D.R. Horton, Inc. (DHI), America’s Builder, reported fourth-quarter net income attributable to the company of $741.8 million, or $2.67 a share, down 18% from a year earlier.

Consolidated revenues were $9.4 billion, with pre-tax income of $1.0 billion and a pre-tax profit margin of 10.8%. The quarter included $91.4 million of inventory impairment charges to cost of sales in the rental segment.

Home sales revenues were $8.4 billion on 22,915 homes closed. Homebuilding pre-tax income was $891.0 million, a 10.6% pre-tax profit margin. Net sales orders were 18,619 homes and $6.6 billion in value. The cancellation rate was 23%.

Executive Chairman David Auld said housing market conditions became more challenging during the fourth quarter as rising mortgage rates, affordability constraints and cautious consumer sentiment continued to pressure new home demand. The company said operators adjusted incentives, pricing and starts on a community-by-community basis to align inventory with demand, and that it expects incentives to remain elevated in fiscal 2027, the extent of which will depend on market conditions.

Rental revenues were $647.1 million. The segment posted a $25.3 million pre-tax loss that included the $91.4 million of inventory impairment charges related to nine multi-family rental projects. Rental operations sold 509 single-family rental homes for $134.3 million and 2,182 multi-family rental units for $512.8 million.

Forestar sold 5,004 lots and generated $580.8 million of revenues and $78.6 million of pre-tax income, a 13.5% pre-tax profit margin. Financial services revenues were $219.2 million with pre-tax income of $78.2 million, a 35.7% margin.

For the fiscal year ended September 30, 2026, net income attributable to D.R. Horton was $2.9 billion, or $10.11 a share. Consolidated pre-tax income was $3.9 billion on revenues of $33.0 billion, a pre-tax profit margin of 11.8%. Home sales revenues were $30.6 billion on 84,202 homes closed. Cash provided by operations was $3.5 billion. Debt to total capital was 20.8%. Book value per share increased 4% to $85.14. The company repurchased 24.0 million shares for $3.6 billion, reducing the outstanding share count by 8%, and paid cash dividends of $513.3 million. Return on equity was 12.2% and return on assets was 8.2%.

Homebuilding revenue for the fiscal year was $30.7 billion and homes closed 84,202. Homebuilding pre-tax income was $3.4 billion, a 11.2% pre-tax profit margin. Net sales orders were 84,995 homes and $30.9 billion in value. The cancellation rate was 19%. At fiscal year end the company had 28,200 homes in inventory, of which 17,700 were unsold; 8,800 unsold homes were completed, including 600 completed for greater than six months. Of homes closed during fiscal 2026, 68% were on lots developed by Forestar or third parties. Homebuilding return on inventory was 16.6%.

Rental revenues for the year were $1.2 billion with pre-tax income of $18.2 million, including the $91.4 million of inventory impairment charges. Forestar sold 13,545 lots and generated $1.6 billion of revenues and $192.1 million of pre-tax income, an 11.7% margin. Financial services revenues were $817.3 million with pre-tax income of $258.1 million, a 31.6% margin.

During the fourth quarter the company repurchased 9.4 million shares for $1.4 billion. Common shares outstanding at September 30, 2026 totaled 271.4 million, down 8% from a year ago, and the remaining stock repurchase authorization was $4.7 billion. The company paid cash dividends of $125.0 million in the quarter. Subsequent to year-end it declared a quarterly cash dividend of $0.50 a share, an 11% increase from the $0.45 paid in the prior two quarters, payable November 19, 2026.

Based on current market conditions, D.R. Horton is providing initial guidance for fiscal 2027 including consolidated revenues of $30.0 billion to $32.0 billion, homes closed by homebuilding operations of 79,000 to 84,000, an income tax rate of approximately 25.5%, consolidated cash flow provided by operations of approximately $3.5 billion, share repurchases of approximately $3.0 billion and dividend payments of approximately $500 million. The company plans to also provide guidance for its first quarter of fiscal 2027.