Forestar Group Inc New
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.75%.
Did FOR Beat Earnings? Q1 2026 Results
Forestar Group delivered a mixed fiscal first quarter for 2026, posting revenue that cleared Wall Street's bar while earnings fell just short, sending shares lower in the session that followed. The residential lot developer reported Q1 revenue of $273.00 million, up 9% year-over-year and ahead of the $265.48 million consensus estimate, yet diluted EPS of $0.30 missed the $0.30 forecast by 0.33% and declined from $0.32 in the year-ago period. The central tension in the quarter was a trade-off between price and volume: average lot sales prices climbed to $121,000 from $105,500 a year ago, but lots sold fell 17% to 1,944, compressing net income by 7% to $15.40 million. A surge in tract sales to $37.80 million from just $3.00 million provided meaningful revenue support, partially cushioning the volume shortfall. Despite affordability constraints and cautious consumer sentiment cited by Chairman Donald Tomnitz, Forestar reaffirmed its fiscal 2026 guidance of 14,000 to 15,000 lot deliveries and $1.60 billion to $1.70 billion in revenue, backed by $2.20 billion in contracted future revenue.
- Average sales price per lot increased to $121,000 from $105,500 year-over-year
- Tract sales and other revenue surged to $37.8 million from $3.0 million in the prior year quarter
- Lots sold decreased 17% to 1,944 from 2,333 due to affordability constraints and cautious consumer sentiment
- Sales to customers other than D.R. Horton grew to 317 lots from 221 lots
“The Forestar team delivered increased revenues compared to the prior year quarter and maintained strong liquidity through disciplined inventory investment amid ongoing affordability constraints and cautious consumer sentiment that continue to impact the pace of new home sales. We are focused on maximizing returns in each of our projects by aligning the pace and price of lot sales with the timing of our investments to meet demand. In fiscal 2026, we still expect to deliver between 14,000 and 15,000 lots, generating $1.6 billion to $1.7 billion of revenue.”
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. Management expects to continue aggregating market share supported by financial strength, a substantial operating platform, the strategic relationship with D.R. Horton, and $2.2 billion of contracted future revenue. The company plans to maintain a disciplined approach to capital allocation while positioning for growth.
FOR YoY Financials
FOR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.