Forestar Group (FOR) investor relations material

Executive summary

• Revenues for the third quarter increased 4% year-over-year to $407 million on 3,659 lots sold, with net income up 9% to $35.9 million and EPS up 8% to $0.70 per diluted share.

• For the nine months ended June 30, 2026, revenues rose 6% to $1.1 billion and net income increased to $83.5 million.

• Book value per share increased 10% year-over-year to $36.40.

• Owned and controlled 91,700 lots as of June 30, 2026, with 23,500 lots under contract representing $2.3 billion in future revenue.

• Maintained a national footprint across 65 markets in 24 states, leveraging a strategic relationship with D.R. Horton for stability and demand.

Financial highlights

• Pre-tax income for the quarter increased 12% to $48.7 million, with a pre-tax profit margin of 12%.

• Gross profit margin was 20.7% for the quarter, and adjusted EBITDA for the quarter was $56.1 million with a margin of 13.8%.

• SG&A expense for the quarter was $38.3 million, with the percentage of revenue declining to 9.4%.

• Return on equity for the trailing twelve months was 9.6%.

• Net debt-to-capital ratio improved to 17.7%, with total liquidity of $1.1 billion.

Outlook and guidance

• Fiscal 2026 guidance maintained: 14,000–14,500 lot deliveries and $1.6–$1.7 billion in revenue.

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

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

• $2.3 billion of contracted backlog supports long-term outlook.

• Headcount expected to remain flat for the rest of the year, with potential increases in 2027.