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.