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DHI
DHI D.R. Horton (DHI) Q2 FY26 earnings call
Horton is trading price for pace and returns: with affordability and cautious sentiment capping demand, it is holding elevated incentives, driving down completed-spec inventory, and squeezing stick-and-brick and cycle times to defend margins while orders still grew double digits. The forward stance is disciplined share aggregation funded by capital-efficient, developer-supplied lots and near-full cash return, with margins hinging on rates and construction-cost savings offsetting rising land costs.
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DHI operating KPIs by quarter
| KPI | Mar 2025 Q2 FY25 | Jun 2025 Q3 FY25 | Dec 2025 Q1 FY26 | This call Mar 2026 Q2 FY26 | Jun 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|---|---|---|
| Homes closed Homebuilding | 19.276KOur second quarter home sales revenues were $7.2 billion on 19,276 homes closed compared to $8.5 billion on 22,548 homes closed in the prior year quarter.Source: earnings call transcript | 23.16KOur tenured operators continue to respond to market conditions with discipline, balancing pace versus price to maximize returns in each of our communities, achieving 23,160 homes closed this quarter, with a home sales gross margin of 21.8%, both of which were above our guidance range.Source: earnings call transcript | 17.818KOur first quarter home sales revenues were $6.5 billion on 17,818 homes closed, compared to $7.1 billion on 19,059 homes closed in the prior year quarter.Source: earnings call transcript | 19.486KHome sales revenues in the second quarter totaled $7 billion on 19,486 homes closed compared to $7.2 billion on 19,276 homes closed in the prior year quarter.Source: earnings call transcript | 23.983KWe closed 23,983 homes during the quarter, which was at the high end of our guidance range and achieved a home sales gross margin of 20.7%.Source: earnings call transcript | +23.1% |
| Average closing price Homebuilding | $372.5KOur average closing price for the quarter was $372,500 down 1%, both sequentially and year-over-year.Source: earnings call transcript | $369.6KOur average closing price for the quarter was $369,600, down 1% sequentially and down 3% year-over-year.Source: earnings call transcript | $365.5KOur average closing price for the quarter was $365,500, flat sequentially and down 3% year-over-year.Source: earnings call transcript | $361.6KOur average closing price was $361,600, down 1% sequentially and down 3% year-over-year.Source: earnings call transcript | $362KOur average closing price was flat sequentially and down 2% year-over-year to $362,000.Source: earnings call transcript | +0.1% |
| Cancellation rate Homebuilding | 16%Our cancellation rate for the quarter was 16%, down from 18% sequentially and up from 15% in the prior year quarter.Source: earnings call transcript | 17%Our cancellation rate for the quarter was 17%, up from 16% sequentially and down from 18% in the prior year quarter.Source: earnings call transcript | 18%Our cancellation rate for the quarter was 18%, consistent with the prior year quarter and down from 20% sequentially.Source: earnings call transcript | 16%Our cancellation rate for the quarter was 16%, consistent with the prior year period and down from 18% sequentially.Source: earnings call transcript | 20%Our cancellation rate for the quarter was 20%, up from 17% in the prior year period and from 16% sequentially within our normal historical range.Source: earnings call transcript | +4 pt |
| Markets | 126Our community count is up 10% and our market count has increased 6% to 126 markets in 36 states.Source: earnings call transcript | 126Our community count is up 12%, and our market cap has increased 4% to 126 markets in 36 states.Source: earnings call transcript | β | β | β | 0% |
| Homes started Homebuilding | 20KWe started 20,000 homes in the March quarter and ended the quarter with 36,900 homes in inventory.Source: earnings call transcript | 24.7KWe started 24,700 homes in the June quarter, up 24% sequentially from the second quarter, and we expect our starts in the fourth quarter to be lower than the third quarter.Source: earnings call transcript | 18.5KWe started 18,500 homes in the December quarter, up 27% sequentially from the fourth quarter, and we expect our starts in the second quarter to be higher than the first quarter.Source: earnings call transcript | 27.5KWe started 27,500 homes in the second quarter and we ended the quarter with 38,200 homes in inventory, of which, 22,900 were unsold and 5,500 were completed and unsold.Source: earnings call transcript | 23.9KWe started 23,900 homes in the third quarter and we ended the quarter with 38,000 homes in inventory, down 1%, both sequentially and year-over-year.Source: earnings call transcript | -13.1% |
| Unsold homes completed greater than 6 months Homebuilding | 1,2001,200 of our unsold homes have been completed for greater than 6 months.Source: earnings call transcript | 800800 of our unsold homes have been completed for greater than 6 months.Source: earnings call transcript | 900900 of our unsold homes have been completed for greater than 6 months.Source: earnings call transcript | β | 6007,600 of our total unsold homes were completed, of which 600 have been completed for more than 6 months.Source: earnings call transcript | β |
| Lots controlled and owned Homebuilding | ~613KOur homebuilding lot position at March 31 consisted of approximately 613,000 lots, of which 25% were owned and 75% were controlled through purchase contracts.Source: earnings call transcript | ~600KOur homebuilding lot position at June 30 consisted of approximately 600,000 lots, of which 24% were owned and 76% were controlled through purchase contracts.Source: earnings call transcript | ~590.5KOur homebuilding lot position at December 31 consists of approximately 590,500 lots, of which 25% were owned and 75% were controlled through purchase contracts.Source: earnings call transcript | ~575KOur homebuilding lot position at March 31 consisted of approximately 575,000 lots, of which, 23% were owned and 77% were controlled through purchase contracts.Source: earnings call transcript | ~570KOur homebuilding lot position at June 30 consists of approximately 570,000 lots, of which 22% were owned and 78% were controlled through purchase contracts.Source: earnings call transcript | β |
| Capital expenditures Finished lots | β | β | β | $1.5BDuring the second quarter, our homebuilding investments in lots, land and development totaled $2.1 billion, including $1.5 billion for finished lots, $500 million for land development and $120 million for land acquisition.Source: earnings call transcript | $1.5BDuring the third quarter, our homebuilding investments in lots, land and development totaled $2.1 billion, including $1.5 billion for finished lots and $520 million for land development and $75 million for land acquisition.Source: earnings call transcript | 0% |
| Capital expenditures Land development | β | β | β | $500MDuring the second quarter, our homebuilding investments in lots, land and development totaled $2.1 billion, including $1.5 billion for finished lots, $500 million for land development and $120 million for land acquisition.Source: earnings call transcript | $520MDuring the third quarter, our homebuilding investments in lots, land and development totaled $2.1 billion, including $1.5 billion for finished lots and $520 million for land development and $75 million for land acquisition.Source: earnings call transcript | +4% |
| Capital expenditures Land acquisition | β | β | β | $120MDuring the second quarter, our homebuilding investments in lots, land and development totaled $2.1 billion, including $1.5 billion for finished lots, $500 million for land development and $120 million for land acquisition.Source: earnings call transcript | $75MDuring the third quarter, our homebuilding investments in lots, land and development totaled $2.1 billion, including $1.5 billion for finished lots and $520 million for land development and $75 million for land acquisition.Source: earnings call transcript | -37.5% |
| Single-family rental homes sold | 519In the second quarter, our rental operations generated $23 million of pretax income on $237 million of revenues from the sale of 519 single-family rental homes and 300 multifamily rental units.Source: earnings call transcript | 1,065In the third quarter, our rental operations generated $55 million of pretax income on $381 million of revenues from the sale of 1,065 single-family rental homes and 328 multifamily rental units.Source: earnings call transcript | 397In the first quarter, our rental operations generated $110 million of revenues from the sale of 397 single-family rental homes.Source: earnings call transcript | 566In the second quarter, our rental operations generated $12 million of pretax income on $212 million of revenues from the sale of 566 single-family rental homes and 216 multifamily rental units.Source: earnings call transcript | 601In the third quarter, our rental operations generated $31 million of pretax income on $266 million of revenues from the sale of 601 single-family rental homes and 339 multifamily rental units.Source: earnings call transcript | +6.2% |
| Multifamily rental units sold | 300In the second quarter, our rental operations generated $23 million of pretax income on $237 million of revenues from the sale of 519 single-family rental homes and 300 multifamily rental units.Source: earnings call transcript | 328In the third quarter, our rental operations generated $55 million of pretax income on $381 million of revenues from the sale of 1,065 single-family rental homes and 328 multifamily rental units.Source: earnings call transcript | β | 216In the second quarter, our rental operations generated $12 million of pretax income on $212 million of revenues from the sale of 566 single-family rental homes and 216 multifamily rental units.Source: earnings call transcript | 339In the third quarter, our rental operations generated $31 million of pretax income on $266 million of revenues from the sale of 601 single-family rental homes and 339 multifamily rental units.Source: earnings call transcript | +56.9% |
| Lots sold Forestar | 3,411Forestar, our majority-owned residential lot development company reported revenues of $351 million for the second quarter on 3,411 lots sold with pretax income of $41 million.Source: earnings call transcript | 3,605Forestar, our majority-owned residential lot development company, reported revenues for the third quarter of $391 million on 3,605 lots sold, with pretax income of $44 million.Source: earnings call transcript | 1,944Forestar, our majority-owned residential lot development company, reported revenues for the first quarter of $273 million on 1,944 lots sold with pretax income of $21 million.Source: earnings call transcript | 2,938Forestar, our majority-owned residential lot development company, reported second quarter revenues of $374 million on 2,938 lots sold, with pretax income of $44 million.Source: earnings call transcript | 3,659Forestar, our majority-owned residential lot development company reported third quarter revenues of $407 million on 3,659 lots sold with pretax income of $49 million.Source: earnings call transcript | +24.5% |
| Lots controlled and owned Forestar | 105.9KForestar's owned and controlled lot position at March 31 was 105,900 lots.Source: earnings call transcript | 102KForestar's owned and controlled lot position at June 30 was 102,000 lots.Source: earnings call transcript | 101KForestar's owned and controlled lot position at December 31 was 101,000 lots.Source: earnings call transcript | 94KAt March 31, Forestar's owned and controlled lock position totaled 94,000 lots.Source: earnings call transcript | 92KAt June 30, Forestar's owned and controlled lot position totaled 92,000 lots.Source: earnings call transcript | -2.1% |
| Finished lots purchased from Forestar | $270M$270 million of our finished lots purchased in the second quarter were from Forestar.Source: earnings call transcript | $320M$320 million of our finished lots purchased in the third quarter were from Forestar.Source: earnings call transcript | $180M$180 million of our finished lots purchased in the first quarter were from Forestar.Source: earnings call transcript | $280MDuring the second quarter, we purchased $280 million of finished lots from Forestar.Source: earnings call transcript | $360MDuring the third quarter, we purchased $360 million of finished lots from Forestar.Source: earnings call transcript | +28.6% |
| Homebuyers financed capture rate Financial Services | 81%During the second quarter, our mortgage company handled the financing for 81% of our homebuyers.Source: earnings call transcript | 81%During the third quarter, our mortgage company handled the financing for 81% of our homebuyers.Source: earnings call transcript | β | β | β | 0 pt |
| Average FICO score Financial Services | 723Borrowers originating loans with the HI mortgage this quarter had an average FICO score of 723 and an average loan-to-value ratio of 89%.Source: earnings call transcript | 720Borrowers originating loans with DHI Mortgage this quarter had an average FICO score of 720 and an average loan-to-value ratio of 90%.Source: earnings call transcript | β | β | β | -0.4% |
| Average loan-to-value ratio Financial Services | 89%Borrowers originating loans with the HI mortgage this quarter had an average FICO score of 723 and an average loan-to-value ratio of 89%.Source: earnings call transcript | 90%Borrowers originating loans with DHI Mortgage this quarter had an average FICO score of 720 and an average loan-to-value ratio of 90%.Source: earnings call transcript | β | β | β | +1 pt |
| First-time homebuyers share of closings Financial Services | 63%First-time homebuyers represented 63% of the closings handled by our mortgage company this quarter.Source: earnings call transcript | 64%First-time homebuyers represented 64% of the closings handled by our mortgage company this quarter.Source: earnings call transcript | 64%64% of our mortgage company's closings this quarter were to first-time homebuyers.Source: earnings call transcript | 65%65% of our mortgage company's closings this quarter were to first-time homebuyers.Source: earnings call transcript | 65%65% of our mortgage company's closings this quarter were to first-time homebuyers.Source: earnings call transcript | 0 pt |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
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