Homebuyers Cautious Due To 'Continued Affordability Constraints And Declining Consumer Confidence:' D.R. Horton Cuts Annual Outlook

D.R. Horton, Inc. (NYSE:DHI) reported second-quarter FY25 results connected Thursday.

Sales fell 15% year-over-year (Y/Y) to $7.73 billion, missing the statement of $8.03 billion. EPS was $2.58, missing the statement of $2.67. Net income orders fell 15% Y/Y to 22,437 homes and decreased 17% Y/Y in worth to $8.4 billion.

Homebuilding gross declined 15% Y/Y to $7.2 billion. Homes closed successful the 4th fell 15% Y/Y to 19,276 homes.

Also Read: Homebuilders Brace For Tough 2025, Analyst Downgrades D.R. Horton And Smith Douglas Amid Market Pressures

The income bid backlog of homes nether declaration arsenic of March 31, 2025, decreased 21% twelvemonth implicit twelvemonth to 14,164 homes and 22% twelvemonth implicit twelvemonth successful worth to $5.5 billion.

D.R. Horton had 36,900 homes successful inventory, of which 23,500 were unsold arsenic of March 31, 2025.

Return connected equity was 17.4%, and instrumentality connected assets stood at 12.2% for the trailing 12 months ended March 31, 2025.

Operating currency travel stood at $210.5 million successful the six months ended March 31, 2025.

As of March 31, 2025, the currency equilibrium was $2.5 billion, and the disposable capableness connected its recognition facilities was $3.3 billion, for a full liquidity of $5.8 billion.

Buyback: D.R. Horton repurchased 9.7 million shares for $1.3 billion during the quarter. The company's remaining banal repurchase authorization arsenic of March-end was $1.2 billion.

In April 2025, the Board of Directors approved a caller $5.0 cardinal stock repurchase authorization, replacing the anterior program, which had $1.1 cardinal remaining pursuing post-quarter-end buybacks.

Dividend: Subsequent to year-end, the institution declared the quarterly dividend of $0.40 per share, payable connected May 9, to shareholders of grounds arsenic of May 2, 2025.

FY25 Outlook: D.R. Horton revised its gross guidance to $33.3 billion-$34.8 cardinal (from $36.0 cardinal – $37.5 billion) versus the consensus of $36.4 billion.

It present expects homes closed to beryllium 85,000-87,000 homes (vs. 90,000-92,000 homes prior) for the year.

DHI projects FY25 operating currency travel to beryllium greater than $3.0 billion.

The institution revised its stock repurchase outlook for FY25 to astir $4.0 cardinal (from $2.6 billion—$2.8 billion earlier).

The institution continues to expect dividend payments of around $500 million.

David Auld, Executive Chairman, said, "The 2025 outpouring selling play started slower than expected arsenic imaginable homebuyers person been much cautious owed to continued affordability constraints and declining user confidence."