D.R. Horton(US:DHI) ZACKS·2025-10-28 18:06Core Insights - D.R. Horton, Inc. (DHI) reported mixed results for Q4 fiscal 2025, with earnings missing estimates while total revenues exceeded expectations, although both metrics declined year-over-year [2][7][11] Financial Performance - Adjusted earnings were $3.04 per share, missing the Zacks Consensus Estimate of $3.29 by 7.6%, and down 22% from $3.92 year-over-year [7] - Total revenues reached $9.68 billion, a decrease of 3.2% year-over-year, but surpassed analysts' expectations of $9.5 billion by 1.9% [7] - The consolidated pre-tax profit margin was 12.4%, down from 17.1% a year ago [8] Segment Performance - Homebuilding revenues were $8.56 billion, down 4% year-over-year, with home sales at $8.54 billion, also down 4.4% [9] - Home closings decreased by 1% year-over-year to 23,368 homes [9] - Financial Services revenues decreased by 1.7% to $218.3 million [11] - Forestar contributed $670.5 million to total revenues, up from $551.4 million a year ago [12] Market Conditions - The housing market remains soft due to declining consumer confidence and affordability concerns, impacting home closings and backlog levels [3][4] - The sales order backlog decreased by 11.5% year-over-year to 10,785 homes, with a backlog value down 13.6% to $4.12 billion [10] Strategic Initiatives - The company is offering sales incentives to drive traffic and sales, although this negatively impacts margins [4] - D.R. Horton maintains strong liquidity of $6.6 billion and a low debt-to-total capital ratio of 19.8% [14][15] Dividend and Share Repurchase - The quarterly dividend was increased by 13% to 45 cents per share, to be paid on Nov. 20, 2025 [6] - The company repurchased 30.7 million shares for $4.3 billion during fiscal 2025, with $3.3 billion remaining in stock repurchase authorization [16] Future Guidance - For fiscal 2026, D.R. Horton expects consolidated revenues between $33.5 billion and $35 billion, with homes closed anticipated to be between 86,000 and 88,000 [17]