Forestar ( (FOR) ) has released its Q2 earnings. Here is a breakdown of the information Forestar presented to its investors.
Forestar Group Inc., a prominent national residential lot developer, operates in 65 markets across 24 states, specializing in providing finished lots to the homebuilding industry. In its fiscal 2025 second quarter, Forestar reported a net income of $31.6 million, a 30% decrease from the previous year, despite a 5% increase in consolidated revenues to $351.0 million. The company sold 3,411 residential lots, marking a 4% increase from the prior year, and issued $500 million in senior unsecured notes to strengthen its financial position.
Forestar’s financial performance highlights include a return on equity of 10.7% and an 11% increase in book value per share to $32.36. The company also completed a tender offer to purchase $329.4 million of existing notes, enhancing its capital structure. Despite a decrease in net income for the six months ended March 31, 2025, to $48.1 million, Forestar maintained a robust lot position with 105,900 lots owned and controlled, and significant future revenue potential from contracted sales.
The company ended the quarter with $174.3 million in unrestricted cash and a total liquidity of $792.0 million. Forestar’s strategic relationship with D.R. Horton, the largest homebuilder in the U.S., continues to be a key driver of its operations, with a substantial portion of its lots under contract or subject to a right of first offer with D.R. Horton.
Looking ahead, Forestar has adjusted its fiscal 2025 guidance, now expecting to deliver between 15,000 and 15,500 lots, generating $1.5 billion to $1.55 billion in revenue. The company remains focused on leveraging its strong balance sheet and liquidity to navigate market challenges and enhance long-term shareholder value.