10-QPeriod: Q2 FY2026

HORTON D R INC /DE/ Quarterly Report for Q2 Ended Mar 31, 2026

Filed April 23, 2026For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) reported its financial results for the quarter ended March 31, 2026. The company experienced a decrease in consolidated revenues and net income compared to the prior year period, reflecting industry-wide affordability constraints and cautious consumer sentiment. Despite the revenue and income decline, DHI saw an increase in net sales orders and a growing backlog, indicating a resilient demand for its product offerings, particularly its focus on affordable housing. The company continues to manage pricing, incentives, and inventory levels closely to adapt to local market conditions. The balance sheet remains strong with a manageable debt-to-capital ratio, and the company is actively returning capital to shareholders through stock repurchases and dividends.

Financial Highlights

37 data points
Beta

Revenue

$7.56B

22.5% Gross Margin

Net Income

$658.00M

8.7% Net Margin

EPS (Diluted)

$2.24

Total Assets

$35.57B

Cash & Equivalents

$1.97B

Free Cash Flow

-$449.70M

Financial Statements
Beta
Revenue$7.56B
Cost of Revenue$5.85B
Gross Profit$1.70B
SG&A Expenses$903.30M
Net Income$658.00M
EPS (Basic)$2.25
EPS (Diluted)$2.24
Shares Outstanding (Basic)287.90M
Shares Outstanding (Diluted)289.00M

Key Highlights

  • 1Consolidated revenues decreased 2% year-over-year to $7.6 billion for the three months ended March 31, 2026.
  • 2Net income attributable to D.R. Horton decreased 20% to $647.9 million, and diluted EPS fell to $2.24 from $2.58.
  • 3Homebuilding revenues saw a modest 2% decline to $7.1 billion, but homes closed increased slightly by 1%.
  • 4Net sales orders increased by a notable 11% in homes and 10% in value for the quarter, with the sales order backlog growing 17% by value.
  • 5Home sales gross margin declined to 20.1% from 21.8% due to increased costs and the need for higher sales incentives.
  • 6The company's debt-to-total capital ratio stood at 21.7%, up from 19.8% at the end of the previous fiscal year, while net debt to total capital increased to 16.4%.
  • 7D.R. Horton continues to execute its stock repurchase program, buying back $903.6 million worth of shares in the quarter.

Frequently Asked Questions

D.R. Horton reported a decrease in consolidated revenues and net income for the quarter ended March 31, 2026, compared to the same period last year. Consolidated revenues were $7.6 billion, down 2%, and net income attributable to D.R. Horton was $647.9 million, a decrease of 20%. Diluted earnings per share also declined to $2.24.

The homebuilding segment experienced a 2% decrease in revenue to $7.1 billion. While homes closed saw a slight 1% increase, the average closing price decreased by 3%. Encouragingly, net sales orders increased by 11% in volume, and the sales order backlog grew by 17% in value, indicating continued customer interest and future sales potential. However, home sales gross margin decreased to 20.1% from 21.8% due to rising costs and increased sales incentives aimed at affordability.

D.R. Horton maintains a strong balance sheet. The debt-to-total capital ratio was 21.7% as of March 31, 2026, up slightly from previous periods, while net debt to total capital increased to 16.4%. The company has significant available borrowing capacity under its credit facilities and continues to manage its liquidity effectively. It also actively returned capital to shareholders through stock repurchases, spending $903.6 million in the quarter.

The rental segment's revenues decreased to $211.8 million, and pre-tax income declined to $12.3 million, primarily due to fewer multi-family units closed. The financial services segment saw revenues decrease by 9% to $192.8 million, with pre-tax income falling 29% to $51.7 million, largely due to reduced profit margins on loans sold.