10-QPeriod: Q1 FY2025

HORTON D R INC /DE/ Quarterly Report for Q1 Ended Dec 31, 2024

Filed January 23, 2025For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) reported its financial results for the quarter ended December 31, 2024. While consolidated revenues saw a slight decrease of 1% year-over-year to $7.6 billion, the company maintained solid demand for new homes despite elevated mortgage rates and inflation. Net income attributable to D.R. Horton, Inc. decreased by 11% to $844.9 million, resulting in diluted earnings per share of $2.61, down from $2.82 in the prior year period. The company's balance sheet remains strong, with total assets of $35.0 billion and total equity of $25.5 billion. DHI continues to focus on capital efficiency, with a debt-to-total capital ratio of 17.0%. The company repurchased approximately $1.1 billion of its common stock during the quarter and declared a quarterly dividend of $0.40 per share, demonstrating a commitment to returning capital to shareholders.

Financial Highlights

37 data points
Beta

Revenue

$7.61B

25.1% Gross Margin

Net Income

$851.90M

11.2% Net Margin

EPS (Diluted)

$2.61

Total Assets

$35.03B

Cash & Equivalents

$3.07B

Free Cash Flow

$633.40M

Financial Statements
Beta
Revenue$7.61B
Cost of Revenue$5.70B
Gross Profit$1.91B
SG&A Expenses$878.10M
Net Income$851.90M
EPS (Basic)$2.63
EPS (Diluted)$2.61
Shares Outstanding (Basic)321.50M
Shares Outstanding (Diluted)323.30M

Key Highlights

  • 1Consolidated revenues decreased 1% to $7.6 billion, reflecting a slight dip in home sales.
  • 2Net income attributable to D.R. Horton, Inc. decreased 11% to $844.9 million ($2.61 per diluted share) compared to the prior year period.
  • 3Homebuilding revenues declined 2% to $7.2 billion, with homes closed down 1% to 19,059.
  • 4The company maintained a strong land and lot position, with 76% of lots controlled through purchase contracts, providing flexibility.
  • 5DHI repurchased $1.1 billion of common stock during the quarter, underscoring its commitment to shareholder returns.
  • 6Total equity stood at $25.5 billion, with a healthy debt-to-total capital ratio of 17.0%.

Frequently Asked Questions

The primary driver for the decrease in net income was a combination of a slight decrease in home sales revenue and a decrease in the pre-tax operating margin, which fell to 14.6% from 16.1% in the prior year period. Homebuilding pre-tax income decreased 8% to $1.0 billion.

D.R. Horton continues to control a significant portion of its land and finished lot supply through purchase contracts, with 76% of owned and controlled lots held this way as of December 31, 2024. The company is prioritizing the purchase of finished lots from Forestar and other developers. Homes in inventory decreased to 36,200 units.

D.R. Horton demonstrated its commitment to shareholder returns by repurchasing approximately $1.1 billion of its common stock during the quarter under its $4.0 billion authorization. Additionally, the company declared a quarterly cash dividend of $0.40 per share.

Despite elevated mortgage interest rates and inflationary pressures, D.R. Horton reported that demand for new homes remained solid. The company notes that the supply of homes at affordable price points is limited and demographic trends continue to support housing demand. They expect incentive levels to remain elevated.