Slide 1: Investor Presentation Q2 2026
Investor Presentation Q2 | 2026
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Factors that may cause the actual results to be materially different from the future results expressed by the forward-looking statements include, but are not limited to: the effect of D.R. Horton’s controlling level of ownership on us and the holders of our securities; our
Slide 3: Forestar Overview
FORESTAR OVERVIEW RETURNS Track record of solid operational results FOCUSED Forestar Group Inc. (“Forestar” or “FOR”) is a highly differentiated, pure-play, PRUDENT Fully-entitled projects with short durations residential lot developer for the affordably- priced single-family home market Investing c
Slide 4: Q2 FY 2026 Highlights
Q2 FY 2026 HIGHLIGHTS • Earnings per diluted share of $0.63 on net income attributable to Forestar of $32.1 million • Pre-tax income increased 8% to $43.9 million, with a pre-tax profit margin of 11.7% • Revenues increased 7% to $374.3 million on 2,938 lots sold • Owned and controlled 94,400 lots at
Slide 5: FY 2026 Outlook
FY 2026 OUTLOOK Forestar is focused on a disciplined approach to creating long-term value FY 2026 Priorities FY 2026 Guidance • Balance pace and level of investment in-line with Residential Lots Sales 14,000 - 14,500 Lots market conditions • Disciplined capital allocation while continuing to positio
Slide 6: Forestar Investment Highlights
FORESTAR INVESTMENT HIGHLIGHTS 1 Unique Return- Focused Lot Manufacturing Business Model 8 2 Strong Balance Sheet Strategic Relationship and Liquidity Position With D.R. Horton 7 3 Proven Management Long-Term Market Team With Decades of Share Gains Real Estate Experience 6 4 Homebuilders Geographica
Slide 7: Manufacturing Approach to Land Development
1 MANUFACTURING APPROACH TO LAND DEVELOPMENT Forestar has built a unique lot manufacturing model that enables it to be a dependable supplier of lots to homebuilders, while producing solid risk-adjusted returns Short duration, fully- Large scale with Returns-focused, with strict Predictable operating
Slide 8: Highly Strategic Alignment with DHI
2 HIGHLY STRATEGIC ALIGNMENT WITH DHI BENEFITS TO FOR BENEFITS TO DHI • Supports Forestar’s national platform • Long-term consistent supplier of finished lots SYMBIOTIC across DHI’s national footprint (126 markets in • Significant built-in demand for lots RELATIONSHIP 36 states) • Improved access to
Slide 9: Master Supply Agreement
2 MASTER SUPPLY AGREEMENT The Master Supply Agreement formalizes the business relationship with DHI as both companies identify real estate opportunities and protects FOR's interests via the Right of First Offer process A Right of First Offer (ROFO) is very 1 Lots Sourced by DHI different than a Righ
Slide 10: DHI Track Record Provides Roadmap to FOR
3 DHI TRACK RECORD PROVIDES ROADMAP TO FOR DHI’s 30-year public track record provides a blueprint to FOR to achieve its own growth, consolidation and market share gains Total New U.S. Single-Family Houses Sold ('000s) DHI’s Homes Closed as a Percentage of New U.S. Single-Family Houses Sold Represent
Slide 11: Then and Now: FOR Today vs. 2018
3 Then and Now: FOR Today vs. 2018 Since D.R. Horton's investment in Forestar in late-2017, Forestar has significantly expanded its operations Investment Operational Platform Operating Results Owned and Controlled Lots Market Count TTM Lots Sold 64 94,400 13,378 x x x 4.5 2.5 0.5 1 24 CAGR 20,100 37
Slide 12: Intermediate Term Growth Goals
3 INTERMEDIATE TERM GROWTH GOALS Forestar has a visible path to capturing 5% market share within the highly-fragmented U.S. single-family residential lot development industry* Annual Lot Deliveries 5.0% >2.0x FOR's current size 2.1% 0.7% FY 2019 Market FY 2025 Market Current Target Share Share *5% m
Slide 13: Diversified National Footprint
4 DIVERSIFIED NATIONAL FOOTPRINT 64 MARKETS | 24 STATES Portfolio of 94,400 lots as of March 31, 2026 / FOR markets / states DHI states where FOR does not currently operate Of total lot position at 03/31/26, 63,500 are owned and 30,900 are controlled through purchase contracts *Although Forestar doe
Slide 14: Intense Focus on Risk Mitigation
5 INTENSE FOCUS ON RISK MITIGATION Strategic Operational Financial Strict underwriting requiring minimum Significant local knowledge and expertise Robust analytical process to determine 15% return on average inventory and best capital allocation across markets return of the entire phase 1 investment
Slide 15: Uniquely Positioned to Provide Finished Lots
6 UNIQUELY POSITIONED TO PROVIDE FINISHED LOTS Builders' preference for ‘land lighter’ models enhances opportunity, and in times of economic uncertainty, many homebuilders shift their land strategies to slow raw land purchases and focus on purchasing finished lots Optioned Land/Lot Position as a Num
Slide 16: Constrained Lot Supply
6 CONSTRAINED LOT SUPPLY • Availability of lots is improving from historic lows; calendar 4Q 2025 lot supply indicated at slightly undersupplied • New home construction has been constrained by the availability of lots in certain markets • 16 of 30 major markets are categorized as significantly under
Slide 17: Project-Level Land Development Financing Snapshot
6 PROJECT-LEVEL LAND DEVELOPMENT FINANCING SNAPSHOT • According to the NAHB’s Survey on Acquisition, Development & Construction Financing, land development loan availability continues to be expensive and hard to secure • Forestar's lower cost of financing is a key competitive advantage over typical
Slide 18: Land and Development Investments
6 LAND AND DEVELOPMENT INVESTMENTS • Investing in new projects while maintaining a disciplined and conservative approach to underwriting • Phased development intends to deliver finished lots at a pace that matches market demand, consistent with FOR's focus on capital efficiency and returns • Expect
Slide 19: Lot Position
6 LOT POSITION • Owned and controlled lot position supports future growth and market share gains; targeting a 3- to 4-year owned inventory of lots • Consistent with Forestar's focus on capital efficiency, its land and lot supply that is controlled via purchase contracts remains robust • Balance shee
Slide 20: Contracted Revenues
6 CONTRACTED REVENUES • Contracted backlog is a strong indicator of FOR's ability to continue gaining market share in the highly fragmented lot development industry • Owned lots under contract of 24,100 lots or 38% of FOR's owned lot position • $209 million dollars of hard earnest money deposits sec
Slide 21: Committed Leadership with Decades of Experience
7 COMMITTED LEADERSHIP WITH DECADES OF EXPERIENCE Management team includes land development veterans experienced in consolidating market share and navigating through industry and economic cycles DON TOMNITZ ANDY OXLEY Executive Chairman CEO 14 Formerly President & CEO of DHI for over Joined FOR in J
Slide 22: Solid Balance Sheet and Liquidity Position
8 SOLID BALANCE SHEET AND LIQUIDITY POSITION • Forestar is well-positioned with net leverage(1) of 1.7x, net debt to capital(2) of 19.2% and a strong liquidity position of $1.0 billion at 3/31/26 • Balanced financing plan includes both debt and equity — net debt to capital(2) target of ≤ 40% • Capit
Slide 23: Appendix
APPENDIX bey FORESTAR
Slide 24: Business Overview
BUSINESS OVERVIEW Forestar Capital Deployment and Cash Generation Source land Place land under Close acquisition Lot development Deliver finished acquisition contract and complete of entitled land (~70% finished lot cost) lots to builders opportunities due diligence (~30% finished lot cost) • Phased
Slide 25: Forestar Supplies the First Input to Building a Home
FORESTAR SUPPLIES THE FIRST INPUT TO BUILDING A HOME Key Components to Building a Home: • Finished Lot (~20-30% of ASP) • Concrete • Lumber • Roofing materials • Siding / Brick • Windows • Insulation • HVAC / Plumbing / Electrical • Cabinets / Flooring / Paint • Appliances Note: ASP refers to the av
Slide 26: Shared Services Agreement
SHARED SERVICES AGREEMENT • Shared Services Agreement between FOR and DHI defines the terms under which DHI may provide administrative, compliance, operational and procurement services to FOR • Scope and cost of services provided to FOR are mutually agreed upon by FOR and DHI management teams and ar
Slide 27: Stockholder's Agreement
STOCKHOLDER’S AGREEMENT • FOR Board of Directors must include at least three independent directors (currently has five) • As long as DHI owns at least 20% of FOR’s outstanding equity: – DHI has the right to designate individuals to FOR’s Board based on DHI’s ownership percentage – DHI has the right
Slide 28: Income Statement
INCOME STATEMENT 3 MONTHS ENDED 6 MONTHS ENDED 3/31/26 3/31/25 3/31/26 3/31/25 Residential lots sold: 2,938 3,411 4,882 5,744 Development projects 2,914 3,334 4,814 5,625 Lot banking projects 24 77 68 119 Average sales price per lot(1) $ 112,800 $ 101,700 $ 116,000 $ 103,200 Revenues(2) $ 374.3 $ 35
Slide 29: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Reconciliation of Adjusted Non-GAAP Financial Measures to their GAAP equivalents 3 MONTHS ENDED 12 MONTHS ENDED 3/31/26 3/31/25 3/31/26 3/31/25 Net income $ 32.2 $ 31.6 $ 167.5 $ 168.2 Income tax expense 11.7 9.1 53.9 54.4 Interest charged to cost of sales 7.0 6.4 32.1
Slide 30: Balance Sheet
BALANCE SHEET 3/31/26 9/30/25 3/31/25 Cash and cash equivalents $ 362.2 $ 379.2 $ 174.3 Real estate 2,709.7 2,645.1 2,759.4 Other assets 100.7 112.7 109.0 Total assets $ 3,172.6 $ 3,137.0 $ 3,042.7 Debt $ 793.5 $ 802.7 $ 872.5 Accrued development costs 113.9 131.8 122.9 Earnest money on sales contra