D.R. Horton Q3 2026 Earnings Call Transcript

On Tuesday, D.R.

Horton (NYSE: DHI ) discussed third-quarter financial results during its earnings call.

The full transcript is provided below.

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The full earnings call is available at Summary D.R.

Horton reported earnings per diluted share of $3.20 for Q3 2026, with consolidated pre-tax income of $1.2 billion on $9.2 billion of revenues, resulting in a pre-tax profit margin of 13.3%.

The company closed 23,983 homes, achieving a home sales gross margin of 20.7%, and generated $3.4 billion in cash from operations over the past 12 months, all returned to shareholders.

Home sales revenues were $8.7 billion, with an average closing price down 2% year-over-year at $362,000, focusing on affordability as 65% of closings were to first-time homebuyers.

D.R.

Horton saw a 20% cancellation rate in Q3, up from 17% year-over-year, with gross profit margin on home sales above guidance due to lower costs.

SG&A expenses increased 8% year-over-year, and the company plans to maintain capital efficiency and disciplined operations while expecting to generate $3 billion in operating cash flow for fiscal 2026.

D.R.

Horton expects Q4 consolidated revenues between $8.8 to $9.3 billion and home sales gross margins to be relatively flat from Q3.

The company anticipates FY 2026 revenues of $32.5 to $33 billion, with a tax rate of approximately 25%, and plans $2.5 billion in stock repurchases and $500 million in dividends.

Operational efficiency was highlighted, with improved cycle times and a focus on managing inventory levels based on market conditions.

D.R.

Horton maintains a strong balance sheet with $6.1 billion in liquidity, with a focus on long-term value creation and adaptability to market changes.

Full Transcript OPERATOR Good morning and welcome to the third quarter 2026 earnings conference call for D.R.

Horton, America's Builder.

At this time all participants are in a listen-only mode.

A question and answer session will follow the formal presentation.

If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad.

Please note this conference is being recorded.

I will now turn the call over to Jessica Hansen, Senior Vice President of Communications for D.R.

Jessica Hansen, Senior Vice President of Communications Thank you, Paul, and good morning.

Welcome to our call to discuss our financial results for the third quarter of fiscal 2026.

Before we get started, today's call includes 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.

All forward-looking statements are based upon information available to D.R.

Horton on the date of this conference call, and D.R.

Horton does not undertake any obligation to publicly update or revise any forward-looking statements.

Additional information about factors 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.

This morning's earnings release and our supplemental data presentation can be found on our website at investor.drhorton.com, and we plan to file our 10-Q later this week after this call.