Forestar Group Inc. Earnings Recaps
Q1 2026
Jan 20, 2026
Forestar Group Inc. reported robust first-quarter revenue growth of 9% to $273 million, despite a slight decline in net income, showcasing resilience amid challenging market conditions.
Key takeaways
- Net income decreased to $15.4 million, or $0.30 per diluted share, while revenues rose 9% year-over-year.
- Strong contracted backlog of $2.2 billion, indicating stable future revenue generation.
- Liquidity remains solid at $820 million, with disciplined investments: 75% in land development and 25% in acquisitions.
- Average sales price of delivered lots impacted by mix; gross profit margin at 20.1%, adjusted gross margin would be 21.5% excluding low-margin track sale.
- Continued strategic partnership growth with D.R. Horton, aiming for one-third of homes sold to be on Forestar-developed lots.
Q4 2025
Oct 28, 2025
Forestar reported a strong finish to fiscal 2025, achieving $670 million in fourth-quarter revenue and $1.7 billion for the year, signaling resilience amidst a challenging housing market.
Key takeaways
- Fourth-quarter net income rose 7% to $87 million, resulting in a full-year net income of $168 million.
- Revenue increased 22% in the fourth quarter and 10% for the year, exceeding prior guidance, with significant contributions from tract sales.
- Book value per share reached $34.78, an 11% increase year-over-year, reflecting strong underlying asset value.
- Forestar ended the year with $968 million in liquidity and nearly 100,000 lots in inventory, underpinned by a robust investment strategy.
- The company continues to strengthen ties with key customers, particularly D.R. Horton, aiming for significant growth in lot sales through strategic partnerships.