D.R. Horton, Inc. reported a slight decline in financial performance for the three months ended December 31, 2024, with consolidated revenues of $7.6 billion, down 1% from $7.7 billion in the same period last year. The company's net income attributable to D.R. Horton decreased by 11% to $844.9 million, resulting in diluted earnings per share of $2.61, compared to $2.82 in the prior year. The decrease in revenue and profitability was attributed to a combination of factors, including elevated mortgage interest rates and inflationary pressures, which impacted home sales and overall market conditions.
In terms of operational metrics, the number of homes closed decreased by 1% to 19,059, while net sales orders also fell by 1% to 17,837 homes. The average selling price of homes remained relatively stable at $374,900. The company’s homebuilding segment saw revenues decline by 2% to $7.2 billion, with a gross margin of 22.7%, slightly down from 22.9% in the previous year. The sales order backlog decreased significantly by 21% to 11,003 homes, reflecting a challenging market environment.
D.R. Horton continued to focus on strategic developments, including its relationship with Forestar Group Inc., in which it holds a 62% controlling interest. Forestar's revenues decreased by 18% to $250.4 million, primarily due to a 26% drop in lots sold to D.R. Horton. The company also emphasized its commitment to managing inventory levels and pricing strategies to adapt to changing market conditions. As of December 31, 2024, D.R. Horton had total inventories of $26.1 billion, with a significant portion controlled through purchase contracts.
The company’s financial position remains strong, with cash and cash equivalents totaling $3.1 billion. D.R. Horton has maintained a conservative debt-to-capital ratio of 17.0%, down from 18.9% at the end of the previous quarter. The company repurchased 6.8 million shares of its common stock during the quarter at a cost of $1.1 billion, reflecting its commitment to returning capital to shareholders. Looking ahead, D.R. Horton expects to navigate the current market challenges by leveraging its strong balance sheet and focusing on affordable product offerings to meet ongoing housing demand.
About HORTON D R INC /DE/
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