Forestar Group Revenue Climbs 7.7% to $647.3M in First Half of Fiscal 2026

Forestar Group Inc. (NYSE: FOR), a residential lot development company, reported revenue of $647.3 million for the six months ending March 31, 2026, up from $601.3 million in the same period a year earlier. Net income attributable to the company fell to $47.5 million from $48.1 million. Read more earnings reports.

For the three months ending March 31, 2026, revenue reached $374.3 million, up 6.6% from $351.0 million in the prior-year quarter. Net income for the quarter rose to $32.1 million from $31.6 million.

Revenue Breakdown

Residential lot sales from development projects totaled $560.5 million in the six-month period, down from $579.9 million a year earlier. Lot banking projects contributed $6.1 million, compared to $13.1 million in the prior year. Tract sales and other revenue jumped to $80.7 million from $7.1 million in the year-ago period.

In the second quarter, development project sales generated $329.4 million, down from $338.9 million. Tract sales and other revenue surged to $42.9 million from $4.1 million.

Expenses and Margins

Cost of sales for the six-month period totaled $512.1 million, up from $467.2 million. Selling, general and administrative expenses held flat at $74.3 million. The company recorded $7.1 million in impairments and land option charges, compared to $2.0 million in the prior year.

Income before taxes for the half reached $64.8 million, compared to $62.6 million. Income tax expense rose to $17.1 million from $14.5 million.

Balance Sheet and Cash Flow

Total assets stood at $3.17 billion as of March 31, 2026, up from $3.14 billion at September 30, 2025. Real estate holdings increased to $2.71 billion from $2.65 billion. Cash and cash equivalents declined to $362.2 million from $379.2 million.

The company carried debt of $793.5 million, down from $802.7 million at the start of the fiscal year. Total equity rose to $1.82 billion from $1.77 billion.

Cash used in operating activities totaled $5.1 million for the six-month period, compared to $469.8 million used in the prior year. The company made debt repayments of $9.9 million, compared to $574.4 million in the year-ago period. Real estate holdings increased by $67.1 million, a sharp contrast to the $495.2 million increase in the prior year.

Per-Share Results

Diluted earnings per share came in at $0.93 for the six-month period, compared to $0.94 in the prior year. For the second quarter, diluted earnings per share held steady at $0.63, compared to $0.62.

Weighted average diluted shares outstanding totaled 51.2 million for both the current and prior-year six-month periods.