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D.R. Horton
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Latest analysis
Updated Oct 29, 2026
D.R. Horton Q4 FY2026: Gross margin misses at 19.5%, FY2027 guidance cut to $30-32B as elevated rates and cautious sentiment compress demand
D.R. Horton closed FY2026 with $33 billion in revenue and 84,000+ homes delivered, but Q4 gross margin came in at 19.5% — 120 basis points below the June quarter and below management's own expectations — as rising mortgage rates, elevated incentives, and above-normal litigation costs converged. Management cut FY2027 guidance to $30-32 billion consolidated revenue and 79,000-84,000 homes closed, with Q1 gross margin guided to 18-18.5%, reflecting a market that is structurally challenged by affordability constraints rather than a one-time demand shock. Starts were cut 45% sequentially to realign inventory with demand, cancellation rates rose to 23%, and the multifamily rental portfolio absorbed $91.4 million in impairment charges tied to interest rate-driven valuation compression.
Tone: cautiousRevenue
$34.3B
DHI 10-K · FY 2025
Employees
14,341
Revenue growth YoY
-7%
Founded
1978
Profile
DHI 10-K Item 1 · Nov 19, 2025D.R. Horton is the largest homebuilding company in the United States by homes closed, operating across 126 markets in 36 states. The company constructs and sells homes across entry-level, move-up, active adult, and luxury price points, and also operates rental, residential lot development, and financial services businesses. Its homebuilding segment generates the substantial majority of consolidated revenues.
Read filing description ↓ Collapse description ↑
D.R. Horton, Inc. is the largest homebuilding company in the United States as measured by number of homes closed. We construct and sell homes through our operating divisions in 126 markets across 36 states. Our homebuilding business began in 1978 in Fort Worth, Texas, and our common stock has been publicly traded since 1992. We have expanded and diversified our homebuilding operations geographically over the years by investing capital and building teams of people in our existing markets, starting new operations in additional markets and acquiring other homebuilding companies. We have closed more than 1.2 million homes during our 47-year history, and we have been the largest volume homebuilder in the United States every year since 2002. Our business operations consist of homebuilding, rental, a majority-owned residential lot development company, financial services and other activities. Homebuilding is our core business, generating 92% of consolidated revenues in fiscal 2025. Most of our homebuilding revenue is generated from the sale of completed homes and to a lesser extent from the sale of land and lots. Our product offerings include a broad range of homes for entry-level, move-up, active adult and luxury buyers. Our homes generally range in size from 1,000 to 4,000 square feet and in price from $250,000 to more than $1,000,000. Our rental segment consists of single-family and multi-family rental operations. We own approximately 62% of Forestar Group Inc., a publicly traded residential lot development company. Our financial services operations provide mortgage financing and title agency services to homebuyers in many of our homebuilding markets.
Primary products
- Single-family detached homes
- Attached homes (townhomes and duplexes)
- Single-family rental homes
- Multi-family rental units (apartment communities)
- Residential lots (Forestar)
- Mortgage financing (DHI Mortgage)
Business segments
End markets
Geographies
Named customers
Named competitors
“D.R. Horton, Inc. is the largest homebuilding company in the United States as measured by number of homes closed.” Competitive position, as stated in the filing
Revenue commentary · FY 2025
Consolidated revenues decreased 7% to $34.3 billion in fiscal 2025 compared to $36.8 billion in fiscal 2024, driven by a 5% decline in homes closed and a 2% decrease in average closing price.
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