HORTON D R INC /DE/
For the period ended Sep 30, 2025. Filed Nov 19, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Nov 19, 2025
DHI$152.28-3.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-09-30; filed 2024-11-19.
0000882184-24-000057
ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-09-30; filed 2025-11-19.
0000882184-25-000081
ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 279 previous paragraphs and 283 current paragraphs.
139 unchanged; 106 reworded; 37 added; 33 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 21 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (37)
Current report
During fiscal 2025, new home demand continued to be impacted by ongoing affordability constraints and cautious consumer sentiment. As a result, the value of our net sales orders and homebuilding revenues in fiscal 2025 decreased 6% and 7%, respectively, compared to fiscal 2024, and our home sales gross margin decreased to 21.5% as we increased sales incentives, such as buydowns of mortgage rates for our homebuyers. We strive to remain well positioned with affordable product offerings and a flexible lot supply and will continue to manage our home pricing, sales incentives and number of homes in inventory based on the level of demand in each of our local markets. We expect to maintain an elevated level of sales incentives to support demand and may increase them further, depending on market conditions and changes in mortgage interest rates.
Current report
•Consolidated revenues decreased 7% to $34.3 billion compared to $36.8 billion.
Current report
•Consolidated pre-tax income decreased 25% to $4.7 billion compared to $6.3 billion.
Current report
•Net income attributable to D.R. Horton was $3.6 billion compared to $4.8 billion.
Current report
•Net income attributable to D.R. Horton per diluted share decreased 19% to $11.57 compared to $14.34.
Current report
•Stockholders’ equity was $24.2 billion compared to $25.3 billion.
Current report
•Homebuilding revenues decreased 7% to $31.5 billion compared to $34.0 billion.
Current report
•Homebuilding pre-tax income was $4.1 billion compared to $5.5 billion.
Current report
•Homebuilding pre-tax income was 13.1% of homebuilding revenues compared to 16.1%.
Current report
•Homebuilding inventories totaled $20.3 billion compared to $20.0 billion.
Current report
•Homes in inventory totaled 29,600 compared to 37,400.
Current report
•Homebuilding debt was $3.2 billion compared to $2.9 billion.
Current report
•Rental revenues were $1.6 billion compared to $1.7 billion.
Current report
•Rental pre-tax income was $170.0 million compared to $228.7 million.
Current report
•Rental inventory totaled $2.7 billion compared to $2.9 billion.
Current report
•Forestar’s revenue from tract acres sold increased to $103.5 million compared to $27.0 million, of which $91.2 million and $15.2 million, respectively, related to acreage sold to D.R. Horton.
Current report
•Forestar’s pre-tax income was $219.3 million compared to $270.1 million.
Current report
•Forestar’s pre-tax income was 13.2% of revenues compared to 17.9%.
Current report
•Forestar’s inventories totaled $2.6 billion compared to $2.3 billion.
Current report
•Forestar’s debt was $802.8 million compared to $706.4 million.
Current report
•Financial services revenues decreased 5% to $841.2 million compared to $882.5 million.
Current report
The value of net sales orders was $30.8 billion (83,423 homes) in fiscal 2025 compared to $32.7 billion (86,561 homes) in fiscal 2024. The decrease in value was primarily attributable to a 4% decrease in sales order volume, along with a 2% decrease in the average selling price.
Current report
During fiscal 2025, new home demand continued to be impacted by ongoing affordability constraints and cautious consumer sentiment. We remain well positioned with affordable product offerings and a flexible lot supply and will continue to manage our home pricing, sales incentives and number of homes in inventory based on the level of new home demand in each of our local markets.
Current report
Revenues from home sales were $31.4 billion (84,863 homes closed) in fiscal 2025 compared to $33.9 billion (89,690 homes closed) in fiscal 2024. The decrease in revenues was primarily attributable to a 5% decrease in closings volume, along with a 2% decrease in the average selling price.
Current report
Gross profit from home sales decreased to $6.8 billion in fiscal 2025 from $8.0 billion in fiscal 2024 and decreased 200 basis points to 21.5% as a percentage of home sales revenues. The percentage decrease resulted from a decrease of 170 basis points due to the average cost of our homes closed increasing along with a decrease in the average selling price of those homes, 20 basis points due to an increase in warranty and construction defect costs and 10 basis points due to an increase in the amortization of capitalized interest.
Current report
Business Acquisition
Current report
In October 2025, we acquired the homebuilding operations of SK Builders for approximately $80 million in cash. SK Builders operates in and around Greenville, South Carolina. The assets acquired included approximately 160 homes in inventory, 260 lots and a sales order backlog of 110 homes. We also obtained control of approximately 1,320 additional lots through land purchase contracts.
Current report
Southwest Region — Homebuilding revenues decreased 6% in fiscal 2025 compared to fiscal 2024, primarily due to a decrease in the number of homes closed, particularly in our Phoenix market. The region generated pre-tax income of $517.1 million in fiscal 2025 compared to $703.5 million in fiscal 2024. Home sales gross profit percentage decreased by 220 basis points in fiscal 2025 compared to fiscal 2024, primarily due to an increase in construction defect costs in our Phoenix and Hawaii markets and the average selling price of homes closed decreasing by more than the average cost of those homes. As a percentage of homebuilding revenues, SG&A expenses increased by 70 basis points in fiscal 2025 compared to fiscal 2024, primarily due to the decrease in homebuilding revenues.
Current report
South Central Region — Homebuilding revenues decreased 10% in fiscal 2025 compared to fiscal 2024, due to a decrease in the number of homes closed, particularly in our Fort Worth and Dallas markets, as well as a decrease in the average selling price of homes closed in most markets. The region generated pre-tax income of $964.6 million in fiscal 2025 compared to $1.3 billion in fiscal 2024. Home sales gross profit percentage decreased by 220 basis points in fiscal 2025 compared to fiscal 2024, primarily due to the average selling price of homes closed decreasing by more than the average cost of those homes. As a percentage of homebuilding revenues, SG&A expenses increased by 80 basis points in fiscal 2025 compared to fiscal 2024, primarily due to the decrease in homebuilding revenues.
Current report
North Region — Homebuilding revenues increased 15% in fiscal 2025 compared to fiscal 2024, primarily due to an increase in the number of homes closed, particularly in our Chicago, suburban Washington, D.C. and New Jersey markets. The region generated pre-tax income of $583.6 million in fiscal 2025 compared to $498.4 million in fiscal 2024. Home sales gross profit percentage increased by 70 basis points in fiscal 2025 compared to fiscal 2024, primarily due to the average selling price of homes closed increasing by more than the average cost of those homes. As a percentage of homebuilding revenues, SG&A expenses increased by 40 basis points in fiscal 2025 compared to fiscal 2024, primarily due to an increase in employee compensation costs.
Current report
The decline in Forestar’s pre-tax income was primarily due to lower gross margins on lot sales and higher SG&A costs.
Current report
On July 4, 2025, the One Big Beautiful Bill Act was signed into law (the new law). The new law terminates the energy efficient home tax credit for homes closing after June 30, 2026 and enacts certain other tax provisions that will impact our financial statements. The termination of the energy efficient home tax credit will result in a reduced tax benefit beginning in fiscal 2026. Our tax benefits related to the energy efficient home tax credit were $39.5 million and $70.4 million in fiscal 2025 and 2024, respectively. None of the other tax provisions enacted by the new law have a significant impact on our financial statements.
Current report
Cash and Cash Equivalents — At September 30, 2025, cash and cash equivalents of our homebuilding segment totaled $2.2 billion.
Current report
Redemptions— In October 2024, we repaid $500 million principal amount of our 2.5% senior notes at maturity. In September 2025, we redeemed $500 million principal amount of our 2.6% senior notes due October 15, 2025 for $505.9 million, which included $5.9 million of accrued and unpaid interest.
Current report
Issuance of Common Stock — During fiscal 2025, there were no shares issued under Forestar’s ATM program. At September 30, 2025, $750 million remained available for issuance under Forestar’s shelf registration statement, with $300 million reserved for sales under the ATM program.
Current report
•the effects of changes in income tax and securities laws;
Current report
Recent Accounting Pronouncements
Removed paragraphs (33)
Previous report
Despite elevated mortgage interest rates and inflationary pressures during fiscal 2024, demand for new homes remained solid, and our net sales orders increased 10% compared to fiscal 2023. The disruptions in the supply chain for certain building materials and tightness in the labor market we experienced in recent years have largely subsided, and our average construction cycle time has returned to historical norms. The supply of both new and existing homes at affordable price points is still limited, and demographics supporting housing demand remain favorable; however, we are continuing to use incentives and pricing adjustments to adapt to current market conditions. We believe we are well-positioned to meet changing market conditions with our affordable product offerings and lot supply and will manage our home pricing, sales incentives and number of homes in inventory based on the level of homebuyer demand. We expect our incentive levels to remain elevated, assuming similar market conditions and no significant changes in mortgage interest rates.
Previous report
•Consolidated revenues increased 4% to $36.8 billion compared to $35.5 billion.
Previous report
•Consolidated pre-tax income was $6.3 billion in both years.
Previous report
•Net income attributable to D.R. Horton was $4.8 billion compared to $4.7 billion.
Previous report
•Diluted net income per common share attributable to D.R. Horton increased 4% to $14.34 compared to $13.82.
Previous report
•Stockholders’ equity was $25.3 billion compared to $22.7 billion.
Previous report
•Homebuilding revenues increased 7% to $34.0 billion compared to $31.7 billion.
Previous report
•Homebuilding pre-tax income was $5.5 billion compared to $5.3 billion.
Previous report
•Homebuilding pre-tax income was 16.1% of homebuilding revenues compared to 16.6%.
Previous report
•Homebuilding pre-tax return on inventory was 27.8% compared to 29.7%.
Previous report
•Homebuilding inventories totaled $20.0 billion compared to $18.2 billion.
Previous report
•Homes in inventory totaled 37,400 compared to 42,000.
Previous report
•Homebuilding debt was $2.9 billion compared to $2.3 billion.
Previous report
•Rental revenues were $1.7 billion compared to $2.6 billion.
Previous report
•Rental pre-tax income was $228.7 million compared to $524.2 million.
Previous report
•Rental inventory totaled $2.9 billion compared to $2.7 billion.
Previous report
•Forestar’s pre-tax income was $270.1 million compared to $221.6 million.
Previous report
•Forestar’s pre-tax income was 17.9% of revenues compared to 15.4%.
Previous report
•Forestar’s inventories totaled $2.3 billion compared to $1.8 billion.
Previous report
•Forestar’s debt was $706.4 million compared to $695.0 million.
Previous report
•Financial services revenues increased 10% to $882.5 million compared to $801.5 million.
Previous report
The number of net sales orders increased 10% during 2024 compared to 2023, and the value of net sales orders increased 11% to $32.7 billion (86,561 homes) in 2024 from $29.5 billion (78,342 homes) in 2023. The average selling price of net sales orders during 2024 was $377,900, up slightly from the prior year.
Previous report
Despite elevated mortgage interest rates and inflationary pressures during fiscal 2024, demand for new homes remained solid, and our net sales orders increased 10% compared to fiscal 2023. The disruptions in the supply chain for certain building materials and tightness in the labor market we experienced in recent years have largely subsided, and our average construction cycle time has returned to historical norms. The supply of both new and existing homes at affordable price points is still limited, and demographics supporting housing demand remain favorable; however, we are continuing to use incentives and pricing adjustments to adapt to current market conditions. We believe we are well-positioned to meet changing market conditions with our affordable product offerings and lot supply and will manage our home pricing, sales incentives and number of homes in inventory based on the level of homebuyer demand. We expect our incentive levels to remain elevated, assuming similar market conditions and no significant changes in mortgage interest rates.
Previous report
Our sales order cancellation rate (cancelled sales orders divided by gross sales orders for the period) was 18% in 2024 compared to 20% in 2023.
Previous report
Revenues from home sales increased 7% to $33.9 billion (89,690 homes closed) in 2024 from $31.6 billion (82,917 homes closed) in 2023. The number of homes closed increased 8% compared to the prior year. The average selling price of homes closed during 2024 was $378,000, down 1% from the prior year.
Previous report
Southwest Region — Homebuilding revenues increased 15% in fiscal 2024 compared to fiscal 2023, primarily due to increases in the number of homes closed, particularly in our California and Nevada markets. The region generated pre-tax income of $703.5 million in 2024 compared to $489.3 million in 2023. Home sales gross profit percentage increased by 270 basis points in 2024 comparedto 2023, primarily due to the average selling price of homes closed increasing while the average cost of those homes decreased. As a perc entage of homebuilding revenues, SG&A expenses decreased by 20 basis points in 2024 compared to 2023, primarily due to the increase in homebuilding revenues.
Previous report
Southeast Region — Homebuilding revenues increased 1% in fiscal 2024 compared to fiscal 2023. The region generated pre-tax income of $1.4 billion in 2024 compared to $1.7 billion in 2023. Home sales gross profit percentage decreased by 260 basis points in 2024 compared to 2023, primarily due to the average selling price of homes closed decreasing while the average cost of those homes increased. As a percentage of homebuilding revenues, SG&A expenses increased by 60 basis points in 2024 compared to 2023, primarily due to an increase in SG&A expenses.
Previous report
North Region — Homebuilding revenues increased 16% in fiscal 2024 compared to fiscal 2023, due to increases in the number of homes closed, particularly in our suburban Washington, D.C. market. The region generated pre-tax income of $498.4 million in 2024 compared to $350.8 million in 2023. Home sales gross profit percentage increased by 290 basis points in 2024 compared to 2023, primarily due to the average cost of homes closed decreasing while the average selling price of those homes increased. As a percentage of homebuilding revenues, SG&A expenses increased by 10 basis points in 2024 compared to 2023.
Previous report
Cash and Cash Equivalents — At September 30, 2024, cash and cash equivalents of our homebuilding segment totaled $3.6 billion.
Previous report
Issuance of Common Stock — During fiscal 2024, Forestar issued 546,174 shares of common stock under its at-the-market equity offering (ATM) program for proceeds of $19.7 million, net of commissions and other issuance costs totaling $0.4 million. In September 2024, Forestar filed a new shelf registration statement, which became effective in October 2024, registering $750 million of equity securities. At the time of filing the new registration statement, $728.1 million of equity securities remained available for issuance under Forestar’s prior shelf registration statement, which has since expired. Forestar’s ATM program expired in October 2024, and Forestar anticipates entering into a new ATM program under its September 2024 shelf registration statement.
Previous report
Warranty Claims — We typically provide our homebuyers with a ten-year limited warranty for major defects in structural elements such as framing components and foundation systems, a two-year limited warranty on major mechanical systems and a one-year limited warranty on other construction components. Since we subcontract our construction work to subcontractors who typically provide us with an indemnity and a certificate of insurance prior to receiving payments for their work, claims relating to workmanship and materials are generally the primary responsibility of the subcontractors. Warranty liabilities have been established by charging cost of sales for each home delivered. The amounts charged are based on management’s estimate of expected warranty-related costs under all unexpired warranty obligation periods. Our warranty liability is based upon historical warranty cost experience in each market in which we operate. Actual future warranty costs could differ from our currently estimated amounts. A 10% change in the historical warranty rates used to estimate our warranty accrual would not result in a material change in our accrual. For additional information regarding our warranty liability, see Note L, “Commitments and Contingencies,” to our consolidated financial statements included elsewhere in this report.
Previous report
Pending Accounting Standards
Previous report
In November 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-07, “Segment Reporting - Improvements to Reportable Segment Disclosures,” which is intended to improve reportable segment disclosures. The ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. It also requires disclosure of the amount and description of the composition of other segment items and interim disclosures of a reportable segment’s profit or loss and assets. The standard is effective for our annual periods beginning in fiscal 2025 and interim periods beginning in the first quarter of fiscal 2026 on a retrospective basis to all periods presented. This standard will impact our disclosures but will not impact our consolidated financial statements.
Reworded paragraphs (106)
Previous wording
In fiscal 2024, our number of homes closed and home sales revenues increased 8% and 7%, respectively, compared to the prior year, and our consolidated revenues increased 4% to $36.8 billion compared to $35.5 billion in the prior year. Our pre-tax income was $6.3 billion in both fiscal 2024 and 2023, and our pre-tax operating margin was 17.1% compared to 17.8%. Net income was $4.8 billion in both years, and our diluted earnings per share was $14.34 compared to $13.82.
Current wording
In fiscal 2025, our number of homes closed and our home sales revenues decreased 5% and 7%, respectively, compared to the prior year, and our consolidated revenues decreased 7% to $34.3 billion compared to $36.8 billion. Our pre-tax income was $4.7 billion in fiscal 2025 compared to $6.3 billion in fiscal 2024, and our pre-tax operating margin was 13.8% compared to 17.1%. Net income was $3.6 billion in fiscal 2025 compared to $4.8 billion in fiscal 2024, and our diluted earnings per share were $11.57 compared to $14.34.
Previous wording
Consolidated net cash provided by operating activities was $2.2 billion in fiscal 2024 and $4.3 billion in fiscal 2023, and cash provided by our homebuilding operations was $2.2 billion in fiscal 2024 compared to $3.1 billion in fiscal 2023. In fiscal 2024, our return on equity (ROE) was 19.9% compared to 22.7% in fiscal 2023, our homebuilding pre-tax return on inventory (ROI) was 27.8% compared to 29.7%, and our return on assets (ROA) was 13.9% compared to 15.1%. ROE is calculated as net income attributable to D.R. Horton for the year divided by average stockholders’ equity, where average stockholders’ equity is the sum of ending stockholders’ equity balances for the trailing five quarters divided by five. Homebuilding ROI is calculated as homebuilding pre-tax income for the year divided by average inventory, where average inventory is the sum of ending homebuilding inventory balances for the trailing five quarters divided by five. ROA is calculated as net income attributable to D.R. Horton for the year divided by average consolidated assets, where average consolidated assets is the sum of total asset balances for the trailing five quarters divided by five.
Current wording
Consolidated net cash provided by operating activities was $3.4 billion in fiscal 2025 and $2.2 billion in fiscal 2024, and cash provided by our homebuilding operations was $3.4 billion in fiscal 2025 compared to $2.2 billion in fiscal 2024. In fiscal 2025, our return on equity (ROE) was 14.6% compared to 19.9% in fiscal 2024, and our return on assets (ROA) was 10.0% compared to 13.9%. ROE is calculated as net income attributable to D.R. Horton for the year divided by average stockholders’ equity, where average stockholders’ equity is the sum of ending stockholders’ equity balances for the trailing five quarters divided by five. ROA is calculated as net income attributable to D.R. Horton for the year divided by average consolidated assets, where average consolidated assets is the sum of total asset balances for the trailing five quarters divided by five.
Previous wording
We remain focused on our relationships with land developers across the country in order to maximize our returns and capital efficiency. Within our homebuilding land and lot portfolio, our lots controlled through purchase contracts represent 76% of the lots owned and controlled at September 30, 2024 compared to 75% at September 30, 2023. We are prioritizing the purchase of finished lots from Forestar and other land developers when possible. During fiscal 2024, 63% of the homes we closed were on lots developed by either Forestar or a third party.
Current wording
We remain focused on our relationships with land developers across the country to maximize returns and capital efficiency. Within our homebuilding land and lot portfolio, lots controlled through purchase contracts represented 75% of the lots owned and controlled at September 30, 2025 compared to 76% at September 30, 2024. We continue to prioritize the purchase of finished lots from Forestar and other land developers when possible. During fiscal 2025, 65% of the homes we closed were on lots developed by either Forestar or a third party compared to 63% in fiscal 2024.
Previous wording
We believe our strong balance sheet and liquidity provide us with the flexibility to operate effectively through changing economic conditions. We plan to generate strong cash flows from our operations and manage our product offerings, incentives, home pricing, sales pace and inventory levels to optimize the return on our inventory investments in each of our communities based on local housing market conditions.
Current wording
We believe our strong balance sheet and liquidity provide us with flexibility to operate effectively through changing economic conditions. We plan to generate strong cash flows from our operations and manage our product offerings, incentives, home pricing, sales pace and inventory levels to optimize the return on our inventory investments in each of our communities based on local housing market conditions.
Previous wording
Our operating strategy focuses on consistently enhancing long-term value to our shareholders by leveraging our financial and competitive position to maximize the returns on our inventory investments and generate consistent, sustainable profitability and cash flows, while managing risk and maintaining financial flexibility to navigate changing economic conditions. Our strategy includes the following initiatives:
Current wording
Our operating strategy focuses on consistently enhancing long-term value to our shareholders by leveraging our financial and competitive positions to maximize the returns on our inventory investments and generate strong profits and cash flows from operations, while managing risk and maintaining financial flexibility to navigate changing economic conditions. Our strategy includes the following initiatives:
Previous wording
•Investing in the construction and leasing of single-family and multi-family rental properties to meet rental demand in high growth suburban markets and selling these properties profitably.
Current wording
•Investing in our rental operations to meet rental demand in high growth suburban markets and selling these properties profitably.
Previous wording
We believe our operating strategy, which has produced positive results in recent years, will allow us to successfully operate through changing economic conditions and maintain our strong financial performance and competitive position. However, we cannot provide any assurances that the initiatives listed above will continue to be successful, and we may need to adjust parts of our strategy to meet future market conditions.
Current wording
We believe our operating strategy, which has produced positive results in recent years, will allow us to successfully operate through changing economic conditions and maintain our strong financial performance and competitive position. However, we cannot provide any assurance that the initiatives listed above will continue to be successful, and we may need to adjust parts of our strategy to meet future market conditions.
Previous wording
•Consolidated pre-tax income was 17.1% of consolidated revenues compared to 17.8%.
Current wording
•Consolidated pre-tax income was 13.8% of consolidated revenues compared to 17.1%.
Previous wording
•Income tax expense was $1.5 billion in both years, and our effective tax rate was 23.5% compared to 24.1%.
Current wording
•Income tax expense was $1.1 billion compared to $1.5 billion, and our effective tax rate was 23.6% compared to 23.5%.
Previous wording
•Net cash provided by operations was $2.2 billion compared to $4.3 billion.
Current wording
•Net cash provided by operations was $3.4 billion compared to $2.2 billion.
Previous wording
•Book value per common share increased to $78.12 compared to $67.78.
Current wording
•Book value per share increased to $82.15 compared to $78.12.
Previous wording
•Debt to total capital was 18.9% compared to 18.3%, and net debt to total capital was 5.2% compared to 5.1%.
Current wording
•Debt to total capital was 19.8% compared to 18.9%, and net debt to total capital was 11.0% compared to 5.2%.
Previous wording
•Homes closed increased 8% to 89,690 homes, while the average closing price of those homes decreased 1% to $378,000.
Current wording
•Homes closed decreased 5% to 84,863 homes, and the average closing price of those homes decreased 2% to $370,400.
Previous wording
•Net sales orders increased 10% to 86,561 homes, and the value of net sales orders increased 11% to $32.7 billion.
Current wording
•Net sales orders decreased 4% to 83,423 homes, and the value of net sales orders decreased 6% to $30.8 billion.
Previous wording
•Sales order backlog decreased 20% to 12,180 homes, and the value of sales order backlog decreased 19% to $4.8 billion.
Current wording
•Sales order backlog decreased 11% to 10,785 homes, and the value of sales order backlog decreased 14% to $4.1 billion.
Previous wording
•Home sales gross margin was 23.5% in both years.
Current wording
•Home sales gross margin was 21.5% compared to 23.5%.
Previous wording
•Homebuilding SG&A expense was 7.5% of homebuilding revenues compared to 7.1%.
Current wording
•Homebuilding SG&A expense was 8.3% of homebuilding revenues compared to 7.5%.
Previous wording
•Net cash provided by homebuilding operations was $2.2 billion compared to $3.1 billion.
Current wording
•Net cash provided by homebuilding operations was $3.4 billion compared to $2.2 billion.
Previous wording
•Homebuilding cash and cash equivalents totaled $3.6 billion compared to $2.9 billion.
Current wording
•Homebuilding cash and cash equivalents totaled $2.2 billion compared to $3.6 billion.
Previous wording
•Owned lots totaled 152,500 compared to 141,100, and lots controlled through purchase contracts totaled 480,400 compared to 427,300.
Current wording
•Owned lots totaled 147,000 compared to 152,500, and lots controlled through purchase contracts totaled 444,900 compared to 480,400.
Previous wording
•Single-family rental homes closed totaled 3,970 compared to 6,175.
Current wording
•Single-family rental homes closed totaled 3,460 compared to 3,970.
Previous wording
•Multi-family rental units closed totaled 2,202 compared to 2,112.
Current wording
•Multi-family rental units closed totaled 2,947 compared to 2,202.
Previous wording
•Forestar’s revenues increased 5% to $1.5 billion compared to $1.4 billion. Revenues in fiscal 2024 and 2023 included $1.3 billion and $1.2 billion, respectively, of revenue from land and lot sales to our homebuilding segment.
Current wording
•Forestar’s revenues increased 10% to $1.7 billion compared to $1.5 billion. Revenues in fiscal 2025 and 2024 included $1.4 billion and $1.3 billion, respectively, of revenue from land and lot sales to our homebuilding segment.
Previous wording
•Forestar’s lots sold increased 7% to 15,068 compared to 14,040. Lots sold to D.R. Horton totaled 13,267 compared to 12,249.
Current wording
•Forestar’s lots sold decreased 5% to 14,240 compared to 15,068. Lots sold to D.R. Horton totaled 11,751 compared to 13,267.
Previous wording
•Forestar’s cash and cash equivalents totaled $481.2 million compared to $616.0 million.
Current wording
•Forestar’s cash and cash equivalents totaled $379.2 million compared to $481.2 million.
Previous wording
•Forestar’s owned and controlled lots totaled 95,100 compared to 79,200. Of these lots, 37,700 were under contract to sell to or subject to a right of first offer with D.R. Horton compared to 31,400.
Current wording
•Forestar’s owned and controlled lots totaled 99,800 compared to 95,100. Of these lots, 40,400 were under contract to sell to or subject to a right of first offer with D.R. Horton compared to 37,700.
Previous wording
•Forestar’s debt to total capital was 30.7% compared to 33.7%, and Forestar’s net debt to total capital was 12.4% compared to 5.5%.
Current wording
•Forestar’s debt to total capital was 31.2% compared to 30.7%, and Forestar’s net debt to total capital was 19.3% compared to 12.4%.
Previous wording
•Financial services pre-tax income increased 10% to $311.2 million compared to $283.3 million.
Current wording
•Financial services pre-tax income was $278.7 million compared to $311.2 million.
Previous wording
•Financial services pre-tax income was 35.3% of financial services revenues in both years.
Current wording
•Financial services pre-tax income was 33.1% of financial services revenues compared to 35.3%.
Previous wording
Our operating segments are our 88 homebuilding divisions, our rental operations, our majority-owned Forestar residential lot development operations, our financial services operations and our other business activities. The homebuilding operating segments are aggregated into six reporting segments. These reporting segments, which we also refer to as reporting regions, have homebuilding operations located in the following states:
Current wording
Our operating segments are our 92 homebuilding divisions, our rental operations, our majority-owned Forestar residential lot development operations, our financial services operations and our other business activities. The homebuilding operating segments are aggregated into six reporting segments. These reporting segments, which we also refer to as reporting regions, have homebuilding operations located in the following states:
Previous wording
During fiscal 2024, the markets contributing most to the increase in sales order volume were the Portland and Salt Lake City markets in the Northwest, the Nevada markets in the Southwest, the Dallas market in the South Central, the Tampa market in the Southeast, the North Carolina markets in the East and the suburban Washington, D.C. market in the North.
Current wording
In regions where sales order volume decreased, the markets contributing most to the decrease in fiscal 2025 were the Salt Lake City market in the Northwest, the Phoenix and California markets in the Southwest, the Dallas and Fort Worth markets in the South Central and the Florida markets (particularly Tampa and Jacksonville) in the Southeast. In regions where sales order volume increased, the markets contributing most to the increase were the North Carolina markets in the East and the New Jersey, Chicago and suburban Washington, D.C. markets in the North.
Previous wording
The markets contributing most to the increase in closings volume were the Portland and Salt Lake City markets in the Northwest, the California and Nevada markets in the Southwest, the North Carolina markets in the East and the suburban Washington, D.C. market in the North.
Current wording
In regions where homes closed decreased, the markets contributing most were the Salt Lake City market in the Northwest, the Phoenix and California markets in the Southwest, the Dallas and Fort Worth markets in the South Central and the Florida markets (particularly Tampa and Jacksonville) in the Southeast. In regions where homes closed increased, the markets contributing most to the increase were the North Carolina markets in the East and the suburban Washington, D.C., Chicago and New Jersey markets in the North.
Previous wording
Gross profit from home sales increased to $8.0 billion in 2024 from $7.4 billion in 2023 and was 23.5% of home sales revenues in both years. We remain focused on managing the pricing, incentives and sales pace in each of our communities to optimize the returns on our inventory investments and adjust to local market conditions and new home demand. To adjust to changes in market conditions during fiscal 2023 and 2024, we have used a higher level of incentives and reduced home prices and sizes of our home offerings where necessary to provide better affordability to homebuyers. We expect our incentive levels to remain elevated, assuming similar market conditions and no significant changes in mortgage interest rates.
Current wording
We remain focused on managing the pricing, incentives and sales pace in each of our communities to optimize the returns on our inventory investments and adjust to local market conditions and new home demand. To adjust to changes in market conditions during recent years, we have used a higher level of incentives and reduced home prices and sizes of our home offerings where necessary to provide better affordability to homebuyers. We expect our incentive levels to stay elevated during fiscal 2026, the extent to which will depend on market conditions and changes in mortgage interest rates.
Previous wording
Land/lot sales and other revenues from our homebuilding operations were $58.2 million and $102.2 million in fiscal 2024 and 2023, respectively. We continually evaluate our land and lot supply, and fluctuations in revenues and profitability from land sales occur based on how we manage our inventory levels in various markets. We generally purchase land and lots with the intent to build and sell homes on them. However, some of the land that we purchase includes commercially zoned parcels that we may sell to commercial developers. We may also sell residential lots or land parcels to manage our supply or for other strategic reasons. As of September 30, 2024, our homebuilding operations had $12.7 million of land held for sale that we expect to sell in the next twelve months.
Current wording
Land/lot sales and other revenues from our homebuilding operations were $83.5 million and $58.2 million in fiscal 2025 and 2024, respectively. We continually evaluate our land and lot supply, and fluctuations in revenues and profitability from land sales occur based on how we manage our inventory levels in various markets. We generally purchase land and lots with the intent to build and sell homes on them. However, some of the land that we purchase includes commercially zoned parcels that we may sell to commercial developers. We may also sell residential lots or land parcels to manage our supply or for other strategic reasons. As of September 30, 2025, our homebuilding operations had $21.4 million of land held for sale that we expect to sell in the next twelve months.
Previous wording
At the end of each quarter, we review the performance and outlook for all of our communities and land inventories for indicators of potential impairment and perform detailed impairment evaluations and analyses when necessary. As a result of this review, there were $8.3 million of impairments recorded in our homebuilding segment during the three months ended September 30, 2024. During fiscal 2024, impairment charges related to our homebuilding segment totaled $14.0 million compared to $7.7 million in fiscal 2023.
Current wording
At the end of each quarter, we review the performance and outlook for all of our communities and land inventories for indicators of potential impairment and perform detailed impairment evaluations and analyses when necessary. As a result of this review, there were $6.7 million of impairments recorded in our homebuilding segment during the three months ended September 30, 2025. During fiscal 2025, impairment charges related to our homebuilding segment totaled $29.9 million compared to $14.0 million in fiscal 2024.
Previous wording
During fiscal 2024 and 2023, earnest money and pre-acquisition cost write-offs related to our homebuilding segment’s land purchase contracts that we have terminated or expect to terminate were $54.9 million and $53.0 million, respectively.
Current wording
During fiscal 2025 and 2024, earnest money and pre-acquisition cost write-offs related to our homebuilding segment’s land purchase contracts that we have terminated or expect to terminate were $114.3 million and $54.9 million, respectively.
Previous wording
SG&A expense from homebuilding activities increased 14% to $2.6 billion in fiscal 2024 from $2.2 billion in fiscal 2023. SG&A expense as a percentage of homebuilding revenues was 7.5% and 7.1% in fiscal 2024 and 2023, respectively.
Current wording
SG&A expense from homebuilding activities increased 3% to $2.62 billion in fiscal 2025 from $2.55 billion in fiscal 2024. As a percentage of homebuilding revenues, SG&A expense was 8.3% and 7.5% in fiscal 2025 and 2024, respectively, with the increase primarily due to the decrease in homebuilding revenues.
Previous wording
Employee compensation and related costs were $2.1 billion and $1.9 billion in fiscal 2024 and 2023, respectively, representing 82% and 85% of SG&A costs in those years. These costs increased 10% in fiscal 2024 from the prior year. Our homebuilding operations employed 10,071 and 9,190 people at September 30, 2024 and 2023, respectively.
Current wording
Employee compensation and related costs were $2.06 billion and $2.09 billion in fiscal 2025 and 2024, respectively, representing 79% and 82% of SG&A costs in those years. Our homebuilding operations employed 9,972 and 10,071 people at September 30, 2025 and 2024, respectively.
Previous wording
We capitalize interest costs incurred to inventory during active development and construction (active inventory). Capitalized interest is charged to cost of sales as the related inventory is delivered to the buyer. Interest incurred by our homebuilding operations decreased 27% to $50.5 million in fiscal 2024 from $68.8 million in fiscal 2023, primarily due to an 11% decrease in our average homebuilding debt. Interest charged to cost of sales was 0.4% of homebuilding cost of sales (excluding inventory and land option charges) in both years.
Current wording
We capitalize interest costs incurred to inventory during active development and construction (active inventory). Capitalized interest is charged to cost of sales as the related inventory is delivered to the buyer. Interest incurred by our homebuilding operations increased 104% to $103.1 million in fiscal 2025 from $50.5 million in fiscal 2024, primarily due to an increase in the weighted average interest rate of homebuilding debt outstanding as well as a 33% increase in the average amount of that debt. Interest charged to cost of sales was 0.4% of homebuilding cost of sales (excluding inventory and land option charges) in both years.
Previous wording
Other income, net of other expenses, included in our homebuilding operations increased to $107.6 million in fiscal 2024 compared to $78.8 million in fiscal 2023, primarily due to an increase in interest income. Other income also consists of various other types of ancillary income, gains, expenses and losses not directly associated with sales of homes, land and lots. The activities that result in this ancillary income are not significant, either individually or in the aggregate.
Current wording
Other income, net of other expenses, included in our homebuilding operations was $101.7 million in fiscal 2025 compared to $107.6 million in fiscal 2024. Other income consists of interest income and various other types of ancillary income, gains, expenses and losses not directly associated with sales of homes, land and lots. The activities that result in this ancillary income are not significant, either individually or in the aggregate.
Showing the first 40 of 106 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Public Unsecured Debt— At September 30, 2025, we had $3.0 billion principal amount of homebuilding senior notes outstanding that mature from October 2026 through October 2035. The indenture governing our senior notes imposes restrictions on the creation of secured debt and liens.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
At September 30, 2024, Forestar was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility and senior note obligations.