Texas’ largest homebuilder has crushed analyst expectations with impressive earnings in the quarter ending Dec. 31.
D.R. Horton reported $7.61 billion in revenue in the quarter, exceeding the $7.08 billion forecast by analysts, Reuters reported.
Despite a slight decline in home sales, with 19,059 homes sold compared to 19,340 a year earlier, D.R. Horton benefited from strategies like mortgage rate buydowns — temporary or permanent interest rate reductions on home loans.
Such measures helped address affordability concerns amid high interest rates.
However, the company warned that incentive costs are expected to rise in the coming months, and its home sales gross margin may decrease this quarter.
D.R. Horton posted a gross margin of 22.7 percent, slightly below last year’s 22.9 percent. COO Michael Murray expressed hope that future initiatives could help improve affordability despite ongoing challenges, including competitive market conditions and potential impacts from tariff and immigration policies under the Trump administration.
Executive Chairman David Auld acknowledged that while affordability remains a challenge, the company’s efforts to reduce costs and spur demand through incentives are proving effective in the current market environment. As the nation’s largest homebuilder by revenue, the company owes much of its Texas-sized success to its activity around the state.
D.R. Horton is involved in several major projects across the state, including the development of 580 lots in Dallas’ University Hills. The company is also involved in the Alpha Ranch community north of Fort Worth, which is slated to include over 4,000 homes
In Houston, D.R. Horton has a strong presence with developments like Tamarron in Katy and Breckenridge Forest in Spring, both ranking among the top-selling master-planned communities in the area.
Additionally, D.R. Horton is among a group of builders set to develop housing units within Starwood Land’s 4,000-home community in northwest Houston. Prices for those homes are expected to range from $300,000 to $600,000.
— Andrew Terrell
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