D.R. Horton (DHI) Q2 2026 earnings summary

Executive summary

• Q2 FY26 net income was $647.9M ($2.24 per share), down 20% year-over-year, on consolidated revenues of $7.6B; pre-tax income was $867.4M with an 11.5% pre-tax margin.

• Net sales orders rose 11% to 24,992 homes valued at $9.2B, with homes closed up 1% to 19,486; unsold completed homes reduced by 35% year-over-year.

• Returned $1.0B to shareholders in Q2 via $903.6M in share repurchases and $129.7M in dividends; dividend per share increased 13%.

• Book value per share increased 5% to $82.91; outstanding share count down 8% year-over-year.

• Focused on affordability, with 65% of mortgage closings to first-time buyers and average closing price 30% below U.S. new home average.

Financial highlights

• Home sales revenues were $7.0B on 19,486 homes closed; average closing price $361,600, down 1% sequentially and 3% year-over-year.

• Home sales gross margin was 20.1%–20.4%, benefiting by ~40 bps from favorable litigation and lower warranty costs.

• SG&A as a percentage of homebuilding revenue was 7.2%–9.2%, reflecting cost discipline amid affordable price point mix shift.

• Book value per share rose to $82.91; debt to total capital was 21.7%.

• Net cash provided by operations was $441.5M for the six months ended March 31, 2026; total liquidity at quarter end was $6.0B.

Outlook and guidance

• FY26 revenue guidance is $33.5B–$34.5B, with 86,000–87,500 homes closed and at least $3.0B in operating cash flow.

• Q3 FY26 guidance: revenues of $8.8B–$9.3B, 23,500–24,000 homes closed, home sales gross margin of 19.7%–20.2%, and pre-tax margin of 12.2%–12.7%.

• FY26 capital return plans include ~$2.5B in share repurchases and ~$500M in dividends.

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

• Income tax rate expected at ~24.5%.