Shares of D.R. Horton (NYSE:DHI) slipped on Tuesday after the U.S. homebuilder posted mixed fourth-quarter results — falling short on earnings but exceeding revenue expectations — and issued a softer-than-expected outlook for fiscal 2026.
For the quarter, D.R. Horton reported earnings per share of $3.04, below the analyst consensus of $3.29. Revenue came in at $9.68 billion, surpassing expectations of $9.42 billion. Consolidated pre-tax income was $1.2 billion, representing a 12.4% pre-tax margin.
Homebuilding revenue reached $8.5 billion, driven by the closing of 23,368 homes. Net sales orders increased 5% to 20,078 units, while the total value of new orders grew 3% to $7.3 billion.
“The D.R. Horton team completed our 24th consecutive year as America’s largest builder by volume, and we are proud to have provided homeownership to nearly 85,000 individuals and families during fiscal 2025, including approximately 43,000 first-time homebuyers,” said David Auld, Executive Chairman.
“New home demand is still being impacted by ongoing affordability constraints and cautious consumer sentiment, and we expect our sales incentives to remain elevated in fiscal 2026, the extent to which will depend on market conditions throughout the year.”
Looking ahead, the company forecast fiscal 2026 revenue between $33.5 billion and $35 billion, compared with Wall Street’s estimate of $34.85 billion. It anticipates closing between 86,000 and 88,000 homes during the year.
D.R. Horton also announced plans to repurchase approximately $2.5 billion of its shares and distribute around $500 million in dividends over the fiscal year.