D.R. Horton (NYSE:DHI) reported first-quarter results that surpassed Wall Street expectations on Tuesday, even as the nation's largest homebuilder grapples with a persistent "wait-and-see" attitude from buyers.
The Arlington, Texas-based company posted net income of $594.8 million, or $2.03 per diluted share, comfortably beating the $1.93 consensus estimate from analysts despite falling from the $820 million recorded in the same period last year.
Consolidated revenues for the quarter ended December 31, 2025, totaled $6.9 billion.
While high mortgage rates and affordability hurdles have slowed the frenetic pace of recent years, D.R. Horton saw net sales orders increase by 3% to 18,300 homes.
The resilience in orders suggests that the company’s aggressive use of incentives—including mortgage rate buydowns and price concessions—is successfully keeping its inventory moving.
"Affordability constraints and cautious consumer sentiment continue to impact new home demand," David Auld, Executive Chairman, said in a statement.
"We expect our sales incentives to remain elevated in fiscal 2026, the extent of which will depend on the strength of demand during the spring selling season."
The builder’s balance sheet remains a fortress in a volatile sector, with a debt-to-total capital ratio of 18.8% and $854 million in cash provided by operations during the quarter.
This liquidity allowed D.R. Horton to continue its aggressive shareholder return program, repurchasing 4.4 million shares for $669.7 million and raising its book value per share to $82.60.
As the industry looks toward the 2026 spring market, D.R. Horton maintained its full-year guidance, projecting consolidated revenues between $33.5 billion and $35 billion.