D.R. Horton reports net income attributable to the company of $1.0 billion, or $3.36 per diluted share, on consolidated revenues of $9.2 billion and a pre-tax profit margin of 14.7%, compared to $1.4 billion, $4.10 per diluted share, $10.0 billion in revenues and a 17.0% margin in the third quarter of fiscal 2024, according to D.R. Horton, Inc.
Management returns $1.3 billion to shareholders by repurchasing 9.7 million shares for $1.2 billion and paying $122.4 million in dividends, reducing the share count by 9% year-over-year.
Executive Chairman David Auld says, “New home demand continues to be impacted by ongoing affordability constraints and cautious consumer sentiment,” underscoring affordability headwinds in the quarter.
Homebuilding revenue decreases 7% to $8.6 billion as homes closed fall 4% to 23,160; home sales gross margin narrows to 21.8%. Net sales orders hold at 23,071 homes with an order value of $8.4 billion, and the cancellation rate improves to 17% from 18%.
Operating cash flow remains strong at $949.1 million for the quarter. The company holds $2.6 billion in cash and $2.9 billion of available credit for total liquidity of $5.5 billion. It issues $500 million of senior notes due 2030 and maintains a debt-to-total-capital ratio of 23.2%.
Looking ahead, D.R. Horton expects sales incentives to remain elevated and to increase further in the fourth quarter, driven by summer demand, mortgage rate movements and market conditions. The company reiterates full-year guidance for consolidated revenues of $33.7 billion to $34.2 billion, 85,000 to 85,500 homes closed, $4.2 billion to $4.4 billion in share repurchases, approximately $500 million in dividends, an income tax rate of approximately 24.0% and operating cash flow above $3.0 billion.
