Q2 2026 DR Horton Inc Earnings Call Transcript
Key Points
- D.R. Horton Inc (DHI) delivered solid second quarter results with consolidated pretax income of $867 million on $7.6 billion of revenues, achieving a pre-tax profit margin of 11.5%.
- Net sales orders increased by 11% year-over-year, with total order value rising by 10% to $9.2 billion, reflecting strong demand.
- The company generated $3.7 billion of cash from operations over the past 12 months and returned $4 billion to shareholders through repurchases and dividends.
- D.R. Horton Inc (DHI) reduced its unsold completed homes by 35% from a year ago, indicating effective inventory management.
- The average number of active selling communities increased by 4% sequentially and 11% year-over-year, supporting growth in sales orders.
- Earnings per diluted share decreased to $2.24 from $2.58 in the prior year quarter, indicating a decline in profitability.
- The average closing price of homes was down 1% sequentially and 3% year-over-year, reflecting pricing pressures.
- Homebuilding SG&A expenses increased by 2% compared to last year, with SG&A as a percentage of revenues rising to 9.2% from 8.9%.
- Sales incentives increased during the second quarter and are expected to remain elevated for the rest of the year, potentially impacting margins.
- The average sales price of net sales orders was down 2% compared to the prior year quarter, indicating challenges in maintaining pricing power.
Good morning, and welcome to the second quarter 2026 earnings conference call for D.R. Horton, America's Builder. (Operator Instructions) Please note, this conference is being recorded. I will now turn the call over to Jessica Hansen, Senior Vice President of Communications for D.R. Horton.
Thank you, Paul, and good morning. Welcome to our call to discuss our financial results for the second quarter of fiscal 2026. Before we get started, today's call includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995.
Although D.R. Horton 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 D.R. Horton on the date of this conference call, and D.R. Horton does not undertake any obligation to publicly update or revise any forward-looking statements.
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