olivLaw · US equity research
D.R. Horton, Inc. DHI
Operative Builders · SIC 1531 · Vertical: Operative Builders (SIC 1531)
D.R. Horton is the largest homebuilder in the United States by homes closed, operating in 126 markets across 36 states. In fiscal 2026 the company is working through demand shaped by affordability constraints and cautious consumer sentiment, with margins under pressure from sales incentives, which makes the path of mortgage rates and financing costs central to its results.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, D.R. Horton, Inc. (DHI) stock was 156.99 USD (+8.10% on the day), with market capitalisation 43.9 bn USD, P/E 14.9 on diluted EPS of 10.51 USD over the last 12 months, dividend yield 1.11%, beta 0.63, 52-week range 132.53–167.78 USD. Latest reported quarter (Q3 2026): revenue of 9.2 bn USD (+0.0% YoY), net income of 904.9 m USD (−11.7% YoY), diluted EPS 3.20 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 64.0
- strong (55–70)
- Bollinger (20, 2)
- 129.47 – 155.22
- above the upper band · %B 1.07 · band width 18.1%
- SMA 50 / 200
- 140.95 / 147.51
- mixed trend
- MACD (12, 26, 9)
- 3.14 / 1.77
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +17.8% | −1.1% | +18.9 pp | — |
| 3 months | +3.7% | −0.5% | +4.1 pp | — |
| 6 months | +5.2% | +4.4% | +0.9 pp | — |
| Year to date | +9.0% | +12.3% | −3.3 pp | — |
| 1 year | +7.8% | +13.5% | −5.7 pp | −12.9% |
| 3 years | +32.1% | +76.4% | −44.3 pp | +3.7% |
| 5 years | +69.7% | +63.7% | +6.0 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 10.0 bn | 7.6 bn | 7.7 bn | 9.2 bn | 9.7 bn | 6.9 bn | 7.6 bn | 9.2 bn |
| Cost of revenue | 7.4 bn | 5.7 bn | 5.8 bn | 7.0 bn | 7.6 bn | 5.3 bn | 5.9 bn | 7.1 bn |
| SG&A | 960.3 m | 878.1 m | 898.7 m | 944.3 m | 970.9 m | 865.1 m | 903.3 m | 991.2 m |
| Depreciation & amortisation | 23.6 m | 24.1 m | 24.6 m ≈ | 25.2 m ≈ | 27.4 m | 27.7 m | 28.1 m ≈ | 29.0 m ≈ |
| Pre-tax income | 1.7 bn | 1.1 bn | 1.1 bn | 1.4 bn | 1.2 bn | 798.1 m | 867.4 m | 1.2 bn |
| Income tax | 409.9 m | 258.0 m | 248.0 m | 325.0 m | 288.0 m | 196.7 m | 209.4 m | 307.5 m |
| Net income | 1.3 bn | 844.9 m | 810.4 m | 1.0 bn | 905.3 m | 594.8 m | 647.9 m | 904.9 m |
| Diluted EPS | 3.92 ≈ | 2.61 | 2.58 | 3.36 | 3.04 ≈ | 2.03 | 2.24 | 3.20 |
| Operating cash flow | 2.0 bn | 646.7 m | -436.2 m ≈ | 738.6 m ≈ | 2.5 bn | 854.0 m | -412.5 m ≈ | 439.3 m ≈ |
| Capex | 32.0 m | 13.3 m | 34.3 m ≈ | 46.0 m ≈ | 43.8 m | 27.4 m | 37.2 m ≈ | 42.0 m ≈ |
| Dividends paid | 97.7 m | 128.5 m | 125.5 m ≈ | 122.4 m ≈ | 118.4 m | 131.5 m | 129.7 m ≈ | 127.1 m ≈ |
| Share repurchases | 400.0 m | 1.1 bn | 1.5 bn ≈ | 1.0 bn ≈ | 700.0 m | 669.7 m | 930.3 m ≈ | 600.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 93 percentile of its own 43-quarter history (min 4.1, median 10.9, max 19.1; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 16.1 bn | 17.6 bn | 20.3 bn | 27.8 bn | 33.5 bn | 35.5 bn | 36.8 bn | 34.3 bn |
| Revenue YoY | +14.0% | +9.5% | +15.5% | +36.7% | +20.5% | +5.9% | +3.8% | −6.9% |
| Net income | 1.5 bn | 1.6 bn | 2.4 bn | 4.2 bn | 5.9 bn | 4.7 bn | 4.8 bn | 3.6 bn |
| Net income YoY | +40.6% | +10.8% | +46.7% | +75.9% | +40.3% | −19.0% | +0.2% | −24.6% |
| Diluted EPS | 3.81 | 4.29 | 6.41 | 11.41 | 16.51 | 13.82 | 14.34 | 11.57 |
| Diluted EPS YoY | +39.1% | +12.6% | +49.4% | +78.0% | +44.7% | −16.3% | +3.8% | −19.3% |
| net % | 9.1% | 9.2% | 11.7% | 15.0% | 17.5% | 13.4% | 12.9% | 10.5% |
| Free cash flow | 477.1 m | 764.9 m | 1.3 bn | 440.9 m | 413.6 m | 4.2 bn | 2.0 bn | 3.3 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 30 Sept 2025
- Cash
- 3.0 bn USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 24.7 bn USD
- Total assets
- 35.5 bn USD
- Debt / equity
- unavailable
- Current ratio
- unavailable
- ROE
- 14.2%
- ROA
- 10.0%
- FCF margin
- 9.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 20.3 bn | 27.8 bn | 33.5 bn | 35.5 bn | 36.8 bn | 34.3 bn | SEC (XBRL)· 19 Nov 2025verified |
| Cost of revenue | 15.4 bn | 19.9 bn | 23.0 bn | 26.1 bn | 27.3 bn | 26.1 bn | SEC (XBRL)· 19 Nov 2025verified |
| Gross profit | 4.9 bn ≈ | 7.9 bn ≈ | 10.5 bn ≈ | 9.4 bn ≈ | 9.5 bn ≈ | 8.1 bn ≈ | SEC (XBRL)· 19 Nov 2025derived |
| SG&A | 2.0 bn | 2.6 bn | 2.9 bn | 3.2 bn | 3.6 bn | 3.7 bn | SEC (XBRL)· 19 Nov 2025verified |
| Depreciation & amortisation | 90.6 m | 82.1 m | 81.4 m | 91.6 m | 87.1 m | 101.3 m | SEC (XBRL)· 19 Nov 2025verified |
| Pre-tax income | 3.0 bn | 5.4 bn | 7.6 bn | 6.3 bn | 6.3 bn | 4.7 bn | SEC (XBRL)· 19 Nov 2025verified |
| Income tax | 602.5 m | 1.2 bn | 1.7 bn | 1.5 bn | 1.5 bn | 1.1 bn | SEC (XBRL)· 19 Nov 2025verified |
| Net income | 2.4 bn | 4.2 bn | 5.9 bn | 4.7 bn | 4.8 bn | 3.6 bn | SEC (XBRL)· 19 Nov 2025verified |
| Diluted EPS | 6.41 | 11.41 | 16.51 | 13.82 | 14.34 | 11.57 | SEC (XBRL)· 19 Nov 2025verified |
| Weighted average diluted shares | 370.2 m | 365.8 m | 354.8 m | 343.3 m | 331.6 m | 309.9 m | SEC (XBRL)· 19 Nov 2025verified |
| Dividend per share | 0.70 | 0.80 | 0.90 | 1.00 | 1.20 | 1.60 | SEC (XBRL)· 19 Nov 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 3.0 bn | 3.2 bn | 2.5 bn | 3.9 bn | 4.5 bn | 3.0 bn | SEC (XBRL)· 19 Nov 2025verified |
| Property, plant & equipment, net | 683.7 m | 392.9 m | 471.6 m | 445.4 m | 531.0 m | 578.9 m | SEC (XBRL)· 19 Nov 2025verified |
| Goodwill | 163.5 m | 163.5 m | 163.5 m | 163.5 m | 163.5 m | 163.5 m | SEC (XBRL)· 19 Nov 2025verified |
| Total assets | 18.9 bn | 24.0 bn | 30.4 bn | 32.6 bn | 36.1 bn | 35.5 bn | SEC (XBRL)· 19 Nov 2025verified |
| Total liabilities | 6.8 bn | 8.8 bn | 10.6 bn | 9.4 bn | 10.3 bn | 10.7 bn | SEC (XBRL)· 19 Nov 2025verified |
| Equity | 12.1 bn | 15.2 bn | 19.8 bn | 23.1 bn | 25.8 bn | 24.7 bn | SEC (XBRL)· 19 Nov 2025verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 1.4 bn | 534.4 m | 561.8 m | 4.3 bn | 2.2 bn | 3.4 bn | SEC (XBRL)· 19 Nov 2025verified |
| Capex | 96.5 m | 93.5 m | 148.2 m | 148.6 m | 165.3 m | 137.4 m | SEC (XBRL)· 19 Nov 2025verified |
| Free cash flow | 1.3 bn ≈ | 440.9 m ≈ | 413.6 m ≈ | 4.2 bn ≈ | 2.0 bn ≈ | 3.3 bn ≈ | SEC (XBRL)· 19 Nov 2025derived |
| Investing cash flow | -166.1 m | -252.2 m | -414.9 m | -310.2 m | -190.6 m | -168.7 m | SEC (XBRL)· 19 Nov 2025verified |
| Financing cash flow | 270.6 m | -85.1 m | -811.2 m | -2.7 bn | -1.4 bn | -4.8 bn | SEC (XBRL)· 19 Nov 2025verified |
| Dividends paid | 256.0 m | 289.3 m | 316.5 m | 341.2 m | 395.2 m | 494.8 m | SEC (XBRL)· 19 Nov 2025verified |
| Share repurchases | 360.4 m | 874.0 m | 1.1 bn | 1.2 bn | 1.8 bn | 4.3 bn | SEC (XBRL)· 19 Nov 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
- score weight coverage: 58.3% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 43.9 bn USD
Key indicators
Coverage and freshness
Score by group
58% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 139.74 – 169.94 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E139.74 – 169.94 (Mid 158.43)12 companies used · median multiple 15.1x · quartiles 13.3x – 16.2xCCS, DFH, ECG, GRBK, KBH, LGIH, MHO, MTH, NVR, PHM, SDHC, TOL
- Dividend discount (DDM)outside the aggregate21.03 – 28.28 (Mid 24.12)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 58.3% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 9.2% | 73 (vs peers) | 11% |
| FCF conversion · Quality | 104.9% | 100 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | 0.8% | 6 (on a fixed band) | 14% |
| EPS CAGR 3Y · Growth | -11.2% | 0 (on a fixed band) | 14% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | unavailable | unavailable | — |
| P/E (TTM) · Valuation | 14.9x | 54 (vs peers) | 18% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 7.3% | 91 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | 7.8% | 100 (on a fixed band) | 11% |
| Payout ratio (FCF) · Returns | 15.8% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partialunavailable · 0/3 factors with a value
- Growth3/100 · 2/2 factors with a value
- Quality87/100 · 2/3 factors with a value
- Returns100/100 · 2/2 factors with a value
- Valuation70/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
D.R. Horton, Inc. (DHI). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 34.3 bn USD in 2025; YoY growth -6.9%; net margin 9.2%; ROE 12.8%.
The estimated value range is 139.74–169.94 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 158.43 USD, the price of 156.99 USD leaves a potential of 0.9% (value / price − 1) and a margin of safety of 0.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 58.3% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 9.2%
- FCF conversion: 104.9%
- FCF yield: 7.3%
- Shareholder yield (distributions): 7.8%
- Payout ratio (FCF): 15.8%
What contradicts it
- Revenue CAGR 3Y: 0.8%
- EPS CAGR 3Y: -11.2%
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, Current ratio, EV/EBITDA.
Versus the vertical median
Operative Builders (SIC 1531) · same industry (4-digit SIC) · compared with 16 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| DHID.R. Horton, Inc. | 43.9 bn | 14.9 | 12.8% | 9.2% | −6.9% | +8% / +32% |
| PHMPultegroup, Inc. | 25.0 bn | 14.5 | 13.9% | 11.2% | −3.5% | +7% / +54% |
| NVRNVR, Inc. | 16.9 bn | 17.6 | 28.3% | 11.2% | −1.9% | −15% / +4% |
| TOLToll Brothers, Inc. | 14.6 bn | 12.7 | 14.4% | 11.1% | +1.1% | +13% / +85% |
| MTHMeritage Homes Corporation | 4.7 bn | 16.5 | 5.8% | — | unavailable | +0% / +4% |
| ECGEverus Construction Group, Inc. | 4.1 bn | 16.0 | 39.5% | 6.0% | +31.5% | −13% / unavailable |
| MHOM/i Homes, Inc. | 3.5 bn | 13.1 | 8.7% | 6.6% | −1.9% | +0% / +31% |
| KBHKb Home | 3.2 bn | 14.9 | 5.9% | 4.4% | −10.0% | −17% / +2% |
| GRBKGreen Brick Partners, Inc. | 2.8 bn | 10.7 | 14.3% | 14.2% | −1.0% | −2% / +40% |
| CCSCentury Communities, Inc. | 1.6 bn | 15.2 | 4.2% | 2.9% | −6.4% | −12% / −21% |
| LGIHLgi Homes, Inc. | 1.1 bn | 16.0 | 3.4% | 4.2% | −22.6% | −6% / −59% |
| BZHBeazer Homes USA Inc | 893.2 m | — | -0.7% | -0.4% | +1.8% | +49% / +38% |
| HOVHovnanian Enterprises Inc | 79.6 m | 81.2 | 2.2% | 0.6% | −0.9% | −16% / +22% |
| LRELead Real Estate Co., Ltd | — | — | 12.2% | 3.5% | −3.5% | −14% / −84% |
| LGPSLogprostyle Inc. | — | — | 19.7% | 3.4% | +7.6% | −43% / unavailable |
| DFHDream Finders Homes, Inc. | — | 13.3 | 7.6% | 2.6% | −2.9% | −35% / −47% |
| SDHCSmith Douglas Homes Corp. | — | 18.0 | 6.0% | 0.5% | −0.4% | −50% / unavailable |
1- and 3-year price returns: for DHI from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 92.72 Total return -40% · Per year -40% | 164.22 Total return 6% · Per year 6% | 247.78 Total return 59% · Per year 59% |
| 3 years | 83.35 Total return -44% · Per year -18% | 166.73 Total return 10% · Per year 3% | 277.16 Total return 81% · Per year 22% |
| 5 years | 74.93 Total return -48% · Per year -12% | 169.28 Total return 14% · Per year 3% | 310.01 Total return 105% · Per year 15% |
- Exit P/E± 41.68
- Net margin± 29.18
- Annual revenue growth± 24.84
- Annual dilution± 2.45
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 23 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results).
In brief
D.R. Horton is the largest homebuilder in the United States by homes closed, operating in 126 markets across 36 states. In fiscal 2026 the company is working through demand shaped by affordability constraints and cautious consumer sentiment, with margins under pressure from sales incentives, which makes the path of mortgage rates and financing costs central to its results.
SWOT
Strengths
- Position as the largest U.S. homebuilder, presence in many markets and a solid, liquid balance sheet give the company flexibility to pass through periods of weak demand.
- Control of a large part of the land position through contracts and access to lots developed by Forestar reduce capital tied up and land-ownership risk.
- Decentralized operations led by experienced local teams allow prices, sales pace and inventory to be adjusted quickly to demand in each market.
Weaknesses
- Sales margins fell significantly due to incentives and lower average prices, and pre-tax profit declined considerably from earlier years.
- Dependence on mortgage financing conditions and on loans backed by federal agencies makes the business sensitive to government policy and interest rates.
- The cancellation rate rose in the third quarter, indicating that some buyers are not honoring contracts under current market conditions.
Opportunities
- If mortgage rates stabilize or fall, housing affordability could improve and support a recovery in volumes and margins.
- Share repurchases and dividend payments can support per-share value if profitability improves later.
- Expanding rental activity and lot development through Forestar could diversify revenue beyond direct home sales.
Threats
- Sustained high mortgage rates could further tighten affordability and prolong costly incentive programs.
- A change in Fannie Mae, Freddie Mac or FHA policies could affect the availability of financing for buyers.
- An economic slowdown or rising unemployment could reduce demand and increase inventory write-down and cancellation risk.
Risks
- Sensitivity to mortgage rateshigh
Rising or persistently high mortgage rates reduce the number of eligible buyers and may force further price cuts, compressing margins.
- Margin pressurehigh
High incentives and lower average selling prices have reduced the home sales gross margin, and this pressure could continue if demand remains weak.
- Reliance on government financingmedium
The company sells most mortgage loans to government-backed entities, and changes to these programs could reduce buyers' access to financing.
- Order cancellationsmedium
The cancellation rate rose in the third quarter, which can affect revenue predictability and create extra costs on unsold inventory.
- Demand sensitive to the economymedium
An economic slowdown, job losses or lower consumer confidence could reduce sales and lead to inventory and asset write-downs.
Investment thesis
What would need to be true (bull case)
- The company keeps its position as the largest U.S. homebuilder, with a solid balance sheet, strong liquidity and a decentralized model that allows fast reactions to market changes.
- Higher lot control through purchase contracts and strong inventory returns suggest capital efficiency that could support profitability if demand recovers.
- The share repurchase program and steady dividend payments show a commitment to returning capital to shareholders, which can support per-share value.
What would break the thesis
- Profitability has declined considerably in recent years, and sales margins under incentive pressure could stay weak if mortgage rates do not ease.
- A higher cancellation rate and large unsold home inventories could indicate that real demand is weaker than estimated.
- Dependence on government financing programs and macroeconomic conditions makes results hard to predict and exposed to policy shocks.
What to watch
- Fourth-quarter and full-year fiscal 2026 results and fiscal 2027 guidanceQ4 2026
- Trend in home sales gross margin and sales incentive levels, especially relative to mortgage ratesQ4 2026
- Cancellation rate and the level of unsold and completed homes in inventorynext 10-K
- Changes to Fannie Mae, Freddie Mac, FHA and VA programs affecting buyer financing2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 23 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results).
The business
The core segment is building and selling homes, which generated 92% of consolidated revenues in fiscal 2025 1, with an average closing price of $370,400. The company also runs rental operations (single-family and multi-family), holds 62% of Forestar Group, a residential lot developer, and offers financial services through DHI Mortgage and its title companies. The model relies on decentralized local divisions with central control of land purchases, financing and capital 1.
The operating structure is decentralized: each of the 92 homebuilding divisions manages site selection, subcontractors and pricing locally, while regional and corporate offices oversee budgets, land acquisition and capital 1. Construction is almost entirely subcontracted, and the company keeps tight control over costs and inventory.
Segments
Homebuilding
The homebuilding segment generated $34.3 billion of consolidated revenues in fiscal 2025, mostly from completed home sales 1. In the third quarter of fiscal 2026, home sales revenue rose 1% and the home sales gross margin was 20.7% 23.
Rental and Forestar
The rental segment (single-family and multi-family) and the majority stake in Forestar, which sells lots largely to the parent, support the land-control strategy. Forestar sold 14,240 lots in fiscal 2025, 83% of them to D.R. Horton 1.
Financial services
Financial services, through DHI Mortgage and title companies, generated $841.2 million of revenue in fiscal 2025 and originated or brokered loans for the company's buyers 1. The segment remains closely tied to the volume of new home construction.
Market context
The U.S. housing market is shaped by mortgage affordability and consumer confidence, which stayed cautious in fiscal 2025 and in the third quarter of fiscal 2026 12. The company notes that higher mortgage rates reduce the pool of eligible buyers and that sales incentives and rate buydowns remain elevated 13.
Government rules, FHA, VA and USDA programs, and Fannie Mae and Freddie Mac policies directly shape buyers' access to financing 1. In fiscal 2025, about 71% of the company's mortgage loans were sold directly to Fannie Mae, Freddie Mac or into Ginnie Mae-backed securities 1.
Trends
- Elevated mortgage ratesheadwind
Higher mortgage rates have reduced affordability and forced the company to use price reductions and incentives, which could compress margins if rates stay high 12.
- Sales incentivesmixed
The company has kept incentives high, including rate buydowns, and expects them to stay elevated through the rest of fiscal 2026 and into fiscal 2027; this supports sales but weighs on gross margin 23.
- Lots under purchase contractstailwind
The share of owned and controlled lots held under purchase contracts rose to 78% at June 30, 2026, which lowers land-ownership risk and supports capital efficiency 2.
- Share repurchasestailwind
The company has reduced shares outstanding and returned capital through buybacks and dividends, which can support per-share returns if profitability stabilizes 3.
Competitive position
The company presents itself as the largest homebuilder by volume in the United States since 2002, which gives it scale advantages in capital cost and in materials and labor purchasing 1. Local competition is intense, and pricing, market selection and incentives are adjusted to demand in each area 1.
Its advantages lie in broad geographic reach, a solid balance sheet and land control, which let it adjust pace and inventory quickly 13. If some markets weaken faster than others, smaller competitors with more concentrated exposure could react differently 1.
- Lennar CorporationLEN
Large-scale homebuilder competing in similar markets; named here in the general context of homebuilding competition, while the sources do not detail direct comparisons.
- PulteGroupPHM
Nationwide homebuilder active in markets comparable to the company's, cited as part of the general competitive landscape.
- NVRNVR
Homebuilder with regional operations that competes for the same U.S. homebuyer segments.
- Toll BrothersTOL
Homebuilder focused on premium segments that indirectly competes for upper-middle-class buyers.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Incentivizing Self-Protection From Wildfires -- by Patrick Baylis, Judson Boomhower, Bob Horton, Chris MulverhillNBER — New Working Papers · 21 Sept 2026 · EN
- D.R. Horton Stock: Is DHI Underperforming the Consumer Cyclical Sector?Yahoo Finance — News · 08 Sept 2026 · EN
The latest news item in our archive is from 21 Sept 2026; the newest SEC filing is from 29 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report29 Oct 2026Results of operations · Financial statements and exhibits
- Current report26 Oct 2026Departure or appointment of officers
- Current report15 Sept 2026Other events
- Quarterly report23 Jul 2026
- Current report21 Jul 2026Results of operations · Financial statements and exhibits
- Current report12 May 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Quarterly report23 Apr 2026
- Current report21 Apr 2026Results of operations · Financial statements and exhibits
- Current report31 Mar 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Quarterly report22 Jan 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-09-30 · SEC / D.R. Horton, Inc. · 19 Nov 2025
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / D.R. Horton, Inc. · 23 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / D.R. Horton, Inc. · 21 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.