D.r. Horton, Inc. · NYSE:DHI
D.r. Horton — Q1 2026 Earnings Presentation
36 slides from D.r. Horton's earnings presentation, Jan 20, 2026
Slide 1: Investor Presentation Q1 2026
Investor Presentation Q1 2026
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 47 24 >1.2M YEARS IN BUSINESS AMERICA’S BUILDER HOMES DELIVERED founded in 1978 years as America’s largest volume since inception in 1978 homebuilder 63% $368.3K 84% % FIRST-TIME HOMEBUYERS AVERAGE SALES PRICE HOME SALES REVENUE who used DHI Mortgage of homes closed from the sale of sing
Slide 4: D.R. Horton Operating Segments
D.R. Horton Operating Segments D.R. Horton operates through four segments, with homebuilding as the core business, supported by complementary financial services, lot development (Forestar) and rental operations Pre-tax Income Contribution by Operating Segment 85% 6% 5% 4% Homebuilding Financial Serv
Slide 5: Expectations
Expectations Although volatility in mortgage rates and changes in economic conditions could have significant impacts, the Company’s expectations for FY 2026 are as follows: FY 2026 Q2 FY 2026 Consolidated Revenues in the range of $33.5 billion to $35.0 billion in the range of $7.3 billion to $7.8 bi
Slide 6: Dominant Market Position and Scale
Dominant Market Position and Scale D.R. Horton has consistently demonstrated strong market leadership and has doubled its market share over the last 10 years 1,400 15% 1,200 Approximately one out of every seven 12% new single-family homes in the U.S. is 1,000 built by D.R. Horton 9% 800 D.R. Horton
Slide 7: A Differentiated Operating Model Built for Scale
A Differentiated Operating Model Built for Scale Key drivers of sustainable market share gains, cash generation and maximizing shareholder returns 1 2 3 Product People Platform • Focused on entry-level, the largest • Entrepreneurial culture empowers local • More geographically diversified than any s
Slide 8: Diverse Product Offerings And Price Points
Diverse Product Offerings And Price Points Entry-level, move-up, active adult and luxury homes ranging in size from ~1,000 to ~4,000 square feet, providing value to homebuyers at every stage of life 31% $368.3K $0 - $300k 24% average closing price $301k - $350k 73% of homes $351k - $400k closed were
Slide 9: Driving Affordability
Driving Affordability • Proactively reducing square footage to address affordability • DHI’s average sales price was 27% below the national average for the quarter ended 12/31/25 Average Square Footage Average Sales Price $502,500 (7) 2,092 % $365,500 $392,900 1,954 $304,100 12/20 12/21 12/22 12/23
Slide 10: Customer Demographics
Customer Demographics 90% 47% average loan to “We never thought in a million years that FHA loan mix value we’d own a home, especially a BRAND NEW home! The home buyers club helped us to be seen 43% 40 as more than a credit score. The D.R. average debt to average age of primary Horton team saw me, t
Slide 11: Management Tenure And Experience
Management Tenure And Experience ~30 years Executive Team >20 years Region Presidents & Vice Presidents ~15 years Division Presidents & City Managers Average employee tenure as of 12/31/25 11
Slide 12: Homebuilding Reporting Regions
Homebuilding Reporting Regions • Operations in 126 markets across 36 states • Diversification lowers operational risks by mitigating the effects of local and regional economic cycles • Footprint provides a strong platform to consolidate market share Homes Closed by Homebuilding Operations 12% 6% Nor
Slide 13: Then & Now: DHI Today vs. 2005
Then & Now: DHI Today vs. 2005 D.R. Horton has become a returns-focused, disciplined allocator of capital with scale and financial strength to navigate changes in market conditions Consolidated Liquidity Consolidated Leverage Cash Flow Generation $6,556 47.8% > $3,628 Enhanced Financial Position $2,
Slide 14: A Disciplined Homebuilder Delivering Strong Returns
A Disciplined Homebuilder Delivering Strong Returns D.R. Horton is creating value by executing its clear strategic plan and returns-focused approach to capital allocation Return on Equity Return on Assets 10-Year TSR 13.7% 9.4% 403% 326% 12.5% 8.1% Homebuilder Homebuilder Homebuilder Median Median M
Slide 15: Proven Performance at a Discounted Valuation
Proven Performance at a Discounted Valuation D.R. Horton has demonstrated the ability to generate attractive shareholder returns and profitability through disciplined execution, yet continues to trade at a materially lower multiple than the broader market Outperforming Shareholder Returns Next Twelv
Slide 16: Capital And Cash Flow Priorities
Capital And Cash Flow Priorities – Support Sustained Value • Disciplined investment in core business to meet demand and grow revenues and market share • Focused on generating consistent, substantial cash flows from operations on an annual basis • Balanced, disciplined, flexible and opportunistic cap
Slide 17: Prioritizing Financial Flexibility
Prioritizing Financial Flexibility Financial strength supports resiliency through cycles, prudent business planning, trade loyalty, capturing market share and sustainable returns of capital to shareholders Maintaining Conservative Leverage Homebuilding (HB) Public Debt Maturities by Year ($M) Notes
Slide 18: Delivering on Shareholder Distribution Commitment
Delivering on Shareholder Distribution Commitment D.R. Horton continues to execute on its shareholder return commitment and expects to repurchase ~$2.5 billion of common stock and pay cash dividends of $500 million during FY26* Shareholder Distribution: 5-Year CAGR: 21% Outstanding Shares Down 20% i
Slide 19: Homebuilding Operational Focus
Homebuilding Operational Focus Provide value, quality, positive experience and service to homebuyers Manage land, lot and home inventory prudently to meet demand and gain market share Control a significant portion of our land and finished lot position through purchase contracts with lot developers a
Slide 20: Homes in Inventory
Homes in Inventory Faster housing turns support lower, more efficient, housing inventory levels Homes in Inventory Housing Inventory Turns 46,400 42,000 2.9x 37,400 27,200 29,600 30,400 27,000 2.3x 25,700 19,600 20,000 2.1x 1.7x 1.8x 19,200 15,000 11,700 10,000 10,400 FY 2022 FY 2023 FY 2024 FY 2025
Slide 21: Industry-Leading Access to Land and Lots
Industry-Leading Access to Land and Lots • Land and lots are the key to any homebuilder’s future growth • D.R. Horton is the most geographically diverse builder with the largest lot supply ◦ Positioned to continue to aggregate significant market share – 445,000 controlled lots (75%) / 145,500 owned
Slide 22: Other Business Lines
Other Business Lines • Rental Financial Services • DHI owns 62% of Forestar, a • Single-family rental operations • Comprised primarily of DHI publicly traded residential lot construct homes within single-family Mortgage and DHI Title subsidiaries developer (NYSE: FOR) rental (build-to-rent) communit
Slide 23: Fourth Quarter Data
Fourth Q1 2026 Quarter Data Data 23
Slide 24: Q1 FY 2026 Results
Q1 FY 2026 Results The D.R. Horton team delivered a solid first quarter of fiscal 2026 • Earnings per diluted share of $2.03 on net income of $594.8 million • Consolidated pre-tax income of $798.1 million on $6.9 billion of revenues, with a pre-tax profit margin of 11.6% • Pre-tax profit margin incl
Slide 25: Homes Closed And Revenues
Homes Closed And Revenues Home sales revenues of $6.5 billion on 17,818 homes closed by homebuilding operations in Q1 FY26 Q1 FY 2026 Revenue by Segment ($M) Homes Closed and Home Sales Revenue ($M) $184.6 $273.0 $6,886.9 $7,276.4 $7,146.0 $6,528.9 $109.5 -$209.1 $6,656.4 $6,709.2 $6,512.7 19,340 19
Slide 26: Home Sales Gross Margin
Home Sales Gross Margin • Recent gross margin fluctuations primarily due to mortgage interest rate volatility and elevated incentive levels • Q4 FY25 gross margin includes 60 basis points of higher than normal litigation costs from two large settlements • Q1 FY26 gross margin includes a recovery of
Slide 27: Homebuilding SG&A
Homebuilding SG&A • Controlling SG&A expenses while ensuring that our platform supports operational expansion, including new markets and increased community count • SG&A as a percentage of revenues is higher than the annual rate in Q1 due to revenue seasonality Fiscal Year Ended - as a % of HB Reven
Slide 28: Consolidated Pre-Tax Income
Consolidated Pre-Tax Income Pre-tax profit margin has compressed primarily due to lower home sales volume and rental contribution, which reduced operating leverage, as well as increased incentives to support demand Q1 FY 2026 Pre-Tax Income by Segment ($M) Fiscal Quarter Ended ($M) $58.0 $11.0 $798.
Slide 29: Capital Efficient and Flexible Land and Lot Pipeline
Capital Efficient and Flexible Land and Lot Pipeline • Expect to own between a one and two year supply of lots to ensure control and flexibility to support home starts; no set target for controlled lot position • Have made significant progress expanding land developer base and reducing self-developm
Slide 30: Forestar Liquidity and Lots Sold
• Forestar is separately capitalized and had total liquidity of $819 million at quarter-end • Sold 14,240 lots and generated $1.7 billion of revenue in FY25 $1.3 billion, or 23%, of D.R. Horton’s finished lot purchases in FY 25 were from Forestar ◦ • Expect 14,000 to 15,000 lots sold generating $1.6
Slide 31: 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) 815 15,360 $217.8
Slide 32: Total Shareholder Returns
Total Shareholder Returns Outperformed the S&P 500 across 3-, 5- and 10-year periods, including top-quartile performance over 10 years D.R. HORTON S&P 500 3-Year TSR 5-Year TSR 10-Year TSR 1st Quartile 1st Quartile 1st Quartile +403% TSR +120% TSR 76th Percentile +66% TSR 72nd Percentile 2nd Quartil
Slide 33: Return on Assets
Return on Assets D.R. Horton’s average annual ROA ranks in the top 20% of all S&P 500 companies D.R. HORTON S&P 500 3-Year ROA 5-Year ROA 10-Year ROA +16% ROA 1st Quartile 1st Quartile +14% ROA 1st Quartile +13% ROA 88th Percentile 86th Percentile 82nd Percentile 2nd Quartile 2nd Quartile 2nd Quarti
Slide 34: Return on Equity
Return on Equity D.R. Horton has sustained an ROE premium versus the S&P 500 median across 3-, 5- and 10-year periods D.R. HORTON S&P 500 3-Year ROE 5-Year ROE 10-Year ROE 1st Quartile 1st Quartile 1st Quartile +23% ROE +22% ROE +19% ROE 2nd Quartile 67th Percentile 2nd Quartile 2nd Quartile 65th Pe
Slide 35: Income Statement
Income Statement Three Months Ended Fiscal Year Ended 12/31/25 12/31/24 9/30/25 9/30/24 Homes closed 17,818 19,059 84,863 89,690 Homebuilding Revenues: Home sales $6,512.7 $7,146.0 $31,432.0 $33,903.6 Land/lot sales 16.2 21.2 83.5 58.2 6,528.9 7,167.2 31,515.5 33,961.8 Gross profit: Home sales 1,330
Slide 36: Balance Sheet
Balance Sheet 12/31/25 9/30/25 12/31/24 Homebuilding Cash and cash equivalents $1,946.3 $2,236.0 $2,551.2 Inventories: Construction in progress and finished homes 7,372.5 7,743.7 8,808.0 Land inventories 12,866.9 12,572.8 11,843.4 20,239.4 20,316.5 20,651.4 Deferred income taxes and other assets 4,2