Forestar Group Q1 Earnings Call Highlights

3 days ago 6

MarketBeat

Tue, January 20, 2026 astatine 11:03 AM CST 8 min read

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Q1 results and guidance: Revenue roseate 9% to $273 cardinal but nett income dipped to $15.4 cardinal arsenic margins softened (pre-tax borderline 7.6%, gross borderline 20.1%); absorption is maintaining fiscal 2026 guidance of $1.6–$1.7 cardinal successful gross and 14,000–15,000 batch deliveries portion expecting margins toward the little extremity of the 21%–23% humanities range.
Lot presumption and lawsuit concentration: Forestar holds a 101,000-lot presumption (65% owned) including 10,400 finished owned tons and 24,100 owned tons nether declaration backed by $210 cardinal of deposits (≈$2.2 cardinal aboriginal revenue), and sees important upside with D.R. Horton—its largest customer—with a extremity for 1 successful 3 D.R. Horton homes to beryllium connected Forestar tons portion besides expanding different builder relationships.
Investment pace, liquidity and marketplace focus: The institution invested $415 cardinal successful the 4th and inactive plans astir $1.4 cardinal for fiscal 2026, ending Q1 with astir $820 cardinal of liquidity and a nett debt-to-capital ratio of 24.6%, portion moderating improvement successful inventory-heavy Texas and Florida and prioritizing entry-level tons amid affordability headwinds.
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Forestar Group (NYSE:FOR) reported first-quarter fiscal 2026 gross maturation and said it is maintaining its full-year guidance arsenic the institution balances a disciplined concern gait with what absorption described arsenic affordability-driven headwinds for caller location demand.

President and CEO Andy Oxley said the institution delivered “a coagulated archetypal quarter,” generating gross of $273 million, up 9% from the prior-year quarter, connected 1,944 tons sold. Net income was $15.4 million, oregon $0.30 per diluted share, compared with $16.5 million, oregon $0.32 per diluted share, a twelvemonth earlier. Pre-tax income was $20.8 cardinal versus $21.9 cardinal successful the prior-year quarter, and pre-tax borderline was 7.6% compared with 8.7%.

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Chief Financial Officer Jim Allen said Forestar’s gross nett borderline was 20.1% versus 22.0% successful the aforesaid 4th past year. He attributed portion of the diminution to a tract merchantability with an “unusually debased margin.” Excluding that tract sale, Allen said gross borderline would person been astir 21.5%.

During the Q&A, absorption pointed to premix arsenic the superior operator of quarterly borderline variability. The institution said tons delivered successful the 4th carried little margins owed to task mix, and it expects gross margins to stay wrong its humanities scope of astir 21% to 23%, “probably astatine the little extremity of that range” arsenic it balances terms and gait successful a slower request environment.