Q1 2026 DR Horton Inc Earnings Call Transcript
Key Points
- D.R. Horton Inc (DHI) reported consolidated pretax income of $798 million on $6.9 billion of revenues, exceeding the high end of their revenue and closings guidance.
- Net sales orders increased by 3% compared to the prior year quarter, demonstrating effective balance of pace, price, and incentives.
- The company generated $3.6 billion of cash from operations over the past 12 months and returned $4.4 billion to shareholders through repurchases and dividends.
- D.R. Horton Inc (DHI) achieved a home sales gross margin of 20.4%, up 40 basis points sequentially due to a recovery of prior-period warranty costs.
- The company maintained a strong balance sheet with low leverage and healthy liquidity, providing significant financial flexibility to adapt to changing market conditions.
- Earnings per diluted share decreased to $2.03 from $2.61 in the prior year quarter.
- Home sales revenues were down to $6.5 billion on 17,818 homes closed, compared to $7.1 billion on 19,059 homes closed in the prior year quarter.
- The average closing price for the quarter was $365,500, flat sequentially and down 3% year-over-year.
- Homebuilding SG&A expenses as a percentage of revenues increased to 9.7% from 8.9% in the prior year quarter, primarily due to lower home closings volume.
- The company expects home sales gross margin to be lower in the second quarter compared to the first quarter, with incentives remaining elevated in fiscal 2026.
Good morning, and welcome to the first quarter 2026 earnings conference call for D.R. Horton, America's Builder. (Operator Instructions) Please note that this conference is being recorded.
I will now turn the call over to Jessica Hansen, Senior Vice President of Communications for D.R. Horton.
Jessica, please go ahead.
Thank you. Sorry. It would help if I took myself off mute. Thank you, Paul, and good morning. Welcome to our call to discuss our financial results for the first 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
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