10-KPeriod: FY2024

HORTON D R INC /DE/ Annual Report, Year Ended Sep 30, 2024

Filed November 19, 2024For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) has demonstrated resilience and continued growth in its fiscal year ending September 30, 2024, maintaining its position as the largest homebuilder in the U.S. The company reported consolidated revenues of $36.8 billion, a 4% increase from the previous year, with net income attributable to D.R. Horton remaining strong at $4.8 billion. Despite facing elevated mortgage interest rates and inflationary pressures, DHI saw a 10% increase in net sales orders, indicating solid demand for its diverse product offerings across 125 markets in 36 states. The company's strategic focus on affordability, operational efficiency, and a strong balance sheet, characterized by a low debt-to-total capital ratio of 18.9%, positions it well for continued success in the evolving housing market. Key financial performance indicators show consistent home closings, with an 8% increase in homes closed to 89,690. While the average closing price saw a slight 1% decrease to $378,000, the home sales gross margin remained robust at 23.5%. The company continues to manage inventory effectively, with a significant portion of its land and lots controlled through purchase contracts. DHI Mortgage also performed well, originating financing for 78% of its home sales, contributing positively to segment revenues and income. The company also returned capital to shareholders through a $4.0 billion stock repurchase authorization and increased its quarterly dividend. Looking ahead, D.R. Horton remains committed to its strategy of leveraging its scale, financial strength, and operational expertise to drive long-term shareholder value. The company's ability to adapt its product offerings, pricing, and incentives to market conditions, coupled with its extensive land and lot position and diversified geographic presence, provides a strong foundation for navigating future economic cycles and capitalizing on opportunities in the U.S. housing market.

Financial Statements
Beta

Key Highlights

  • 1D.R. Horton maintained its position as the largest U.S. homebuilder, closing 89,690 homes in fiscal year 2024.
  • 2Consolidated revenues reached $36.8 billion, a 4% increase year-over-year, with net income attributable to D.R. Horton at $4.8 billion.
  • 3Net sales orders increased by 10% to 86,561 homes, signaling strong demand despite higher interest rates.
  • 4The company maintained a healthy home sales gross margin of 23.5%, while managing an average closing price of $378,000.
  • 5DHI Mortgage financed 78% of the company's home sales, contributing to the financial services segment's revenue and income growth.
  • 6The company's financial health remains strong, with a debt-to-total capital ratio of 18.9% and a significant $3.6 billion remaining on its stock repurchase authorization.
  • 7D.R. Horton is strategically positioned with 76% of its lots controlled through purchase contracts, enhancing capital efficiency.

Frequently Asked Questions

In fiscal year 2024, D.R. Horton reported consolidated revenues of $36.8 billion, a 4% increase from the prior year. Net income attributable to D.R. Horton was $4.8 billion, and the company closed 89,690 homes, an 8% increase year-over-year. Despite facing higher interest rates, net sales orders grew by 10%, indicating robust demand.

D.R. Horton continues to manage its inventory strategically, with 76% of its lots controlled through purchase contracts at the end of fiscal year 2024. This approach helps to control capital investment and mitigate risks associated with land ownership. The company also utilizes its majority-owned subsidiary, Forestar Group Inc., to secure a significant portion of its finished lot supply.

The company acknowledges the impact of elevated mortgage interest rates and inflationary pressures but remains optimistic due to solid demand, supported by favorable demographics and a limited supply of affordable housing. D.R. Horton plans to continue managing home pricing, sales incentives, and inventory levels to adapt to market conditions and maintain affordability for buyers.

D.R. Horton demonstrates its commitment to returning capital to shareholders through its stock repurchase program and dividend payments. The company has a $4.0 billion stock repurchase authorization remaining and has been steadily increasing its quarterly cash dividend, reflecting confidence in its financial performance and future prospects.