10-Q · January 23, 2025
D.R. Horton reported Q1 revenue of $7,613.0 million and diluted EPS of $2.61. Gross margin held at ~25.1% while operating margin compressed to ~13.6%; operating cash flow was strong at $646.7 million producing roughly…
Earnings analysis · 10-Q
DHI earnings analysis
Filed April 23, 2026 · Our reading of the company's report
The latest report
D.R. Horton reported Q2 results with modest revenue contraction but resilient demand: consolidated revenues were ~$7.6 billion while diluted EPS was $2.24. Net sales orders and backlog expanded materially (24,992 homes;…
Read full summary
D.R. Horton reported Q2 results with modest revenue contraction but resilient demand: consolidated revenues were ~$7.6 billion while diluted EPS was $2.24. Net sales orders and backlog expanded materially (24,992 homes; backlog 16,882 homes / $6,421.7M), but margins and pre-tax income compressed versus prior year and homebuilding cash balances declined. Management flags elevated sales incentives and emphasizes liquidity, share repurchases and cash generation.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.24
What stood out
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Net sales orders and value increased
Net sales orders rose 11% to 24,992 homes and the value of net sales orders increased 10% to $9,153.7 million for the three months ended March 31, 2026 (MD&A, Net Sales Orders table).
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Backlog expanded
Sales order backlog increased 19% to 16,882 homes and the value of backlog increased 17% to $6,421.7 million as of March 31, 2026 (Sales Order Backlog table).
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Operating cash flow improved (six months)
Net cash provided by operations for the six months ended March 31, 2026 was $441.5 million compared to $210.5 million in the prior year period (Key financial results - six months).
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Active buyback program
During the quarter D.R. Horton repurchased 5,972,241 shares at a total cost of $903.6 million and had $1.7 billion remaining on the repurchase authorization at March 31, 2026 (Issuer Purchases of Equity Securities).
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Forestar contribution positive
Forestar revenues increased 7% to $374.3 million and Forestar pre-tax income increased 8% to $43.9 million in the quarter (Key Results - Forestar).
What to watch
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Margins compressed and pre-tax income down
Consolidated pre-tax income decreased 19% to $867.4 million and consolidated pre-tax margin fell to 11.5% (Key Results). Home sales gross margin declined to 20.1% from 21.8% in the prior year quarter (Home Sales Gross Profit).
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Net income and EPS declined year-over-year
Net income attributable to D.R. Horton decreased 20% to $647.9 million and diluted earnings per share decreased 13% to $2.24 versus the prior year quarter (Key Results).
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Decline in homebuilding cash balance
Homebuilding cash and cash equivalents totaled $1.1 billion at March 31, 2026 compared to $2.2 billion at September 30, 2025 (Key Results - Homebuilding).
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Higher cancellation activity
Cancelled sales orders totaled $1,819.9 million in the quarter with an overall cancellation rate of 16% (Sales Order Cancellations table: three months ended March 31).
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Rental segment weakness
Rental revenues declined to $211.8 million from $236.6 million and rental pre-tax income fell to $12.3 million from $22.8 million in the prior year quarter (Key Results - Rental).
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Leverage and liquidity indicators
Debt to total capital increased to 21.7% (from 19.8% at Sept 30, 2025) and homebuilding debt rose to $3.4 billion (Key Results; Homebuilding).
Management's outlook
The Form 10-Q does not provide explicit numeric fiscal-year guidance. MD&A includes forward-looking operational commentary such as: "We currently expect sales incentives to remain elevated" and that the company "plan[s] to continue to generate strong cash flows from our operations" (MD&A). The company continues to describe lot control (lots controlled through purchase contracts represented 77% at March 31, 2026) and liquidity positions but no FY revenue/EPS range is stated in this 10-Q; prior 8-K (Apr 21, 2026) provided FY2026 revenue guidance ($33.5B–$34.5B) but that numeric range is not in this 10-Q.
Earlier filings 4
10-Q · July 23, 2024
D.R. Horton reported quarterly revenue of $9,965.7 million and diluted EPS of $4.10 for the three months ended June 30, 2024, both up vs. the prior-year quarter. Homebuilding drove the improvement (homebuilding revenue…
10-Q · January 24, 2024
D.R. Horton reported Q1 revenue of $7,726.0 million, up from $7,257.8 million a year earlier, with diluted EPS of $2.82 versus $2.76 in the prior-year quarter. Margins compressed (gross margin down ~1.1 ppt and…
10-K · November 17, 2023
D.R. Horton positions itself as the largest U.S. homebuilder by homes closed and emphasizes scale, geographic diversification (118 markets across 33 states) and vertically linked businesses (homebuilding, rental,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.