D.R. Horton (DHI) Posts Mixed Q4 2025 Results

D.R. Horton, Inc. (NYSE:DHI), America’s Builder, recently announced its earnings for the fourth quarter and fiscal year 2025, highlighting a decrease in net income and earnings per share compared to the previous year. The company also provided guidance for fiscal 2026, reflecting its strategic focus and market conditions.

D.R. Horton Posts $9.7 Billion in Revenue but Misses EPS Estimates

In the fourth quarter of fiscal 2025, D.R. Horton, Inc. reported a net income of $905.3 million, equating to $3.04 per diluted share, a 29% decline from the previous year. This performance fell short of the expected earnings per share of $3.29. The company’s consolidated revenues for the quarter were $9.7 billion, surpassing the anticipated revenue of $9.45 billion. Despite the revenue increase, the drop in net income was significant.

The company’s homebuilding revenue for the fourth quarter decreased by 4% to $8.6 billion, with the number of homes closed slightly down by 1% to 23,368 homes. Homebuilding pre-tax income also saw a substantial decrease of 30% to $1.0 billion, with a pre-tax profit margin of 11.7%. These figures reflect the ongoing challenges in the housing market, including affordability constraints and cautious consumer sentiment.

For the fiscal year ending September 30, 2025, D.R. Horton’s net income decreased by 25% to $3.6 billion, with earnings per diluted share dropping 19% to $11.57. Consolidated revenues reached $34.3 billion, a decrease from the previous year. The company’s return on equity was 14.6%, and return on assets was 10.0%, indicating a solid financial position despite the lower net income.

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D.R. Horton Forecasts Stable Growth and Shareholder Returns

Looking ahead, D.R. Horton has provided guidance for fiscal 2026, projecting consolidated revenues in the range of $33.5 billion to $35.0 billion. The company expects to close between 86,000 to 88,000 homes through its homebuilding operations. The income tax rate is anticipated to be approximately 24.5%, with consolidated cash flow from operations expected to be at least $3.0 billion.

The company plans to continue its strategy of returning capital to shareholders, with share repurchases projected at approximately $2.5 billion and dividend payments of around $500 million. This reflects D.R. Horton’s commitment to delivering value to shareholders while navigating market challenges.

D.R. Horton remains focused on leveraging its strong liquidity and low leverage to maintain operational flexibility. The company has increased its quarterly cash dividend by 13% to $0.45 per share, marking the twelfth consecutive year of dividend growth. This decision underscores the company’s confidence in its financial position and its ability to generate compelling returns for shareholders over the long term.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.