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ARLINGTON - D.R. Horton Inc. (NYSE:DHI), the largest U.S. homebuilder by volume and a prominent player in the Household Durables industry, reported on Tuesday that its third-quarter net income per diluted share decreased 18% to $3.36 compared to $4.10 in the same quarter of fiscal 2024. According to InvestingPro analysis, the company appears undervalued at current levels, with strong financial health metrics and a track record of maintaining dividend payments for 12 consecutive years.
Net income attributable to D.R. Horton in the quarter ended June 30, 2025, fell 24% to $1.0 billion from $1.4 billion a year earlier. Consolidated revenues decreased 7% to $9.2 billion compared to $10.0 billion in the prior-year period. Despite the decline, the company maintains robust profitability with a gross margin of 24.2% and an impressive return on equity of 18%.
The company’s home sales revenues totaled $8.6 billion on 23,160 homes closed during the quarter, down from 24,155 homes closed in the same period last year. Net sales orders remained flat at 23,071 homes compared to 23,001 homes in the prior-year quarter, while order value decreased 3% to $8.4 billion.
D.R. Horton maintained a strong financial position with $5.5 billion in total liquidity, including $2.6 billion in cash and $2.9 billion in available credit facilities. The company’s debt to total capital ratio stood at 23.2% at quarter-end. InvestingPro data shows the company operates with a moderate level of debt and maintains a healthy current ratio of 6.94, indicating liquid assets significantly exceed short-term obligations.
"Our tenured operators continue to respond to market conditions with discipline to drive traffic and incremental sales, while carefully balancing pace versus price to maximize returns," said David Auld, Executive Chairman of D.R. Horton.
The company returned $1.3 billion to shareholders through share repurchases and dividends during the quarter, reducing its outstanding share count by 9% from a year ago.
Looking ahead, D.R. Horton updated its fiscal 2025 guidance, projecting consolidated revenues between $33.7 billion and $34.2 billion, with homes closed in the range of 85,000 to 85,500 units. InvestingPro subscribers have access to 12 additional exclusive insights about D.R. Horton, including detailed analyst forecasts and comprehensive financial health scores. Get the full picture with InvestingPro’s detailed research report, part of their coverage of over 1,400 US stocks.
Based on a company press release, D.R. Horton expects sales incentives to remain elevated and increase further during the fourth quarter, depending on summer demand, mortgage interest rates, and other market conditions.
In other recent news, D.R. Horton has been active with several significant developments. The company announced the pricing of a $500 million public offering of senior notes, set to mature in 2030, with an interest rate of 4.850% per annum. The proceeds from this offering will be used for general corporate purposes. Additionally, D.R. Horton, through its subsidiary DHI Mortgage Company, Ltd., amended its $1.4 billion repurchase facility, extending its term and potentially increasing its commitment to $2.0 billion.
Moreover, D.R. Horton has joined the newly launched NYSE Texas exchange, maintaining its primary listing on the New York Stock Exchange. This move underscores the company’s commitment to Texas, aligning with its significant presence in the state. Oppenheimer maintained a Perform rating on D.R. Horton, citing volume pressure and a challenging demand environment as concerns. Meanwhile, Forestar Group, majority-owned by D.R. Horton, also added a dual listing on NYSE Texas while continuing its NYSE presence. These developments highlight D.R. Horton’s strategic financial and market positioning efforts.
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