D.R. Horton (DHI) Q2 2026 Earnings Transcript

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Tue, April 21, 2026 astatine 10:10 AM CDT 47 min read

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Tuesday, April 21, 2026 astatine 8:30 a.m. ET

• President and Chief Executive Officer — Paul Romanowski

• Chief Operating Officer — Michael J. Murray

• Executive Vice President and Chief Financial Officer — William W. Wheat

• Vice President, Investor Relations and Communications — Jessica Hansen

Paul Romanowski: Thank you, Jessica, and bully morning. I americium pleased to besides beryllium joined connected this telephone by Mike Murray, our Chief Operating Officer; and Bill Wheat, our Chief Financial Officer. The D.R. Horton squad delivered coagulated 2nd 4th results with consolidated pretax income of $867 cardinal connected $7.6 cardinal of revenues and a pretax nett borderline of 11.5%. New location request remains impacted by affordability constraints and cautious user sentiment. However, our tenured teams proceed to respond to existent marketplace conditions with discipline. During the quarter, we delivered a consolidated pretax nett borderline supra the precocious extremity of our guidance range, generated revenues wrong our expected scope and accrued nett income orders by 11% compared to the anterior twelvemonth quarter.

At the aforesaid time, we reduced our unsold completed homes by 35% from a twelvemonth ago, reflecting our absorption connected balancing income pace, pricing and incentives to thrust incremental income portion maximizing returns. We proceed to absorption connected superior ratio to make beardown operating currency flows and present compelling returns to our shareholders. Over the past 12 months, we generated $3.7 cardinal of currency from operations and returned $4 cardinal to shareholders done repurchases and dividends. For the trailing 12 months ended March 31, our homebuilding pretax instrumentality connected inventory was 17.6%, portion our consolidated returns connected equity and assets were 13.2% and 8.9%.

Our instrumentality connected assets ranked successful the apical 20% of each S&P 500 companies for the past 3-, 5- and 10-year periods, demonstrating that our disciplined, returns-focused operating exemplary delivers sustainable results and positions america good for continued worth creation. Our income incentives accrued during the 2nd quarter, and we expect incentives to stay elevated for the remainder of the twelvemonth with a level babelike connected demand, owe involvement rates and different marketplace conditions. We enactment each time to leverage our industry-leading platform, unmatched scale, businesslike operations and experienced teams to bring homeownership opportunities astatine affordable terms points to much Americans. 65% of our owe company's closings this 4th were to first-time homebuyers.