Description

D.R. Horton: Land Costs Rise, Build Costs Ease—Can Margins Hold in a Mixed Cost Cycle?

D.R. Horton, America’s Builder, reported its financial results for the second quarter of fiscal 2026, highlighting a complex environment shaped by affordability challenges and consumer caution. The company achieved consolidated pretax income of $867 million on revenues of $7.6 billion, translating into a pretax margin of 11.5%, which exceeded the high end of its guidance range. Net income stood at $648 million, with earnings per diluted share of $2.24, down from $2.58 a year ago. The homebuilding segment closed 19,486 homes, slightly more than the prior year’s 19,276, though average closing prices moderated by 3% year-over-year to $361,600, emphasizing the company’s focus on affordability relative to national averages. Net sales orders increased by 11% year-over-year to nearly 25,000 homes, with order value rising 10%, reflective of steady demand despite market headwinds. Cancellation rates remained stable at 16%, while active selling communities expanded both sequentially and annually.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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