Forestar Group (FOR) investor relations material

Executive summary

• Revenues for Q2 FY 2026 rose 7% year-over-year to $374.3 million on 2,938 lots sold, with net income up 2% to $32.1 million ($0.63 per diluted share) and pre-tax income up 8% to $43.9 million.

• Book value per share increased 10% year-over-year to $35.66, and owned and controlled lots totaled 94,400 at quarter end.

• Maintained strong liquidity of $1.0 billion and a net debt to capital ratio of 19.2%.

• Contracted backlog supports $2.2 billion in future revenue, with 24,100 lots in backlog.

Financial highlights

• Six-month revenues increased 8% year-over-year to $647.3 million, with net income of $47.5 million and pre-tax income of $64.8 million.

• Average sales price per lot rose to $112,800 in Q2, up from $101,700 year-over-year.

• Gross profit margin was 21.4% in Q2, impacted by $6.3 million in land option charges.

• SG&A expense declined to $37.9 million in Q2, or 10.1% of revenues.

• Adjusted EBITDA for Q2 was $52.1 million, with a margin of 13.9%.

Outlook and guidance

• Fiscal 2026 guidance updated to 14,000–14,500 lots delivered and $1.6–$1.7 billion in revenue.

• Plans to invest approximately $1.4 billion in land acquisition and development in fiscal 2026.

• Management expects continued market share growth and disciplined capital allocation.