D.R. Horton, Inc. Q1 2026 Earnings Recap

D.R. Horton reported a solid start to fiscal 2026 with $798 million in pretax income and improved operational efficiency, although challenges in new home demand persist. The company exceeded revenue and closing expectations, with strategic adjustments leading to a 3% increase in net sales orders year-over-year.

Key Takeaways

• Consolidated revenues reached $6.9 billion with a pretax profit margin of 11.6%.
• Net sales orders totaled 18,300 homes, marking a 3% increase from the prior year, despite an 18% cancellation rate.
• Earnings per diluted share decreased to $2.03 versus $2.61 in the previous year, reflecting market pressures.
• Cash generated from operations amounted to $3.6 billion in the past twelve months, with $4.4 billion returned to shareholders.
• Homebuilder SG&A expenses as a percentage of revenue rose to 9.7%, highlighting the impact of lower closing volumes.