nine months ended June 30, 2025, with pre-tax income of $152.7 million and $444.4 million[176] - The Southeast region saw a significant 20% decrease in homebuilding revenues for both the three and nine months ended June 30, 2025, with pre-tax income of $224.6 million and $658.7 million[179] Financial Services - Financial services revenues decreased 6% to $227.8 million compared to $242.3 million[134] - Total revenues from financial services operations decreased by 6% to $227.8 million for the three months ended June 30, 2025, compared to $242.3 million in the prior year[211] - General and administrative expenses for financial services decreased by 4% to $171.0 million in the three months ended June 30, 2025, from $178.0 million in the prior year[212] Shareholder Returns - The company repurchased 26.2 million shares at a total cost of $3.6 billion during the nine months ended June 30, 2025[231] - Cash dividends declared and paid in the nine months ended June 30, 2025, totaled $376.4 million, with a quarterly cash dividend of $0.40 per common share approved for July 2025[258] Tax and Compliance - The effective tax rate for the three months ended June 30, 2025, was 23.9%, compared to 24.0% in the prior year[217] - The company recognized a tax benefit of $70.4 million related to the energy efficient home tax credit in fiscal 2024, and $30.8 million in the nine months ended June 30, 2025[219] Cash Flow - The net cash provided by operating activities for the nine months ended June 30, 2025, was $949.1 million, compared to $228.2 million in the prior year period[252] - Cash used to increase residential land and lots was $1.5 billion in the current year period, down from $2.0 billion in the prior year period[253] - During the nine months ended June 30, 2025, net cash used in financing activities was $2.7 billion, primarily for share repurchases totaling $3.6 billion[256]