10-QPeriod: Q1 FY2026

HORTON D R INC /DE/ Quarterly Report for Q1 Ended Dec 31, 2025

Filed January 22, 2026For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) reported a decrease in revenues and net income for the quarter ended December 31, 2025, compared to the prior year. Consolidated revenues were $6.9 billion, down 10%, and net income attributable to D.R. Horton, Inc. was $594.8 million, a decrease of 30% from $844.9 million in the prior year period. Diluted earnings per share also declined to $2.03 from $2.61. This performance was impacted by a slowdown in the homebuilding sector, with home sales revenues decreasing by 9% and home sales gross margin declining to 20.4% due to increased sales incentives aimed at supporting demand amidst affordability constraints and cautious consumer sentiment. Despite the year-over-year decline, the company demonstrated resilience. Net sales orders increased slightly in volume and remained flat in value, indicating steady underlying demand. The company maintained a strong balance sheet with a debt-to-total capital ratio of 18.8% and significant liquidity. D.R. Horton continues to execute its strategy of managing inventory, focusing on affordability, and returning capital to shareholders through dividends and share repurchases, with $2.6 billion remaining on its stock repurchase authorization.

Financial Highlights

37 data points
Beta

Revenue

$6.89B

23.2% Gross Margin

Net Income

$601.40M

8.7% Net Margin

EPS (Diluted)

$2.03

Total Assets

$34.64B

Cash & Equivalents

$2.55B

Free Cash Flow

$826.60M

Financial Statements
Beta
Revenue$6.89B
Cost of Revenue$5.29B
Gross Profit$1.59B
SG&A Expenses$865.10M
Net Income$601.40M
EPS (Basic)$2.03
EPS (Diluted)$2.03
Shares Outstanding (Basic)292.30M
Shares Outstanding (Diluted)293.30M

Key Highlights

  • 1Consolidated revenues decreased by 10% to $6.9 billion for the quarter ended December 31, 2025, compared to the prior year.
  • 2Net income attributable to D.R. Horton, Inc. decreased by 30% to $594.8 million ($2.03 per diluted share) compared to $844.9 million ($2.61 per diluted share) in the prior year.
  • 3Homebuilding revenues declined by 9% to $6.5 billion, with homes closed decreasing by 7% and the average closing price down 3%.
  • 4Home sales gross margin decreased to 20.4% from 22.7% year-over-year, attributed to increased sales incentives to address affordability constraints.
  • 5Net sales orders increased by 3% in volume to 18,300 homes, with the value remaining flat at $6.7 billion.
  • 6The company maintained a strong balance sheet with a debt-to-total capital ratio of 18.8% and ample liquidity.
  • 7D.R. Horton repurchased $669.7 million of its common stock during the quarter and has $2.6 billion remaining on its authorization.

Frequently Asked Questions

The primary reasons for the year-over-year decrease in revenues and net income are a slowdown in the homebuilding sector, evidenced by a 9% decrease in home sales revenues and a 7% decrease in homes closed. This was compounded by increased sales incentives, which compressed the home sales gross margin to 20.4% from 22.7%, in response to affordability constraints and cautious consumer sentiment.

D.R. Horton is strategically managing its inventory and land positions by prioritizing the purchase of finished lots from Forestar and other developers. Lots controlled through purchase contracts represent a significant portion (75%) of its total owned and controlled lots. The company also monitors its inventory levels relative to local demand, adjusting pricing, incentives, and construction starts to optimize returns and maintain affordability.

D.R. Horton maintains a strong financial position. Its debt-to-total capital ratio was 18.8% at the end of the quarter, and it reported significant cash and cash equivalents, particularly within its homebuilding segment. The company has substantial available capacity under its revolving credit facilities, indicating robust liquidity to navigate economic conditions and fund operations.

D.R. Horton continues to return capital to shareholders. During the quarter, the company repurchased $669.7 million of its common stock, with $2.6 billion remaining on its repurchase authorization. It also declared and paid a quarterly cash dividend of $0.45 per share, demonstrating a commitment to shareholder value.