D.R. Horton (DHI) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 net income was $3.6 billion ($11.57 EPS), with Q4 net income of $905.3 million ($3.04 EPS); both figures declined year-over-year.

• FY25 consolidated revenues reached $34.3 billion, with 84,863 homes closed; Q4 revenues were $9.7 billion on 23,368 homes closed.

• Returned $4.8 billion to shareholders in FY25 through $4.3 billion in share repurchases and $495 million in dividends, reducing share count by 9%.

• Book value per share increased 5% to $82.15 year-over-year.

• Delivered homeownership to nearly 85,000 individuals and families in FY25, with 43,000 first-time buyers and over 91,200 total households served including rentals.

Financial highlights

• FY25 pre-tax income was $4.7 billion with a pre-tax margin of 13.8%; Q4 pre-tax margin was 12.4%.

• Home sales revenues for FY25 were $31.4 billion on 84,863 homes closed; Q4 home sales revenues were $8.5 billion.

• Q4 gross profit margin on home sales: 20%, down 180 bps sequentially due to higher incentives and litigation costs.

• FY25 operating cash flow: $3.4 billion (10% of revenue, 95% of net income).

• Return on equity was 14.6%, and return on assets was 10.0% for FY25.

Outlook and guidance

• FY26 revenue expected at $33.5–$35 billion; homes closed: 86,000–88,000.

• Q1 FY26 revenue guidance: $6.3–$6.8 billion; homes closed: 17,100–17,600; gross margin: 20–20.5%; pre-tax margin: 11.3–11.8%.

• FY26 operating cash flow expected at least $3 billion; $2.5 billion in share repurchases and $500 million in dividends planned.

• Incentive levels expected to remain elevated in FY26, with gross margin dependent on demand and mortgage rates.

• Income tax rate projected at approximately 24.5%.