D.R. Horton (DHI) Q1 2026 earnings summary

Executive summary

• Consolidated revenues for Q1 FY26 were $6.9 billion, with net income of $594.8 million and EPS of $2.03, down 30% and 22% year-over-year, respectively; pre-tax profit margin was 11.6%.

• Closed 17,818 homes, generating $6.5 billion in home sales revenue; net sales orders rose 3% year-over-year to 18,300 homes valued at $6.7 billion.

• Returned $801.2 million to shareholders through $669.7 million in share repurchases and $131.5 million in dividends, reducing outstanding shares by 9% year-over-year.

• Book value per share increased 5% to $82.60; return on equity was 13.7% and return on assets 9.4% for the trailing twelve months.

• Focused on affordability and capital efficiency, with 64% of mortgage company closings to first-time buyers and $3.6 billion in operating cash flow over the past 12 months.

Financial highlights

• Q1 FY26 pre-tax income was $798.1 million, with a pre-tax margin of 11.6%; home sales gross margin was 20.4%–21.3%, benefiting from a 40 bps warranty cost recovery.

• Homebuilding SG&A expense was 9.7% of revenues, up from 8.9% year-over-year.

• Homebuilding inventories totaled $20.2 billion; homes in inventory were 30,400.

• Debt to total capital was 18.8%; total liquidity at quarter end was $6.6 billion.

• Net cash provided by operating activities was $854.0 million, up from $646.7 million year-over-year.

Outlook and guidance

• FY26 revenue expected at $33.5–$35.0 billion, with 86,000–88,000 homes closed and at least $3.0 billion in operating cash flow.

• Q2 FY26 revenue guidance is $7.3–$7.8 billion, with 19,700–20,200 homes closed and home sales gross margin of 19.0%–19.5%.

• FY26 share repurchases projected at ~$2.5 billion and dividend payments at ~$500 million.

• Sales incentives expected to remain elevated, depending on demand and mortgage rates.

• Income tax rate expected at approximately 24.5%.