Q3 2026 D.R. Horton Inc Earnings Call Transcript
Key Points
- D.R. Horton Inc (DHI) reported solid third-quarter earnings with earnings per diluted share of $3.20 and consolidated pretax income of $1.2 billion.
- The company closed 23,983 homes during the quarter, reaching the high end of their guidance range, and achieved a home sales gross margin of 20.7%.
- D.R. Horton Inc (DHI) generated $3.4 billion of cash from operations over the past 12 months, returning all of it to shareholders through repurchases and dividends.
- The company's return on assets ranks in the top 20% of all S&P 500 companies for the past three-, five-, and ten-year periods.
- 65% of the mortgage company's closings this quarter were to first-time homebuyers, highlighting their focus on affordability.
- Earnings per diluted share decreased from $3.36 in the prior year quarter to $3.20 in the current quarter.
- The average closing price was flat sequentially and down 2% year-over-year, reflecting affordability constraints.
- The cancellation rate for the quarter increased to 20%, up from 17% in the prior year period.
- Homebuilding SG&A expenses increased by 8% compared to last year, with SG&A as a percentage of revenues rising to 8.3%.
- Affordability constraints and cautious consumer sentiment continued to impact new home demand.
Good morning, and welcome to the third-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 third 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. Additional information about
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