Forestar Group (FOR) Q4 2024 earnings summary

Executive summary

• Delivered over 15,000 lots in fiscal 2024, with a 22% increase in net income to $203.4 million ($4.00 per share) and a 20% rise in diluted EPS, while expanding into new markets and growing the team by 30%.

• Book value per share rose 15% to $31.47, and return on equity improved to 13.8% year-over-year.

• Over five years, invested $6.7 billion in land, delivered 70,000+ lots, and nearly tripled return on equity.

• Ended fiscal year with 95,100 lots owned and controlled, up from 79,200 a year ago.

• Maintained a disciplined, returns-focused approach to capital allocation and strengthened alignment with D.R. Horton.

Financial highlights

• Q4 net income increased 13% to $81.6 million ($1.60 per share); full-year net income up 22% to $203.4 million ($4.00 per share).

• Q4 revenue was $551.4 million; full-year revenue reached $1.5 billion, up 5% year-over-year.

• Q4 pre-tax income rose 14% to $108.5 million; full-year pre-tax income up 22% to $270.1 million, with pre-tax profit margins of 19.7% and 17.9%, respectively.

• Gross profit margin for Q4 was 23.9% (up 290 bps); full-year margin was 23.8% (up 260 bps), aided by non-recurring high-margin items.

• Adjusted EBITDA for FY 2024 was $276.2 million, with an adjusted EBITDA margin of 18.3%.

Outlook and guidance

• Fiscal 2025 guidance: 16,000–16,500 lots delivered and $1.6–$1.65 billion in revenue.

• Plans to invest approximately $2.0 billion in land acquisition and development in fiscal 2025.

• Q1 expected to be the lowest delivery quarter; higher revenues anticipated in the second half of fiscal 2025.

• Targeting to double market share to 5% over the intermediate term.

• Focus remains on maximizing returns by balancing sales pace and lot pricing.