D.R. Horton Reports Decline in Revenue and Net Income for Third Quarter and First Nine Months of Fiscal 2025

D.R. Horton, Inc. reported a decline in financial performance for the third quarter and first nine months of fiscal 2025, as detailed in its latest 10-Q filing. For the three months ended June 30, 2025, the company generated revenues of $9.23 billion, a decrease of 7% from $9.97 billion in the same period last year. Net income attributable to D.R. Horton fell to $1.02 billion, down 24% from $1.35 billion in the prior year. The diluted earnings per share also decreased to $3.36 from $4.10, reflecting the overall downturn in profitability.

In the nine-month period ending June 30, 2025, total revenues decreased by 8% to $24.57 billion, compared to $26.80 billion in the previous year. The company reported a net income of $2.68 billion, down from $3.47 billion, with diluted earnings per share dropping to $8.53 from $10.43. The decline in revenues and profitability was attributed to a decrease in the number of homes closed, which fell by 7% to 61,495 homes, and a slight reduction in the average selling price of homes.

Operationally, D.R. Horton faced challenges in maintaining sales momentum amid rising affordability concerns among potential homebuyers. The company reported a 3% decrease in the value of net sales orders, totaling $8.42 billion for the quarter. The sales order backlog also saw a significant decline, with a 16% drop in the number of homes in backlog, reflecting cautious consumer sentiment. The company has responded by increasing sales incentives, including mortgage rate buydowns, to stimulate demand.

In terms of strategic developments, D.R. Horton continues to focus on its land acquisition strategy, with 76% of its lots controlled through purchase contracts as of June 30, 2025. The company also reported a significant increase in its inventory, totaling $26.73 billion, up from $24.90 billion a year earlier. This includes a rise in construction in progress and finished homes, which reached $9.02 billion. The company remains committed to managing its inventory levels and pricing strategies to adapt to changing market conditions.

Looking ahead, D.R. Horton expressed a cautious outlook, anticipating continued pressure on home sales due to economic uncertainties. The company plans to maintain a flexible approach to pricing and inventory management while leveraging its strong balance sheet to navigate potential challenges. The ongoing focus on affordability and strategic land acquisitions is expected to support its long-term growth objectives, despite the current market headwinds.