Description

D.R. Horton: Will Its Focus On Affordability & Inventory Management Pay Off?

D.R. Horton, Inc. presented its fiscal 2025 fourth-quarter and full-year financial results. The company displayed solid metrics, supported by a robust operating model and a disciplined approach to capital allocation, amid a challenging housing market environment marked by affordability constraints and cautious consumer sentiment. Key aspects of D.R. Horton’s performance include a consolidated pretax income of $1.2 billion on revenues of $9.7 billion for the fourth quarter, yielding a pretax profit margin of 12.4%. For the full fiscal year, consolidated pretax income was reported at $4.7 billion with a slightly higher profit margin of 13.8%. Notably, the homebuilding pretax return on inventory stood at 20.1%, return on equity at 14.6%, and return on assets at 10%. In terms of sales, D.R. Horton achieved a 5% increase in net sales orders year-over-year, despite a slightly elevated cancellation rate of 20%, which is in line with historical averages.

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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