D.R. Horton Beats Q2 EPS, Reports 11% Sales Order Growth, and Repurchases $903.6M in Shares
Summary
D.R. Horton exceeded Q2 EPS estimates, reported an 11% increase in net sales orders, and repurchased $903.6 million in shares, alongside updating its fiscal 2026 guidance.
Key Events
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Q2 EPS Beat Analyst Expectations
D.R. Horton reported diluted earnings per share of $2.24 for the second fiscal quarter, surpassing analyst expectations of $2.15, despite a 13% decrease year-over-year.
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Strong Sales Order Growth
Net sales orders increased by 11% year-over-year to 24,992 homes, with an order value of $9.2 billion, indicating robust demand for new homes.
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Significant Share Repurchases
The company repurchased 6.0 million shares of common stock for $903.6 million during the quarter, contributing to a total of $1.6 billion in repurchases for the first six months of fiscal 2026. The remaining authorization stands at $1.7 billion.
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Updated Fiscal 2026 Guidance
D.R. Horton updated its fiscal 2026 guidance, projecting consolidated revenues between $33.5 billion and $34.5 billion and home closings between 86,000 and 87,500 homes. Other guidance, including $2.5 billion in share repurchases, was reiterated.
Analysis
D.R. Horton reported mixed second-quarter fiscal 2026 results, with diluted EPS of $2.24 surpassing analyst expectations of $2.15. While net income and consolidated revenues saw year-over-year declines, the company demonstrated strong forward demand with an 11% increase in net sales orders to 24,992 homes. Furthermore, D.R. Horton executed a substantial capital return program, repurchasing $903.6 million of common stock during the quarter and reiterating its full-year target of approximately $2.5 billion in repurchases. The company also updated its fiscal 2026 guidance for consolidated revenues and homes closed, while reaffirming other key financial targets, indicating confidence in its operational outlook despite market headwinds.
At the time of this filing, DHI was trading at $164.39 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $47.6B. The 52-week trading range was $114.17 to $184.55. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.