D.R. Horton, Inc. (NYSE:DHI) beat Wall Street expectations in its fiscal third quarter, reporting adjusted earnings per share of $3.36 — $0.46 above analyst forecasts — and revenue of $9.23 billion, ahead of the $8.8 billion consensus.
The homebuilder delivered 23,160 houses during the quarter, outperforming the upper end of its guidance despite affordability pressures weighing on the broader housing market. However, net income attributable to D.R. Horton dropped 24% to $1.0 billion, down from $1.4 billion in the same quarter last year. Revenue also slid 7% compared to the $10.0 billion posted a year earlier. The company’s stock dipped 0.4% following the earnings release.
“The D.R. Horton team delivered a strong third quarter, highlighted by earnings per diluted share of $3.36,” said Executive Chairman David Auld. “We leveraged our operational results and strong balance sheet to return $1.3 billion to shareholders through share repurchases and dividends during the quarter, and we have reduced our outstanding share count by 9% from a year ago.”
New sales orders came in at 23,071 homes, roughly matching the 23,001 orders recorded in the same quarter of fiscal 2024. Despite steady unit volume, the total order value slipped 3% to $8.4 billion. The company maintained a home sales gross margin of 21.8%, while its pre-tax profit margin stood at 14.7%.
Looking ahead, D.R. Horton provided updated fiscal 2025 guidance, projecting consolidated revenue between $33.7 billion and $34.2 billion, consistent with the analyst consensus of $34.04 billion. Full-year home closings are expected to range from 85,000 to 85,500 units.
The builder noted that affordability issues and conservative consumer behavior continue to affect new home demand. Management also indicated that sales incentives could remain elevated — and may increase further in the fourth quarter — depending on market conditions, mortgage rate trends, and summer sales activity.
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