- D.R. Horton (DHI, Financial) reports a 31% decline in net income to $810.4 million in Q2 fiscal 2025.
- Consolidated revenues decreased by 15% to $7.7 billion, and home sales orders dropped 15% to 22,437 homes.
- Introduced a new $5.0 billion share repurchase authorization alongside a quarterly dividend of $0.40 per share.
D.R. Horton, Inc. (DHI), known as America's Builder, announced its fiscal 2025 second-quarter earnings, highlighting a significant reduction in net income and consolidated revenues compared to the previous year. The net income fell by 31% to $810.4 million, or $2.58 per diluted share, compared to $1.2 billion, or $3.52 per diluted share, in the same quarter of fiscal 2024. Consolidated revenues also witnessed a decline of 15%, amounting to $7.7 billion, primarily driven by a decrease in home sales revenue, which totaled $7.2 billion against the closing of 19,276 homes.
The company's net sales orders dropped 15% to 22,437 homes, valued at $8.4 billion. The reduced sales led to a cancellation rate of 16%. The order backlog decreased 21% to 14,164 homes, valued at $5.5 billion, reflecting ongoing challenges within the housing market, including affordability constraints and diminished consumer confidence.
Despite the downturn, D.R. Horton maintained a robust liquidity position with $5.8 billion, including $2.5 billion in cash. During the quarter, the company executed share repurchases amounting to 9.7 million shares for $1.3 billion and disbursed $125.5 million in dividends to shareholders.
The board has authorized a new $5.0 billion share repurchase program, underscoring management's confidence. Moreover, the company declared a quarterly dividend of $0.40 per share as part of its strategy to return value to shareholders amidst challenging market conditions.
Looking ahead, D.R. Horton revised its fiscal 2025 guidance, projecting consolidated revenues between $33.3 billion to $34.8 billion and estimating home closings in the range of 85,000 to 87,000 units. The company continues to adapt to market dynamics by strategically managing sales incentives and maintaining a disciplined approach to capital allocation.
