DR Horton Inc
XMUN:HO2
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DR Horton Inc
In the labyrinth of the American housing market, D.R. Horton Inc. stands as a formidable architect of suburban dreams, weaving the aspirations of countless families into tangible realities. Founded in 1978 by Donald R. Horton in the fertile grounds of Fort Worth, Texas, the company has etched its name as a cornerstone in homebuilding, capitalizing on the burgeoning demand for residential spaces across America. D.R. Horton’s journey is characterized by its acute ability to deliver quality homes without losing sight of affordability, serving a diverse clientele that spans from entry-level buyers to luxury seekers. This strategic approach is anchored in its robust land acquisition and development prowess, allowing the company to position itself optimally across various markets and economic cycles.
As the largest homebuilder by volume in the United States, D.R. Horton skillfully navigates the intricate dance of supply and demand, scaling its operations and adjusting its product mix with the ebb and flow of market conditions. The company’s financial orchestration is noteworthy, with revenue streams harmonized from home sales boosted by its mortgage subsidiary, DHI Mortgage, which offers tailored financial services to its buyers. By marrying construction with financing, D.R. Horton not only captures additional revenue margins but also fortifies its customer base, ensuring that its homes are accessible to a broad segment of society. Thus, its business model is a symphony of strategic planning, operational efficiency, and customer-focused service, which forms the backbone of its sustained growth and market dominance.
In the labyrinth of the American housing market, D.R. Horton Inc. stands as a formidable architect of suburban dreams, weaving the aspirations of countless families into tangible realities. Founded in 1978 by Donald R. Horton in the fertile grounds of Fort Worth, Texas, the company has etched its name as a cornerstone in homebuilding, capitalizing on the burgeoning demand for residential spaces across America. D.R. Horton’s journey is characterized by its acute ability to deliver quality homes without losing sight of affordability, serving a diverse clientele that spans from entry-level buyers to luxury seekers. This strategic approach is anchored in its robust land acquisition and development prowess, allowing the company to position itself optimally across various markets and economic cycles.
As the largest homebuilder by volume in the United States, D.R. Horton skillfully navigates the intricate dance of supply and demand, scaling its operations and adjusting its product mix with the ebb and flow of market conditions. The company’s financial orchestration is noteworthy, with revenue streams harmonized from home sales boosted by its mortgage subsidiary, DHI Mortgage, which offers tailored financial services to its buyers. By marrying construction with financing, D.R. Horton not only captures additional revenue margins but also fortifies its customer base, ensuring that its homes are accessible to a broad segment of society. Thus, its business model is a symphony of strategic planning, operational efficiency, and customer-focused service, which forms the backbone of its sustained growth and market dominance.
Revenue & Earnings: D.R. Horton reported Q1 revenue of $6.9 billion and diluted EPS of $2.03, down from $2.61 last year, but exceeded the high end of revenue and closings guidance.
Order Growth: Net sales orders increased 3% year-over-year to 18,300 homes, showing resilience despite affordability headwinds.
Gross Margin: Home sales gross margin was 20.4%, up sequentially due to a warranty cost recovery, but is expected to decline in Q2 due to higher incentives.
2026 Guidance: Revenue guidance for fiscal 2026 remains $33.5–$35 billion, with 86,000–88,000 home closings, and Q2 revenue expected between $7.3–$7.8 billion.
Incentives: Sales incentives increased throughout Q1 and are expected to stay elevated in 2026, mainly in the form of mortgage rate buydowns.
Community Count: Active selling communities rose 12% year-over-year, but future growth is expected to moderate to mid- to high single-digit rates.
Capital Return: $670 million in share buybacks and $132 million in dividends paid in Q1; share count is down 9% year-over-year.
Demand Outlook: Management highlighted pent-up demand and first-time buyers as ongoing drivers, with 64% of closings through their mortgage company to first-timers.
