D.R. Horton(US:DHI) ZACKS·2026-01-20 15:21Core Insights - D.R. Horton, Inc. (DHI) reported better-than-expected first-quarter fiscal 2026 results, with earnings and total revenues exceeding the Zacks Consensus Estimate, although both metrics declined year-over-year [1][4][10] Financial Performance - Earnings per share (EPS) were $2.03, surpassing the Zacks Consensus Estimate of $1.96 by 3.6%, but down 22.2% from $2.61 year-over-year [4] - Total revenues reached $6.89 billion, a decrease of 9.5% year-over-year, yet exceeded analysts' expectations of $6.71 billion by 2.7% [4] - The consolidated pre-tax profit margin was 11.6%, down from 14.6% a year ago [5] Segment Performance - Homebuilding revenues were $6.53 billion, down 9% from the prior-year quarter, with home sales at $6.51 billion, an 8.9% decline year-over-year [6] - Home closings decreased by 6.5% to 17,818 homes, while net sales orders improved by 2.6% year-over-year to 18,300 units [6] - The value of net orders slightly increased by 0.1% year-over-year to $6.66 billion, with a cancellation rate of 18%, consistent with the previous year [6] - The sales order backlog was 11,376 homes, up 3.4% year-over-year, with a backlog value of $4.31 billion, a 0.3% increase [7] Liquidity and Capital Management - D.R. Horton had cash, cash equivalents, and restricted cash totaling $2.55 billion as of Dec. 31, 2025, down from $3.03 billion at the end of fiscal 2025 [11] - Total liquidity was reported at $6.6 billion [11] - The company repurchased 4.4 million shares for $669.7 million during the fiscal quarter, with a remaining stock repurchase authorization of $2.6 billion [13] Guidance and Outlook - D.R. Horton expects consolidated revenues for fiscal 2026 to be in the range of $33.5-$35 billion, compared to $34.25 billion in fiscal 2025 [14] - Anticipated homes closed are projected to be between 86,000-88,000, up from 84,863 in fiscal 2025 [14] - The company expects cash flow from operations to be at least $3 billion, with an income tax rate of approximately 24.5% [14]