D.R. Horton Reports Second Quarter Earnings and Strategic Shareholder Returns

D.R. Horton, Inc. (NYSE:DHI), recognized as America’s Builder, announced its financial results for the second quarter of fiscal 2025 on April 17, 2025. The company reported net income attributable to D.R. Horton of $810.4 million, translating to $2.58 per diluted share. This reflects a significant decrease of 27% in earnings per diluted share compared to $3.52 in the same quarter of the previous fiscal year. The overall net income marked a decline of 31% from $1.2 billion reported in the same quarter of fiscal 2024.

Consolidated revenues for the quarter totaled $7.7 billion, a 15% drop from $9.1 billion year-over-year. For the first half of fiscal 2025, net income per diluted share decreased 18% to $5.19, while net income for the six months ended March 31, 2025, was $1.7 billion, down 22% from $2.1 billion in the same period of the prior year.

D.R. Horton’s homebuilding segment generated revenues of $7.2 billion, down 15% from $8.5 billion in the same quarter last year. The number of homes closed also decreased by 15%, totaling 19,276 homes compared to 22,548 in the same period of fiscal 2024. For the first half of the fiscal year, homebuilding revenue totaled $14.4 billion, a 9% decline from $15.8 billion in the previous year.

Despite the downturn in sales, the company managed to maintain a home sales gross margin of 21.8%, which sits at the midpoint of their guidance range. The second quarter saw net sales orders of 22,437 homes, reflecting a 15% year-over-year decline. The cancellation rate for sales orders rose slightly to 16%, up from 15% in the prior year quarter.

In a move to bolster investor confidence, D.R. Horton repurchased 9.7 million shares of common stock for $1.3 billion during the quarter, contributing to a total of 16.5 million shares repurchased for $2.4 billion during the first half of fiscal 2025. The company's share count has now decreased by 7% from the previous year, reflecting a strong commitment to returning value to shareholders.

Additionally, the Board of Directors declared a quarterly cash dividend of $0.40 per share, payable on May 9, 2025, to stockholders of record as of May 2, 2025. In total, the company paid cash dividends amounting to $125.5 million for the quarter and $254 million for the first half of the fiscal year.

D.R. Horton reported a strong liquidity position, with a consolidated cash balance of $2.5 billion and available capacity on its credit facilities totaling $3.3 billion. The total liquidity stands at $5.8 billion. The company’s debt at the end of the quarter was $6.5 billion, with a debt-to-total capital ratio of 21.1%. The financial statement also highlighted that $500 million of homebuilding senior notes are maturing within the next twelve months.

David Auld, Executive Chairman of D.R. Horton, noted the challenges faced during the second quarter, primarily attributed to cautious behavior from homebuyers amid affordability constraints and declining consumer confidence. However, he expressed optimism about the company's operational flexibility and strategic positioning in the market, emphasizing the importance of maintaining affordable product offerings and a flexible lot supply.

Looking ahead, D.R. Horton updated its guidance for fiscal 2025, projecting consolidated revenues in the range of $33.3 billion to $34.8 billion, with home closings expected between 85,000 and 87,000 homes. The company is also anticipating to generate cash flow from operations exceeding $3 billion and has set a target for share repurchases at approximately $4 billion.

As D.R. Horton navigates through a challenging housing market, its results for the second quarter of fiscal 2025 showcase both resilience and a strategic focus on shareholder value. With a robust liquidity position and a disciplined approach to capital allocation, the company is poised to adapt to evolving market conditions while continuing to deliver value to its stakeholders.