D.R. Horton (DHI) Q3 2025 earnings summary

Executive summary

• Q3 2025 net income was $1.0B ($3.36 per diluted share), with consolidated revenues of $9.2B and a pre-tax margin of 14.7%, despite a 24% year-over-year decline in net income and a 7% drop in revenues.

• Home sales revenues reached $8.6B on 23,160 homes closed; net sales orders were 23,071 homes valued at $8.4B, with a home sales gross margin of 21.8%.

• Returned $1.2B to shareholders in Q3 via share repurchases, with a 9% reduction in share count year-over-year; quarterly dividend of $0.40 per share declared.

• Maintained strong liquidity and capital efficiency, with book value per share up 7% to $80.46 and return on equity of 16.1%.

• New home demand was impacted by affordability constraints and cautious consumer sentiment, leading to increased sales incentives and lower gross margins.

Financial highlights

• Q3 2025 consolidated revenues were $9.2B, with net income of $1.0B and diluted EPS of $3.36, down from $4.10 a year ago.

• Home sales gross margin for Q3 was 21.8%, down from 24.0% a year ago but above expectations.

• Homebuilding SG&A expense was 7.8% of revenues, reflecting continued cost control.

• Book value per share increased to $80.46; debt to total capital was 23.2% at June 30, 2025.

• Net cash provided by operations for the nine months ended June 30, 2025 was $949.1M, up from $228.2M year-over-year.

Outlook and guidance

• Q4 2025 revenue expected between $9.1B and $9.6B, with 23,500–24,000 homes closed and gross margin of 21.0–21.5%.

• FY2025 guidance: $33.7B–$34.2B in revenue, 85,000–85,500 homes closed, >$3.0B operating cash flow, $4.2B–$4.4B in share repurchases, and ~$500M in dividends.

• Sales incentives expected to remain elevated and may increase in Q4, depending on demand and mortgage rates.

• The termination of the energy efficient home tax credit after June 2026 will reduce future tax benefits.