D.R. Horton reported fiscal third-quarter net income attributable to the company of $904.9 million, down 12% from a year earlier, as revenue rose 1% to $9.2 billion.
Diluted earnings per share fell 5% to $3.20. Pre-tax income was $1.2 billion, with a pre-tax profit margin of 13.3%.
Homebuilding revenue increased 1% to $8.7 billion, while homes closed rose 4% to 23,983. Homebuilding pre-tax income declined 10% to $1.1 billion, and the segment’s pre-tax margin slipped to 12.3%.
Net sales orders were 23,084 homes, flat with the prior-year quarter, with order value also flat at $8.4 billion. The cancellation rate increased to 20% from 17%.
The company said home sales gross margin was 20.7% in the quarter.
For the first nine months of fiscal 2026, net income attributable to D.R. Horton fell 20% to $2.1 billion, and diluted EPS dropped 13% to $7.45. Revenue for the period declined 3% to $23.7 billion, while pre-tax income fell 19% to $2.9 billion.
Nine-month homebuilding revenue decreased 3% to $22.3 billion. Homes closed were flat at 61,287, but homebuilding pre-tax income fell 19% to $2.5 billion. Net sales orders rose 5% to 66,376 homes, and order value increased 4% to $24.3 billion.
Cash provided by operations totaled $880.8 million in the nine-month period. Total liquidity at quarter-end was $6.1 billion, and the debt-to-total-capital ratio was 23.0%.
During the quarter, D.R. Horton repurchased 4.2 million shares for $615.7 million and paid $127.1 million in cash dividends. Over the first nine months, it bought back 14.6 million shares for $2.2 billion and paid $388.3 million in dividends.
Shares outstanding at June 30 were 280.7 million, down 6% from a year earlier. Book value per share rose 5% to $84.85.
In its non-homebuilding businesses, third-quarter rental revenue was $266.1 million, with pre-tax income of $31.0 million. Forestar revenue was $407.0 million, with pre-tax income of $48.7 million. Financial services revenue was $220.7 million, with pre-tax income of $70.3 million.
For the first nine months, rental revenue was $587.4 million, Forestar revenue was $1.1 billion, and financial services revenue was $598.2 million.
D.R. Horton also raised its fiscal 2026 revenue outlook to $32.5 billion to $33.0 billion and said it expects homebuilding operations to close 83,800 to 84,300 homes. Following these announcements, the company's shares moved -0.08%, and are now trading at a price of $144.67. For more information, read the company's full 8-K submission here.
