D.R. Horton, Inc. is the largest homebuilding company in the United States, primarily engaged in constructing and selling single-family detached homes, which form the core of its business activities . The company also operates in rental operations, residential lot development, and financial services, contributing to its diverse portfolio . D.R. Horton offers mortgage financing and title agency services through DHI Mortgage, and engages in other activities such as insurance-related operations and owning water rights, though these are considered immaterial for separate reporting .
- Homebuilding - Constructs and sells single-family detached homes, with a smaller portion of revenue from attached homes like townhomes, duplexes, and triplexes.
- Rental Operations - Involves single-family and multi-family rental operations, including constructing, leasing, and selling residential rental properties.
- Residential Lot Development - Owns 62% of Forestar Group Inc., focusing on developing residential lots and maintaining relationships with land developers.
- Financial Services - Provides mortgage financing and title agency services through DHI Mortgage, primarily generating revenue from originating and selling mortgages and collecting fees for title insurance and closing services.
- Other Activities - Engages in insurance-related operations, owning water rights, and non-residential real estate, though these are not significant enough for separate reporting.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
David V. Auld ExecutiveBoard | Executive Chairman | None | Joined DHI in 1988. Former CEO (2014–2023). Became Executive Chairman in May 2024 after serving as Executive Vice Chair. | |
Bill W. Wheat Executive | EVP and CFO | None | Joined DHI in 1998. Became CFO in 2003. Oversees financial services, corporate departments, and two homebuilding regions. | |
Michael J. Murray Executive | EVP and COO | None | Joined DHI in 2002. Held roles including Director of Internal Audit, Controller, and SVP of Business Development. Appointed COO in 2014. | |
Paul J. Romanowski Executive | President and CEO | None | Appointed CEO in October 2023. Previously EVP and Co-COO. Oversees management team and six homebuilding regions. | View Report → |
Barbara R. Smith Board | Director | Director at Comerica Incorporated | Former CEO and Chairman of Commercial Metals Company. Extensive leadership experience in metals manufacturing and innovation. | |
Benjamin S. Carson, Sr. Board | Director | Director at Galectin Therapeutics, Sinclair Broadcast Group, and Covenant Logistics Group | Former HUD Secretary (2017–2021). Renowned pediatric neurosurgeon. Brings leadership and governance expertise. | |
Brad S. Anderson Board | Director | Vice Chair of Cushman & Wakefield; Director at KS StateBank | Director since 1998. Extensive experience in real estate and homebuilding industries. Interim Chair of Continental Homes during its merger with DHI. | |
Elaine D. Crowley Board | Director | None | Former CFO of Mattress Giant, Michaels Stores, and The Bombay Company. Extensive financial and operational expertise. | |
M. Chad Crow Board | Director | Director at LOAR Group | Former CEO of Builders FirstSource (2017–2021). Extensive experience in building products and homebuilding supply chain. | |
Maribess L. Miller Board | Director | Director at Triumph Financial | Former PwC partner with 34 years of experience. Chair of DHI's Audit Committee and member of the Compensation Committee. | |
Michael R. Buchanan Board | Director | None | Director since 2003. Former Senior Advisor at Banc of America Securities and Managing Director at Bank of America. |
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Given that your cancellation rate increased to 18% in the quarter, up from 15% sequentially ( ), and you expect elevated incentives to remain, how do you plan to manage margins and profitability while maintaining sales volume under these challenging market conditions?
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With your rental property inventory at $3.1 billion and plans to maintain this level for the next several quarters ( ), how do you assess the risks associated with the rental market, and what is your long-term strategy for your rental operations amidst potential market volatility?
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Considering that 56% of your mortgage company's volume consists of FHA and VA loans, and 57% of the closings are with first-time homebuyers ( ), how are you managing the credit risks associated with this borrower profile, particularly in the event of an economic downturn?
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Despite achieving cycle times below historical norms due to improvements in supply chain and labor conditions ( ), how sustainable is this efficiency, and what impact do you anticipate if interest rates decrease and demand increases, potentially putting pressure on resources?
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Given the extended time frames for entitlements and lot development affecting your ability to return cash within 24 months on land deals ( ), what strategies are you implementing to mitigate these delays, and what proportion of your current communities are meeting this target?
Research analysts who have asked questions during DR Horton Inc earnings calls.
Alan Ratner
Zelman & Associates
5 questions for DHI
Eric Bosshard
Cleveland Research Company
5 questions for DHI
John Lovallo
UBS Group AG
5 questions for DHI
Matthew Bouley
Barclays PLC
5 questions for DHI
Michael Rehaut
JPMorgan Chase & Co.
5 questions for DHI
Rafe Jadrosich
Bank of America
5 questions for DHI
Stephen Kim
Evercore ISI
5 questions for DHI
Jade Rahmani
Keefe, Bruyette & Woods
4 questions for DHI
Trevor Allinson
Wolfe Research, LLC
4 questions for DHI
Alex Barron
Housing Research Center
3 questions for DHI
Anthony Pettinari
Citigroup Inc.
3 questions for DHI
Carl Reichardt
BTIG, LLC
3 questions for DHI
Mike Dahl
RBC Capital Markets
3 questions for DHI
Sam Reid
Wells Fargo
3 questions for DHI
Susan Maklari
Goldman Sachs Group Inc.
3 questions for DHI
Alex Rygiel
Texas Capital Securities
2 questions for DHI
Jay McCanless
Wedbush Securities
2 questions for DHI
Kenneth Zener
Seaport Research Partners
2 questions for DHI
Richard Reid
Wells Fargo & Company
2 questions for DHI
Buck Horne
Raymond James Financial, Inc.
1 question for DHI
James McCanless
Wedbush Securities
1 question for DHI
Ken Zener
Seaport Research Partners
1 question for DHI
Paul Prizbilski
Wolfe Research
1 question for DHI
Recent press releases and 8-K filings for DHI.
- UBS notes homebuilder stocks have rallied 20% versus the market’s 3% since the start of earnings season but remain at decade-high dislocation levels, historically preceding 50%+ relative returns.
- The firm recommends a barbell approach, favoring entry-level builders like DR Horton alongside luxury names such as Toll Brothers and Pulte Homes.
- Recent housing data shows Toll Brothers’ community traffic up 15% year-over-year, online traffic up 5–10%, and the NAHB traffic index rising 2 points, indicating nascent strength.
- Consumer intent to purchase a home in the next 12 months has climbed to 37%, above 32% in Q1 and the 30% long-term average, contingent on rate stability and confidence gains.
- Investors are rotating into economically cyclical sectors, including homebuilders like D.R. Horton, on mounting expectations of Fed rate cuts.
- Homebuilder shares began turning up 3–4 months ago as part of a broader cyclical uptrend, with names like Lennar, Pulte, and Toll also outperforming.
- The equal-weight S&P 500 and small caps are at new highs, driven by gains in industrials and healthcare within the Russell 2000.
- The 2-year Treasury yield at 3.75% signals the market is pricing in modest easing, with expectations for a 25 bp cut in September and one more cut before year-end, supporting housing sector prospects.
- DR Horton reported solid earnings beats, surprising analysts during its latest results
- Analysts remain cautious on entry-level builders like DR Horton, citing ~7% mortgage rates and low consumer confidence as headwinds
- Builders, including DR Horton, have reduced square footage and dialed back starts to improve home affordability
- DR Horton’s stock rallied 17% post-earnings, reflecting positive investor sentiment despite market challenges
- Strategist Stephanie Link added to her DR Horton position, noting the stock trades at 11× forward estimates, making it “cheap” relative to peers.
- Company guidance on margins and home deliveries has been revised to “reasonable levels,” reducing downside risk.
- With 30-year mortgage rates at 6.8% and Treasury yields at six-week lows, a potential Fed rate cut in the fall could spur a housing-sector rebound.
- DR Horton’s execution is among the strongest in the industry, second only to Toll Brothers, according to Link.
- Offering Details: On May 5, 2025, D.R. Horton completed its public offering of $500 million aggregate principal amount of its 4.850% Senior Notes due 2030, netting $496.7 million in proceeds.
- Note Terms: The Senior Notes bear a 4.850% per annum interest rate, with semi-annual payments on April 15 and October 15, and mature on October 15, 2030.
- Indenture Structure: The offering is governed by the Base Indenture, supplemented by the Eighth Supplemental Indenture and a supplemental indenture dated May 5, 2025.
- Underwriting & Registration: Executed through an underwriting agreement with Mizuho Securities USA LLC, U.S. Bancorp Investments, Inc., and Wells Fargo Securities, LLC, accompanied by a Registration Statement on Form S-3 and related prospectus documentation.
- Pricing & Settlement: The notes are priced at 99.941% of the principal, with scheduled settlement on May 5, 2025, outlining detailed terms on coupon, maturity, and interest payment dates.
- Q2 Financial Results: Reported diluted EPS of $2.58 with $7.7B in consolidated revenue, net income of $810.4M (27% YoY decline), and $1.1B pretax income achieving a 13.8% margin .
- Home Sales & Market Conditions: Experienced a 15% decline in net sales orders with 22,437 homes at an average price of $372,500 , while closing 19,276 homes that generated $7.2B in home sales revenue .
- Capital Allocation: Executed a 9.7M share repurchase for $1.3B and updated its share repurchase authorization to $5.0B (up from $4B ).
- Dividend Announcement: Declared a quarterly dividend of $0.40 per share .
- Guidance: Forecasts indicate Q3 consolidated revenues between $8.4B and $8.9B; FY outlook projects revenues of $33.3B–$34.8B with 85,000–87,000 homes closed .