D.r. Horton, Inc. · NYSE:DHI
D.r. Horton — Q1 2025 Earnings Presentation
34 slides from D.r. Horton's earnings presentation, Jan 21, 2025
Slide 1: Investor Presentation Q1 2025
Investor Presentation Q1 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may include “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Although D.R. Horton believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be mate
Slide 3: At A Glance
At A Glance AMERICA’S BUILDER 23 years as America’s largest homebuilder, by annual homes closed 36 126 1.1M DELIVERED homes since our inception in 1978 states markets % FIRST TIME HOME BUYERS 59% who used DHI Mortgage 86% HOME SALES REVENUE from single-family detached homes AVERAGE SALES PRICE $374.
Slide 4: D.R. Horton Operating Segments
D.R. Horton Operating Segments 12/31/24 TTM Revenues* 12/31/24 TTM Homes Closed by Homebuilding Operations Northwest 26% 27% 5% Homebuilding Southwest 4% Rental $36.7B 2% 89,409 South Central Forestar Southeast 89% Financial Services 12% East 19% 6% North 10% Segment Information Homebuilding Operati
Slide 5: Strong Track Record of Exceptional Financial Performance
Strong Track Record of Exceptional Financial Performance Consistent and profitable growth is the foundation for increasing long-term shareholder value Consolidated Revenues ($ billions) Diluted EPS Book Value per Share $16.51 $78.12 $36.8 $35.5 $14.34 $33.5 $13.82 $67.78 A GR %C $27.8 $56.39 +1 6 $1
Slide 6: Growth in Market Share
Growth in Market Share 93,311 homes closed during trailing twelve months ended December 31, 2024 TTM 9/30/2024 1,400 Closings: 93,660 15% 1,200 12% 1,000 Approximately one out of seven 800 9% new single-family 2011 Closings: 17,176 homes in the U.S. 600 2006 Closings: 53,410 6% is built by 400 3% 20
Slide 7: Market Share Dominance
Market Share Dominance D.R. Horton is the largest builder in 5 of the top 7 U.S. housing markets & in 61 of the 125 markets in which we operated at September 30, 2024 Top 7 U.S. Housing Markets DFW 17% 10% #1 builder in Houston 14% 61 markets 13% Phoenix 12% 12% Top 5 17% San Antonio 30% builder in
Slide 8: Diverse Product Offerings And Price Points
Diverse Product Offerings And Price Points Build entry-level, move-up, active adult and luxury homes that generally range in size from 1,000 to 4,000 square feet, providing value and affordability to homebuyers at every stage of life $374,900 25% 24% average sales price $0 - $300k $301k - $350k 69%
Slide 9: Management Tenure And Experience
Management Tenure And Experience ~28 years Executive Team ~20 years Region Presidents & Vice Presidents ~15 years Division Presidents & City Managers Average employee tenure as of 12/31/24 9
Slide 10: Expectations
Expectations Although volatility in mortgage rates and changes in economic conditions could have significant impacts, the Company’s expectations for FY 2025 are as follows: Q2 FY 2025 • Consolidated revenues in a range of $7.7 billion to $8.2 billion • Homes closed in the range of 20,000 homes and 2
Slide 11: Then & Now: DHI Today vs. 2005
Then & Now: DHI Today vs. 2005 D.R. Horton has shifted its strategy from exponential growth to returns-focused, disciplined capital allocation Consolidated Liquidity Consolidated Leverage Strong Cash Flow Generation $6,545 47.7% > $2,200 Enhanced Financial Position 17.0% $1,801 $(621) 12/31/2005 12/
Slide 12: A Disciplined Homebuilder Delivering Strong Returns
A Disciplined Homebuilder Delivering Strong Returns D.R. Horton is creating value by executing its clear strategic plan and returns-focused approach to capital allocation Return on Equity Return on Assets 10-Year TSR 19.1% 13.4% 517% 16.4% 11.0% 340% Homebuilder Homebuilder Homebuilder Median Median
Slide 13: Value Creation Strategy Will Continue to Produce Best-in-Class Returns
Value Creation Strategy Will Continue to Produce Best-in-Class Returns HOW DRIVES SHAREHOLDER VALUE 1. Disciplined focus on returns P 2. Substantial cash flow generation P 3. Balanced capital allocation P 13
Slide 14: Capital And Cash Flow Priorities – Putting Investors First
Capital And Cash Flow Priorities – Putting Investors First • Focused on generating substantial and increasing cash flows from operations • Balanced, disciplined, flexible and opportunistic capital allocation to enhance long-term value Maintain Financial Dividends to Returns-Driven Repurchases of Str
Slide 15: Prioritizing Financial Flexibility
Prioritizing Financial Flexibility Financial strength supports resiliency through cycles, prudent business planning, trade loyalty, capturing market share and sustainable returns of capital to shareholders Maintaining Conservative Leverage(1) Homebuilding (HB) Public Debt Maturities by Year ($M) $4,
Slide 16: Delivering on Shareholder Distribution Commitment
Delivering on Shareholder Distribution Commitment D.R. Horton continues to execute on its shareholder return commitment by repurchasing $1.1 billion of common stock and paying cash dividends of $128.5 million in Q1 FY25 $3,100 - $3,300 $3,200 5-Year CAGR: 39% $2,198 $2,600 - $1,528 $2,800 $1,422 $1,
Slide 17: Total Shareholder Returns
Total Shareholder Returns D.R. Horton’s TSR ranks in the upper half of all S&P 500 companies for the last 3-year, 5-year and 10-year periods D.R. HORTON S&P 500 3-Year TSR 5-Year TSR 10-Year TSR 1st Quartile +179% TSR 1st Quartile +517% TSR 1st Quartile 87th Percentile 87th Percentile +33% TSR 66th
Slide 18: Return On Assets
Return On Assets D.R. Horton’s average annual ROA ranks in the top 15% of all S&P 500 companies D.R. HORTON S&P 500 3-Year ROA 5-Year ROA 10-Year ROA +17% ROA +17% ROA 1st Quartile 1st Quartile +14% ROA 1st Quartile 89th Percentile 90th Percentile 87th Percentile 2nd Quartile 2nd Quartile 2nd Quarti
Slide 19: Return on Equity
Return on Equity D.R. Horton’s average annual ROE ranks in the upper half of all S&P 500 companies D.R. HORTON S&P 500 3-Year ROE 5-Year ROE 10-Year ROE 1st Quartile 1st Quartile 1st Quartile +25% ROE +26% ROE 70th Percentile +23% ROE 69th Percentile 2nd Quartile 2nd Quartile 2nd Quartile 66th Perce
Slide 20: Consolidated Pre-Tax Income and Profit Margin
Consolidated Pre-Tax Income and Profit Margin Pre-tax profit margin is below all time highs; however, fiscal 2024 and TTM pre-tax profit margin was above the trailing 10- year median 12/31/24 TTM Pre-Tax Income by Segment ($M) Annual Pre-Tax Income ($B) and Pre-Tax Profit Margin $294 $31 $6,147 $7.6
Slide 21: Homebuilding Operational Focus
Homebuilding Operational Focus Provide value, quality and positive experience and service to homebuyers Maximize returns and generate strong cash flows by managing sales pace and pricing in each community Manage land, lot and home inventory prudently to meet demand and gain market share “Treat the c
Slide 22: Homes In Inventory
Homes In Inventory Faster housing turns support lower, more efficient, housing inventory levels Homes in Inventory Housing Inventory Turns 47,800 46,400 2.4x 42,000 37,400 36,200 21,700 27,200 2.1x 27,000 25,700 25,700 26,100 1.8x 19,200 1.7x 15,000 11,700 10,500 FY 2021 FY 2022 FY 2023 FY 2024 12/3
Slide 23: Other Business Lines
Other Business Lines Rental Financial Services • DHI owns 62% of Forestar, a publicly • Single-family rental operations • Comprised of DHI Mortgage and traded residential lot developer construct and lease single-family homes subsidiary title companies (NYSE: FOR) within a community and then generall
Slide 24: Quarter Data
Fourth Q1 2025 Quarter Data Data 24
Slide 25: Q1 FY 2025 Results
Q1 FY 2025 Results The D.R. Horton team delivered a strong quarter, achieving or exceeding guidance across all metrics • Earnings per diluted share of $2.61 on net income of $844.9 million • Consolidated pre-tax income of $1.1 billion on $7.6 billion of revenues, with a pre-tax profit margin of 14.6
Slide 26: Homes Closed And Revenues
Homes Closed And Revenues Home sales revenues of $7.1 billion on 19,059 homes closed by homebuilding operations in Q1 FY25 Q1 FY 2025 Revenue by Segment ($M) Fiscal Quarter Ended ($M) $7,276 $7,146 $182 $250 $7,613 $218 $7,167 -$205 19,340 19,059 Homebuilding Rental Forestar Financial Elimin. Consol
Slide 27: Home Sales Gross Margin
Home Sales Gross Margin Annual home sales gross margin fluctuation primarily due to mortgage interest rate volatility and incentive levels Fiscal Year Ended Fiscal Quarter Ended 28.7% 24.0% 22.9% 23.2% 23.6% 25.5% 22.7% 23.5% 23.5% 21.8% 21.6% FY 20 FY 21 FY 22 FY 23 FY 24 Q1 FY24 Q2 FY24 Q3 FY24 Q4
Slide 28: Homebuilding SG&A
Homebuilding SG&A • Controlling SG&A while ensuring that our platform supports the expansion of our operations, including new markets and an increased community count • SG&A as a percentage of revenues is higher than the annual rate in Q1 due to seasonality Fiscal Year Ended ($M) Fiscal Quarter Ende
Slide 29: Consolidated Pre-Tax Income
Consolidated Pre-Tax Income Pre-tax profit margin remains higher than our 10-year annual median of 13.8% Q1 FY 2025 Pre-Tax Income by Segment ($M) Fiscal Quarter Ended ($M) HB Rev $ $1,248 $49 $15 $1,110 $1,110 $12 $22 $1,013 16.1% 14.6% Homebuilding Rental Forestar Financial Elimin. Consolidated Q1
Slide 30: Strong, Flexible Land and Lot Pipeline
Strong, Flexible Land and Lot Pipeline • Own between a one and two year supply of lots to ensure control and flexibility to support home starts • 65% of homes closed in the current quarter were on lots developed by Forestar or a third-party Homebuilding Land and Lot Position Owned Lots vs. Controlle
Slide 31: Forestar Results
• Forestar is separately capitalized and had total liquidity of $645 million at quarter-end • Sold 15,068 lots and generated $1.5 billion of revenue in FY24 ◦ $1.3 billion of D.R. Horton’s finished lot purchases in FY24 were from Forestar • Expect 16,000 to 16,500 lots sold generating $1.6 billion t
Slide 32: Rental Operations
Rental Operations • Develop, construct, lease and sell single-family and multi-family residential properties • The Company’s DRH Rental subsidiary is capitalized with a $1.05 billion senior unsecured revolving credit facility Revenues ($M) Homes / Units Sold Homes / Units Owned(1) $217.8 815 16,020
Slide 33: Income Statement
Income Statement Quarter Ended Fiscal Year Ended 12/31/2024 12/31/2023 9/30/2024 9/30/2023 Homes closed 19,059 19,340 89,690 82,917 Homebuilding Revenues: Home sales $7,146.0 $7,276.4 $33,903.6 $31,641.0 Land/lot sales 21.2 20.3 58.2 102.2 7,167.2 7,296.7 33,961.8 31,743.2 Gross profit: Home sales 1
Slide 34: Balance Sheet
Balance Sheet 12/31/2024 9/30/2024 12/31/2023 Homebuilding Cash and cash equivalents $2,551.2 $3,627.8 $2,510.1 Inventories: Construction in progress and finished homes 8,808.0 8,986.1 9,602.5 Land inventories 11,843.4 11,044.9 9,764.4 20,651.4 20,031.0 19,366.9 Deferred income taxes and other asset