D.R. Horton Q1 Earnings Call Highlights

3 days ago 7

MarketBeat

Tue, January 20, 2026 astatine 9:25 AM CST 9 min read

D.R. Horton logo

D.R. Horton reported Q1 consolidated pre-tax income of $798 cardinal connected $6.9 billion of gross (net income $595 million, EPS $2.03 versus $2.61 a twelvemonth ago) and reiterated fiscal‑2026 targets of astir $33.5–$35.0 billion gross and 86,000–88,000 location closings (Q2 gross usher $7.3–$7.8 billion; location income gross borderline 19%–19.5%).
Management said affordability remains a headwind and the institution accrued purchaser incentives (running high‑single‑digit to low‑double‑digit percentages of sales), which—along with rising batch costs—are expected to unit margins successful Q2 and support incentives elevated done fiscal 2026.
Inventory and onshore strategy stress superior efficiency: 30,400 homes successful inventory (20,000 unsold), a 590,500‑lot presumption (25% owned, 75% controlled), and a penchant for third‑party developed lots; D.R. Horton returned important superior to shareholders, repurchasing 4.4 cardinal shares for $670 million this 4th and $4.4 cardinal implicit the past 12 months, targeting ~20% leverage agelong term.
Interested successful D.R. Horton, Inc.? Here are 5 stocks we similar better.

Here's Who Wins If Trump's 50-Year Mortgages Come to Market

D.R. Horton (NYSE:DHI) executives said the institution delivered a “solid start” to fiscal 2026 portion navigating affordability pressures and cautious user sentiment, pointing to accrued incentives, disciplined inventory management, and continued accent connected superior ratio and shareholder returns.

President and CEO Paul Romanowski said D.R. Horton generated consolidated pre-tax income of $798 cardinal connected $6.9 cardinal successful revenue, for a pre-tax nett borderline of 11.6%. Net income totaled $595 million, and net were $2.03 per diluted share, down from $2.61 successful the prior-year quarter.

→ The Cloud Computing ETF Every Growth Investor Should Consider

These 3 Housing Stocks Are Laying the Foundation for a Comeback

Management repeatedly emphasized that request remains constrained by affordability, but said the institution is responding by balancing “pace, price, and incentives” to thrust income portion maintaining returns. Romanowski added that incentives accrued during the 4th and are expected to stay elevated successful fiscal 2026, with the level babelike connected demand, owe rates, and broader marketplace conditions.

Home income gross successful the 4th was $6.5 cardinal connected 17,818 homes closed, compared with $7.1 cardinal connected 19,059 homes closed a twelvemonth earlier. Chief Operating Officer Mike Murray said the mean closing terms was $365,500, level sequentially and down 3% twelvemonth implicit year.