2025 Sustainability Report

2025

Sustainability Report

Introduction Purpose People Environment Appendices 2025 Sustainability Report 2

Materiality Assessment 8

2025 Sustainability Highlights 10

Board Matters

Board Characteristics 18

Talent & Retention 32

Employee Well-Being 35

Health & Safety 38

Responsible Land Development 57

Water Management & Efficiency 60

Greenhouse Gas Emissions 62

Appendices

2025 Employer Information 66

Report (EEO-1) - D.R. Horton, Inc.

Sustainability Accounting 67

Standards Board (SASB) Index

Task Force on Climate-related 70

Financial Disclosures (TCFD)

UN Sustainable 80

Development Goals

Introduction Purpose People Environment Appendices 2025 Sustainability Report 3

In This Section

Introduction Purpose People Environment Appendices 2025 Sustainability Report 4

Fiscal 2025 was a year defined by focus and execution. While housing market conditions remained challenging due to affordability constraints, elevated interest rates and ongoing economic uncertainty, the

D.R. Horton team responded with discipline, consistency and resilience. Across our organization, we remained grounded in the purpose that has guided us for nearly five decades: enabling more individuals and families to achieve the dream of homeownership.

Our scale, geographic diversity and experienced operating teams continue to be among our greatest strengths. In fiscal 2025, we provided a place to call home to nearly 85,000 individuals and families, including approximately 43,000 first-time homebuyers. These success stories reflect the collective efforts of our employees, land developers, trade partners, vendors, suppliers and real estate agents who comprise the Horton Family and bring our mission to life in communities across the country.

Affordability remains the foundation of our strategy and a defining component of our long-term responsibility. Over the past year, our teams continued to refine product designs, adjust home sizes and utilize market-specific pricing and financing solutions to help address monthly payment challenges faced by

today's homebuyers.

D.R. Horton has long operated as a decentralized, locally driven organization, empowering our operators to make decisions that reflect the unique conditions of their markets while maintaining strong centralized oversight of risk, capital discipline and governance. This operating model supports both resiliency and accountability, enabling us to adapt to changing conditions while maintaining consistent standards

across our footprint. It is also fundamental to how we approach sustainability: practically, thoughtfully and with an emphasis on long-term value creation.

As the nation's largest homebuilder, we recognize that our operations have environmental and human capital impacts that warrant careful management and transparency. This year's Sustainability Report reflects continued progress in the maturity of our disclosures and internal systems. We refreshed our enterprise materiality assessment and climate risk assessment, expanded our preparation efforts related to emerging regulatory requirements and further refined metrics related to energy efficiency, greenhouse gas emissions and human capital. We also continued to evaluate opportunities to improve internal processes, recognizing that accurate, reliable data is

foundational to responsible decision-making and long-term transparency.

Our people remain at the center of everything we do. With an exceptionally tenured leadership team and a culture that emphasizes development from within and safety and accountability, our employees are instrumental in executing our strategy and advancing our sustainability efforts.

As we look ahead, we remain focused on disciplined growth, operational excellence and responsible stewardship. We continue to foster a safe, ethical and inclusive workplace and to support the communities where our employees live and work through ongoing engagement, volunteerism and disaster recovery efforts. We believe that by staying grounded in our purpose and continuously improving how we operate, we are well positioned to create enduring value for our homebuyers, communities, employees

and stockholders.

Thank you to the entire Horton Family for your continued dedication and to our stakeholders for your trust and engagement as we work to meet the housing needs of today and tomorrow.

Sincerely,

David V. Auld Executive Chairman

Introduction Purpose People Environment Appendices 2025 Sustainability Report 5

‌Forward-Looking Statements

This report 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 materially different. 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 cyclical nature of the homebuilding, rental and lot development industries and changes in economic, real estate or other conditions; adverse developments affecting the capital markets and financial institutions, which could limit

We are pleased to share this Fiscal 2025 Sustainability Report with our employees, homebuyers, investors and communities. This report reflects our commitment to responsible business practices and transparent reporting across three core tenets: Leading with Purpose; People, People, People; and Environment.

our ability to access capital, increase our cost of capital and impact our liquidity and capital resources; reductions in the availability of mortgage financing provided by government agencies, changes in government financing programs, a decrease in our ability to sell mortgage loans on attractive terms or an increase in mortgage interest rates; the risks associated with our land, lot and rental inventory; our ability to effect our growth strategies, acquisitions, investments or other strategic initiatives successfully; the impact of an inflationary, deflationary or higher interest rate environment; risks of acquiring land, building materials and skilled labor and challenges obtaining regulatory approvals; the effects of public health issues such as a major epidemic or pandemic on the economy and our businesses; the effects of weather conditions and natural disasters on our business and financial results; home warranty and construction defect claims; the effects of health and safety incidents; reductions in the availability of performance bonds; increases in the costs of owning a home; the effects of information technology failures, cybersecurity incidents, and the failure to satisfy privacy and data protection laws and regulations; the effects of governmental regulations and environmental matters on our land development and housing operations; the effects of changes in income tax and securities laws; the effects of governmental regulations on our financial services operations; the effects of competitive conditions within the industries in which we operate; our ability to manage and service our debt and comply with related debt covenants, restrictions and limitations; the effects of negative publicity; the effects of the loss of key personnel; and the effects of actions by activist stockholders.

Additional information about issues that could lead to material changes in performance is contained in D.R. Horton's annual report on Form 10-K and its most recent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission.

We recognize the importance many of our stakeholders place on environmental, human capital and risk management topics and are committed to publishing consistent and relevant sustainability information on an annual basis.

The data presented within this report is as of or for the fiscal year ended September 30, 2025, unless otherwise noted, and is presented in accordance with the homebuilders industry reporting standards prepared by the Sustainability Accounting Standards Board (SASB), now part of the International Sustainability Standards Board (ISSB) of the IFRS Foundation. We have also aligned our climate risk and opportunity discussion with the recommendations of the body formally known as the Task Force on Climate-related Financial Disclosures (TCFD), now also under the purview of the ISSB. Finally, we also reference the United Nations' Sustainable Development Goals (SDGs) where we believe our Company best aligns. Data provided within the report may reflect consolidated information that is inclusive of multiple D.R. Horton business entities in addition to its homebuilding operations, including Forestar, Rental, Financial Services and other ancillary business activities.

We continue to refine our data collection processes and internal reporting capabilities to improve our data quality and comparability.

Certain policies and governance documents referenced within this report, including our Corporate Code of Conduct, Human Rights Policy and Political Contributions Policy Statement,

are publicly available on our Investor Relations website at investor.drhorton.com under the Policy & Governance Documents link within the Corporate Governance section. For any questions regarding this report, please email us at InvestorRelations@drhorton.com.

D.R. Horton's homebuilding operating divisions are aggregated into six reporting segments. The reporting segments and the states in which the Company has homebuilding operations are as follows:

Northwest:

Colorado, Oregon, Utah, Washington

North:

Delaware, Illinois, Indiana, Iowa, Kansas/Missouri, Kentucky, Maryland, Minnesota, Nebraska, New Jersey, Ohio, Pennsylvania, Virginia, West Virginia, Wisconsin

Southwest:

Arizona, California, Hawaii, Nevada, New Mexico

South Central:

Arkansas, Oklahoma, Texas

Southeast:

Alabama, Florida, Louisiana, Mississippi

East:

Georgia, North Carolina, South Carolina, Tennessee

Company Snapshot1

D.R. Horton was the largest builder in 60 of the 126 markets in which it operated at September 30, 2025.2

1978

Year Founded

63%

First-Time Homebuyers

14,341

Number of Employees

29,600

Homes in Inventory

1,200,000

Homes Closed Since 1978

147,000

Land/Lots Owned

84,863

Homes Closed

444,900

Lots Controlled Through Land and Lot Purchase Contracts

$370,400

Average Sales Price (Closings)

591,900

Total Land/Lots Owned and Controlled

$34.3 billion

Consolidated Revenues

D.R. Horton, Inc., America's Builder, has been the largest homebuilder by volume in the United States since 2002 and has closed more than 1,200,000 homes in its 47-year history.

D.R. Horton has operations in 126 markets in 36 states across the United States and is engaged in the construction and sale of high-quality homes through its diverse product portfolio with sales prices generally ranging from $250,000 to over $1,000,000. The Company also constructs and sells both single-family and multi-family rental properties.

During its fiscal year ended September 30, 2025,

D.R. Horton closed 84,863 homes in its homebuilding operations, in addition to 3,460 single-family rental homes and 2,947 multi-family rental units in its rental operations. D.R. Horton also provides mortgage financing, title services and insurance agency services for its homebuyers and is the majority-owner of Forestar Group Inc., a publicly traded national residential lot development company.

Ranked at #123 on the 2025 Fortune 500 list,

D.R. Horton has consistently delivered top-quality new homes to homebuyers across the nation.

Our Company stock is traded on both the New York Stock Exchange and NYSE Texas under the ticker symbol DHI.

1. Data represents D.R. Horton's homebuilding operations and is presented as of or for the fiscal year ended September 30, 2025, unless otherwise noted.

2. Based on data provided by Zonda and D.R. Horton estimates for the trailing twelve months ended September 30, 2025.

Introduction

Purpose

People

Environment

Appendices

2025 Sustainability Report 6

Introduction Purpose People Environment Appendices 2025 Sustainability Report 7

2020 2021 2022 2023 2024 2025

and metrics

⏺ Updated our Corporate Code of Business Conduct and Ethics

Statement

⏺ Performed initial Climate and Human Capital

Risk Assessment

EEO-1 data for the first time

⏺ Published a Vendor Spotlight highlighting the sustainability efforts of key suppliers

⏺ Started data collection for baseline Scope 1 and 2 GHG emissions quantification

⏺ Obtained results of 2022 ESG Materiality Assessment

and reported to Board of Directors

⏺ Published Inaugural ESG Report

and accuracy

⏺ Conducted a Vendor ESG Survey

⏺ Completed Scope 1 and 2 GHG emissions calculation for fiscal 2022

⏺ Completed CDP Climate Questionnaire and had it scored for the first time

⏺ Published 2023 ESG Report

⏺ Completed scored CDP Climate Questionnaire

⏺ Hosted our biennial National Purchasing Trade Show with Sustainability Awards presented for the first time to both a homebuilding division and a vendor

⏺ Completed a scored CDP Climate Questionnaire

⏺ Published 2024 Sustainability Report

⏺ Began California Climate Law

SB-253 compliance preparations, including data collection to support our initial Scope 3 GHG emissions calculation

⏺ Refreshed Materiality Assessment

⏺ Refreshed Climate Risk Assessment

2026 & Beyond

⏺ Completed Scope 1 and 2 GHG emissions calculation for fiscal 2025 and obtained limited assurance for the first time

⏺ Published 2025 Sustainability Report

⏺ Ongoing work to complete D.R. Horton's first Scope 3 GHG emissions calculation

⏺ Ongoing review and refreshment of key policy documents, including evaluation of additional policies where appropriate

⏺ Annual publication and disclosure of key sustainability and human capital disclosures and political contribution amounts

⏺ Consideration of GHG reduction targets

At D.R. Horton, stakeholder feedback is central to how we shape our business strategy, particularly in sustainability and human capital management. In preparation for our inaugural sustainability report in 2022, we engaged a third-party sustainability firm to conduct a comprehensive materiality assessment, establishing a foundation for understanding the environmental, social and governance (ESG) topics most relevant to our business and stakeholders. To keep our priorities current and responsive, we periodically review and refresh this assessment. Most recently, we partnered with the same firm at the end of 2025 to complete an updated assessment reflecting advancements in both methodology and stakeholder engagement and reinforcing our commitment to transparency and continuous improvement.

Our 2025 materiality assessment followed a similar approach to our original, drawing on prior stakeholder feedback, ESG/sustainability disclosure frameworks, ratings providers, peer homebuilding disclosures and other data sources to develop a targeted survey.

To broaden participation, we distributed the survey to 267 individuals, an increase of more than 150% from our first assessment. We received 56 complete responses representing all key stakeholder

groups, including employees, suppliers, investors, customers, community members and government and government affairs representatives.

Stakeholders were asked to select, rank and explain sustainability topics they viewed as most significant for

D.R. Horton today and looking ahead to 2035.

To improve clarity and better reflect how we manage our business, we streamlined the survey from 28 topics in 2022 to 16 consolidated themes in 2025.

Results were evaluated on both an absolute and weighted basis. The top five most frequently selected topics of importance to D.R. Horton today are:

Important Today

1 Sustainable Procurement

3

2 Responsible Business Practices Employee Health, Safety &

Well-Being

5

4 Business Resiliency Home Emissions & Energy Efficiency

The top five topics stakeholders identified as most important in 2035 closely mirror those viewed as important today, enabling a consistent, focused sustainability strategy:

Important in 2035

2

1 Business Resiliency Employee Health, Safety & Well-Being

1. Sustainable Procurement

2. Responsible Business Practices

3. Workforce Management

Compared to our 2022 assessment, the refreshed results reflect a notable shift in stakeholder priorities, moving away from product-focused concerns, such as energy efficiency, quality and sustainable materials, toward enterprise-level considerations, including procurement, governance and resilience. This evolution signals that stakeholders are taking a broader view of D.R. Horton's business activity, examining not only what we build, but how we operate across every dimension: how materials are sourced, how workers are treated, how we position ourselves against macroeconomic and climate-related disruption and how our operations interact with the natural environment.

Three key themes emerged from stakeholders' rationale:

⏺ Business strength and resilience

⏺ People as foundational

⏺ Scale-driven responsibility

These themes are embedded in our culture and operations as highlighted throughout the Leading with Purpose, People, People, People and Environment sections of this report.

To build the materiality matrix on the following page, we analyzed survey responses from both internal stakeholders (employees) and external stakeholders, incorporating the rankings applied to each topic to determine relative significance. The matrix plots all 16 topics across three bands: moderate, high and very high importance. All topics rated high or very high importance are addressed in this report, as are select topics in the moderate band. Topics in the moderate band that are not currently addressed remain under active monitoring as we consider future program and disclosure updates.

These results were reviewed with D.R. Horton's Board of Directors and will continue to help guide our sustainability priorities and disclosures in the years ahead. We intend to refine our approach over time as stakeholder perspectives evolve.

Introduction

Purpose

People

Environment

Appendices

2025 Sustainability Report 8

Ongoing Engagement

As the homebuilding industry and the broader regulatory environment have evolved, we have stayed actively engaged with stakeholders to ensure our reporting remains dynamic and relevant.

What sustainability topics matter most to D.R. Horton today?

We engage with governmental and oversight bodies, industry and trade organizations and groups such as the Leading Builders of America and National Quality Council through surveys, working groups, informal discussions and advocacy efforts throughout the year.

Consistent with sustainable procurement, the most frequently selected materiality topic, we maintain ongoing dialogue with vendors and suppliers on quality, sustainability, manufacturing processes, recycling and carbon footprint. We conducted a formal vendor ESG survey in 2023 and connect in person

Importance to External Stakeholders

MODERATE

Biodiversity and Environmental

HIGH

Home Emissions &

Responsible Business Practices

VERY HIGH

Sustainable Procurement

Employee Health, Safety &

Well-Being

Business Resiliency

with many of our largest suppliers at our biennial National Purchasing Trade Show, supplemented by regular virtual and in-person touchpoints throughout the year.

We welcome stakeholder feedback on our sustainability initiatives at any time, not just through formal surveys or assessments, and remain committed to continuous improvement in our

Carbon Emissions of Products

Sustainability-Linked

Conservation

Sustainability Governance

Resource Management & Efficiency Environmental Regulation Compliance

Board Competency on Climate-Related Topics

Energy Efficiency

Health & Wellness of Customers

Community Engagement & Impact Workforce Management

sustainability initiatives while keeping affordability central to everything we do.

Performance Incentives

Diversity, Equity & Inclusion

Importance to the Company

The materiality matrix above reflects weighted stakeholder responses to the following question: What do you consider to be the most significant sustainability topics for D.R. Horton today? Participants each selected five topics and ranked them in order of significance. Those selections were then analyzed on a weighted average basis, with each topic's final position in the matrix determined by the combined frequency of selection and relative ranking across all respondents.

Introduction

Purpose

People

Environment

Appendices

2025 Sustainability Report 9

Introduction

Purpose

People

Environment

Appendices

2025 Sustainability Report 10

Introduction Purpose People Environment Appendices 2025 Sustainability Report 11

At D.R. Horton, our approach to "Leading with Purpose" is rooted in a clear commitment to integrity, accountability and long-term value creation.

Our leadership prioritizes strong ethical standards, disciplined risk management and resilient operations that support consistent performance across market cycles. We recognize that effective corporate governance, thoughtful board oversight and a diverse set of perspectives are fundamental to sustaining our success. By embedding these principles into our decision-making and culture, we seek to reinforce stakeholder trust and deliver lasting benefits to our homebuyers, shareholders and the communities where we operate.

In This Section

Business Ethics 12 Corporate Governance & 17

Risk Management 13

Business Resiliency 16

Board Matters

Board Characteristics 18

Business ethics is foundational to our culture of trust and to creating lasting value for our three key stakeholders:

• Our homebuyers,

• Our investors and

• Our employees.

Through transparency, integrity and accountability throughout our operations, we deliver quality homes, compelling returns and a workplace culture that drives long-term success for all.

Our Code of Conduct sets clear expectations across all aspects of our business, including ethical sales practices, advertising, vendor and supplier relationships, interactions with competitors and government agencies, and protection of confidential and proprietary information. It explicitly prohibits all forms of bribery and kickbacks, including gifts, bribes and facilitation payments, and maintains a zero-tolerance policy for racism, discrimination and harassment of any kind.

Human Rights

Our Human Rights Policy reflects our commitment to upholding and respecting human rights across our operations and the communities we serve. This includes supporting non-discrimination, opportunity and inclusion; providing good labor conditions,

working hours, wages and benefits; promoting health and safety in the workplace; prohibiting forced labor, child labor and human trafficking; preserving water and natural resources; not using conflict minerals; and appropriately handling hazardous materials.

Political Contributions

We also maintain a Political Contributions Policy to ensure transparency and accountability in how we engage in public advocacy. The Policy is overseen by the Board's Governance Committee and requires an annual review of both the policy and any lobbying or political contributions made during the year. During fiscal 2025, the Company's political contributions totaled approximately $73,500, made primarily to local municipalities and organizations across our markets in support of candidates and initiatives that promote housing affordability.

Training & Reporting

We provide annual Code of Conduct and workplace behavior training for all employees, covering topics such as harassment, bullying and anti-corruption.

Each employee is also required to annually acknowledge their receipt and understanding of both the Corporate Code of Conduct and the Human Rights Policy. To ensure every employee has a safe avenue to raise concerns, we maintain an open-door policy, a confidential employee hotline and a separate confidential hotline for accounting, auditing and finance matters.

Responsible Marketing

Corporate Code of Conduct

Our standards of ethics, policies and procedures are communicated to employees through our Corporate Code of Conduct. All D.R. Horton employees, including executive management and our Board of Directors, are subject to the Code and must review and acknowledge it annually. The principles that underpin our Corporate Code of Conduct are:

Honesty

Compliance

Accountability

Opportunity

Mutual Respect

Integrity

Quality

Knowledge

Civility

Reliability

Fairness

We are committed to transparency, accuracy and fairness in every interaction with our homebuyers. Our Corporate Code of Conduct reinforces the standards we expect from our employees, including truthful and accurate statements, advertising, pricing and

sales incentives.

To further support these practices, all employees have access to guidance and training materials through our Marketing intranet site, including branding and posting guidelines for social media, sales and marketing tool training, brand standards and templates, legal guidance and disclaimer language, and best practices for common questions.

Introduction

Purpose

People

Environment

Appendices

2025 Sustainability Report 12

⏺ Financing

⏺ Cash management

⏺ Allocation of capital

⏺ Issuance and monitoring of inventory investment guidelines

⏺ Approval and funding of land and lot acquisitions

⏺ Monitoring and analysis of profitability, returns, costs and inventory levels

⏺ Risk and litigation management

⏺ Environmental assessments of land and lot acquisitions

⏺ Technology systems to support management of operations, marketing and financial information, including preventing, monitoring and reporting of

cybersecurity issues

⏺ Accounting and management reporting

⏺ Income taxes

⏺ Internal audit

⏺ Public reporting and investor and media relations

⏺ Administration of payroll and employee benefits

⏺ Negotiation of national purchasing contracts

⏺ Administration, reporting and monitoring of customer surveys and resolutions of issues

⏺ Approval of major personnel decisions and management incentive compensation plans

Our business and operations are subject to numerous risks and uncertainties, which are fully described in our periodic SEC filings, including our 2025 Annual Report on Form 10-K.

⏺ Development of various operating and safety policies and procedures

⏺ Overseeing health and safety initiatives and compliance with state and federal OSHA rules

⏺ Managing workplace safety incidents and injury claims

⏺ Preparation for and prevention of property loss, including obtaining builders' risk insurance to mitigate losses from damage to our homes under construction due to fire, flood, hurricane, earthquake and other natural disasters

⏺ Monitoring and evaluating claims related to home quality, warranty and construction defects

⏺ Overseeing contractual obligations, vendor insurance coverage and contract requirements

⏺ Collaborating with the National Purchasing team regarding standards for product selection for our homes

While risk cannot be fully eliminated, we manage it through a robust program grounded in sound business principles. Our Board of Directors provides overall risk oversight, as described on page 17, while senior management guides day-to-day risk management through strategic decisions executed by employees across the Company.

At the Corporate level, our executives and departments establish operational policies and internal control standards, monitor compliance and maintain direct oversight of key risk elements and initiatives through the following centralized functions:

Our Risk Management Department, led by our Head of Risk Management and reporting directly to our Senior Vice President and General Counsel, is responsible for evaluating operational risks and recommending mitigation strategies across the Company. Key functions include:

Introduction

Purpose

People

Environment

Appendices

2025 Sustainability Report 13

Information Technology Risks

We rely on information technology and digital resources, including artificial intelligence, to conduct key operational and marketing activities and maintain business records, making cybersecurity and information technology (IT) risk management a critical priority. Our Chief Information Officer (CIO) and IT Cyber Security Risk Officer (CSRO), together with their teams, oversee the assessment, identification and management of cybersecurity threats that could impact our systems, operations and data.

Cybersecurity

We employ a multilayered, proactive approach to identify, evaluate, mitigate and prevent potential cybersecurity threats. Each layer incorporates multiple levels of protection and adheres to industry standards, including the National Institute of Standards and Technology (NIST) Cybersecurity Framework.

⏺ Multi-factor authentication

⏺ Layered email protection

⏺ Zero-trust security model

⏺ Continuous monitoring

⏺ Regular scans

⏺ Quarterly penetration testing

⏺ Collaborative evaluation and remediation

⏺ Regular assessments and gap analyses

⏺ Comprehensive risk assessment

⏺ Incident response readiness

⏺ Data backup

Technology controls we have implemented include:

In addition to these technology controls, we have also implemented:

⏺ Annual cybersecurity awareness training for all employees

⏺ Quarterly phish testing and reporting tools available to employees

⏺ Firewall defenses

⏺ File scanning tools

⏺ Regular vendor risk assessments

⏺ Ongoing internal evaluations and vulnerability testing

⏺ Business contingency plans and incident response procedures that are tested at least annually

⏺ Multiple IT policies and procedures, including a security policy, available to all employees via the Company intranet

⏺ A cybersecurity risk insurance policy with plans to explore options for renewal in the coming months

The Audit Committee of the Board of Directors holds formal responsibility for cybersecurity risk oversight, fulfilled through regular updates from Internal Audit and the Chief Financial Officer (CFO), supplemented by periodic presentations from the CIO and CSRO.

To date, no cybersecurity threats or incidents have materially affected - or are reasonably likely to materially affect - our business strategy, results of operations or financial condition. As threats continue to evolve, we regularly enhance our security measures to protect our systems and data.

Artificial Intelligence

As artificial intelligence (AI) becomes increasingly embedded in business operations, D.R. Horton has taken a prudent approach to managing related risks. Our Corporate IT Compliance team has established a formal AI Acceptable Use Policy, available to all employees on the Company intranet, which outlines approved AI tools, the process for requesting approval of additional third-party tools, and key rules and best practices governing AI use, including mandatory human review of all AI-generated content, evaluation of outputs for bias, transparency in disclosing AI

use and clear employee accountability for the AI-generated outcomes.

To obtain a license for D.R. Horton's approved AI software, employees must review the Policy and complete a brief training on ethical and responsible use, appropriate use cases, data security and associated risks.

Our IT, Data Analytics, and Business Development and Innovation teams continuously evaluate emerging AI tools for feasibility, security and potential to enhance productivity across our business.

Introduction

Purpose

People

Environment

Appendices

2025 Sustainability Report 14

The management of other types of risks is integrated into the operations of the Company. These include financial and liquidity risks, real estate and market risks, human capital risks and data privacy risks, among others. Our general strategies for addressing these types of risk are listed below:

Financial & Liquidity Risks

⏺ Maintaining a long-term debt to total capital ratio target of ~20%

⏺ Sustaining strong cash balances and liquidity

⏺ Preserving flexibility through economic cycles

Real Estate & Market Risks ⏺ Controlling land pipeline via land/lot purchase contracts

⏺ Matching inventory investment and land supply with expected housing demand by market

⏺ Prioritizing the purchase of finished lots

⏺ Carefully managing housing inventory on a community-by-community basis

Human Capital Risks

⏺ Upholding workplace standards that promote ethical conduct, respect and inclusion

⏺ Investing in leadership development and internal succession planning

⏺ Supporting our employees and communities through various programs and initiatives

Data Privacy Risks

⏺ Implementing administrative, technical and physical safeguards to protect personal information

⏺ Limiting use of sensitive personal information to legally required purposes or homebuyer-requested transactions

Environmental & Climate Risks

We recognize that environmental and climate-related risks could impact our business. For a more comprehensive description, refer to page 70 for disclosure aligned with the majority of the recommendations outlined by the Task Force on Climate-related Financial Disclosures (TCFD), covering governance, strategy, risk management, and metrics and targets. We plan to continue to work to improve our risk assessments, data tracking and disclosures across each of these topics for future reports.

Introduction

Purpose

People

Environment

Appendices

2025 Sustainability Report 15

With more than 47 years in business, D.R. Horton is built for the long term. We continuously evolve our operations and strategic priorities to strengthen resilience and ensure the enduring sustainability of our business.

Our ability to adapt quickly to changing market conditions has long been a defining competitive advantage, one tested repeatedly in recent years. From a global pandemic marked by unprecedented demand, supply chain disruptions and operational constraints, to today's affordability-constrained market with elevated home prices, persistently high mortgage interest rates and complex public policy

Through deliberate effort across the following areas, we have meaningfully strengthened our resilience since the last significant financial downturn:

⏺ Capital discipline: maintaining a robust, yet nimble, land and lot pipeline supported by strict underwriting standards

⏺ Operational agility: leveraging our decentralized business model, which allows for rapid adjustments to home starts, product offerings and pricing

⏺ Affordability focus: serving the broadest segment of the housing market to expand homeownership opportunities and support generational

Collectively, these initiatives reflect our ongoing commitment to long-term resilience. By maintaining financial discipline, operational flexibility and a steadfast commitment to housing affordability, D.R. Horton is well-positioned to navigate uncertainty, seize opportunity and deliver lasting value for our homebuyers, employees, communities

and shareholders.

Then (2005) Now (2025)

dynamics, we have navigated each environment with agility. We also monitor the frequency and severity of extreme weather events and their potential impact on our operations.

wealth creation

⏺ Financial strength and flexibility: repaying significant debt maturities, building liquidity and maintaining a disciplined approach to future

346,000 591,900

Total Controlled Lots Total Controlled Lots

55% 75%

capital obligations

⏺ Geographic diversification: reducing concentration risk through a broad and balanced

Portion Controlled Through Option Contracts

Portion Controlled Through Option Contracts

national footprint

⏺ Supply chain fortification: expanding and strengthening supplier relationships to enhance operational continuity

⏺ Leadership and governance: advancing succession planning, enhancing Board composition and independence, and designing an executive compensation plan including business resilience as a key principle

47.8% 19.8%

Debt to Total Capital Debt to Total Capital

$2.4 billion $6.6 billion

Total Liquidity Total Liquidity

74 126

Total Markets Total Markets

25 36

Total States Total States

Introduction

Purpose

People

Environment

Appendices

2025 Sustainability Report 16

Sound corporate governance, strong risk management and sustained stakeholder engagement are central to how we run our business.

The Board oversees these risks through its four primary committees: the Nominating and Governance Committee, the Audit Committee, the Compensation Committee and the Executive Committee. When the Board is not in session, the Executive Committee may act on the Board's behalf in managing the Company, subject to applicable law and NYSE Rules. During fiscal 2025, the Executive Committee was composed of David Auld, Executive Chairman, and Paul Romanowski, CEO.

The composition of the other committees is as follows:

Nominating and

M Member

C Chairperson

Strong corporate governance principles provide the framework through which we manage risk, engage our stakeholders and pursue our mission responsibly. We believe fair, transparent and effective governance is both critical to long-term stockholder value and central to our commitment to operating sustainably across the communities where we build and serve.

Overseeing D.R. Horton's governance is our Board of Directors, which provides independent oversight of senior management and is committed to aligning the interests of the Company with those of our stockholders.

Our Board has implemented and monitors compliance with the following corporate governance standards:

Stockholders elect directors to one-year terms by majority vote

Six of eight directors are independent; all three standing Board committees are comprised solely of independent directors

Independent directors regularly meet in executive sessions led by an Independent Presiding Director

Our Bylaws permit stockholder proxy access

The Board and each of its committees conduct annual performance reviews

Stock ownership guidelines for executive officers and directors reinforce alignment with long-term stockholder interests

Executive compensation incentives are tied to Company performance and the creation of sustainable long-term stockholder value

Stock-based compensation is subject to a minimum three-year vesting period, aligning pay with long-term performance

Our Clawback Policy, triggered by a financial restatement, applies to both cash and equity incentive compensation

Hedging or pledging of Company securities is prohibited for all directors and employees

The Board holds an annual advisory stockholder vote on executive compensation

Our director recruitment policy supports consideration of highly-skilled, qualified and diverse candidates

The Board also oversees the Company's risk management, including, but not limited to, the following key risk areas:

Financing and liquidity risk, including approval of maximum debt and equity repurchase levels and any public issuances of debt or equity

Reviewing, approving and funding land and lot acquisitions

Financial reporting, internal controls, internal audit and related regulatory compliance

Compensation and succession planning for executive officers and other key personnel

Environmental, climate-related and human capital risks, including employee health and safety, retention and inclusion

Information technology and cybersecurity risk

Introduction

Purpose

People

Environment

Appendices

2025 Sustainability Report 17

Strong governance begins with a Board that reflects the diversity of backgrounds, experiences and perspectives needed to lead with integrity and foresight. Our eight-member Board, including six independent directors, Executive Chairman David V. Auld and President and CEO Paul J. Romanowski, is built on this foundation. Following significant Board refreshment in fiscal 2024, fiscal 2025 was a year of purposeful execution and steady leadership, as the Company continued to honor the legacy of our founder, Don Horton.

The primary change to the Board composition in fiscal 2025 was a reduction from nine to eight members after Director Michael Buchanan, who had served since 2003, did not stand for re-election at the 2026 Annual Meeting. The characteristics highlighted on this page reflect Board composition following our 2026 Annual Stockholders' Meeting and therefore exclude Mr. Buchanan. Following his retirement, the Board committee composition was adjusted as reflected in the Corporate Governance & Board Matters section.

The Nominating and Governance Committee is responsible for identifying and evaluating director nominees in connection with Board expansion, refreshment and succession planning. Over the last eight years, the Committee has added five new independent directors. Candidates are evaluated on their qualifications, experiences and perspectives, including knowledge of real estate, business, management, accounting, finance and leadership, as well as high ethical standards, practical wisdom and sound judgment.

Independence is equally important to ensuring that our Board remains objective and accountable to stockholders. Of the director nominees at our 2026 Annual Meeting, 75% were independent as defined by the rules of the New York Stock Exchange. Because neither our Executive Chairman nor President and CEO is independent, we maintain an Independent Presiding Director who presides at all Board meetings held without them, and our independent directors regularly meet in executive sessions. All members of our Nominating and Governance, Audit and Compensation Committees are independent. Three of our independent directors are women, and one independent director is ethnically diverse.

Board Diversity

50%

Gender/ethnically diverse

50%

50%

Gender/ethnically diverse Board members Not gender/ethnically diverse Board members

Board Tenure

6

<5 years

5-10 years

>10 years

Board Independence at a Glance

75%

Independent Directors

7 years

Average Independent Director Tenure

We believe diversity of tenure strengthens Board effectiveness. The homebuilding industry is subject to economic cycles, each presenting different risks, and the most significant U.S. housing downturn began approximately 20 years ago in 2006. Our mix of directors who have firsthand industry experience and tenure with D.R. Horton through long economic cycles, alongside newer directors bringing fresh perspectives, strikes the right balance. As of September 30, 2025, the average tenure of our independent directors (excluding Mr. Buchanan) was seven years.

Introduction

Purpose

People

Environment

Appendices

2025 Sustainability Report 18

Introduction Purpose People Environment Appendices 2025 Sustainability Report 19

At D.R. Horton, our people are fundamental to our success. From day one, employees become part of what we call the "Horton Family" - an inclusive, values-driven culture that brings together diverse backgrounds, experiences and

perspectives, all unified by a shared purpose to serve our customers, strengthen our communities and support access to affordable homeownership. Through their work, our employees help expand housing opportunities, contribute to community impact and philanthropy efforts and foster a workplace centered on well-being, development and safety. We are committed to supporting our employees and communities, recognizing each as essential to advancing our mission of helping more individuals and families achieve the American Dream of homeownership.

Home affordability is embedded in

D.R. Horton's purpose and strategy.

Our mission is to drive access to homeownership and create meaningful opportunities for Americans to build a better life. We believe the American Dream of homeownership should be attainable for everyone, regardless of age, gender, socioeconomic status, race or ethnicity.

We provide quality homes at a compelling value for homebuyers at every stage of life, with offerings spanning entry-level, move-up, active adult and luxury segments. With floorplans generally ranging from 1,000 to more than 4,000 square feet and prices from

$250,000 to over $1,000,000, we serve a broad customer base - from first-time homebuyers to retired empty nesters and everyone in between.

Despite our varied offerings, affordably priced homes remain our core focus. During fiscal 2025, 72% of homes closed by our homebuilding operations were priced under $400,000, representing 1 out of every 5 new homes under $400,000 sold in the United States. Our overall average closing price of $370,400 was

$137,300 below the national average for new single-family homes.

We partner with our wholly-owned subsidiary, DHI Mortgage (DHIM), to guide homebuyers through the purchase process. In fiscal 2025, 81% of homes closed by D.R. Horton's homebuilding operations were financed through DHIM.

Price Points of Homes Closed in FY 2025

30%

Under $300,000

24%

$300,000 to $350,000

18%

$350,000 to $400,000

17%

$400,000 to $500,000

11%

Greater than $500,000

DHIM also offers programs to educate and support prospective homebuyers. The Home Buyers Club helps credit-challenged buyers improve their financial standing and prepare for successful homeownership through dedicated guidance and resources. Read more in the DHI Mortgage Home Buyers Club spotlight. Homebuyers who finance through DHIM may benefit from additional cost savings, including discounted closing costs or participation in our mortgage rate buydown program, which is described further on the next page.

Affordability Constraints

Home Affordability at a Glance

$370,400

Average Closing Price

72%

Portion of Homes Closed Under

$400,000

1,954

Average Square Footage of Homes Closed

17%

Portion of Attached Home Closings

$96,000

DHIM Homebuyer Average Annual Income

63% or ~43,000

First-Time Homebuyers Utilizing DHIM

All metrics represent homes closed by homebuilding operations in fiscal 2025, unless otherwise noted.

In recent years, rapid home price appreciation has stabilized at levels well above long-term averages, while mortgage interest rates climbed from 50-year lows of approximately 2.5% to 3.5% in 2020 and 2021 to approximately 6.5% to 7.5% in late 2022, where they have largely remained. Together, these factors have significantly impacted monthly payments for

our homebuyers.

We also navigate a variety of local regulatory challenges, including lengthy entitlement and permitting processes, lot size limitations, product design requirements and resistance to incremental housing, among other obstacles, that can further constrain affordability. Thoughtful engagement and collaboration with local communities and oversight bodies can help ease these challenges.

Introduction

Purpose

People

Environment

Appendices

2025 Sustainability Report 20