10-QPeriod: Q3 FY2026

HORTON D R INC /DE/ Quarterly Report for Q3 Ended Jun 30, 2026

Filed July 23, 2026For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) reported its financial results for the quarter and nine months ended June 30, 2026. For the quarter, consolidated revenues remained stable at $9.2 billion, but pre-tax income decreased by 10% to $1.2 billion, leading to a 12% drop in net income attributable to D.R. Horton to $904.9 million. Diluted earnings per share declined by 5% to $3.20. The homebuilding segment showed a 1% increase in revenue to $8.7 billion, driven by a 4% rise in homes closed, though the average closing price decreased by 2%. Home sales gross margin contracted to 20.7% from 21.8% year-over-year, reflecting increased sales incentives and higher costs. For the nine months ended June 30, 2026, consolidated revenues decreased by 4% to $23.7 billion, and net income attributable to D.R. Horton fell by 20% to $2.1 billion, with diluted EPS at $7.45. The company's balance sheet shows total assets of $36.5 billion and total liabilities of $12.1 billion as of June 30, 2026. Stockholders' equity stood at $23.8 billion. Inventories represent a significant portion of assets, totaling $26.7 billion, an increase from $25.3 billion in the prior year. The company's debt-to-capital ratio increased to 23.0% from 19.8% at the end of the previous fiscal year, indicating higher leverage.

Key Highlights

  • 1Consolidated revenues for the three months ended June 30, 2026, were stable at $9.2 billion, while net income attributable to D.R. Horton decreased by 12% to $904.9 million.
  • 2Homebuilding revenues increased slightly by 1% to $8.7 billion for the quarter, driven by a 4% increase in homes closed, but the average closing price decreased by 2%.
  • 3Home sales gross margin for the homebuilding segment declined to 20.7% from 21.8% year-over-year, attributed to increased sales incentives and higher costs.
  • 4Total inventories increased to $26.7 billion as of June 30, 2026, from $25.3 billion at the end of the prior fiscal year, with construction in progress and finished homes showing a significant rise.
  • 5The company's debt-to-total capital ratio increased to 23.0% as of June 30, 2026, up from 19.8% at September 30, 2025, indicating higher financial leverage.
  • 6For the nine months ended June 30, 2026, net income attributable to D.R. Horton decreased by 20% to $2.1 billion, and diluted EPS was $7.45 compared to $8.53 in the prior year period.
  • 7The company repurchased $615.7 million of its common stock during the third quarter, with $1.1 billion remaining on its share repurchase authorization.

Frequently Asked Questions

For the third quarter ended June 30, 2026, D.R. Horton's consolidated pre-tax income decreased by 10% to $1.2 billion, and net income attributable to D.R. Horton decreased by 12% to $904.9 million. Diluted earnings per share also saw a 5% decline to $3.20 compared to the same period last year.

As of June 30, 2026, D.R. Horton's total inventories increased to $26.7 billion, up from $25.3 billion at the end of the previous fiscal year. The 'Construction in progress and finished homes' category saw a significant increase.

The company's financial leverage has increased, with the debt-to-total capital ratio rising to 23.0% as of June 30, 2026, compared to 19.8% at September 30, 2025. The net debt to total capital ratio also increased to 17.4% from 11.0%.

The home sales gross margin for the homebuilding segment decreased to 20.7% in the third quarter of fiscal year 2026, down from 21.8% in the prior year. This reduction is attributed to an increase in sales incentives offered to homebuyers to address affordability concerns, as well as higher costs.