AXR earnings analysis
What we found in AXR's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
AMREP delivered 6.3% FY2026 revenue growth to $52.847 million, driven by a 35.4% increase in homebuilding segment revenue, and generated $12.878 million of operating cash flow. However, diluted EPS declined from $2.37 to $1.91, partly because FY2025 had a $1.230 million pension-related tax benefit, and management explicitly expects developed residential-land revenue to decrease in FY2027. The company enters the year with $52.689 million of cash, cash equivalents and restricted cash and just $18,000 of notes payable, but its outlook remains constrained by housing affordability, development delays and its Rio Rancho/Sandoval County concentration.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and operating profit increased
- FY2026 revenue grew 6.3% to $52.847 million from $49.694 million. Operating income increased to $12.392 million from $12.107 million, lifting operating margin to 23.4% from 24.4% only slightly lower despite a $1.747 million increase in G&A.
- Homebuilding mix and profitability improved
- Homebuilding is the growth engine: segment revenue increased 35.4% to $23.612 million and segment profit rose to $4.097 million from $2.445 million. Consolidated home-sale revenue grew to $28.711 million from $21.248 million, while home-sale gross margin improved to 24% from 21%.
- Two-segment real-estate platform
- Land development remains the core earnings contributor, generating $29.235 million of segment revenue and $10.038 million of segment profit in FY2026. The business strategy centers on developing residential lots and commercial/industrial sites, including entitlements, utilities, roads and community amenities, alongside single-family detached and attached homebuilding.
- Strong operating cash conversion
- Cash generation and liquidity strengthened: operating cash flow rose to $12.878 million from $10.242 million; less $0.102 million of capex, calculated FCF was $12.776 million. Cash, cash equivalents and restricted cash increased $12.768 million to $52.689 million.
- Net-cash liquidity supports investment
- The balance sheet is lightly levered: notes payable fell to $18,000 from $26,000, while the company had $52.327 million of cash and cash equivalents. Its BOKF revolver has $4.438 million available for new borrowings, with no outstanding principal as of April 30, 2026.
- Capital retained for real-estate development
- Capital allocation was conservative: capex was only $102,000, debt repayments were $8,000, and there were no disclosed repurchases or acquisitions. The company has paid no cash dividend since fiscal 2008, retaining capital for land development, land acquisition, construction and commercial projects.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Land-development revenue set to decline
- Management expects FY2027 developed residential-land-sale revenue to decline versus FY2026 after reducing the number and scope of active land projects and delaying new projects. FY2026 land-development segment revenue already declined 9.4% to $29.235 million from $32.257 million, including a 20% fall in reported land-sale revenue to $20.579 million.
- Affordability pressure constrains demand
- Housing affordability remains a direct demand and margin risk: management cites mortgage rates, inflation, tariffs and elevated construction costs, and responded with sales incentives, price reductions, smaller lots/homes, leasing of completed homes and slower housing starts. Homes in production fell to 75 at April 30, 2026 from 88, while $12.983 million of contracted home revenue remains subject to cancellations and change orders.
- New Mexico and customer concentration
- The company has meaningful geographic and customer concentration. A substantial majority of real-estate assets are in Rio Rancho and adjoining Sandoval County, New Mexico, and one land-development customer contributed $8.954 million, or approximately 16.9% of FY2026 total revenue of $52.847 million.
- Net income and EPS declined
- Earnings declined despite revenue growth: net income fell 19.1% to $10.288 million and diluted EPS fell to $1.91 from $2.37. The tax provision rose to $3.838 million from $1.009 million; FY2025 benefited from a $1.230 million reclassification to an income-tax benefit tied to pension-plan termination.
- Thin trading and concentrated ownership
- Share liquidity and governance concentration are material for investors: three shareholders beneficially owned approximately 52% of outstanding shares, while average daily NYSE volume was 13,210 shares for the 30 trading days ended April 30, 2026. The filing says large transactions may cause significant price fluctuations.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.91
- Gross margin
- 40.5%
- Operating margin
- 23.4%
- Segment
- Land development revenue: $29.235 million (55.3% of total), versus $32.257 million in FY2025.
- Segment
- Homebuilding revenue: $23.612 million (44.7% of total), versus $17.437 million in FY2025.
What they said about what is next.
The 10-K provides no numeric FY2027 revenue or EPS guidance. Management specifically expects developed residential-land-sale revenue to decline in FY2027 versus FY2026 after reducing active land-development projects and delaying certain new projects.
The filing reads about the same as the one before it.
What came before.
- 10-Q · March 12, 2026
- AMREP Corporation reported strong financial performance for Q3 2026, with revenues increasing to $14.573 million, a 91.5% rise from $7.520 million in Q3 2025, and EPS reaching $0.58 versus $0.13 in the prior year.…
- 10-Q · December 12, 2025
- AMREP Corporation reported significantly lower financial performance in Q2 2025 compared to both the prior quarter and the same quarter last year. Total revenue dropped to $9.4 million, down 21% from $11.9 million…
- 10-Q · September 9, 2025
- AMREP Corporation's Q4 2025 10-Q filing shows strong growth with net income increasing to $4,692,000 and EPS rising to $0.87, reflecting a favorable operating environment. However, revenue decreased to $11,177,000,…
- 10-K · July 25, 2025
- AMREP Corporation's 2025 10-K reveals a strategic commitment to land development and homebuilding, citing fluctuations in municipal processes and a robust pricing environment impacting revenue generation. Key growth was…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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