Forestar Group (FOR) Q1 2026 earnings summary

Executive summary

• Revenues rose 9% year-over-year to $273.0 million on 1,944 lots sold, with book value per share up 10% to $35.10 and a contracted backlog supporting $2.2 billion in future revenue.

• Net income was $15.4 million ($0.30 per diluted share), down from $16.5 million ($0.32 per share) in the prior year quarter; return on equity was 9.8% for the trailing twelve months.

• Owned and controlled 101,000 lots at quarter end, with 24,100 under contract for sale and D.R. Horton holding a 62% ownership stake.

• Maintained a strong relationship with D.R. Horton, supporting national platform expansion and providing stability in changing market conditions.

Financial highlights

• Pre-tax income was $20.8 million, down from $21.9 million year-over-year; gross profit margin was 20.1%, or 21.5% excluding a low-margin tract sale.

• SG&A expense was $36.5 million (13.4% of revenue), flat in dollars but improved as a percentage of revenue from 14.4% last year.

• Average lot sales price was $121,000, influenced by a higher mix of premium lots.

• Adjusted EBITDA for Q1 FY 2026 was $26.9 million, with a margin of 9.9%.

Outlook and guidance

• Fiscal 2026 guidance projects 14,000–15,000 lot deliveries and consolidated revenues of $1.6–$1.7 billion.

• Gross margins expected to remain in the historical 21–23% range, likely at the lower end due to current market conditions.

• Planned investment of approximately $1.4 billion in land and land development for FY 2026.

• SG&A and headcount expected to remain stable for the remainder of the year.