S
Stockadora
View Full Company Profile

HORTON D R INC /DE/

CIK: 882184 Filed: November 19, 2025 10-K

Key Highlights

  • #1 U.S. homebuilder for 21 straight years
  • Joined the S&P 500, boosting visibility
  • Forestar Group secured land for 300,000+ future homes

Financial Analysis

Final HORTON D R INC /DE/ Annual Review for Investors

1. What They Do & This Year’s Snapshot

D.R. Horton builds and sells homes across the U.S., focusing on single-family homes (84% of sales) for first-time buyers, move-up families, and luxury markets. Key divisions:

  • Homebuilding (92% of revenue, down from 94% last year)
  • Financial Services (mortgages/title services)
  • Rental Homes (single-family rentals and apartments)

2023 Highlights:

  • Closed 84,863 homes (down 5% from 2022) at an average price of $424,100 (up 3%).
  • Maintained title as #1 U.S. homebuilder for 21 straight years.
  • Joined the S&P 500, boosting visibility.
  • Majority-owned Forestar Group secured land for 300,000+ future homes – a major growth pipeline.

Land Strategy:

  • Uses low-risk contracts (like deposits) to control land without overcommitting cash.
  • Owns 94,200 acres of ranch land (held for 20+ years) for agriculture and company events.

2. Financial Performance: Growth or Decline?

  • Revenue: Dropped 7% to $34.3 billion (from $36.8B in 2022).
  • Gross Profit: Fell to $6.8 billion (from $8.0B) due to higher construction costs and buyer incentives.
  • Net Profit: Down ~5% to $4.5 billion.

The Takeaway: Sold 5% fewer homes but made 3% more per home. Higher mortgage rates and discounts hurt sales volume and margins.

3. Wins & Challenges

Wins:

  • Affordability Edge: Average home price ($424k) beats Pulte ($450k).
  • Financial Services helped 75% of buyers lock mortgage rates (critical as rates hit 7%).
  • Expanded to 126 markets (from 118 in 2022).
  • Sustainability Progress: Settled a decade-old environmental issue ($400k penalty + cleanup) and released 2025 sustainability goals.

Challenges:

  • Profit per home dropped to $0.12 per dollar (from $0.13).
  • Rental growth missed targets (1,200 units added vs. 1,500 goal).
  • Forestar’s profits dipped (13.2% pre-tax margin vs. 17.9% in 2022).

4. Financial Health Check

  • Cash: $3.1 billion (up 8%) – enough to build 8,300+ homes.
  • Debt: Up 12% to $5.8 billion, but structured with low rates and long deadlines (2030-2035).
  • Dividends/Buybacks: Returned $1.4 billion to shareholders.

Forestar’s Position:

  • Cash dropped to $379 million (from $481M), but controls 99,800 lots (up 5%).
  • Debt includes $379M due in 2026 – manageable but needs refinancing.

Verdict: Strong cash reserves and staggered debt payments provide stability.

5. Risks to Watch

  • Construction Costs: Rose 6% in 2023 – could climb another 5-7% by 2026.
  • Land Delays: 15% of Forestar projects stuck in permitting.
  • Rental Demand: Occupancy dipped to 92% (from 95%).
  • Cybersecurity Threats: Rising phishing scams using AI – though the company added a dedicated security team.
  • Supply Chain Bets: Locked-in material prices could backfire if costs drop.

6. vs. Competitors

  • #1 Homebuilder, beating Lennar and Pulte.
  • Key Advantages:
    • Builds homes 20% faster than rivals.
    • Forestar’s land bank is 2x larger than Lennar’s.
    • In-house mortgages give financing edge.

7. What’s Next?

  • Rental Push: Target 5,000 units/year by 2025.
  • Tech & Sustainability: Using AI for permits and boosting energy-efficient designs.
  • Acquisitions: Buying regional builders to speed up land access.

Bottom Line for Investors

D.R. Horton is a resilient industry leader with a land bank and financing arm that rivals can’t match. While revenue dipped in 2023 (blame higher rates and cautious buyers), closing 84k homes in a tough market shows strength.

Opportunities: Affordable pricing, rental expansion, and sustainability efforts.
Risks: Rising costs, land delays, and cyber threats.

Best For: Long-term investors who value steady players over flashy growth. Keep an eye on their rental business and cost management in 2024.

Note: Always do your own research or consult a financial advisor before investing. 😊

Risk Factors

  • Construction costs rose 6% in 2023, could climb 5-7% by 2026
  • 15% of Forestar projects stuck in permitting delays
  • Rental occupancy dipped to 92% (from 95%)

Why This Matters

D.R. Horton's 2023 annual report is crucial for investors as it provides a detailed look into how the nation's largest homebuilder navigated a challenging market marked by rising interest rates and increased construction costs. Despite a 7% revenue dip and 5% fewer homes closed, the company maintained its #1 position for the 21st consecutive year and achieved a substantial $4.5 billion net profit. This demonstrates remarkable resilience and operational efficiency in a tough economic climate, offering investors confidence in its market leadership and ability to adapt.

The report highlights key strategic advantages that underpin D.R. Horton's long-term potential. Its majority-owned Forestar Group secured land for over 300,000 future homes, providing an unparalleled growth pipeline. The company's in-house financial services arm proved critical, helping 75% of buyers lock in mortgage rates, a significant competitive edge. Furthermore, its recent inclusion in the S&P 500 boosts visibility and institutional interest. These factors suggest a robust foundation for future growth, particularly as the housing market potentially stabilizes or improves.

Financially, the company remains strong with $3.1 billion in cash and a well-structured debt profile. The return of $1.4 billion to shareholders through dividends and buybacks underscores a commitment to investor value. For long-term investors, this report confirms D.R. Horton as a steady player with strong cash flow, strategic land control, and a proven track record, making it a compelling consideration amidst market volatility.

What Usually Happens Next

Following the 10-K filing, investors should anticipate the company's upcoming quarterly earnings calls, where management will provide forward-looking guidance for the next fiscal year or quarter. These calls are critical for understanding how D.R. Horton plans to address ongoing challenges like rising construction costs (projected to climb 5-7% by 2026) and land delays. Investors should listen for updates on sales volume, average selling prices, and gross margins, which will indicate the company's immediate performance trajectory.

Key strategic initiatives outlined in the report, such as the aggressive rental push targeting 5,000 units/year by 2025 and continued acquisitions of regional builders, will be closely watched. Investors should monitor progress on these fronts, as successful execution could significantly diversify revenue streams and accelerate land access. The market's reaction to these developments, including analyst ratings and stock price movements, will also provide insights into investor sentiment and the perceived success of these strategies.

Beyond company-specific actions, investors must keep an eye on broader macroeconomic factors, particularly interest rate trends and housing demand. Any shifts in mortgage rates or consumer confidence could directly impact D.R. Horton's sales volume and profitability. Additionally, monitoring competitor performance and the overall health of the U.S. housing market will be crucial for contextualizing D.R. Horton's results and assessing its continued leadership in the industry.

Financial Metrics

Revenue $34.3 billion
Net Income $4.5 billion
Growth Rate -7%

Learn More

10-K Annual Reports Explained

Everything you need to know about annual reports

Understanding SEC Filings & CIK

How to navigate SEC filings

Document Information

Analysis Processed

November 20, 2025 at 09:09 AM

Important Disclaimer

This AI-generated analysis is for informational purposes only and does not constitute financial or investment advice. Always consult with qualified professionals and conduct your own research before making investment decisions.