10-QPeriod: Q3 FY2024

HORTON D R INC /DE/ Quarterly Report for Q3 Ended Jun 30, 2024

Filed July 23, 2024For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) reported solid financial results for the third quarter of fiscal year 2024, with consolidated revenues increasing 2% to $10.0 billion and net income attributable to D.R. Horton increasing 1% to $1.35 billion. Diluted earnings per share rose 5% to $4.10. The company demonstrated strong performance in its core homebuilding segment, with revenues up 6% to $9.2 billion and pre-tax income up 7%. Home sales gross margin improved to 24.0% due to decreasing home costs relative to selling prices. The company continues to navigate a dynamic housing market, employing pricing adjustments and incentives to maintain demand. Despite persistent higher interest rates, the demand for new homes remains solid, supported by a limited supply of affordable housing. DHI's substantial land and lot position, with 76% controlled through purchase contracts, provides strategic flexibility. While the rental segment saw a decline in revenues and pre-tax income, other segments like financial services showed growth. DHI maintains a strong balance sheet with debt to total capital at 18.8% and significant liquidity. The company continues to return capital to shareholders through dividends and share repurchases, demonstrating confidence in its ongoing financial strength and market position.

Financial Highlights

38 data points
Beta

Revenue

$9.97B

26.5% Gross Margin

Net Income

$1.37B

13.7% Net Margin

EPS (Diluted)

$4.10

Total Assets

$35.15B

Cash & Equivalents

$3.02B

Free Cash Flow

$636.30M

Financial Statements
Beta
Revenue$9.97B
Cost of Revenue$7.32B
Gross Profit$2.64B
SG&A Expenses$923.60M
Net Income$1.37B
EPS (Basic)$4.12
EPS (Diluted)$4.10
Shares Outstanding (Basic)328.40M
Shares Outstanding (Diluted)330.10M

Key Highlights

  • 1Consolidated revenues increased 2% year-over-year to $10.0 billion for the third quarter.
  • 2Net income attributable to D.R. Horton increased 1% to $1.35 billion, with diluted EPS at $4.10.
  • 3Homebuilding revenues grew 6% to $9.2 billion, and home sales gross margin improved to 24.0%.
  • 4The company closed 24,155 homes, a 5% increase year-over-year.
  • 5Net sales orders increased 1% in the quarter, indicating continued demand.
  • 6The company maintained a strong balance sheet with debt to total capital at 18.8%.
  • 7Significant share repurchases and dividend payments demonstrate a commitment to shareholder returns.

Frequently Asked Questions

Consolidated revenues grew 2% year-over-year to $10.0 billion, primarily driven by the homebuilding segment, which saw a 6% increase in revenue to $9.2 billion due to a 5% rise in the number of homes closed and a slight increase in average selling price.

D.R. Horton is focusing on managing costs and pricing to maintain profitability. The home sales gross margin improved to 24.0% in the third quarter, driven by a decrease in the average cost of homes closed relative to the selling price. The company is also using incentives and pricing adjustments to adapt to market conditions and maintain affordability for homebuyers.

D.R. Horton maintains a strong financial position with a debt-to-total capital ratio of 18.8% as of June 30, 2024. The company reported significant cash and cash equivalents and substantial available capacity under its revolving credit facilities, indicating solid liquidity to fund operations and manage market fluctuations.

D.R. Horton is actively returning capital to shareholders through dividend payments and share repurchases. The company paid cash dividends totaling $297.5 million in the nine months ended June 30, 2024, and repurchased $1.2 billion of its common stock during the same period. A substantial new authorization for stock repurchases was also announced.