D.R. Horton (DHI) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 net income was $810.4 million ($2.58 per diluted share), with consolidated revenues of $7.7 billion, both down 31% and 15% year-over-year, respectively, as home closings and average prices declined.

• Home sales revenues were $7.2 billion on 19,276 homes closed; net sales orders totaled 22,437 homes valued at $8.4 billion, all down 15% year-over-year.

• The spring selling season started slower than expected due to affordability constraints and declining consumer confidence, leading to increased sales incentives and lower gross margins.

• Shareholder returns included $1.3 billion in share repurchases (9.7 million shares) and $125.5 million in dividends, with a new $5.0 billion repurchase authorization announced.

• Maintained a strong balance sheet, significant liquidity, and a disciplined, returns-focused model.

Financial highlights

• Q2 FY2025 pre-tax income was $1.1 billion with a pre-tax margin of 13.8%; homebuilding pre-tax income was $935 million.

• Home sales gross margin for Q2 was 21.8%, down from 23.2% year-over-year; SG&A expense rose to 8.9% of revenues.

• Return on equity for the trailing twelve months was 17.4%; return on assets was 12.2%.

• Book value per share increased to $78.82, up 9% year-over-year.

• Debt to total capital was 21.1% at March 31, 2025.

Outlook and guidance

• FY2025 consolidated revenues expected between $33.3 billion and $34.8 billion; homes closed guidance: 85,000 to 87,000.

• Q3 FY25: revenues expected between $8.4–$8.9 billion; homes closed between 22,000–22,500; home sales gross margin 21.0%–21.5%.

• Cash flow from operations projected to exceed $3.0 billion; share repurchases of ~$4.0 billion and dividend payments of ~$500 million.

• Income tax rate guidance at approximately 24.0%.

• Focus remains on affordable product offerings, flexible lot supply, and managing inventory and pricing to optimize returns.