Transcript: Forestar Group Q3 2026 Earnings Conference Call

Forestar Group (NYSE: FOR ) reported third-quarter financial results on Tuesday.

The transcript from the company's third-quarter earnings call has been provided below.

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The full earnings call is available at Summary Forestar Group reported third-quarter revenues of $407 million, a 4% increase from the prior-year quarter, with an 8% rise in earnings per diluted share to $0.70.

The company sold 3,659 lots and achieved a pre-tax income increase of 12% to $48.7 million, while maintaining a strong contracted backlog of $2.3 billion in future revenue.

Forestar Group reached a milestone of delivering its 100,000th lot and continues to focus on efficient land and lot inventory management to maximize returns and consolidate market share.

The company ended the quarter with $1.1 billion in liquidity and plans to invest approximately $1.4 billion in land acquisition and development in fiscal 2026, subject to market conditions.

Forestar Group's strategic relationship with D.R.

Horton remains strong, with 14% of D.R.

Horton's homes built on Forestar-developed lots, and the company continues to explore opportunities with other homebuilders.

Management highlighted stable land market conditions, with opportunities for growth through increased market share and potential M&A activities, supported by strong liquidity.

The company anticipates maintaining its fiscal 2026 lot delivery guidance of 14,000 to 14,500 lots and revenue guidance of $1.6 billion to $1.7 billion, despite challenges in home affordability and consumer sentiment.

Full Transcript OPERATOR Good morning and welcome to Forestar Group's third quarter 2026 earnings conference call.

At this time, all participants have been placed on a listen-only mode and the floor will be open for questions and comments after the presentation.

It is now my pleasure to turn the floor over to your host, Chris Hibbetts, Vice President of Finance and Investor Relations for Forestar Group.

Chris Hibbetts, Vice President of Finance and Investor Relations Thank you, Jenny.

Good morning and welcome to our call to discuss Forestar Group's third quarter results.

Before we get started, I want to remind everyone that today's call includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995.

Although Forestar Group 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 Forestar Group on the date of this conference call and we do not undertake any obligation to update or revise any forward-looking statements publicly.

Additional information about factors that could lead to material changes in performance is contained in Forestar Group'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.

Our earnings release is on our website at investor.forestar.com, and we plan to file our 10-Q later this week.

After this call, we will post an updated investor presentation to our Investor Relations site under Events and Presentations for your reference.

Now I will turn the call over to Andy Oxley, our President and CEO.

Andy Oxley, President and CEO Thanks, Chris.

Good morning, everyone.

I am also joined on the call today by Jim Allen, our Chief Financial Officer, and Mark Walker, our Chief Operating Officer.

The Forestar Group team achieved solid third quarter results with revenues of $407 million, up 4% from the prior-year quarter on 3,659 lots sold.

Earnings per diluted share increased 8% to $0.70 and pre-tax income increased 12% to $48.7 million.

Book value per share increased 10% from a year ago to $36.40, and our contracted backlog remains strong with visibility towards $2.3 billion of future revenue.

Ongoing affordability constraints and cautious consumer sentiment continue to impact the pace of new home sales.

In response, we are managing our inventory investments with discipline and flexibility, and we ended the quarter with approximately $1.1 billion of liquidity.

We also reached a significant milestone this quarter, delivering our 100,000th lot.

Since D.R.

Horton made its transformative investment in Forestar Group in 2017, Forestar Group has grown to a proven scalable platform, and we couldn't be prouder of what our teams have built to get us here.