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Forestar Group Q3 Net Income Up 9%

Forestar Group said fiscal third-quarter net income attributable to the company rose 9% to $35.9 million, or $0.70 a diluted share, from $32.9 million, or $0.65 a share, a year earlier.

Pre-tax income climbed 12% to $48.7 million from $43.6 million, while revenue increased 4% to $407.0 million from $390.5 million.

Lot sales were essentially flat in the quarter, rising 1% to 3,659 lots from 3,605 lots. Sales to customers other than D.R. Horton fell to 289 lots from 530 lots a year earlier.

For the first nine months of fiscal 2026, net income rose 3% to $83.5 million from $81.0 million, and pre-tax income increased 7% to $113.5 million from $106.2 million. Revenue for the nine-month period increased 6% to $1.1 billion from $1.0 billion.

Nine-month lot sales declined 9% to 8,541 lots from 9,349 lots. Sales to customers other than D.R. Horton dropped to 1,094 lots from 1,661 lots.

At June 30, Forestar’s lot position totaled 91,700 lots, including 62,200 owned and 29,500 controlled through land and lot purchase contracts. Of the owned lots, 23,500 were under contract to be sold, representing about $2.3 billion of future revenue. Another 19,200 owned lots were subject to a right of first offer to D.R. Horton.

The company ended the quarter with $394.9 million in unrestricted cash and $669.9 million of available borrowing capacity, for total liquidity of $1.1 billion. Debt totaled $793.8 million, and net debt to total capital was 17.7%.

Book value per share increased 10% to $36.40. Return on equity for the trailing 12 months was 9.6%. Forestar maintained its fiscal 2026 guidance for 14,000 to 14,500 lot deliveries and revenue of $1.6 billion to $1.7 billion. The market has reacted to these announcements by moving the company's shares -3.01% to a price of $27.35. If you want to know more, read the company's complete 8-K report 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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