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D.R. Horton
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Latest analysis
Updated Jul 23, 2026
D.R. Horton Q3 FY2026: Margin compression deepens as incentives and rising costs offset volume stability, with cancellation rates jumping to 20%
D.R. Horton's homebuilding gross margin contracted to 20.7% in Q3 FY2026 from 21.8% a year prior, driven by a simultaneous rise in average home costs and decline in average selling price — a structural squeeze management explicitly expects to persist through fiscal 2027. The cancellation rate spiked to 20% in Q3 FY2026 from 17% in the prior year quarter, the sharpest deterioration in affordability-driven buyer withdrawal the filing documents. Consolidated revenues declined 4% to $23.7 billion for the nine months ended June 30, 2026, versus $24.6 billion in the prior year period, with the rental segment particularly exposed as single-family rental closings fell 44% year-over-year in the quarter.
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
“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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