D.R. Horton, Inc. Q2 FY26 Results — Earnings Call Analysis
Published 29 May 2026 | Household Durables | Market Cap: ₹41.7K Cr
- Q3 guidance: Consolidated revenues expected between $8.8 billion to $9.3 billion with 23,500 to 24,000 homes closed. - Earnings per diluted share for Q2 FY26 were $2.24, down from $2.58 in prior year quarter.
From D.R. Horton, Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.
Price
₹146.92
Market Cap
₹41.7K Cr
P/E Ratio
13.7
Revenue Rank
Margin Rank
How does D.R. Horton, Inc. rank in Household Durables?
Compare D.R. Horton, Inc. against every Household Durables company this quarter on revenue, margins and earnings-call signals.
📊 Revenue & Sales Performance
Rank 4- →Q3 guidance: Consolidated revenues expected between $8.8 billion to $9.3 billion with 23,500 to 24,000 homes closed.
- →Full year fiscal 2026: Revenues projected around $33.5 billion to $34.5 billion with 86,000 to 87,500 homes closed.
- →Net sales orders increased 11% year-over-year in Q2; order value up 10%.
- →Average active selling communities have grown 11% year-over-year, supporting volume growth.
- →Q3 housing starts expected to be roughly flat or slightly down year-over-year, aligning with sales demand.
- →Regional growth notably strong in the North, with consistent gains across metros due to market penetration.
- →Focus on affordability and market share expansion through both organic growth and acquisitions aims to sustain revenue increases.
📈 Profitability & Margins
Rank 3- →Earnings per diluted share for Q2 FY26 were $2.24, down from $2.58 in prior year quarter.
- →Home sales gross margin expected to be stable or slightly higher in Q3, around 19.7%-20.2%.
- →Consolidated pretax margin guidance for Q3 is 12.2% to 12.7%.
- →Full year fiscal 2026 outlook: consolidated revenues of $33.5 billion to $34.5 billion; home closings 86,000 to 87,500.
- →Operating cash flow projected at least $3 billion for fiscal 2026.
- →Incentives expected to remain elevated through the year, impacting margins.
- →SG&A ratio anticipated to improve in H2 due to higher closing volumes.
- →Construction cost savings expected to continue aiding gross margins in Q3 and Q4.
- →The company focuses on capital efficiency and returning capital through dividends and share repurchases ($2.5 billion planned for 2026).
🏗️ Capital Expenditure Plans
Yes- →The company pursued strategic investments in the North region by expanding presence in less penetrated markets through a combination of greenfield organic growth and acquisitions (Page 17).
- →Focus on disciplined land acquisition with an emphasis on capital efficiency, working with third-party developers to adjust lot takedown schedules and development timing aligned with market demand (Page 11).
- →Moderate growth in community count expected, with year-over-year increases in low double-digit percentages but anticipated moderation to mid-single-digit growth over time (Page 11).
- →Continued efforts to optimize construction cycle times and manage starts in line with housing demand to control inventory and capital deployment efficiently (Pages 9, 10).
- →Land costs are incrementally higher (~4% year-over-year), but savings in construction materials and labor are expected to offset these increases in coming quarters (Page 10).
💰 Fundraising & Capital Structure
No information- →At March 31, the company had consolidated liquidity of $6 billion, including $1.9 billion in cash and $4.1 billion of available capacity on credit facilities.
- →Total debt was $6.6 billion, with $600 million of homebuilding senior notes maturing over the next 12 months.
- →The company continues to maintain a strong balance sheet with low leverage, targeting around 20% leverage over the long term.
- →There is no explicit mention in the provided excerpts of any current or planned new fundraising through debt or equity.
- →Focus remains on generating strong cash flows and disciplined capital allocation to support operations and shareholder returns.
📋 Order Book & Pipeline
YesKey Metrics
Revenue
Margin
Capex
Fundraise
Order Book
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Frequently Asked Questions
What were D.R. Horton, Inc. Q2 FY26 results?
- Q3 guidance: Consolidated revenues expected between $8.8 billion to $9.3 billion with 23,500 to 24,000 homes closed. - Earnings per diluted share for Q2 FY26 were $2.24, down from $2.58 in prior year quarter.
What is D.R. Horton, Inc. share price analysis?
D.R. Horton, Inc. currently shows a neutral. The stock trades at a P/E of 13.7 with a market cap of $41,664. Investors should review the full earnings analysis for detailed insights.
Is D.R. Horton, Inc. planning capital expenditure?
- The company pursued strategic investments in the North region by expanding presence in less penetrated markets through a combination of greenfield organic growth and acquisitions (Page 17).
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.