Forestar Group Inc. (NYSE:FOR) said on Tuesday that first-quarter fiscal 2026 revenue climbed 9% year on year to $273 million, topping analyst expectations of $265.48 million. Earnings per share, however, came in at $0.30, missing the consensus forecast of $0.32.
Shares were little changed following the release, edging up just 0.07%.
Net income for the quarter declined 7% to $15.4 million from $16.5 million a year earlier. Lot sales fell to 1,944 units, down 17% from 2,333 in the comparable prior-year period, reflecting a slower pace of homebuilding activity.
“The Forestar team delivered increased revenues compared to the prior year quarter and maintained strong liquidity through disciplined inventory investment amid ongoing affordability constraints and cautious consumer sentiment that continue to impact the pace of new home sales,” said Donald J. Tomnitz, chairman of the board.
Despite softer earnings and volumes, Forestar reiterated its full-year fiscal 2026 outlook, forecasting deliveries of between 14,000 and 15,000 lots and revenue in the range of $1.6 billion to $1.7 billion. At quarter-end, the company held $211.7 million in unrestricted cash and total liquidity of $819.3 million, with a net debt-to-total capital ratio of 24.6%.
As of December 31, 2025, Forestar’s lot inventory totaled 101,000 units, including 24,100 lots under contract for sale, representing roughly $2.2 billion in future revenue. The average selling price per lot rose to $121,000 from $105,500 in the year-ago quarter.
“We plan to maintain our disciplined approach to capital allocation while positioning Forestar for growth and driving long-term value for our shareholders,” Tomnitz added.