Forestar Group (NYSE:FOR) reported fiscal first-quarter results on Tuesday that aligned with analyst expectations, balancing a modest decline in bottom-line profit with a steady increase in top-line revenue.
The Arlington, Texas-based developer—a majority-owned subsidiary of homebuilding giant D.R. Horton—posted net income of $15.4 million, or $0.30 per share, compared with $16.5 million, or $0.32 per share, in the same period last year.
Revenue for the quarter ended December 31, 2025, rose 9% to $273 million, up from $250.4 million a year ago.
The company sold 1,944 residential lots during the period, navigating a housing market characterized by persistent affordability constraints and cautious consumer sentiment.
Despite the quarterly dip in profit, Forestar's leadership remains focused on its long-term expansion as a national-scale lot developer.
"The Forestar team delivered increased revenues compared to the prior year quarter and maintained strong liquidity through disciplined inventory investment," Donald J. Tomnitz, Chairman of the Board, said in a statement.
The company’s growth strategy continues to be anchored by its strategic relationship with D.R. Horton, which provides a significant and predictable outlet for its finished lots.
Looking ahead, Forestar reaffirmed its fiscal 2026 outlook, expecting to deliver between 14,000 and 15,000 lots, generating revenue in the range of $1.6 billion to $1.7 billion.
The developer currently has approximately 24,100 lots contracted for future sales, representing an estimated $2.2 billion in future revenue.
Meanwhile, strong asset growth saw the company's book value per share increase by 10% year-over-year to $35.10.
Forestar ended the quarter with substantial financial flexibility, reporting approximately $968 million in total liquidity.
This capital cushion allows the company to remain "agile and resilient" as it continues to aggregate market share in the under-supplied U.S. residential lot market.