DR Horton (DHI) Q4 2026 Earnings Report

The call reflected strong execution, cash generation, liquidity, shareholder returns, market share positioning, and operational flexibility. However, management emphasized that higher mortgage rates, cautious consumer sentiment, weaker orders, elevated incentives, lower margins, construction-cost pressures, and rental impairments are creating significant near-term challenges. Highlights outweigh the lowlights because the company remains profitable, highly liquid, cash-generative, and positioned to gain share, although the outlook is cautious and fiscal 2027 guidance reflects lower revenue and volume ranges.

For fiscal 2027, D.R. Horton expects consolidated revenues of approximately 30 to $32 billion, homebuilding closings of 79 thousand to 84 thousand homes, an income tax rate of 25.5%, approximately $3.5 billion of cash flow from operations, approximately $3 billion of common-stock repurchases and dividends of around $500 million; for the first quarter, it expects consolidated revenues of $5.9 to $6.4 billion, homebuilding closings of 15.5 thousand to 16.5 thousand homes, home sales gross margin of 18% to 18.5%, consolidated pre tax profit margin of 7% to 8%, and an income tax rate of approximately 25.5%. Incentive levels are expected to remain elevated in fiscal 2027, interest rates are expected to remain high with no much reduction in rates in the near term, stick-and-brick costs are expected to be flat to slightly up, lot costs flat to slightly up sequentially and up on a year over year basis for the next couple of quarters, rental inventory is expected to remain at or below its current level during fiscal 2027, and leverage is targeted at around 20% over the long term.