D.R. Horton (NYSE:DHI), the largest homebuilder in the U.S., reported second-quarter financial results that underscored a robust appetite for new construction as the company successfully converted high demand into a double-digit increase in sales orders.
The Arlington, Texas-based builder posted net income attributable to the company of $647.9 million, or $2.24 per diluted share.
On a consolidated basis, pre-tax income reached $867.4 million, reflecting a pre-tax profit margin of 11.5%.
Total consolidated revenues for the period climbed to $7.6 billion, driven largely by $7 billion in home sales revenue from the closing of 19,486 homes.
The most striking metric in the report was the growth in net sales orders, which rose 11% to 24,992 homes.
The value of those orders reached $9.2 billion, suggesting that the company’s focus on entry-level inventory continues to attract buyers who are facing a dearth of supply in the existing-home market.
Meanwhile, D.R. Horton’s balance sheet remained disciplined, ending the quarter with a debt-to-total-capital ratio of 21.7%.
The company’s book value per share saw a 5% uptick, rising to $82.91.
Capital allocation remained a priority for management, as the builder returned significant value to shareholders by repurchasing 6 million shares of common stock for $903.6 million and distributing $129.7 million in cash dividends during the quarter.