D.r. Horton, Inc. · NYSE:DHI
D.r. Horton — Q2 2025 Earnings Presentation
35 slides from D.r. Horton's earnings presentation, 2025
Slide 1: Investor Presentation Q2 2025
Investor Presentation Q2 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 23 AMERICA’S BUILDER years as America’s largest volume homebuilder 36 126 >1.1M DELIVERED homes since our inception in 1978 states markets % FIRST TIME HOME BUYERS 60% who used DHI Mortgage 85% HOME SALES REVENUE from the sale of single-family detached homes AVERAGE SALES PRICE $372.5K o
Slide 4: D.R. Horton Operating Segments
D.R. Horton Operating Segments Revenues* Homes Closed by Homebuilding Operations 26% Northwest 4% Homebuilding 26% Southwest 4% Rental $35.3B 3% 86,137 South Central Forestar Southeast 89% Financial Services 11% 20% East 6% North 11% Segment Information Homebuilding Operating Segments • Homebuilding
Slide 5: Strong Track Record of Exceptional Financial Performance
Strong Track Record of Exceptional Financial Performance Consistent and profitable growth is the foundation for increasing long-term shareholder value Consolidated Revenues ($ 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 89,449 homes closed during trailing twelve months ended March 31, 2025 2024 Closings: 1,400 15% 93,311 1,200 13% Approximately 1,000 one out of every 2006 Closings: 10% seven new single- 800 53,410 family homes in 8% the U.S. is built by 600 5% 400 2011 Closings: 17,176 1992 C
Slide 7: Market Share Dominance
Market Share Dominance D.R. Horton was the largest builder in 5 of the top 7 U.S. housing markets & in 62 of the 126 markets in which we operated at December 31, 2024 Top 7 U.S. Housing Markets DFW 18% 12% #1 builder in Houston 14% 62 markets 14% Phoenix 12% 12% Top 5 16% San Antonio builder in 28%
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 $377.2k 26% 23% average sales price $0 - $300k $301k - $350k 69% o
Slide 9: Driving Affordability
Driving Affordability • Proactively reducing square footage to address affordability • DHI’s average sales price was ~25% below the national average for the quarter ended 3/31/25 Average Square Footage Average Sales Price $500,533 2,119 (8)% $381,867 $372,500 1,950 $300,100 3/2020 3/2021 3/2022 3/20
Slide 10: 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 3/31/25 10
Slide 11: 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: Q3 FY 2025 • Consolidated revenues in the range of $8.4 billion to $8.9 billion • Homes closed between 22,000 homes and 22,500
Slide 12: 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 47.8% > $3,000 $5,760 Enhanced Financial 21.1% Position $2,366 $(621) 9/30/2005 3/31
Slide 13: A Disciplined Homebuilder Delivering Strong Returns
A Disciplined Homebuilder Delivering Strong Returns D.R. Horton is creating value by executing its clear strategic plan and returns-focused approach to capital allocation Return on Equity Return on Assets 10-Year TSR 17.4% 12.2% 398% 16.0% 10.6% 250% Homebuilder Homebuilder Homebuilder Median Median
Slide 14: Value Creation Strategy Will Continue to Produce Best-in-Class Returns
Value Creation Strategy Will Continue to Produce Best-in-Class Returns HOW DRIVES SHAREHOLDER VALUE 1. Disciplined focus on returns P 2. Substantial cash flow generation P 3. Balanced capital allocation P 14
Slide 15: Capital And Cash Flow Priorities – Putting Investors First
Capital And Cash Flow Priorities – Putting Investors First • Focused on generating substantial and increasing cash flows from operations • Balanced, disciplined, flexible and opportunistic capital allocation to enhance long-term value Maintain Financial Dividends to Returns-Driven Repurchases of Str
Slide 16: Prioritizing Financial Flexibility
Prioritizing Financial Flexibility Financial strength supports resiliency through cycles, prudent business planning, trade loyalty, capturing market share and sustainable returns of capital to shareholders Maintaining Conservative Leverage(1) Homebuilding (HB) Public Debt Maturities by Year ($M) 26.
Slide 17: Delivering on Shareholder Distribution Commitment
Delivering on Shareholder Distribution Commitment D.R. Horton continues to execute on its shareholder return commitment by repurchasing $2.4 billion of common stock and paying cash dividends of $254 million FYTD 3/31/25 5-Year CAGR: 49% $4,500 $2,198 ~ $4,000 $1,422 $1,528 $1,163 $1,803 $616 $1,106
Slide 18: Total Shareholder Returns
Total Shareholder Returns D.R. Horton’s TSR ranks in the top 20% of all S&P 500 companies for the last 3-year, 5-year and 10-year periods D.R. HORTON S&P 500 3-Year TSR 5-Year TSR 10-Year TSR 1st Quartile +293% TSR 1st Quartile 1st Quartile 86th Percentile +398% TSR +76% TSR 81st Percentile 84th Per
Slide 19: Return on Assets
Return on Assets D.R. Horton’s average annual ROA ranks in the top 15% of all S&P 500 companies D.R. HORTON S&P 500 3-Year ROA 5-Year ROA 10-Year ROA +16% ROA +16% ROA 1st Quartile 1st Quartile +14% ROA 1st Quartile 88th Percentile 89th Percentile 86th Percentile 2nd Quartile 2nd Quartile 2nd Quarti
Slide 20: Return on Equity
Return on Equity D.R. Horton’s average annual ROE ranks in the upper half of all S&P 500 companies D.R. HORTON S&P 500 3-Year ROE 5-Year ROE 10-Year ROE 1st Quartile 1st Quartile 1st Quartile +24% ROE +25% ROE 71st Percentile +22% ROE 67th Percentile 2nd Quartile 2nd Quartile 2nd Quartile 65th Perce
Slide 21: Consolidated Pre-Tax Income and Profit Margin
Consolidated Pre-Tax Income and Profit Margin Pre-tax profit margin is below all time highs; however, fiscal 2024 and TTM ended 3/31/25 pre-tax profit margins are above the trailing 10-year median Pre-Tax Income by Segment - TTM Ended 3/31/25 ($M) Annual Pre-Tax Income ($B) and Pre-Tax Profit Margin
Slide 22: 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 23: 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 2.3x 42,000 37,400 36,900 21,700 2.1x 27,200 27,000 25,700 23,500 26,100 19,200 1.8x 15,000 13,400 11,700 1.7x FY 2021 FY 2022 FY 2023 FY 2024 3/31
Slide 24: 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 25: Second Quarter Data
Fourth Q2 2025 Quarter Data Data 25
Slide 26: Q2 FY 2025 Results
Q2 FY 2025 Results The D.R. Horton team delivered a solid quarter to start the spring selling season • Earnings per diluted share of $2.58 on net income of $810.4 million • Consolidated pre-tax income of $1.1 billion on $7.7 billion of revenues, with a pre-tax profit margin of 13.8% • Home sales rev
Slide 27: Homes Closed And Revenues
Homes Closed And Revenues Home sales revenues of $7.2 billion on 19,276 homes closed by homebuilding operations in Q2 FY25 Q2 FY 2025 Revenue by Segment ($M) Fiscal Quarter Ended ($M) $8,467 $213 $351 $7,734 $237 $7,181 $7,203 -$269 22,548 19,276 Homebuilding Rental Forestar Financial Elimin. Consol
Slide 28: Home Sales Gross Margin
Home Sales Gross Margin Annual home sales gross margin fluctuation primarily due to mortgage interest rate volatility and incentive levels Fiscal Year Ended Fiscal Quarter Ended 28.7% 24.0% 23.2% 23.6% 25.5% 22.7% 21.8% 23.5% 23.5% 21.8% 21.6% FY 20 FY 21 FY 22 FY 23 FY 24 Q2 FY24 Q3 FY24 Q4 FY24 Q1
Slide 29: Homebuilding SG&A
Homebuilding SG&A • Controlling SG&A while ensuring that our platform supports the expansion of our operations, including new markets and an increased community count • SG&A as a percentage of revenues is typically higher than the annual rate in Q1 and Q2 due to revenue seasonality Fiscal Year Ended
Slide 30: Consolidated Pre-Tax Income
Consolidated Pre-Tax Income Pre-tax profit margin remains in line with our 10-year annual median of 13.8% Q2 FY 2025 Pre-Tax Income by Segment ($M) Fiscal Quarter Ended ($M) HB Rev $ $1,529 $73 $1,067 $41 -$4 $935 $23 $1,067 16.8% 13.8% Homebuilding Rental Forestar Financial Elimin. Consolidated Q2
Slide 31: 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 • 64% 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 32: Forestar
• Forestar is separately capitalized and had total liquidity of $792 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 15,000 to 15,500 lots sold generating $1.5 billion t
Slide 33: 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) $371.3 16,220 1,53
Slide 34: Income Statement
Income Statement 3 Months Ended 6 Months Ended 3/31/25 3/31/24 3/31/25 3/31/24 Homes closed 19,276 22,548 38,335 41,888 Homebuilding Revenues: Home sales $7,180.9 $8,466.7 $14,327.0 $15,743.1 Land/lot sales 22.0 6.9 43.2 27.2 7,202.9 8,473.6 14,370.2 15,770.3 Gross profit: Home sales 1,566.2 1,961.1
Slide 35: Balance Sheet
Balance Sheet 3/31/25 9/30/24 3/31/24 Homebuilding Cash and cash equivalents $1,927.9 $3,627.8 $2,199.3 Inventories: Construction in progress and finished homes 8,762.7 8,986.1 9,847.5 Land inventories 12,149.0 11,044.9 10,082.3 20,911.7 20,031.0 19,929.8 Deferred income taxes and other assets 3,820