Forestar Group Stock Earnings Reports

Key points for investors: Forestar delivered a solid Q1 with revenue of $273 million (up 9% YoY) on 1,944 lots sold and an average sales price of $121,000. Net income was $15.4 million ($0.30 diluted EPS); pretax margin was 7.6% (down from 8.7% a year ago) with gross margin of 20.1% (approximately 21.5% ex an unusually low-margin track sale and mix effects). Book value per share rose 10% year-over-year to $35.10, and contracted backlog provides visibility to roughly $2.2 billion of future revenue. Liquidity remains strong at approximately $820 million (including $212 million cash and $608 million undrawn on the revolver); total debt was $793 million and net debt-to-capital was 24.6%. The company invested $415 million in the quarter (≈75% land development, 25% land acquisition) and reiterated fiscal 2026 guidance: $1.6–$1.7 billion revenue and 14,000–15,000 lot deliveries, with planned ~ $1.4 billion total investment in land acquisition and development for the year (subject to market conditions). Operational priorities: focus on entry-level / first-time buyer lots, capital efficiency (targeting a 3–4 year owned lot supply), and consolidating market share in a fragmented lot-development market. Notable customer exposure: D.R. Horton remains the largest customer (16% of D.R. Horton starts in past 12 months on Forestar lots; 23% of D.R. Horton finished lot purchases), with a strategic goal of increasing to about one in three homes. Near-term risks: affordability headwinds, cautious consumer sentiment, and geographic pockets with elevated resale inventory (notably TX and FL), but management emphasizes disciplined investing, flexibility, and strong capital structure as competitive advantages.