D.R. Horton (DHI) Q1 2026 earnings summary

Executive summary

• Consolidated revenues for Q1 FY26 were $6.9 billion, with net income of $594.8 million and EPS of $2.03, both down year-over-year; net sales orders rose 3% to 18,300 homes valued at $6.7 billion.

• Home sales revenues were $6.5 billion on 17,818 homes closed, with an average closing price of $365,500, down 3% year-over-year.

• Returned $801.2 million to shareholders through $669.7 million in share repurchases and $131.5 million in dividends; outstanding shares down 9% year-over-year.

• Book value per share increased 5% to $82.60; return on equity was 13.7% and return on assets 9.4%.

• Focus remains on affordability, flexible lot supply, and elevated sales incentives to support demand amid affordability constraints and cautious consumer sentiment.

Financial highlights

• Pre-tax income was $798.1 million, with a pre-tax profit margin of 11.6%; home sales gross margin was 20.4% (21.3% including a one-time warranty recovery of 40 bps).

• Homebuilding SG&A expense was 9.7% of revenues, up from 8.9% year-over-year.

• Debt to total capital was 18.8%; total liquidity at quarter end was $6.6 billion.

• Homebuilding return on inventory for the trailing twelve months was 18.6%.

• Net cash provided by operating activities was $854.0 million, up from $646.7 million year-over-year.

Outlook and guidance

• Fiscal 2026 guidance: consolidated revenues of $33.5–$35.0 billion, 86,000–88,000 homes closed, and at least $3.0 billion in operating cash flow.

• Q2 FY26 revenue expected at $7.3–$7.8 billion, with 19,700–20,200 homes closed and home sales gross margin of 19.0%–19.5%.

• Share repurchases projected at ~$2.5 billion and dividends at ~$500 million for FY26.

• Income tax rate expected at approximately 24.5%.

• Sales incentives expected to remain elevated, depending on demand and mortgage rates.