D.R. Horton (DHI) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - D.R. Horton reported a revenue of $6.89 billion for the quarter ended December 2025, reflecting a year-over-year decline of 9.5% and an EPS of $2.03, down from $2.61 a year ago, although the revenue exceeded the Zacks Consensus Estimate by 2.91% [1] Financial Performance Metrics - The average selling price for homes closed was $365.5 million, slightly above the average estimate of $362.65 million [4] - Homes closed totaled 17,818, surpassing the average estimate of 17,341 [4] - Net sales orders for homes were 18,300, slightly below the average estimate of 18,613 [4] - The sales order backlog stood at 11,376, below the average estimate of 11,995 [4] Geographic Revenue Breakdown - Homebuilding revenue in the Northwest was $546.7 million, exceeding the estimate of $526.71 million, representing a year-over-year increase of 2.5% [4] - Homebuilding revenue in the North reached $989.5 million, above the estimate of $957.85 million, with a year-over-year increase of 5% [4] - Homebuilding revenue in the Southwest was $894.7 million, below the estimate of $948.6 million, reflecting a year-over-year decline of 21.5% [4] - Homebuilding revenue in South Central was $1.39 billion, slightly above the estimate of $1.35 billion, but down 6.6% year-over-year [4] Revenue Sources - Home sales revenue was $6.51 billion, exceeding the average estimate of $6.29 billion, but down 8.9% year-over-year [4] - Rental revenue was $109.5 million, significantly below the average estimate of $181.48 million, marking a year-over-year decline of 49.7% [4] - Financial services revenue was $184.6 million, above the average estimate of $168.25 million, with a year-over-year increase of 1.3% [4] - Overall homebuilding revenue was $6.53 billion, surpassing the average estimate of $6.31 billion, but down 8.9% year-over-year [4] Stock Performance - D.R. Horton shares have returned +2.8% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]