D.R. Horton says ‘moderation in housing demand’ starting in June

Donald Horton, Chairman of the Board, said, "The D.R. Horton team finished the year strong, highlighted by our fourth quarter consolidated pre-tax income increasing 20% to $2.1 billion on a 19% increase in revenues and a pre-tax profit margin of 21.4%. For the year, our consolidated pre-tax income increased 42% to $7.6 billion on a 21% increase in revenues and a 350 basis point increase in our pre-tax profit margin to 22.8%. With a record 83,518 homes closed by our homebuilding and single-family rental operations in fiscal 2022, D.R. Horton completed its 21st consecutive year as the largest homebuilder in the United States. These results reflect the strength of our experienced teams, industry-leading market share, broad geographic footprint and diverse product offerings. During most of the year, demand for our homes was strong. Beginning in June and continuing through today, we have seen a moderation in housing demand caused by significant increases in mortgage interest rates and general economic uncertainty. While these pressures may persist for some time, the supply of homes at affordable price points remains limited, and demographics supporting housing demand remain favorable. We are well-positioned to navigate changing market conditions and are focused on turning our inventory to maximize returns and capital efficiency in each of our communities. Our homebuilding cash flow from operations in fiscal 2022 was $1.9 billion, and our homebuilding leverage at the end of the year was 13.2%, the lowest in company history. Our strong balance sheet, liquidity and low leverage provide us with significant financial flexibility, and we plan to maintain our disciplined approach to investing capital to enhance the long-term value of our company, including returning capital to our shareholders through both dividends and share repurchases on a consistent basis."