D.R. Horton, Inc. Reports First Quarter Earnings for Fiscal 2026

For the quarter ending December 31, 2025, D.R. Horton achieved a net income of $594.8 million, or $2.03 per diluted share. While these figures demonstrate the company's strong revenue-generating capabilities, they also reflect a significant decrease compared to the prior year—down 30% in net income and 22% in earnings per share.

In the context of ongoing economic challenges, including affordability constraints and cautious consumer sentiment, D.R. Horton experienced a 9% decline in homebuilding revenue. The company closed 17,818 homes, down from 19,059 in the prior year. The homebuilding pre-tax income also saw a decrease of 30% to $708.1 million, with a profit margin of 10.8%.

Despite these setbacks, D.R. Horton demonstrated operational efficiency, particularly in cash flow generation, with total liquidity reaching $6.6 billion. The company’s debt levels remained manageable, with a debt-to-capital ratio of 18.8%, reflecting a disciplined approach to capital management.

David Auld, Executive Chairman, stated, “The D.R. Horton team delivered a solid first quarter. We exceeded the high end of our closings and revenue guidance and leveraged our strong financial position and cash flow generation to return $801.2 million to shareholders through share repurchases and dividends during the quarter.”

During the first quarter, D.R. Horton repurchased 4.4 million shares of common stock for $669.7 million and paid $131.5 million in dividends. The company declared a quarterly cash dividend of $0.45 per share, set to be paid on February 12, 2026, to stockholders of record on February 5, 2026.

The homebuilding segment faced a challenging environment with a decrease in homes closed and a rise in cancellation rates, which remained steady at 18%. The company reported that 67% of homes closed were on lots developed by Forestar or third parties, showcasing effective inventory management.

Looking forward, D.R. Horton has reiterated its guidance for the full fiscal year, projecting consolidated revenues between $33.5 billion and $35.0 billion and homes closed between 86,000 and 88,000. The company also anticipates a continued focus on disciplined capital allocation and shareholder returns.

D.R. Horton will hold a conference call to discuss these results and provide further insights into its second-quarter outlook at 8:30 a.m. Eastern Time on January 20, 2026. The market will be keenly observing how the company adapts to fluctuating demand in the housing market, influenced by external economic factors and consumer sentiment.

As D.R. Horton continues to navigate these challenges, its robust financial position and strategic initiatives position it well for future growth, even amidst a competitive and evolving landscape.