D.R. Horton(NYSE) DHI

D.R. Horton builds and sells houses for individuals and families across the United States. They help people find homes ranging from basic entry-level houses to luxury properties. The company also handles the land development and mortgage details needed to complete a home purchase.

What D.R. Horton Builds

• Homebuilding: Construction and sale of single-family detached and attached homes; accounts for 95% of total revenue in Q1 2026.
• Rental Operations: Development and sale of single-family build-to-rent communities and multi-family apartment buildings.
• Forestar: Residential lot development services that provide finished land for home construction; accounts for 4% of revenue in Q1 2026.
• Financial Services: Mortgage financing and title insurance services primarily for the company's homebuyers; accounts for 3% of revenue in Q1 2026.

Strategic Moves and Acquisitions

• Acquired the homebuilding operations of SK Builders in October 2025 for approximately $80 million in cash.
• Expanded footprint in the Greenville, South Carolina market through the SK Builders purchase.
• Maintained a majority 62% controlling interest in Forestar Group Inc. to secure a steady supply of finished lots.
• Increased the quarterly cash dividend to $0.45 per share during the first quarter of fiscal 2026.

How the Company Stays Ahead

D.R. Horton maintains a massive land supply by controlling 75% of its lots through purchase contracts rather than direct ownership. This strategy reduces financial risk while allowing the company to build in 126 markets across 36 states.

The Recent Financial Scorecard

• Consolidated revenue was $6.9 billion in Q1 2026, down 9.5% from the previous year.
• Net income reached $594.8 million in Q1 2026, a 29.6% decrease compared to Q1 2025.
• Free cash flow grew to $826.6 million in Q1 2026, up 30.5% year-over-year.
• Home sales gross margin moved to 20.4% in Q1 2026 from 22.7% in the prior year period.
• Common stock repurchases totaled $669.7 million during the three months ended December 31, 2025.

Bottom Line

D.R. Horton has transitioned into a diversified housing giant that manages everything from land development to mortgage financing. Its focus on affordable entry-level homes and flexible land contracts helps it navigate shifting economic conditions and high interest rates.