Forestar Group Inc New
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.53%.
Did FOR Beat Earnings? Q4 2025 Results
Forestar Group delivered a decisive beat in fiscal Q4 2025, with earnings of $1.70 per diluted share clearing the $1.26 consensus estimate by 34.62% and revenue of $670.50 million topping expectations by 20.47% while climbing 21.6% year-over-year. The standout driver was a sharp rise in average sales price per lot, which jumped to $115,700 from $97,300 a year ago, more than offsetting a 9% decline in lot volume to 4,891 units and powering net income 7% higher to $87.00 million. A pre-market stock surge of roughly 9% reflected investor relief after a full fiscal year in which profitability compressed, with annual net income falling 17% to $167.90 million despite revenues growing 10% to $1.66 billion. Forestar enters fiscal 2026 with $968.10 million in liquidity, $2.10 billion of contracted future revenue, and management guidance calling for 14,000 to 15,000 lot deliveries generating $1.60 billion to $1.70 billion in revenue, signaling steady if measured growth ahead.
- Average sales price per lot increased to $115,700 from $97,300 year-over-year in Q4
- Revenue growth of 22% in Q4 driven by higher lot pricing despite 9% decline in lots sold
- Tract sales and other revenue surged to $103.4 million from $23.4 million in Q4 2024
- Lots contracted for sale increased 13% to 23,800 lots at fiscal year-end
- Owned lot position grew to 65,100 lots from 57,800 year-over-year
“The Forestar team finished the year with a strong fourth quarter, demonstrating demand for finished lots is solid despite the continued impact of ongoing affordability constraints and cautious consumer sentiment on new home demand. We delivered over 14,200 finished lots in fiscal 2025, and our revenues exceeded the high end of our most recent guidance range.”
Forestar Group CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2026, Forestar expects to deliver between 14,000 and 15,000 lots, generating $1.6 billion to $1.7 billion of revenue. The company plans to maintain a disciplined approach to capital allocation while positioning for growth, supported by its strong balance sheet, substantial operating platform, strategic relationship with D.R. Horton, and $2.1 billion of contracted future revenue. Management noted that demand for finished lots remains solid despite ongoing affordability constraints and cautious consumer sentiment.
FOR YoY Financials
FOR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.