D.R. Horton (DHI) Q3 2024 earnings summary

Executive summary

• Q3 FY24 net income rose 1% year-over-year to $1.4 billion, with EPS up 5% to $4.10 per diluted share; consolidated revenues increased 2% to $10 billion, and homes closed grew 5% to 24,155 units.

• Home sales revenues increased 6% to $9.2 billion; average closing price was $382,200.

• Net sales orders were just over 23,000 homes, up 1% year-over-year; order value was flat at $8.7 billion.

• D.R. Horton remains the largest U.S. homebuilder, operating in 121 markets across 33 states.

• Maintains a strong balance sheet with $24.7 billion in stockholders' equity and book value per share of $75.32.

Financial highlights

• Q3 FY24 consolidated pre-tax income was $1.8 billion, with an 18.1% pre-tax profit margin.

• Net income for the quarter was $1.4 billion; gross profit margin on home sales was 24%, up 80 bps sequentially.

• Homebuilding SG&A expenses increased 12% year-over-year; SG&A as a percentage of revenues was 7.1%.

• Rental operations generated $64.2 million pre-tax income on $413.7 million revenues.

• Financial services earned $91 million pre-tax income on $242 million revenues, with a 37.7% pre-tax margin.

Outlook and guidance

• Q4 FY24 guidance: consolidated revenues of $10–$10.4 billion, 24,000–24,500 homes closed, home sales gross margin around 24%, SG&A ~7% of revenues.

• Full-year 2024 guidance: consolidated revenues of $36.8–$37.2 billion, 90,000–90,500 homes closed, ~$3 billion homebuilding cash flow, $1.8 billion share repurchases, $400 million dividends.

• Expect increased cash flow and higher shareholder returns in 2025.

• The company will continue to use incentives and pricing adjustments to adapt to market conditions.