Forestar Group Inc New
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.91%.
Did FOR Beat Earnings? Q3 2026 Results
Forestar Group Inc. delivered a disappointing fiscal third quarter, missing Wall Street expectations on both the top and bottom lines as affordability headwinds continued to weigh on the residential lot developer. The company posted earnings of $0.70 per diluted share, falling short of the $0.81 consensus estimate by 13.58%, while revenue of $407.00 million trailed the $437.75 million consensus by 7.02%, extending the company's miss streak to three consecutive quarters. Revenue did grow 4.2% year-over-year, supported by 3,659 lots sold and a modest uptick in average sales price to $108,800 per lot, though a sharp decline in lot banking revenue, dropping to just $2.00 million from $10.90 million in the prior-year quarter, weighed materially on results. Third-party lot sales also contracted meaningfully, underscoring Forestar's deep reliance on majority owner D.R. Horton as its anchor customer. Despite the miss, management held firm on fiscal 2026 guidance of 14,000 to 14,500 lot deliveries generating $1.60 billion to $1.70 billion in revenue, pointing to $2.30 billion in contracted future revenue and $1.10 billion in total liquidity as buffers against ongoing market uncertainty.
- 4% revenue increase driven by 1% increase in lots sold and higher average sales price per lot ($108,800 vs $106,600)
- Development projects revenue increased to $396.0 million from $373.4 million year-over-year
- Pre-tax profit margin of 12.0% with pre-tax income up 12% to $48.7 million
- Book value per share increased 10% to $36.40
- 3,635 development project lots sold vs 3,524 in prior year quarter
“The Forestar team delivered solid third quarter results, including a 4% increase in revenues to $407.0 million and a 12% increase in pre-tax income to $48.7 million. Our liquidity increased to $1.1 billion, reflecting our disciplined approach to capital management amid continued affordability constraints and cautious consumer sentiment. We remain focused on maximizing returns across our projects by aligning the pace and price of lot sales with the timing of our investments and market demand.”
Forestar Group CEO, on the earnings call
Forward Guidance & Outlook
Forestar is maintaining its fiscal 2026 guidance of 14,000 to 14,500 lot deliveries generating $1.6 billion to $1.7 billion in revenue, based on year-to-date results and current market conditions. The company expects to continue aggregating market share supported by its financial strength, broad operating platform, strategic relationship with D.R. Horton, and $2.3 billion of contracted future revenue. Management noted continued affordability constraints and cautious consumer sentiment but emphasized its strong balance sheet and liquidity provide flexibility to navigate changing market conditions and capitalize on opportunities.
FOR YoY Financials
FOR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.