Forestar Group (4F31) Q4 2026 Earnings Report
DE:4F31 Q4 2026 EPS Results
- Actual EPS
- EUR 1.03
- Consensus EPS
- EUR 1.12
- Beat/Miss
- Missed by -EUR 0.09
- One Year Ago EPS
- EUR 1.52
DE:4F31 Q4 2026 Revenue Results
- Actual Revenue
- EUR 520.05M
- Expected Revenue
- EUR 540.01M
- Beat/Miss
- Missed by -EUR 19.96M
- YoY Revenue Growth
- -13.38%
Earnings Announcement Details
- Quarter
- Q4 2026
- Date
- 10/29/2026
- Time
- Before Open
- Conference Call
- Thursday, October 29, 2026
DE:4F31 Upcoming Earnings
Forestar Group's next earnings date is estimated for January 26, 2027, based on past reporting schedules.
Q4 2026 Earnings Call Audio
DE:4F31 Q4 2026 Earnings Call
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Q4 2026 Earnings Slide Deck
Q4 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. Forestar reported solid fiscal 2026 revenue, earnings, book value growth, liquidity and customer expansion, while maintaining disciplined investment and low leverage. The principal challenges were affordability and mortgage-rate pressure, lower reported fourth-quarter margins due to project-specific charges and impairments, sequentially lower finished lots, and a fiscal 2027 outlook below fiscal 2026 actual lot deliveries and revenue.
Company Guidance
For fiscal 2027, Forestar currently expects to invest approximately $1.3 billion in land acquisition and development, with the majority in development, and expects headcount to remain relatively flat; it expects to deliver between 12,000 and 13,000 lots and generate $1.4 billion to $1.5 billion of revenue, with the first quarter expected to be the lowest lot delivery and revenue quarter of the year and lot deliveries and revenues in the second half of fiscal 2027 expected to be higher than the first half.
- Solid Fiscal 2026 Revenue and EarningsForestar generated $580.8 million of fourth-quarter revenue and $1.6 billion for fiscal 2026, within its most recent guidance range. Fourth-quarter net income attributable to Forestar was $59.2 million, or $1.15 per diluted share, while full-year net income was $142.6 million, or $2.78 per diluted share.
- Book Value and Balance Sheet StrengthenedBook value per share increased 8% year over year to $37.56 at fiscal year-end. Forestar ended the year with $1.3 billion of liquidity, including $657 million of unrestricted cash and $658 million of available capacity on its undrawn revolving credit facility.
- Strong Five-Year Growth in Investments, Lot Deliveries and Book ValueOver the last five years, Forestar invested more than $7 billion in land acquisition and development, delivered approximately 75,000 finished lots to homebuilders, and increased book value per share by 83%.
- Lot Sales and Customer ReachForestar sold 5,004 lots in the fourth quarter and 13,545 lots for fiscal 2026, at an average sales price of $108,300 for the quarter and $111,200 for the year. The company sold lots to more than 25 homebuilders, including eight new customers.
- Expansion Beyond D.R. HortonForestar sold 1,916 lots, or 14% of its total fiscal 2026 lot sales, to customers other than D.R. Horton. Excluding 146 lots sold to a lot banker that expects to sell them to D.R. Horton at a future date, sales to other homebuilders were the highest percentage of annual lot sales since 2018.
- Opportunity to Increase D.R. Horton ShareIn fiscal 2026, 14% of the homes D.R. Horton started were on a Forestar-developed lot. The companies have a mutually stated goal of having one out of every three D.R. Horton homes sold on a Forestar-developed lot, and Forestar stated that it has made significant progress toward that goal in several markets.
- SG&A EfficiencyFourth-quarter SG&A expense decreased 10% to $38.4 million, or 6.6% of revenue, largely due to lower headcount and variable compensation. Full-year SG&A decreased 2% to $151 million, or 9.2% of revenue, while the company maintained teams across its national footprint.
- Core Lot Sales Margin Remained StableExcluding tract sales and impairments, core lot sales margin for the year was 21%, compared with 21.3% in fiscal 2025. Management said this did not represent a significant decrease and described the normalized gross margin range as 20% to 23%.
- Stable Operating Costs, Contractor Availability and Cycle TimesContractor and material availability remained solid, land development costs were stable, and cycle times remained stable despite continued governmental delays. Management said contractor availability had improved and that it was not seeing a material impact from potential oil-related surcharges at the time of the call.
- Disciplined Investment ProgramForestar invested $299 million in land acquisition and development in the fourth quarter and $1.3 billion for the full year, with approximately 80% directed to development and 20% to land. The company currently expects to invest approximately $1.3 billion in fiscal 2027 and continues to underwrite new development projects to a minimum 15% pretax return on average inventory and a return of initial cash investment within 36 months.
- Large Lot Position and Contracted BacklogAt September 30, Forestar had 84,400 lots, consisting of 58,200 owned lots, or 69%, and 26,200 controlled lots, or 31%. Of its owned lots, 21,500, or 37%, were under contract to sell, supported by approximately $200 million of hard earnest money deposits and expected future revenue of $2.2 billion. Another 18,600 owned lots, or 32%, were subject to a right of first offer to D.R. Horton.
- Low Leverage and Capital Structure FlexibilityTotal debt at September 30 was $794 million, with no senior note maturities until fiscal 2028. Net debt-to-capital was 6.7%, stockholders' equity was $1.9 billion, and management described the company's capital structure as a competitive advantage that provides financial and operational flexibility.
- Fiscal 2027 Strategy and Market OpportunityForestar plans to prioritize projects in undersupplied markets that are smaller, faster turning, or offer multiple product types, while aligning development pace with demand through disciplined phasing and subphasing. Management also said more opportunities were emerging, particularly in the back half of the quarter, primarily from private builder-developers.
- Fiscal 2027 Revenue and Lot Delivery OutlookBased on current market conditions, Forestar expects to deliver between 12,000 and 13,000 lots and generate $1.4 billion to $1.5 billion of revenue in fiscal 2027. The company expects the first quarter to be its lowest lot delivery and revenue quarter and expects lot deliveries and revenues in the second half to be higher than in the first half.
DE:4F31 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 26, 2027 | 2027 (Q1) | 0.16- | 0.27 | ― | ― |
| Oct 29, 2026 | 2026 (Q4) | 1.121.03 | 1.52 | -32.35% (-0.49) | |
| Jul 21, 2026 | 2026 (Q3) | 0.730.63 | 0.58 | 7.69% (+0.04) | |
| Apr 21, 2026 | 2026 (Q2) | 0.560.56 | 0.56 | 1.61% (+0.01) | |
| Jan 20, 2026 | 2026 (Q1) | 0.280.27 | 0.29 | -6.25% (-0.02) | |
| Oct 28, 2025 | 2025 (Q4) | 1.131.52 | 1.43 | 6.25% (+0.09) | |
| Jul 22, 2025 | 2025 (Q3) | 0.640.58 | 0.68 | -14.47% (-0.10) | |
| Apr 17, 2025 | 2025 (Q2) | 0.660.56 | 0.8 | -30.34% (-0.24) | |
| Jan 21, 2025 | 2025 (Q1) | 0.620.29 | 0.68 | -57.89% (-0.39) | |
| Oct 29, 2024 | 2024 (Q4) | 1.171.43 | 1.29 | 11.11% (+0.14) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
