D.R. Horton Reports Decline in Net Income and Revenues for Third Quarter

D.R. Horton, Inc. reported its financial results for the third quarter and nine months ended June 30, 2026, revealing a slight decline in revenues and profitability compared to the previous fiscal period. The company generated consolidated revenues of $9.2 billion for the quarter, a marginal increase from $9.2 billion in the same period last year. However, net income attributable to D.R. Horton decreased by 12% to $904.9 million, down from $1.0 billion in the prior year. For the nine-month period, revenues fell 4% to $23.7 billion, while net income dropped 20% to $2.2 billion compared to $2.7 billion in the same period last year.

The company's homebuilding segment, which remains its core business, saw revenues increase by 1% to $8.7 billion for the quarter, driven by a 4% increase in homes closed, totaling 23,983. However, the average closing price of homes decreased by 2% to $362,000. The home sales gross margin also declined to 20.7% from 21.8% in the prior year, reflecting increased sales incentives and a decrease in average selling prices. The company reported a sales order backlog of 15,983 homes, a 14% increase in volume and a 16% increase in value to $6.2 billion.

D.R. Horton has continued to expand its operational footprint, with homebuilding operations in 126 markets across 36 states. The company has also focused on maintaining a strong inventory position, with total inventories rising to $26.7 billion as of June 30, 2026, compared to $25.3 billion at the end of the previous fiscal year. The company’s strategic initiatives include prioritizing the purchase of finished lots from its majority-owned subsidiary, Forestar Group Inc., which has also shown growth, with revenues increasing 4% to $407 million for the quarter.

In terms of financial health, D.R. Horton reported total assets of $36.5 billion and total liabilities of $12.1 billion, resulting in stockholders' equity of $24.4 billion. The company’s debt to total capital ratio increased to 23.0% from 19.8% in the previous year, indicating a slight rise in leverage. The company has also been active in returning capital to shareholders, repurchasing $2.2 billion of its common stock during the nine months ended June 30, 2026, and declaring dividends totaling $388.3 million.

Looking ahead, D.R. Horton anticipates continued challenges in the housing market, particularly related to affordability and consumer sentiment. The company expects to maintain elevated sales incentives and adjust its pricing strategies based on market conditions. Despite the current economic environment, D.R. Horton remains focused on optimizing its inventory investments and leveraging its strong balance sheet to navigate potential market fluctuations.