10-KPeriod: FY2022

HORTON D R INC /DE/ Annual Report, Year Ended Sep 30, 2022

Filed November 18, 2022For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) reported strong financial performance for the fiscal year ended September 30, 2022, with consolidated revenues increasing 21% to $33.5 billion and net income rising 40% to $5.9 billion. This growth was primarily driven by its core homebuilding segment, which saw a 20% increase in revenues, fueled by a significant rise in the average closing price of homes. Despite a slight decrease in the number of homes closed, the company managed to improve its home sales gross margin and reduce its selling, general, and administrative (SG&A) expenses as a percentage of revenue. The company's financial services segment experienced a decline in pre-tax income, while its rental and Forestar lot development segments showed growth. Looking ahead, DHI is navigating a market with rising interest rates and inflationary pressures, which have led to a moderation in housing demand and an increase in sales order cancellations. However, the company's strategic focus on affordable product offerings, strong lot position controlled through purchase contracts, and efficient operations are expected to enable it to manage these changing market conditions effectively. DHI continues to return capital to shareholders through dividends and share repurchases, demonstrating confidence in its ongoing financial strength and future prospects.

Financial Highlights

39 data points
Beta

Revenue

$33.48B

31.4% Gross Margin

Net Income

$5.90B

17.6% Net Margin

EPS (Diluted)

$16.51

Total Assets

$30.35B

Cash & Equivalents

$2.57B

Free Cash Flow

$413.60M

Financial Statements
Beta
Revenue$33.48B
Cost of Revenue$22.98B
Gross Profit$10.50B
SG&A Expenses$2.93B
Net Income$5.90B
EPS (Basic)$16.65
EPS (Diluted)$16.51
Shares Outstanding (Basic)351.70M
Shares Outstanding (Diluted)354.80M

Key Highlights

  • 1Consolidated revenues grew 21% to $33.5 billion, driven by a 20% increase in homebuilding revenues.
  • 2Net income increased 40% to $5.9 billion, with diluted earnings per share rising to $16.51 from $11.41 in the prior year.
  • 3Home sales gross margin improved to 28.7% from 25.5% in the prior year.
  • 4Homebuilding SG&A expenses decreased to 6.8% of homebuilding revenues from 7.3%.
  • 5The company's backlog of sales orders decreased by 16% in value to $8.0 billion.
  • 6Sales order cancellation rate increased to 21% in fiscal 2022 from 17% in fiscal 2021, reflecting moderating demand.
  • 7D.R. Horton's financial services revenue decreased by 3%, with pre-tax income declining 20%.

Frequently Asked Questions

D.R. Horton reported a strong fiscal year 2022 with consolidated revenues increasing 21% to $33.5 billion and net income growing 40% to $5.9 billion, or $16.51 per diluted share. This growth was primarily driven by the homebuilding segment, which benefited from higher average selling prices.

The company observed a moderation in housing demand starting in June 2022 due to significantly increased mortgage interest rates and elevated inflation. This led to a decrease in net sales orders and an increase in the sales order cancellation rate to 21% in fiscal year 2022.

D.R. Horton's strategy includes managing home pricing, sales incentives, and inventory levels to align with evolving homebuyer demand. The company also continues to leverage its affordable product offerings and its significant control over lots through purchase contracts to navigate market challenges.

The company continues to return capital to shareholders through the payment of quarterly cash dividends and ongoing share repurchases. In fiscal year 2022, D.R. Horton repurchased $1.1 billion of its common stock and paid dividends totaling $316.5 million.