D.R. Horton Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.06%.
Did DHI Beat Earnings? Q3 2025 Results
D.R. Horton delivered a stronger-than-expected fiscal third quarter despite a challenging housing backdrop, with diluted EPS of $3.36 beating the $2.90 consensus estimate by 15.67% even as earnings fell 18% from a year ago. Consolidated revenues of $9.23 billion edged past the $8.80 billion consensus by 4.87%, though the figure still marked a 7.4% year-over-year decline as homes closed slipped 4% to 23,160 units and average selling prices softened under the weight of elevated sales incentives. Homebuilding pre-tax margins compressed sharply to 13.8% from 17.0% a year earlier, reflecting the affordability pressures that have broadly squeezed the new home market, with peers facing similar headwinds from declining orders and rising costs. Management acknowledged that incentives are expected to remain elevated and likely increase further in the fourth quarter, contingent on summer demand and mortgage rate movements. For the full fiscal year, D.R. Horton guided to consolidated revenues of $33.70 billion to $34.20 billion and homes closed of 85,000 to 85,500, while projecting share repurchases of $4.20 billion to $4.40 billion.
- Closed more homes than high end of guidance range
- Maintained home sales gross margin of 21.8%
- Net sales orders flat with prior year quarter and up 3% sequentially
- Cancellation rate improved to 17% from 18% year-over-year
- 9% reduction in outstanding share count year-over-year through buybacks
- 65% of homes closed were on lots developed by Forestar or third parties, up from 63%
“The D.R. Horton team delivered a strong third quarter, highlighted by earnings per diluted share of $3.36. Consolidated pre-tax income for the quarter was $1.4 billion on revenues of $9.2 billion, with a pre-tax profit margin of 14.7%. We leveraged our operational results and strong balance sheet to return $1.3 billion to shareholders through share repurchases and dividends during the quarter, and we have reduced our outstanding share count by 9% from a year ago.”
DR Horton CEO, on the earnings call
Forward Guidance & Outlook
D.R. Horton updated its fiscal 2025 guidance: consolidated revenues of $33.7 billion to $34.2 billion; homes closed by homebuilding operations of 85,000 to 85,500; share repurchases of $4.2 billion to $4.4 billion. The company reiterated its fiscal 2025 guidance for an income tax rate of approximately 24.0%, consolidated operating cash flow greater than $3.0 billion, and dividend payments of approximately $500 million. Management expects sales incentives to remain elevated and increase further during the fourth quarter, with the extent depending on demand strength during the remainder of summer, changes in mortgage interest rates, and other market conditions.
DHI YoY Financials
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Figures from SEC filings and company reports. Not investment advice.