Forestar Group Inc. Reports 4% Revenue Growth to $407M in Q3 Fiscal 2026

Forestar Group Inc. reported a solid financial performance for the third quarter of fiscal 2026, with revenues reaching $407.0 million, a 4% increase from $390.5 million in the same period last year. For the nine months ended June 30, 2026, total revenues increased by 6% to $1,054.3 million compared to $991.9 million in the prior year. The company’s net income attributable to Forestar was $35.9 million for the quarter, up from $32.9 million a year earlier, while net income for the nine-month period rose to $83.5 million from $81.0 million. Basic and diluted earnings per share for the quarter were both $0.70, compared to $0.65 in the previous year.

The company experienced notable changes in its operational metrics, particularly in residential lot sales. During the nine months ended June 30, 2026, Forestar sold 8,541 lots, a decrease of 9% from the previous year, although the average sales price per lot increased by 8% to $113,000. This resulted in a slight decline in total residential lot sales revenues, which fell to $963.9 million from $977.3 million. The company’s real estate segment remains its core business, generating nearly all revenues through the sale of finished residential lots to homebuilders.

Strategically, Forestar has continued to expand its operations, now active in 65 markets across 24 states. The company has focused on enhancing its lot development capabilities and has maintained a strong relationship with its majority shareholder, D.R. Horton, which owns approximately 62% of Forestar's outstanding common stock. This relationship has facilitated access to land development opportunities, with 21,800 lots under contract to sell to D.R. Horton as of June 30, 2026. The company also reported a total of 91,700 lots owned and controlled, a decrease from 99,800 lots at the end of the previous fiscal year.

In terms of financial health, Forestar reported total assets of $3.22 billion as of June 30, 2026, up from $3.14 billion at the end of the previous fiscal year. The company’s total liabilities decreased slightly to $1.36 billion from $1.37 billion, resulting in total equity of $1.86 billion, an increase from $1.77 billion. Forestar's liquidity position remains strong, with $394.9 million in cash and cash equivalents and $669.9 million available under its revolving credit facility. The company aims to maintain a conservative leverage ratio, with a debt-to-capital ratio of 30.0% as of June 30, 2026.

Looking ahead, Forestar anticipates continued challenges in the housing market, particularly related to affordability and consumer sentiment. The company plans to focus on developing lots for affordable housing while managing pricing and sales pace to optimize returns. Despite current market conditions, Forestar remains well-positioned to consolidate its market share in the fragmented lot development industry, leveraging its national footprint and strategic relationships.