Q2 2026 Forestar Group Inc Earnings Call Transcript
Key Points
- Forestar Group Inc (FOR) achieved a 7% increase in revenues to $374.3 million compared to the prior-year quarter.
- Pre-tax income rose by 8% to $43.9 million, indicating improved profitability.
- The company ended the quarter with more than $1 billion in liquidity, showcasing strong financial health.
- Forestar's book value per share increased by 10% from a year ago, reaching $35.66.
- The company maintains a strong contracted backlog with visibility towards $2.2 billion of future revenue.
- Persistent affordability constraints and cautious consumer sentiment are impacting the pace of new home sales.
- Gross profit margin decreased to 21.4% from 22.6% in the same quarter last year.
- Land option charges increased significantly to $6.3 million compared to $900,000 in the prior-year quarter.
- Sales to builders other than D.R. Horton were down close to 50% year-over-year.
- Forestar's gross margins could be impacted by rising fuel prices, although no immediate cost increases have been observed.
Good morning, and welcome to Forestar's second-quarter 2026 earnings conference call. (Operator Instructions)
I will now turn the call over to Chris Hibbetts, Vice President of Finance and Investor Relations for Forestar.
Thank you, Paul. Good morning, and welcome to our call to discuss Forestar's second-quarter results. Before we get started, I want to remind everyone that today's call includes forward-looking statements as defined by the Private Security 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 performance is contained,
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