D.R. Horton Reports Softer-Than-Expected Order Growth as Affordability Pressures Persist

Core Viewpoint - D.R. Horton reported fiscal first-quarter net sales orders below Wall Street expectations, attributing this to ongoing affordability pressures affecting buyer demand [1] Group 1: Sales Performance - Net sales orders increased 3% year over year to 18,300 homes for the quarter ended December, although analysts had expected 18,653 orders [2] - Management anticipates that sales incentives will remain elevated throughout fiscal 2026, influenced by spring demand trends, mortgage interest rates, and broader market conditions [3] Group 2: Profitability - Despite challenges, D.R. Horton's pre-tax profit margin was 11.6%, slightly above the expected 11.5% [4] - Earnings per share reached $2.03, surpassing projections, even though earnings declined 22% compared to the prior year [4]