Forestar Group (FOR) Q4 2025 earnings summary

Executive summary

• Fourth quarter revenue rose 22% to $670.5 million, with net income up 7% to $87 million and EPS of $1.70; full-year revenue was $1.7 billion, net income $167.9 million, and EPS $3.29.

• Book value per share increased 11% year-over-year to $34.78; return on equity was 10.1%.

• Delivered 14,240 lots in FY 2025, with 99,800 lots owned and controlled at year-end.

• Maintains a return-focused lot manufacturing model with a national footprint and strategic alignment with D.R. Horton.

• Ended the year with $968 million in liquidity and a strong balance sheet.

Financial highlights

• Q4 net income was $87 million ($1.70 per diluted share); full-year net income $167.9 million ($3.29 per share).

• Q4 revenue was $670.5 million, up 22%; full-year revenue $1.7 billion, up 10%.

• Q4 pre-tax income was $113.1 million (16.9% margin); full-year pre-tax income $219.3 million (13.2% margin).

• Q4 gross profit margin was 22.3%, down 160 basis points year-over-year.

• SG&A expense was $42.7 million (6.4% of revenue) in Q4; full-year SG&A $154.4 million (9.3%).

Outlook and guidance

• Fiscal 2026 guidance: 14,000–15,000 lot deliveries and $1.6–$1.7 billion in revenue.

• Fiscal 2026 investment in land and development expected at $1.4 billion.

• $2.1 billion in contracted future revenue supports growth expectations.

• First quarter expected to be the lowest for deliveries; second half of 2026 projected to be stronger.

• Headcount expected to remain flat or decrease slightly in Fiscal 2026.