$DHI · HORTON D R INC /DE/
D.R. Horton reported Q4 FY2026 results with net income of $741.8M ($2.67 diluted EPS) on $9.37B in revenue, down 18% and 3% YoY respectively. Full-year FY2026 net income fell 19% to $2.89B on $33.0B revenue. The rental segment took $91.4M in inventory impairment charges on nine multi-family projects. FY2027 guidance calls for $30B-$32B in revenue and 79,000-84,000 home closings, both below FY2026 levels.
- Q4 net income attributable to D.R. Horton fell 18% YoY to $741.8M, diluted EPS down 12% to $2.67.
- Consolidated revenues declined 3% YoY to $9.37B; full-year revenues dropped to $33.0B from $34.25B.
- Rental segment recorded $91.4M in inventory impairment charges across nine multi-family projects, swinging to a $25.3M pre-tax loss.
- Homebuilding cancellation rate rose to 23% in Q4 vs. 20% a year ago; net sales orders fell 7% to 18,619 homes.
- FY2027 revenue guidance of $30B-$32B implies a further 3-9% decline from FY2026's $33.0B.
Stock is up 0.64% in the regular session despite the downbeat guidance and impairment, suggesting the market had already priced in housing weakness or is reacting to the $3.0B buyback commitment and 11% dividend hike to $0.50/share.
America's largest homebuilder by volume is guiding for a second consecutive year of revenue decline and flagged multi-family distress via a $91.4M impairment, signaling the housing cycle has turned.
D.R. Horton's results confirm broad housing market softening, with the nation's largest builder by volume guiding for lower closings (79K-84K) and revenues in FY2027. The rental impairment signals stress in multi-family, a segment many builders expanded into aggressively.
Rising mortgage rates, affordability constraints, and cautious consumer sentiment are pressuring new home demand. Elevated incentives expected to persist through FY2027. Rental segment faces further impairment risk with $2.3B in multi-family inventory on the balance sheet.