D.R. Horton Reports Fiscal 2025 Q3 Earnings

D.R. Horton, Inc., a leading homebuilder in the United States, has released its financial results for the third quarter of fiscal 2025, ending June 30, 2025. The company reported a decrease in net income and revenues compared to the same period last year, reflecting ongoing challenges in the housing market.

Financial Highlights

For the third quarter of fiscal 2025, D.R. Horton reported net income attributable to the company of $1.0 billion, or $3.36 per diluted share, a decrease from $1.4 billion, or $4.10 per diluted share, in the same quarter of fiscal 2024. Consolidated revenues for the quarter were $9.2 billion, down 7% from $10.0 billion in the prior year quarter. The company's pre-tax profit margin stood at 14.7%.

Business and Operational Highlights

The company closed 23,160 homes during the quarter, generating $8.6 billion in home sales revenues. Net sales orders were 23,071 homes with an order value of $8.4 billion. The company's cancellation rate for the quarter was 17%, slightly improved from 18% in the prior year quarter. D.R. Horton also reported a sales order backlog of 14,075 homes valued at $5.3 billion.

Strategic Initiatives and Corporate Developments

D.R. Horton repurchased 9.7 million shares of common stock for $1.2 billion and paid cash dividends of $122.4 million during the quarter. The company issued $500 million of homebuilding senior notes due 2030 and reported a debt to total capital ratio of 23.2% as of June 30, 2025. The company's total liquidity stood at $5.5 billion, including a consolidated cash balance of $2.6 billion and available capacity on its credit facilities of $2.9 billion.

Management's Perspective

David Auld, Executive Chairman, commented, "The D.R. Horton team delivered a strong third quarter, highlighted by earnings per diluted share of $3.36. We leveraged our operational results and strong balance sheet to return $1.3 billion to shareholders through share repurchases and dividends during the quarter. Our net sales orders in the third quarter were flat with the prior year quarter and increased 3% sequentially. We closed more homes than the high end of our guidance range, while maintaining a home sales gross margin of 21.8%."

Future Outlook

Based on the company's results for the first nine months of fiscal 2025 and current market conditions, D.R. Horton updated its guidance for fiscal 2025. The company expects consolidated revenues in the range of $33.7 billion to $34.2 billion and homes closed by homebuilding operations of 85,000 to 85,500 homes. Share repurchases are projected to be in the range of $4.2 billion to $4.4 billion. The company also reiterated its guidance for an income tax rate of approximately 24.0%, consolidated cash flow provided by operations of greater than $3.0 billion, and dividend payments of approximately $500 million.

SEC Filing: HORTON D R INC /DE/ [ DHI ] - 8-K - Jul. 22, 2025