Q3 2026 Forestar Group Inc Earnings Call Transcript
Key Points
- Forestar Group Inc (FOR) achieved a 4% increase in revenues to $407 million, with 3,659 lots sold in the third quarter.
- Earnings per diluted share rose by 8% to $0.70, and pre-tax income increased by 12% to $48.7 million.
- The company reached a significant milestone by delivering its 100,000th lot since D.R. Horton's investment in 2017.
- Forestar Group Inc (FOR) maintains a strong liquidity position with approximately $1.1 billion, including $395 million in unrestricted cash.
- The company has a contracted backlog with visibility towards $2.3 billion of future revenue, indicating strong future prospects.
- Ongoing affordability constraints and cautious consumer sentiment are impacting the pace of new home sales.
- SG&A expenses increased by 2% to $38.3 million, although as a percentage of revenues, it decreased slightly.
- The company has moderated its land acquisition investments, which could impact future growth opportunities.
- Forestar Group Inc (FOR) faces challenges in reducing cycle times further due to bottlenecks in governing jurisdictions.
- Gross profit margins were at the lower end of the historical range, partly due to a slower absorption environment.
Good morning, and welcome to Forestar's third-quarter 2026 earnings conference call. (Operator Instructions) It is now my pleasure to turn the floor over to your host, Chris Hibbetts, Vice President of Finance and Investor Relations for Forestar.
Thank you, Jenny. Good morning, and welcome to our call to discuss Forestar's third-quarter results. Before we get started, I want to remind everyone that today's call includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Although Forestar believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different.
All forward-looking statements are based upon information available to Forestar on the date of this conference call and we do not undertake any obligation to update or revise any forward-looking statements publicly. Additional information about factors that could lead to material changes in
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