D.R. Horton Subsidiary Expands Mortgage Repurchase Facility

On May 8, 2025, D.R. Horton’s mortgage unit, DHI Mortgage, entered into a Fourth Amendment to its existing master repurchase agreement with U.S. Bank and other buyers. The updated facility provides a $1.4 billion commitment with an option to increase it to $2.0 billion. The agreement extends through May 6, 2026, and supports liquidity by allowing DHI Mortgage to sell eligible loans for funding. D.R. Horton and its other subsidiaries do not guarantee the facility.

D.R. Horton Prices $500 Million in 4.850% Senior Notes Due 2030

Horton, Inc. (NYSE: DHI) announced it has priced a public offering of $500 million in 4.850% senior notes due October 15, 2030. The notes will pay interest semi-annually and proceeds will be used for general corporate purposes. The offering, expected to close on May 5, is managed by a consortium of major financial institutions including Mizuho Securities, Wells Fargo, BofA Securities, and others.

D.R. Horton Reports Lower Q2 Earnings as Affordability Weighs on Demand

D.R. Horton, Inc., the largest homebuilder in the United States by volume, reported a 31% decline in net income for the fiscal second quarter ended March 31, 2025, with earnings falling to $810.4 million, or $2.58 per diluted share, from $1.2 billion, or $3.52 per share, a year earlier. Revenue for the quarter dropped 15% to $7.7 billion, reflecting a slowdown in the spring selling season and continued affordability challenges among potential homebuyers.

The company closed 19,276 homes during the quarter, down from 22,548 homes in Q2 2024. Net sales orders also declined 15% year-over-year to 22,437 homes, valued at $8.4 billion. Backlog dropped 21% to 14,164 homes worth $5.5 billion. Despite the dip, home sales gross margin remained steady at 21.8%.

D.R. Horton returned $1.4 billion to shareholders through dividends and stock repurchases in the quarter. The board approved a new $5 billion share repurchase authorization, replacing the prior $1.1 billion authorization. The company has repurchased 16.5 million shares in the first half of fiscal 2025 and declared a quarterly dividend of $0.40 per share payable on May 9.

Homebuilding pre-tax income dropped 31% to $935 million, with the margin narrowing to 13.0% from 16.0% in Q2 2024. Revenue from home sales decreased to $7.2 billion, down from $8.5 billion, and homes closed fell 15%. For the six-month period, homebuilding revenue was down 9% to $14.4 billion, with 38,335 homes closed.

Rental operations generated $22.8 million in pre-tax income on $236.6 million in revenue, reflecting a drop from $33.3 million and $371.3 million respectively in Q2 2024. The company sold fewer rental properties compared to last year, including 519 single-family homes and 300 multi-family units during the quarter.

Forestar, the company’s majority-owned residential lot development subsidiary, sold 3,411 lots in Q2 2025 for $351 million in revenue, slightly above last year. However, Forestar's pre-tax income fell 31% to $40.7 million.

Financial services revenue dipped to $212.9 million, with pre-tax income of $73.0 million, both down from Q2 2024. The company maintained a strong liquidity position with $2.5 billion in cash and $3.3 billion in credit availability.

D.R. Horton updated its fiscal 2025 guidance to project revenue between $33.3 billion and $34.8 billion and home closings between 85,000 and 87,000 units. It reaffirmed plans for over $3 billion in operating cash flow, approximately $4 billion in share repurchases, and $500 million in dividend payments for the fiscal year.

Executive Chairman David Auld emphasized the company’s financial flexibility and operational strength amid a challenging market, stating that D.R. Horton remains focused on disciplined capital allocation and enhancing long-term shareholder value.

D.R. Horton Reports Q2 2025 Earnings: Profit Down, Shareholder Returns Up

D.R. Horton (NYSE: DHI), the largest U.S. homebuilder by volume, reported second-quarter fiscal 2025 earnings with declines in revenue and net income but strong shareholder returns through buybacks and dividends.

Key Highlights:
- Net income fell 31% to $810.4 million, or $2.58 per diluted share, compared to $1.2 billion or $3.52 per share in Q2 2024.
- Revenue dropped 15% year-over-year to $7.7 billion.
- Home sales revenue was $7.2 billion from 19,276 closings.
- New orders declined 15% to 22,437 homes, valued at $8.4 billion.
- Home sales gross margin was 21.8%.
- Cash balance stood at $2.5 billion with $5.8 billion in total liquidity.
- Declared a quarterly dividend of $0.40 per share.
- Repurchased 9.7 million shares for $1.3 billion in Q2, with a new $5.0 billion buyback authorization.

Business Segments:
- Homebuilding: Revenue dropped 15% to $7.2 billion; pre-tax income declined 31% to $935 million.
- Rental Operations: Revenue was $236.6 million; pre-tax income fell to $22.8 million.
- Forestar (lot development): Revenue was $351 million from 3,411 lots sold; pre-tax income fell to $40.7 million.
- Financial Services: Revenue was $212.9 million; pre-tax income was $73 million.

Guidance Update for FY 2025:
- Revenues between $33.3B and $34.8B.
- 85,000 to 87,000 homes to be closed.
- Over $3.0B in operating cash flow.
- $4.0B in share repurchases expected.
- Dividend payments projected at approximately $500 million.

Market Conditions:
Chairman David Auld noted a slower-than-expected spring selling season due to affordability pressures and low consumer confidence. The company responded with increased incentives and a disciplined pricing approach.

D.R. Horton, Inc. announced the pricing of a $700 million public offering of 5.500% Senior Notes due 2035. The offering was conducted under an underwriting agreement with Mizuho Securities USA LLC, J.P. Morgan Securities LLC, and TD Securities (USA) LLC. The transaction, registered with the SEC, is expected to close on February 26, 2025, subject to customary closing conditions.

The notes will be issued under an indenture with Truist Bank, serving as trustee, and will be represented by global securities. Legal opinions related to the issuance have been provided by Gibson, Dunn & Crutcher LLP and Thomas B. Montaño, Esq.

The company has filed relevant documentation, including the underwriting agreement, indenture, and form of the notes, as exhibits to its Form 8-K.

D.R. Horton, Inc. reported first-quarter fiscal 2025 earnings, with net income attributable to the company at $844.9 million ($2.61 per diluted share), a 7% decline from the previous year. Revenues totaled $7.6 billion, a 1% decrease year-over-year, while home sales revenues accounted for $7.1 billion from 19,059 homes closed. The company reported $6.7 billion in net sales orders, a 2% drop in value, and a 21% reduction in its sales order backlog. The cancellation rate improved slightly to 18%. D.R. Horton highlighted strong liquidity with $6.5 billion in total capacity and a debt-to-total-capital ratio of 17%. The company repurchased 6.8 million shares for $1.1 billion, declared a quarterly dividend of $0.40 per share, and reiterated fiscal 2025 revenue guidance of $36-37.5 billion. Management emphasized a focus on affordable homes, operational flexibility, and disciplined capital allocation to enhance long-term shareholder value.

D.R. Horton, Inc. held its Annual Meeting of Stockholders on January 16, 2025, with three key matters on the agenda. First, the stockholders elected nine director nominees to hold office until the 2026 Annual Meeting. All nominees, including David V. Auld, Paul J. Romanowski, and Elaine D. Crowley, were elected with varying levels of support. Second, an advisory vote to approve the company’s executive compensation received stockholder approval with a majority vote. Lastly, the appointment of Ernst & Young LLP as the independent registered public accounting firm for fiscal year 2025 was ratified.

The meeting was attended by stockholders representing 290,585,709 shares, constituting a majority of the 320,829,216 shares eligible to vote. Each proposal received sufficient votes to pass, reflecting overall support for the company's leadership and operations. The results demonstrate confidence in the company’s governance and executive policies for the upcoming fiscal year.