Results
Fiscal 2026 Third Quarter Highlights
Net income attributable to D.R. Horton of $904.9 million or $3.20 per diluted share
Consolidated pre-tax income of $1.2 billion, with a pre-tax profit margin of 13.3%
Consolidated revenues of $9.2 billion
5Home sales revenues increased 1% to $8.7 billion and homes closed increased 4% to 23,983 homes
Net sales orders of 23,084 homes with an order value of $8.4 billion
Book value per share increased 5% to $84.85
Capital return
Repurchased 4.2 million shares of common stock for $615.7 million and paid cash dividends of $127.1 million
Results
Consolidated Results
Three months ended June 30, 2026
7Net income attributable to D.R. Horton for its third fiscal quarter decreased 12% to $904.9 million, and earnings per diluted share decreased 5% to $3.20.
Consolidated pre-tax income totaled $1.2 billion on revenues of $9.2 billion, resulting in a pre-tax profit margin of 13.3%.
8Net income attributable to D.R. Horton for the first nine months of fiscal 2026 decreased 20% to $2.1 billion, and earnings per diluted share decreased 13% to $7.45.
Consolidated pre-tax income totaled $2.9 billion on revenues of $23.7 billion, resulting in a pre-tax profit margin of 12.2%.
Cash provided by operations was $880.8 million during the nine months ended June 30, 2026.
Total liquidity at quarter end was $6.1 billion, and the Company's debt to total capital ratio was 23.0%.
Debt to total capital ratio consists of notes payable divided by stockholders' equity plus notes payable.
The Company has $600 million of homebuilding senior notes maturing in the next twelve months.
For the trailing twelve months ended June 30, 2026, the Company's return on equity (ROE) was 12.8% and return on assets (ROA) was 8.5%.
ROE is calculated as net income attributable to D.R. Horton for the trailing twelve months divided by average stockholders' equity, where average stockholders' equity is the sum of ending stockholders' equity balances of the trailing five quarters divided by five.
ROA is calculated as net income attributable to D.R. Horton for the trailing twelve months divided by average consolidated assets, where average consolidated assets is the sum of total asset balances for the trailing five quarters divided by five.
Management commentary
David Auld, Executive Chairman, said:
Results
1“The D.R. Horton team delivered a solid third quarter, highlighted by earnings per diluted share of $3.20, consolidated pre-tax income of $1.2 billion, revenues of $9.2 billion and a pre-tax profit margin of 13.3%.
We closed 23,983 homes, which was at the high end of our guidance range, while achieving a home sales gross margin of 20.7%.
Consistent with our balanced approach to capital allocation and strong cash flow generation, we returned $742.8 million to shareholders through share repurchases and dividends during the quarter.
Management commentary
“Our teams are managing each community with discipline, balancing pace, price, incentives and inventory levels to maximize returns.
Affordability constraints and cautious consumer sentiment continue to impact new home demand, and we expect sales incentives to remain elevated during the fourth quarter, with incentive levels dependent on demand, mortgage rates and other market conditions.
“Our experienced local operators, broad national footprint, flexible lot supply and strong balance sheet position us to compete effectively and capture demand across our markets.
We remain focused on disciplined capital allocation and are committed to delivering value to our homebuyers while enhancing long-term returns for our shareholders.”
Homebuilding
Results
Three months ended June 30, 2026
4Homebuilding revenue for the third quarter increased 1% to $8.7 billion, and homes closed increased 4% to 23,983 homes.
Homebuilding pre-tax income decreased 10% to $1.1 billion, and pre-tax profit margin was 12.3%.
Net sales orders totaled 23,084 homes with an order value of $8.4 billion, flat with the same quarter of fiscal 2025.
The Company’s cancellation rate (cancelled sales orders divided by gross sales orders) for the quarter was 20% compared to 17% in the prior year quarter.
3Homebuilding revenue for the first nine months of fiscal 2026 decreased 3% to $22.3 billion, and homes closed of 61,287 homes were flat with the same period of fiscal 2025.
Homebuilding pre-tax income decreased 19% to $2.5 billion, and pre-tax profit margin was 11.4%.
2Net sales orders increased 5% to 66,376 homes, and sales order value increased 4% to $24.3 billion.
6The cancellation rate for the first nine months of fiscal 2026 was 18% compared to 17% in the prior year period.
At quarter end, the Company had 38,000 homes in inventory, of which 23,300 were unsold.
7,600 of the Company’s unsold homes were completed, including 600 that had been completed for greater than six months.
Of the Company’s homes closed during the nine months ended June 30, 2026, 67% were on lots developed by Forestar or third parties, up from 65% during the prior year period.
The Company’s homebuilding return on inventory (ROI) for the trailing twelve months ended June 30, 2026 was 17.0%.
Homebuilding ROI is calculated as homebuilding pre-tax income for the trailing twelve months divided by average inventory, where average inventory is the sum of ending homebuilding inventory balances for the trailing five quarters divided by five.
Non-Homebuilding Segments
Rental: Rental operations revenues were $266.1 million from the sale of 601 single-family rental homes and 339 multi-family rental units with pre-tax income of $31.0 million, resulting in a pre-tax profit margin of 11.6%.
Forestar: Forestar sold 3,659 lots and generated $407.0 million of revenue and $48.7 million of pre-tax income, resulting in a pre-tax profit margin of 12.0%.
Financial Services: Financial services revenues were $220.7 million with pre-tax income of $70.3 million, resulting in a pre-tax profit margin of 31.9%.
Rental: Rental operations revenues were $587.4 million from the sale of 1,564 single-family rental homes and 555 multi-family rental units with pre-tax income of $43.5 million, resulting in a pre-tax profit margin of 7.4%.
Forestar: Forestar sold 8,541 lots and generated $1.1 billion of revenue and $113.4 million of pre-tax income, resulting in a pre-tax profit margin of 10.8%.
Financial Services: Financial services revenues were $598.2 million with pre-tax income of $180.0 million, resulting in a pre-tax profit margin of 30.1%.
Capital return
Share Repurchases and Dividends
During the third quarter of fiscal 2026, the Company repurchased 4.2 million shares of common stock for $615.7 million, for a total of 14.6 million shares repurchased for $2.2 billion during the nine months ended June 30, 2026.
Common shares outstanding at June 30, 2026 totaled 280.7 million, down 6% from a year ago, and the Company’s remaining stock repurchase authorization was $1.1 billion.
The Company paid cash dividends of $127.1 million during the third quarter of fiscal 2026, for a total of $388.3 million of dividends paid during the nine months ended June 30, 2026.
Subsequent to quarter end, the Company declared a quarterly cash dividend of $0.45 per share payable on August 13, 2026 to stockholders of record on August 6, 2026.
Outlook
Guidance
Based on the Company’s results for the first nine months of fiscal 2026 and current market conditions, D.R. Horton is updating its guidance for fiscal 2026 as follows:
Consolidated revenues in the range of $32.5 billion to $33.0 billion
Homes closed by homebuilding operations of 83,800 homes to 84,300 homes
Income tax rate of approximately 25.0%
The Company is reiterating its fiscal 2026 guidance as follows:Guidance reaffirmed
Consolidated cash flow provided by operations of at least $3.0 billion
Capital return
Share repurchases of approximately $2.5 billion
Dividend payments of approximately $500 million
Management commentary
increases in the costs of owning a home;
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