D.R. Horton reported fiscal third-quarter net income attributable to the company of $904.9 million, down 12% from a year earlier, as diluted earnings per share fell 5% to $3.20.
Revenue in the quarter rose 1% to $9.2 billion, while pre-tax income came in at $1.2 billion and the pre-tax margin was 13.3%.
Homebuilding revenue increased 1% to $8.7 billion, and home closings rose 4% to 23,983 homes. Homebuilding pre-tax income declined 10% to $1.1 billion, with the segment margin at 12.3%.
Net sales orders were 23,084 homes, flat year over year, with order value also unchanged at $8.4 billion. The cancellation rate climbed to 20% from 17% a year ago.
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 was $23.7 billion, down from the prior year period, and pre-tax income totaled $2.9 billion, producing a 12.2% margin.
Homebuilding revenue for the nine months decreased 3% to $22.3 billion, while closings were flat at 61,287 homes. Homebuilding pre-tax income fell 19% to $2.5 billion, and the segment margin narrowed to 11.4%.
Orders for the nine-month period increased 5% to 66,376 homes, and order value rose 4% to $24.3 billion. The cancellation rate for the period edged up to 18% from 17%.
At quarter end, D.R. Horton held 38,000 homes in inventory, including 23,300 unsold homes. Of those unsold homes, 7,600 were completed and 600 had been completed for more than six months.
The company ended the quarter with $6.1 billion in total liquidity and a debt-to-total-capital ratio of 23.0%. During the nine months, cash provided by operations was $880.8 million.
D.R. Horton repurchased 4.2 million shares for $615.7 million in the quarter and 14.6 million shares for $2.2 billion in the first nine months. Shares outstanding fell to 280.7 million, down 6% from a year earlier. The company also paid $127.1 million in dividends in the quarter and $388.3 million over the nine-month period.
Book value per share increased 5% to $84.85. Return on equity for the trailing 12 months was 12.8%, return on assets was 8.5%, and homebuilding return on inventory was 17.0%.
In its updated fiscal 2026 guidance, D.R. Horton projected consolidated revenue of $32.5 billion to $33.0 billion and home closings of 83,800 to 84,300. It reiterated expectations for operating cash flow of at least $3.0 billion, share repurchases of about $2.5 billion and dividend payments of about $500 million. Today the company's shares have moved -1.01% to a price of $143.32. If you want to know more, read the company's complete 8-K report here.
