D.R. Horton, Inc. has recently released its 10-Q report, revealing a snapshot of its operations and financial performance. The company operates as a homebuilding giant in the United States, with a presence in 119 markets across 33 states, offering a range of residential homes under different brand names. Its business operations include homebuilding, rental properties, residential lot development, financial services, and other related activities.
In the six months ended March 31, 2024, D.R. Horton reported a considerable surge in its financial metrics. Home sales revenues increased by 11% to $16.8 billion, with pre-tax income reaching $2.8 billion. Notably, the company's return on equity (ROE) stood at 22.2%. D.R. Horton also experienced a 13% increase in the number of homes closed during this period, marking a significant uptick in its operational performance.
The company's homebuilding strategy has been focused on maintaining a diverse portfolio of homes catering to various buyer segments, including entry-level, move-up, active adult, and luxury buyers. It has also been adapting to market conditions by using incentives and pricing adjustments. D.R. Horton's rental segment, which includes single-family and multi-family rental operations, saw a substantial increase in revenues, reflecting its success in the rental property market.
Forestar Group Inc., in which D.R. Horton owns a majority stake, also reported a strong performance, with revenues increasing by 11% to $333.8 million. The company's financial services arm, which provides mortgage financing and title agency services, saw a 4% increase in revenues to $225.6 million.
In terms of key financial results, D.R. Horton reported a 13% increase in homebuilding revenues to $15.8 billion for the six months ended March 31, 2024. The average closing price of homes during this period was $375,800, and the company closed 41,888 homes. The rental segment's revenues surged to $371.3 million, while Forestar's pre-tax income increased by 64% to $58.9 million. The financial services segment, however, experienced a slight decrease in pre-tax income to $78.0 million.
Today the company's shares have moved 3.7% to a price of $148.34. For more information, read the company's full 10-Q submission here.
