As affordability constraints and elevated incentives continued to pressure margins, D.R. Horton reported lower year‑over‑year earnings for its fiscal 2026 second quarter, even as demand held up and net sales orders increased.
For the second quarter, home building revenue decreased 2% to $7.1 billion, and homes closed increased 1% to 19,486 homes.
“Affordability constraints and cautious consumer sentiment continue to impact new-home demand,” executive chairman David Auld said, noting that disciplined execution helped drive higher orders and reduce unsold completed homes by 35% from a year ago. The company expects sales incentives to remain elevated throughout fiscal 2026.
The cancellation rate was 16%, consistent with the prior‑year quarter. Net sales orders increased 11% year over year to 24,992 homes, representing $9.2 billion in order value.
At quarter end, D.R. Horton had 38,200 homes in inventory, including 22,900 unsold homes. Of those, 5,500 were completed, with 800 completed for more than six months.
“Our strong liquidity, low leverage, national scale, affordable product offerings, and controlled lot supply provide significant financial and operational flexibility. We remain focused on disciplined capital allocation and are well-positioned to deliver value to our home buyers while enhancing long-term value for our shareholders,” Auld said.
D.R. Horton’s second quarter profit decreased 20% to $647.9 million, and earnings per diluted share decreased 13% to $2.24. The builder updated its fiscal 2026 revenue guidance to a range of $33.5 billion to $34.5 billion and expects to close 86,000 to 87,500 homes, while reiterating expectations for cash flow, share repurchases, and dividends.
