D.R. Horton Net Income Falls 25% to $1.24 Billion in H1 2026

D.R. Horton Inc. (NYSE: DHI), a residential homebuilder, reported net income attributable to the company of $1.24 billion for the six months ended March 31, 2026, down 24.9% from $1.66 billion in the year-earlier period. Revenue for the half-year fell 5.9% to $14.45 billion from $15.35 billion. Read more earnings reports.

For the three months ended March 31, 2026, net income attributable to D.R. Horton was $647.9 million, compared to $810.4 million in the same quarter of 2025, a decline of 20.0%. Quarterly revenue slipped 2.3% to $7.56 billion from $7.73 billion.

Margin Pressure Cuts Into Profit

Income before income taxes for the six-month period totaled $1.67 billion, down 23.5% from $2.18 billion a year earlier. The company's income tax expense for the half-year was $406.0 million, compared to $506.0 million in the prior-year period.

Diluted earnings per share for the six months ended March 31, 2026, came in at $4.27, down from $5.19 in the same period of fiscal 2025. The weighted average diluted shares outstanding declined to 291.2 million from 318.7 million.

Inventory and Land Holdings Rise

Total inventory stood at $26.30 billion at March 31, 2026, up from $25.29 billion at September 30, 2025. Construction in progress and finished homes increased to $8.55 billion from $7.65 billion. Residential land and lots — developed and under development — totaled $14.52 billion, down slightly from $14.70 billion six months earlier.

Rental properties on the balance sheet rose to $3.00 billion from $2.70 billion. The company's mortgage loans held for sale increased to $2.68 billion from $2.57 billion.

Cash Position Weakens

Total cash, cash equivalents, and restricted cash fell to $1.97 billion at March 31, 2026, from $3.03 billion at September 30, 2025. Cash provided by operating activities for the six months ended March 31, 2026, was $441.5 million, compared to $210.5 million in the prior-year period.

The company spent $1.60 billion on common stock repurchases during the six-month period, down from $2.41 billion a year earlier. D.R. Horton paid dividends of $261.2 million, up from $254.0 million.

Segment Performance

The homebuilding segment generated revenue of $13.59 billion for the six months ended March 31, 2026, compared to $14.37 billion in the prior-year period. Income before income taxes from homebuilding operations was $1.47 billion, down from $1.70 billion.

The rental segment posted revenue of $321.3 million, down from $454.3 million. Financial services revenue was $377.4 million, compared to $395.2 million. The Forestar segment, which handles land development, reported revenue of $647.3 million versus $601.3 million a year earlier.

Balance Sheet and Debt

Total assets were $35.57 billion at March 31, 2026, compared to $35.47 billion at September 30, 2025. Notes payable increased to $6.56 billion from $5.97 billion. Total equity declined to $24.20 billion from $24.74 billion, driven by share repurchases and dividend payments.

Stockholders' equity was $23.63 billion at March 31, 2026, down from $24.19 billion six months earlier. Treasury stock rose to $12.00 billion from $10.43 billion as the company bought back 10.38 million shares during the half-year.