D.R. Horton reported lower earnings for both its fourth quarter and fiscal 2026, even as it closed more than 84,000 homes over the year and generated $3.5 billion in cash from operations. The homebuilder also increased its quarterly dividend to 50 cents per share.
Annual revenue was $33.0 billion, and the company returned substantial capital through share repurchases and dividends. Fourth-quarter results included a $91.4 million impairment charge in the rental segment.
Key details
- Fourth-quarter earnings declined: Net income fell 18% from a year earlier to $741.8 million, while diluted earnings per share dropped 12% to $2.67. Revenue was $9.4 billion, with a pre-tax margin of 10.8%.
- Home closings in the quarter: D.R. Horton recorded $8.4 billion in home sales revenue on 22,915 homes closed.
- Full-year earnings were also lower: Fiscal 2026 net income decreased 19% to $2.9 billion, and diluted earnings per share fell 13% to $10.11. Revenue totaled $33.0 billion, and the pre-tax margin was 11.8%.
- Full-year home sales: The company closed 84,202 homes, generating $30.6 billion in home sales revenue.
- Rental-segment charge: Fourth-quarter results included $91.4 million of inventory impairment charges in the rental segment.
- Cash generation and liquidity: Cash provided by operations was $3.5 billion for the year, including $2.7 billion from homebuilding, $289.5 million from Forestar, $271.1 million from financial services and $148.6 million from rentals. Year-end liquidity was $7.2 billion.
- Debt and book value: Debt was 20.8% of total capital. Book value per share rose 4% to $85.14.
- Capital returns: D.R. Horton repurchased 24.0 million shares for $3.6 billion, reducing its outstanding share count by 8%, and paid $513.3 million in cash dividends during the year. It also repaid $600 million of 1.3% homebuilding senior notes at maturity.
- Dividend increase: The company raised its quarterly dividend to $0.50 per share.
- Returns: Fiscal-year return on equity was 12.2%, and return on assets was 8.2%.
Plain-English implications
D.R. Horton’s reported earnings and margins were down from the prior year, while the company continued to generate operating cash and return capital to shareholders. The share repurchases reduced its outstanding share count, and the higher quarterly dividend increases its per-share cash payout.