D.R. Horton, Inc. (NYSE:DHI) shares declined more than 6% in premarket trading Tuesday after the U.S. homebuilder reported fourth-quarter fiscal 2025 results that topped revenue expectations but fell short on earnings.
Earnings
The company posted revenue of $9.7 billion, ahead of analyst estimates of $9.4 billion. Quarterly earnings came in at $3.04 per share, below the consensus forecast of $3.28 per share.
Homebuilding revenue decreased 4% year over year to $8.6 billion, while homes closed were down 1% to 23,368 units. Net sales orders increased 5% to 20,078 homes, and their total value rose 3% to $7.3 billion.
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Shareholder Returns
D.R. Horton repurchased 4.6 million shares of its common stock for $688.8 million during the quarter, with $3.3 billion remaining under its repurchase authorization.
The company also paid $118.4 million in dividends and recently raised its quarterly dividend 13% to 45 cents per share.
Management Commentary
Executive Chairman David Auld said, “During the fourth quarter, our tenured operators continued to respond to market conditions with discipline to drive a 5% increase in net sales orders, while carefully balancing pace, price and incentives to meet demand.”
He added, “New home demand is still being impacted by ongoing affordability constraints and cautious consumer sentiment, and we expect our sales incentives to remain elevated in fiscal 2026, the extent to which will depend on market conditions throughout the year.”
Outlook
For fiscal 2026, D.R. Horton expects revenue between $33.5 billion and $35.0 billion, compared with analyst estimates of $34.01 billion. The company projects home closings between 86,000 and 88,000 units.
It plans to repurchase about $2.5 billion worth of shares and distribute approximately $500 million in dividends over the year.
Price Action: DHI shares were trading lower by 6.52% to $148.50 at last check Tuesday.
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