D.R. Horton, Inc., America's Builder, Reports Fiscal 2026 Third Quarter Earnings and Declares Quarterly Dividend of $0.45 Per Share

D.R. Horton, Inc. (NYSE:DHI), America’s Builder, today reported its third fiscal quarter results. All comparisons in this release are to the respective prior year period, unless noted otherwise.

Fiscal 2026 Third Quarter Highlights

As of or for the quarter ended June 30, 2026

• Net income attributable to D.R. Horton of $904.9 million or $3.20 per diluted share

• Consolidated pre-tax income of $1.2 billion, with a pre-tax profit margin of 13.3%

• Consolidated revenues of $9.2 billion

• Home sales revenues increased 1% to $8.7 billion and homes closed increased 4% to 23,983 homes

• Net sales orders of 23,084 homes with an order value of $8.4 billion

• Book value per share increased 5% to $84.85

• Repurchased 4.2 million shares of common stock for $615.7 million and paid cash dividends of $127.1 million

Consolidated Results

Three months ended June 30, 2026

Net income attributable to D.R. Horton for its third fiscal quarter decreased 12% to $904.9 million, and earnings per diluted share decreased 5% to $3.20. Consolidated pre-tax income totaled $1.2 billion on revenues of $9.2 billion, resulting in a pre-tax profit margin of 13.3%.

Nine months ended June 30, 2026

Net income attributable to D.R. Horton for the first nine months of fiscal 2026 decreased 20% to $2.1 billion, and earnings per diluted share decreased 13% to $7.45. Consolidated pre-tax income totaled $2.9 billion on revenues of $23.7 billion, resulting in a pre-tax profit margin of 12.2%.

Cash provided by operations was $880.8 million during the nine months ended June 30, 2026. Total liquidity at quarter end was $6.1 billion, and the Company's debt to total capital ratio was 23.0%. Debt to total capital ratio consists of notes payable divided by stockholders' equity plus notes payable. The Company has $600 million of homebuilding senior notes maturing in the next twelve months.

For the trailing twelve months ended June 30, 2026, the Company's return on equity (ROE) was 12.8% and return on assets (ROA) was 8.5%. ROE is calculated as net income attributable to D.R. Horton for the trailing twelve months divided by average stockholders' equity, where average stockholders' equity is the sum of ending stockholders' equity balances of the trailing five quarters divided by five. ROA is calculated as net income attributable to D.R. Horton for the trailing twelve months divided by average consolidated assets, where average consolidated assets is the sum of total asset balances for the trailing five quarters divided by five.

David Auld, Executive Chairman, said:

"The D.R. Horton team delivered a solid third quarter, highlighted by earnings per diluted share of $3.20, consolidated pre-tax income of $1.2 billion, revenues of $9.2 billion and a pre-tax profit margin of 13.3%. We closed 23,983 homes, which was at the high end of our guidance range, while achieving a home sales gross margin of 20.7%. Consistent with our balanced approach to capital allocation and strong cash flow generation, we returned $742.8 million to shareholders through share repurchases and dividends during the quarter.

"Our teams are managing each community with discipline, balancing pace, price, incentives and inventory levels to maximize returns. Affordability constraints and cautious consumer sentiment continue to impact new home demand, and we expect sales incentives to remain elevated during the fourth quarter, with incentive levels dependent on demand, mortgage rates and other market conditions.

"Our experienced local operators, broad national footprint, flexible lot supply and strong balance sheet position us to compete effectively and capture demand across our markets. We remain focused on disciplined capital allocation and are committed to delivering value to our homebuyers while enhancing long-term returns for our shareholders."

Homebuilding

Three months ended June 30, 2026

Homebuilding revenue for the third quarter increased 1% to $8.7 billion, and homes closed increased 4% to 23,983 homes. Homebuilding pre-tax income decreased 10% to $1.1 billion, and pre-tax profit margin was 12.3%. Net sales orders totaled 23,084 homes with an order value of $8.4 billion, flat with the same quarter of fiscal 2025. The Company’s cancellation rate (cancelled sales orders divided by gross sales orders) for the quarter was 20% compared to 17% in the prior year quarter.

Nine months ended June 30, 2026

Homebuilding revenue for the first nine months of fiscal 2026 decreased 3% to $22.3 billion, and homes closed of 61,287 homes were flat with the same period of fiscal 2025. Homebuilding pre-tax income decreased 19% to $2.5 billion, and pre-tax profit margin was 11.4%. Net sales orders increased 5% to 66,376 homes, and sales order value increased 4% to $24.3 billion. The cancellation rate for the first nine months of fiscal 2026 was 18% compared to 17% in the prior year period.

At quarter end, the Company had 38,000 homes in inventory, of which 23,300 were unsold. 7,600 of the Company’s unsold homes were completed, including 600 that had been completed for greater than six months. Of the Company’s homes closed during the nine months ended June 30, 2026, 67% were on lots developed by Forestar or third parties, up from 65% during the prior year period.

The Company’s homebuilding return on inventory (ROI) for the trailing twelve months ended June 30, 2026 was 17.0%. Homebuilding ROI is calculated as homebuilding pre-tax income for the trailing twelve months divided by average inventory, where average inventory is the sum of ending homebuilding inventory balances for the trailing five quarters divided by five.

Non-Homebuilding Segments

Three months ended June 30, 2026

• Rental: Rental operations revenues were $266.1 million from the sale of 601 single-family rental homes and 339 multi-family rental units with pre-tax income of $31.0 million, resulting in a pre-tax profit margin of 11.6%.

• Forestar: Forestar sold 3,659 lots and generated $407.0 million of revenue and $48.7 million of pre-tax income, resulting in a pre-tax profit margin of 12.0%.

• Financial Services: Financial services revenues were $220.7 million with pre-tax income of $70.3 million, resulting in a pre-tax profit margin of 31.9%.

Nine months ended June 30, 2026

• Rental: Rental operations revenues were $587.4 million from the sale of 1,564 single-family rental homes and 555 multi-family rental units with pre-tax income of $43.5 million, resulting in a pre-tax profit margin of 7.4%.

• Forestar: Forestar sold 8,541 lots and generated $1.1 billion of revenue and $113.4 million of pre-tax income, resulting in a pre-tax profit margin of 10.8%.

• Financial Services: Financial services revenues were $598.2 million with pre-tax income of $180.0 million, resulting in a pre-tax profit margin of 30.1%.

Share Repurchases and Dividends

During the third quarter of fiscal 2026, the Company repurchased 4.2 million shares of common stock for $615.7 million, for a total of 14.6 million shares repurchased for $2.2 billion during the nine months ended June 30, 2026. Common shares outstanding at June 30, 2026 totaled 280.7 million, down 6% from a year ago, and the Company’s remaining stock repurchase authorization was $1.1 billion.

The Company paid cash dividends of $127.1 million during the third quarter of fiscal 2026, for a total of $388.3 million of dividends paid during the nine months ended June 30, 2026. Subsequent to quarter end, the Company declared a quarterly cash dividend of $0.45 per share payable on August 13, 2026 to stockholders of record on August 6, 2026.

Guidance

Based on the Company’s results for the first nine months of fiscal 2026 and current market conditions, D.R. Horton is updating its guidance for fiscal 2026 as follows:

• Consolidated revenues in the range of $32.5 billion to $33.0 billion

• Homes closed by homebuilding operations of 83,800 homes to 84,300 homes

• Income tax rate of approximately 25.0%

The Company is reiterating its fiscal 2026 guidance as follows:

• Consolidated cash flow provided by operations of at least $3.0 billion

• Share repurchases of approximately $2.5 billion

• Dividend payments of approximately $500 million

The Company plans to also provide guidance for its fourth quarter of fiscal 2026 on its conference call today.

Conference Call and Webcast Details

The Company will host a conference call today (Tuesday, July 21) at 8:30 a.m. Eastern Time. The dial-in number is 888-506-0062 (reference entry code 832533), and the call will also be webcast from the Company’s website at investor.drhorton.com.

Fourth Quarter Conference Call

As previously announced, the Company plans to release financial results for its fourth quarter and fiscal year 2026 on Thursday, October 29, 2026 before the market opens, with a conference call at 8:30 a.m. Eastern Time. Details on how to access the call will be available at a later date.

About D.R. Horton, Inc.

D.R. Horton, Inc., America’s Builder, has been the largest homebuilder by volume in the United States since 2002 and has closed 1.3 million homes in its 47-year history. D.R. Horton has operations in 126 markets in 36 states across the United States and is engaged in the construction and sale of high-quality homes through its diverse product portfolio with sales prices generally ranging from $200,000 to over $1,000,000. The Company also constructs and sells both single-family and multi-family rental properties. During the twelve-month period ended June 30, 2026, D.R. Horton closed 84,655 homes in its homebuilding operations, in addition to 3,129 single-family rental homes and 2,370 multi-family rental units in its rental operations. D.R. Horton also provides mortgage financing, title services and insurance agency services for its homebuyers and is the majority-owner of Forestar Group Inc., a publicly traded national residential lot development company.

Forward-Looking Statements

Portions of this document may constitute "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Although D.R. Horton believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to D.R. Horton on the date this release was issued. D.R. Horton does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements in this release include that affordability constraints and cautious consumer sentiment continue to impact new home demand, and we expect sales incentives to remain elevated during the fourth quarter, with incentive levels dependent on demand, mortgage rates and other market conditions; our experienced local operators, broad national footprint, flexible lot supply and strong balance sheet position us to compete effectively and capture demand across our markets; and we remain focused on disciplined capital allocation and are committed to delivering value to our homebuyers while enhancing long-term returns for our shareholders. The forward-looking statements also include all metrics in the Guidance section.

Factors that may cause the actual results to be materially different from the future results expressed by the forward-looking statements include, but are not limited to:

• the cyclical nature of the homebuilding, rental and lot development industries and changes in economic, real estate or other conditions;

• adverse developments affecting the capital markets and financial institutions, which could limit our ability to access capital, increase our cost of capital and impact our liquidity and capital resources;

• reductions in the availability of mortgage financing provided by government agencies, changes in government financing programs, a decrease in our ability to sell mortgage loans on attractive terms or an increase in mortgage interest rates;

• the risks associated with our land, lot and rental inventory;

• our ability to effect our growth strategies, acquisitions, investments or other strategic initiatives successfully;

• the impact of an inflationary, deflationary or higher interest rate environment;

• risks of acquiring land, building materials and skilled labor and challenges obtaining regulatory approvals;

• the effects of public health issues such as a major epidemic or pandemic on the economy and our businesses;

• the effects of weather conditions and natural disasters on our business and financial results;

• home warranty and construction defect claims;

• the effects of health and safety incidents;

• reductions in the availability of performance bonds;

• increases in the costs of owning a home;

• the effects of information technology failures, cybersecurity incidents, and the failure to satisfy privacy and data protection laws and regulations;

• the effects of governmental regulations and environmental matters on our land development and housing operations;

• the effects of changes in income tax and securities laws;

• the effects of governmental regulations on our financial services operations;

• the effects of competitive conditions within the industries in which we operate;

• our ability to manage and service our debt and comply with related debt covenants, restrictions and limitations;

• the effects of negative publicity;

• the effects of the loss of key personnel; and

• the effects of actions by activist stockholders.

Additional information about issues that could lead to material changes in performance is contained in D.R. Horton’s annual report on Form 10-K and its most recent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission.