D.R. Horton (DHI) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 net income rose to $4.8B, with EPS up 4% to $14.34; Q4 net income was $1.3B, EPS $3.92, both down from prior year quarter.

• Consolidated revenues for fiscal 2024 increased 4% to $36.8B; Q4 revenues were $10.0B, with home sales revenue up 2% to $8.9B on 23,647 closings.

• Returned all $2.2B of 2024 operating cash flow to shareholders via $1.8B in repurchases and $378M in dividends, with share distributions up 44% year-over-year.

• D.R. Horton closed 93,660 homes in FY24, maintaining its position as America’s largest homebuilder for 23 years.

• Quarterly dividend increased 33% to $0.40 per share; share repurchases reduced share count by 3%.

Financial highlights

• Fiscal 2024 pre-tax income was $6.3B with a 17.1% pre-tax margin; Q4 pre-tax income was $1.7B.

• Home sales gross margin for FY24 was 23.5%, with Q4 at 22.9%; Q4 margin declined due to higher incentives.

• Book value per share increased 15% to $78.12; return on equity was 19.9%.

• Homebuilding pre-tax return on inventory: 27.8%; return on assets: 13.9%.

• Cash from operations totaled $2.2B in fiscal 2024.

Outlook and guidance

• FY25 revenue expected at $36–$37.5B with 90,000–92,000 home closings; Q1 revenue guidance is $6.8–$7.3B and 17,500–18,000 closings.

• Home sales gross margin in Q1 expected around 22.5%; SG&A as a percentage of revenue to be 8.9%.

• Plan to repurchase $2.4B in stock and pay $500M in dividends in FY25.

• Operating cash flow expected to exceed fiscal 2024.

• Incentive levels and margins for FY25 will depend on spring demand and mortgage rates.