D.R. Horton prices $500 million senior notes due 2030

ARLINGTON, Texas - D.R. Horton, Inc. (NYSE:DHI), a major home construction company in the United States with a market capitalization of $38.5 billion, has announced the pricing of a $500 million public offering of senior notes with an interest rate of 4.850% per annum. The notes are scheduled to mature on October 15, 2030, with interest payments to be made semi-annually. The closing of the offering is anticipated on May 5, 2025, subject to customary closing conditions. According to InvestingPro analysis, the company currently appears undervalued based on its Fair Value calculations.

The company stated that the net proceeds from the offering will be used for general corporate purposes. This move is part of D.R. Horton’s broader strategy to manage its capital and support its operations and growth. The company maintains a healthy financial position with a moderate debt level, as indicated by its total debt to capital ratio of 0.15 and strong liquidity with a current ratio of 6.94. InvestingPro data reveals 14 additional key metrics and insights about D.R. Horton’s financial health, available through their comprehensive Pro Research Report.

Several financial institutions are involved in managing the transaction, including Mizuho Securities USA LLC, U.S. Bancorp Investments, Inc., and Wells Fargo Securities, LLC, amongst others, serving as Joint Book-Running Managers.

The offering is made through a prospectus supplement and the accompanying prospectus, as part of a registration statement filed with the United States Securities and Exchange Commission (SEC). Interested parties can access these documents free of charge on the SEC’s website or by contacting the respective managing financial institutions.

D.R. Horton has cautioned that this press release may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, and there is no guarantee that the actual events will meet the company’s expectations. Factors that could cause actual results to differ materially include changes in the economic landscape, the housing market, and capital market conditions. Recent InvestingPro analysis indicates that analysts anticipate a sales decline in the current year, with 14 analysts revising their earnings expectations downward for the upcoming period. The company generated revenue of $35.3 billion in the last twelve months, maintaining its position as a prominent player in the Household Durables industry.

The offering of the senior notes is strictly by means of the prospectus supplement and accompanying prospectus, and it will not constitute an offer to sell or a solicitation of an offer to buy in any state where such an offer, solicitation, or sale would be unlawful.

This news is based on a press release statement from D.R. Horton, Inc., and it reflects the company’s current plans for its capital management and financing strategy.

In other recent news, D.R. Horton reported its earnings for the second quarter of 2025, revealing a mixed financial performance. The company posted earnings per share (EPS) of $2.58, which fell short of the anticipated $2.67. However, revenue exceeded expectations, reaching $8.36 billion compared to the forecasted $8.15 billion. Despite the EPS miss, the company provided optimistic guidance for the third quarter, with expected revenues between $8.4 and $8.9 billion. Analyst firms RBC Capital and Citizens JMP adjusted their price targets for D.R. Horton, with RBC Capital reducing its target to $105 and maintaining an Underperform rating, while Citizens JMP lowered its target to $180 but retained a Market Outperform rating. Both firms cited concerns about the company’s order shortfalls and challenging market conditions. D.R. Horton faces various risks, including affordability issues and tariff impacts, which could affect its performance in the coming quarters. Despite these challenges, the company remains confident in its strategic adjustments and market presence.

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