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Forestar Q1 – Net Income Down 7%, Revenues Up 9%

Forestar Group Inc. has reported its financial results for the first fiscal quarter ended December 31, 2025. Here are the specific changes in key metrics compared to the prior year quarter:

  • Net income decreased 7% to $15.4 million, or $0.30 per diluted share, compared to $16.5 million, or $0.32 per diluted share, in the same quarter of fiscal 2025.
  • Pre-tax income for the quarter decreased 5% to $20.8 million from $21.9 million in the same quarter of fiscal 2025.
  • Consolidated revenues increased 9% to $273.0 million on 1,944 lots sold, up from $250.4 million in the same quarter of fiscal 2025.
  • Return on equity was 9.8% for the trailing twelve months ended December 31, 2025, and the book value per share increased 10% to $35.10.

Operational results:

  • Lots sold during the first quarter decreased 17% to 1,944 lots compared to 2,333 lots in the same quarter of fiscal 2025.
  • The company's lot position at December 31, 2025, was 101,000 lots, of which 65,600 were owned and 35,400 were controlled through land and lot purchase contracts.
  • Forestar ended the quarter with $211.7 million of unrestricted cash and $607.6 million of available borrowing capacity on its senior unsecured revolving credit facility for total liquidity of $819.3 million.

Outlook:

  • The company still expects to deliver between 14,000 and 15,000 lots, generating $1.6 billion to $1.7 billion of revenue in fiscal 2026.
  • Forestar aims to maintain its disciplined approach to capital allocation while positioning for growth and driving long-term value for shareholders.

Forestar Group Inc. is a residential lot development company with operations in 64 markets and 23 states and is a majority-owned subsidiary of D.R. Horton, the largest homebuilder by volume in the United States since 2002. Today the company's shares have moved -1.83% to a price of $27.40. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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