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 HORTON D R INC /DE/ 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 .