D.R. Horton, Inc. reported a decline in financial performance for the second quarter of fiscal 2026, with consolidated revenues of $7.56 billion, down 2% from $7.73 billion in the same period last year. The company's net income attributable to D.R. Horton decreased by 20% to $647.9 million, compared to $810.4 million in the prior year. This resulted in diluted earnings per share of $2.24, a decrease from $2.58. For the first six months of the fiscal year, revenues also fell by 6% to $14.45 billion, with net income down 25% to $1.24 billion.
The company experienced a 3% decrease in the number of homes closed, totaling 19,486 homes in the second quarter, while the average closing price dropped by 3% to $361,600. Despite these challenges, D.R. Horton saw an 11% increase in net sales orders, totaling 24,992 homes, with a corresponding 10% increase in the value of these orders to $9.15 billion. The sales order backlog also grew by 19% to 16,882 homes, indicating a positive trend in demand despite affordability constraints affecting the market.
Strategically, D.R. Horton made a significant acquisition in October 2025, purchasing the homebuilding operations of SK Builders for approximately $80 million. This acquisition included 160 homes in inventory and 260 lots, enhancing the company's operational footprint in South Carolina. The company continues to focus on maintaining relationships with land developers, with 77% of its lots controlled through purchase contracts as of March 31, 2026, up from 75% in the previous year.
Operationally, D.R. Horton reported a total inventory of $26.30 billion, an increase from $25.29 billion at the end of the previous fiscal year. The company employed 9,809 people as of March 31, 2026, a slight decrease from 10,199 a year earlier. The company’s financial services segment also faced challenges, with revenues decreasing by 9% to $192.8 million, and pre-tax income down 29% to $51.7 million. Looking ahead, D.R. Horton remains focused on managing home pricing, sales incentives, and inventory levels to optimize returns in a fluctuating market environment.
About HORTON D R INC /DE/
D.R. Horton, Inc. is the largest U.S. homebuilder, constructing and selling single-family and attached homes across 125 markets in 36 states. Its core operations include homebuilding, land development, rental properties, and mortgage services. The company leverages geographic diversification, economies of scale, and decentralized local management to deliver affordable, quality homes for entry-level to luxury buyers, serving a broad residential market with a competitive value proposition.
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