D.R. Horton closed more homes and earned less, as orders stayed flat and cancellations rose

The largest homebuilder in the country closed more homes and earned less on them. D.R. Horton reported net income of $904.9 million, or $3.20 per diluted share, for the quarter ended June 30, in a release dated July 21. Net income fell 12 percent from a year earlier, earnings per share fell 5 percent, and the home sales gross margin was 20.7 percent, even as consolidated revenues held at $9.2 billion. That last combination is the story.

The demand side softened underneath the earnings. Homes closed rose 4 percent to 23,983, at the high end of the company's guidance range. Net sales orders told a different story. Orders totaled 23,084 homes with a value of $8.4 billion, flat with the same quarter of fiscal 2025, and the cancellation rate rose to 20 percent from 17 percent a year earlier.

David Auld, executive chairman, said affordability constraints and cautious consumer sentiment continue to weigh on new home demand, and that the company expects sales incentives to remain elevated during the fourth quarter. D.R. Horton updated its full-year guidance to consolidated revenues of $32.5 billion to $33.0 billion and 83,800 to 84,300 homes closed. The capital return continued. It repurchased 4.2 million shares for $615.7 million, paid dividends of $127.1 million, and declared a quarterly dividend of $0.45 per share payable August 13.