DR Horton profits drop 30% on housing slump.


Profits at American housebuilder DR Horton tanked in its fiscal first quarter as weak consumer confidence and affordability issues weighed heavily on the housing market, though the company was still able to beat its own construction and revenue targets.

  • D. R. Horton Inc.
  • 20 January 2026 13:26:12

Source: Sharecast

The company, which has been the largest home construction company in the US for the past two decades, reported net income of just $594.8m over the three months to 31 December, down 30% from the year before, while diluted earnings per share slumped 22% to $2.03.

Revenues declined to $6.89bn from $7.61bn the year before, with the number of homes closed falling to 17,818 from 19,059.

However, despite the year-on-year declines, revenues and EPS still comfortably beat the consensus forecasts at $1.93 and $6.59bn, respectively.

Executive chair David Auld labelled it a "solid first quarter". He said: "We exceeded the high end of our closings and revenue guidance and leveraged our strong financial position and cash flow generation to return $801.2m to shareholders through share repurchases and dividends during the quarter."

Looking ahead, Auld said that sales incentives are likely to "remain elevated" over the current financial year, though will depend on market conditions and changes to mortgage rates.

“Our strong liquidity, low leverage, experienced operators and national scale provide us with significant financial and operational flexibility. We are well-positioned with our affordable product offerings and flexible lot supply to continue delivering value to our homebuyers and meet market demand," Auld said.

DR Horton futures were trading 2.2% higher at $159.40 in pre-market trade on Tuesday.


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