Financial 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]

Core Insights - D.R. Horton, Inc. surpassed third-quarter revenue and earnings expectations, yet its shares experienced a decline despite positive guidance for 2025 and projected growth [1][6] Financial Performance - The company reported fiscal third-quarter revenue of $9.22 billion, exceeding analyst estimates of $8.79 billion [2] - Earnings per share for the third quarter were $3.36, surpassing analyst expectations of $2.92 [2] Growth Projections - D.R. Horton refined its 2025 revenue guidance to a range of $33.7 billion to $34.2 billion and forecasted home closings between 85,000 and 85,500 units [4] - The company is expected to achieve earnings growth in fiscal 2026, driven by mid-single-digit community expansion and a 24% quarterly, 11% annual increase in starts [3][4] Market Position and Strategy - The company's strong performance is attributed to its significant presence in smaller markets with fewer public spec builders and a 12% year-over-year increase in community count [4] - D.R. Horton maintained a core fourth-quarter gross margin of 21.8%, above the expected range of 21.0% to 21.5%, despite higher incentives [5] Analyst Insights - Bank of America Securities analyst Rafe Jadrosich reiterated a Neutral rating on D.R. Horton, raising the price forecast from $135 to $155 [1] - Jadrosich increased EPS estimates for fiscal years 2025 and 2026 by 8% and 1%, respectively [6]

Okay, there are a lot of caveats associated with this and of course we don't know a lot of the details but still if we are to think about things that can facilitate transaction in this market. It does seem like the administration is committed on some level to make the housing market better to get people out of their, you know, 3% mortgage rates and and get some deals done. If you can't do it on the rate front, you're going to do it some somewhere else.So that's listen, the PY report was fine. I think I don' ...

Market Overview - The market showed resilience despite uncertainties regarding trade policy, tariffs, and the Federal Reserve chair [6] - S&P 500 closed up about 01% [6] - Nasdaq was down about 04% due to weakness in big cap tech names [7] - Dow Jones Industrial Average added 04% [7] - Russell 2000 outperformed, with small caps gaining tailwind [7] Earnings and Performance Highlights - Homebuilders outperformed, with the S&P composite 1500 homebuilding index up about 10% [2] - D R Horton's stock was up about 16% after third-quarter earnings beat expectations [18] - PulteGroup's stock was up 12% after reporting better-than-expected earnings [19] - Texas Instruments' second-quarter EPS was $141, beating the consensus estimate of $135, but the stock was down about 7% in after-hours trading [10][12] - Intuitive Surgical's second-quarter revenue came in at $244 billion, and adjusted EPS beat estimates at $22 billion, with shares initially moving higher but later declining [20][29] - Capital One's second-quarter adjusted EPS was $548, far exceeding the consensus estimate of $388, with net revenue at $1249 billion [22][23] - Enphase Energy's second-quarter adjusted EPS beat estimates by $006, and revenue came in better than forecast at $3632 million, with the stock up about 8% in after-hours trading [26] Company Specifics - Texas Instruments invested $39 billion in R&D and CIGNA and invested $49 billion in CapEx and returned $67 billion to owners over the past 12 months [14] - Intuitive Surgical's Da Vinci surgical system installed base grew to 10488 systems as of June 2025, a 14% increase compared to June 30th, 2020 [30] - Capital One's loans held for investment were approximately $4393 billion [23]

CNBC's Diana Olick reports on stocks in the homebuilding sector. ...

Core Viewpoint - D.R. Horton, Inc. (DHI) reported better-than-expected third-quarter fiscal 2025 results, with earnings and total revenues exceeding Zacks Consensus Estimate but showing a decline year-over-year [1][5]. Financial Performance - Adjusted earnings were $3.36 per share, surpassing the Zacks Consensus Estimate of $2.90 by 15.9%, but down 18% from $4.10 a year ago [5][10]. - Total revenues reached $9.23 billion, a decrease of 7% year-over-year, yet exceeding analysts' expectations of $8.78 billion by 5.1% [6][10]. - The consolidated pre-tax profit margin was 14.7%, down from 18.1% a year ago [6]. Segment Performance - Homebuilding revenues were $8.58 billion, down 7% from the prior-year quarter, with home sales at $8.56 billion, a 7.3% decline year-over-year [7]. - Home closings decreased by 4% to 23,160 homes [7]. - Financial Services revenues fell 6% year-over-year to $227.8 million [9]. - The Rental business generated revenues of $380.7 million, down from $413.7 million a year ago [11]. Market Conditions - The housing market remains soft due to declining consumer confidence and affordability concerns, impacting home closings and average selling prices [2]. - The backlog of homes decreased by 16% year-over-year to 14,075 homes, with the backlog value down 19% to $5.3 billion [8][10]. Operational Insights - The company maintains strong liquidity with cash and equivalents totaling $2.66 billion and total liquidity of $5.5 billion [12]. - D.R. Horton has a disciplined approach to capital allocation and flexible lot supply, positioning it to adapt to market conditions [4]. Guidance and Future Outlook - D.R. Horton updated its fiscal 2025 guidance, now expecting consolidated revenues between $33.7 billion and $34.2 billion, down from the previous range of $33.3 billion to $34.8 billion [15]. - Homes closed are anticipated to be between 85,000 and 85,500, compared to the previous expectation of 85,000 to 87,000 [15].

D.R. HORTON, INC., AMERICA'S BUILDER, REPORTS FISCAL 2025 THIRD QUARTER EARNINGS AND DECLARES QUARTERLY DIVIDEND OF $0.40 PER SHARE ARLINGTON, Texas (Business Wire) - July 22, 2025 Fiscal 2025 Third Quarter Highlights D.R. Horton, Inc. (NYSE:DHI), America's Builder, today reported that net income per diluted share attributable to D.R. Horton for its third fiscal quarter ended June 30, 2025 decreased 18% to $3.36 compared to $4.10 in the same quarter of fiscal 2024. Net income attributable to D.R. Horton in ...

D.R. Horton (DHI) reported $9.23 billion in revenue for the quarter ended June 2025, representing a year-over- year decline of 7.4%. EPS of $3.36 for the same period compares to $4.10 a year ago. Here is how D.R. Horton performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: View all Key Company Metrics for D.R. Horton here>>> Shares of D.R. Horton have returned +2% over the past month versus the Zacks S&P 500 composite's +5.9% change. The ...

Financial Data and Key Metrics Changes - Earnings for Q3 2025 were $3.36 per diluted share, down from $4.10 in the prior year quarter [11] - Consolidated revenues for the quarter were $9.2 billion, with a pre-tax income of $1.4 billion and a pre-tax profit margin of 14.7% [7][11] - Net income for the quarter was $1 billion, with home sales revenues of $8.6 billion on 23,160 homes closed, compared to $9.2 billion on 24,155 homes closed in the prior year quarter [11][12] - The cancellation rate for the quarter was 17%, up from 16% sequentially but down from 18% in the prior year quarter [12] Business Line Data and Key Metrics Changes - Home sales gross margin was 21.8%, stable sequentially but expected to decrease in Q4 due to increased sales incentives [13] - Homebuilding SG&A expenses increased 2% year-over-year, with SG&A as a percentage of revenues at 7.8%, up 70 basis points from the prior year [14] - Rental operations generated $55 million of pre-tax income on $381 million of revenues from single-family and multifamily rental homes [18] Market Data and Key Metrics Changes - The average closing price for the quarter was $369,600, down 1% sequentially and down 3% year-over-year [11] - The average number of active selling communities was up 4% sequentially and up 12% year-over-year [12] - The company ended the quarter with 38,400 homes in inventory, of which 25,000 were unsold [16] Company Strategy and Development Direction - The company remains focused on maximizing capital efficiency and generating substantial operating cash flows while delivering returns to shareholders [9] - The strategic relationship with Forestar, a majority-owned residential lot development company, is vital for providing finished lots to the homebuilding industry [20] - The company plans to repurchase $4.2 billion to $4.4 billion of common stock in fiscal 2025, subject to cash flow and share price changes [24] Management's Comments on Operating Environment and Future Outlook - Management noted that new home demand is impacted by affordability constraints and cautious consumer sentiment, with expectations for elevated sales incentives in Q4 [10] - The company has a positive outlook for the housing market over the medium to long term, despite current economic volatility [25] - Management expects consolidated revenues for the full year of fiscal 2025 to be approximately $33.7 billion to $34.2 billion [24] Other Important Information - The company has a strong balance sheet with low leverage and healthy liquidity, totaling $5.5 billion of consolidated liquidity at June 30 [22] - The return on equity for the trailing twelve months ended June 30 was 16.1%, with a return on assets of 11.1% [23] - The company repurchased 9.7 million shares during the quarter for $1.2 billion, reducing the outstanding share count by 9% from a year ago [23] Q&A Session Summary Question: Trends in incentives and competitive pressures - Management indicated that incentives have been choppy throughout the quarter, responding to market conditions and competition [30] Question: Consumer strength and impact of student loan repayments - Management noted an increase in FHA product selection among buyers but did not see significant impacts from student loan repayments [34] Question: Fourth quarter gross margin outlook - Management expects a decline in gross margin due to higher incentives, despite a strong performance in Q3 [39] Question: Community count and market management - Management anticipates moderation in community count as they manage inventory and respond to market absorption rates [56] Question: Resale inventory competition - Management does not see significant competition from resale inventory, as new home construction remains attractive to buyers [82]

Financial Data and Key Metrics Changes - Earnings for Q3 2025 were $3.36 per diluted share, down from $4.10 in the prior year quarter [9] - Consolidated pre-tax income was $1.4 billion on revenues of $9.2 billion, with a pre-tax profit margin of 14.7% [6] - Net income for the quarter was $1 billion, with home sales revenues of $8.6 billion on 23,160 homes closed, compared to $9.2 billion on 24,155 homes closed in the prior year quarter [9][10] - Average closing price for the quarter was $369,600, down 1% sequentially and down 3% year over year [9] Business Line Data and Key Metrics Changes - Net sales orders were flat year-over-year at 23,071 homes, with order value decreasing 3% to $8.4 billion [10] - Home sales gross margin was 21.8%, stable sequentially but expected to decrease in Q4 due to increased incentive costs [11] - Homebuilding SG&A expenses increased 2% from last year, with SG&A as a percentage of revenues at 7.8%, up 70 basis points from the prior year [12] Market Data and Key Metrics Changes - The average number of active selling communities increased 4% sequentially and 12% year over year [10] - The cancellation rate for the quarter was 17%, up from 16% sequentially but down from 18% in the prior year quarter [10] - The company ended the quarter with 38,400 homes in inventory, of which 25,000 were unsold [13] Company Strategy and Development Direction - The company remains focused on maximizing capital efficiency to generate substantial operating cash flows and deliver returns to shareholders [7] - The strategic relationship with Forestar, a majority-owned residential lot development company, is vital for providing finished lots to the homebuilding industry [18] - The company plans to repurchase $4.2 billion to $4.4 billion of common stock in fiscal 2025, subject to cash flow and share price changes [23] Management's Comments on Operating Environment and Future Outlook - Management noted that new home demand is impacted by affordability constraints and cautious consumer sentiment, with expectations for elevated sales incentives in Q4 [8] - The company has a positive outlook for the housing market over the medium to long term, despite current economic volatility [23] - Management emphasized the importance of adjusting to market conditions in a disciplined manner to enhance long-term value [23] Other Important Information - The company generated $2.9 billion of cash from operations over the past twelve months and returned $4.6 billion to shareholders through repurchases and dividends [7] - The company has a strong balance sheet with low leverage and healthy liquidity, providing financial flexibility to adapt to market changes [20] - The average FICO score of borrowers was 720, with first-time homebuyers representing 64% of closings handled by the mortgage company [19] Q&A Session Summary Question: Trends in incentives and competitive pressures - Management indicated that incentives have been choppy throughout the quarter, responding to market conditions and competition [27] Question: Consumer strength and impact of student loan repayments - Management noted an increase in FHA product selection among buyers but did not see significant impacts from student loan repayments [31] Question: Fourth quarter gross margin outlook - Management expects a decline in gross margin due to higher incentives, despite a strong performance in Q3 [35] Question: SG&A expenses and long-term targets - Management stated that SG&A improvements are expected to be gradual, with a long-term target of 7% to 8% [42] Question: Community count and 2026 expectations - Management anticipates moderation in community count as they enter 2026, with a focus on managing inventory based on market absorption [54] Question: Resale inventory competition - Management does not see significant competition from resale inventory, as new homes remain attractive to buyers [81] Question: Performance in larger vs smaller markets - Management noted better performance in smaller markets with less public builder competition compared to larger markets [84] Question: Lot cost inflation and future expectations - Management expects mid-single-digit inflation in lot costs in the near term, with potential relief from inflation in the future [86]