D.R. Horton, Inc. (NYSE:DHI) on Thursday reported net income for the fourth fiscal quarter ended Sept. 30 increased 49% to $466.1 million, or $1.22 per diluted share, compared to $313.2 million, or $0.82 per diluted share, in the same quarter of fiscal 2017. The results met analyst estimates.

Home building revenue for the quarter increased 8% to $4.4 billion from $4.1 billion in the same quarter of 2017. Homes closed in the quarter increased 11% to 14,674 homes, compared to 13,165 homes in the same quarter of fiscal 2017.

For the fiscal year ended September 30, 2018, net income increased 41% to $1.5 billion, or $3.81 per diluted share, compared to $1.0 billion, or $2.74 per diluted share, in fiscal 2017. Home building revenue for the fiscal year ended September 30, 2018 increased 14% to $15.6 billion from $13.7 billion in fiscal 2017. Homes closed in fiscal 2018 increased 13% to 51,857 homes, compared to 45,751 homes in fiscal 2017.

Net sales orders for the quarter increased 11% to 11,509 homes from 10,333 homes in the year-ago quarter, and the value of net sales orders increased 10% to $3.4 billion from $3.1 billion. The cancellation rate for the quarter was 26%, compared to 25% in same quarter of fiscal 2017.

Net sales orders for the fiscal year ended September 30, 2018 increased 13% to 52,740 homes from 46,605 homes in fiscal 2017, and the value of net sales orders increased 13% to $15.8 billion from $13.9 billion. The cancellation rate for fiscal 2018 was 22%, unchanged from fiscal 2017. Backlog of homes under contract at September 30, 2018 increased 8% to 13,371 homes and 8% in value to $4.0 billion compared to 12,329 homes and $3.7 billion at September 30, 2017.

Homes in inventory at September 30, 2018 increased 13% to 29,700 homes, compared to 26,200 homes at September 30, 2017. The company's land and lot portfolio at September 30, 2018 consisted of 289,000 lots, of which 43% were owned and 57% were controlled through option contracts, compared to 249,000 lots at September 30, 2017, of which 50% were owned and 50% were controlled through option contracts.

The company's home building return on inventory (ROI) improved 360 basis points to 20.2% in fiscal 2018 from 16.6% in fiscal 2017.

Home building cash provided by operations for fiscal 2018 was $1.0 billion, and the company ended the year with $1.1 billion of home building unrestricted cash and home building debt to total capital of 21.4%.

Donald R. Horton, chairman of the board, said, “With 51,857 homes closed in fiscal 2018, D.R. Horton completed its 17th consecutive year as the largest home builder in the United States. Sales prices for both new and existing homes have increased across most of our markets over the past several years, which coupled with rising interest rates has impacted affordability and resulted in some moderation of demand for homes, particularly at higher price points. However, we continue to see good demand and a limited supply of homes at affordable prices across our markets, and economic fundamentals and financing availability remain solid. We are pleased with our current product offerings and positioning to meet demand in the current market, and we will adjust to future changes in market conditions as necessary.

In fiscal 2018, the company paid cash dividends of $47.1 million in the fourth quarter and $188.4 million during the year. Subsequent to year-end, the company declared a quarterly cash dividend of $0.15 per common share, an increase of 20% compared to its most recent dividend paid. The dividend is payable on December 10, 2018 to stockholders of record on November 26, 2018.

The company repurchased 1.2 million shares of common stock for $52.6 million during the fourth quarter of fiscal 2018 and 2.8 million shares of common stock for $127.5 million during the year. The company's remaining stock repurchase authorization at September 30, 2018 was $375.5 million.

Forestar Group Inc. (NYSE:FOR) (“Forestar”), a majority-owned subsidiary of D.R. Horton, had operations in 24 markets and 14 states as of September 30, 2018. Forestar’s results of operations for the three month period ended September 30, 2018 and from October 5, 2017 (acquisition date) through September 30, 2018 are fully consolidated in the company’s financial statements with the 25% interest not owned by the company reported as noncontrolling interests. For the twelve months ended September 30, 2018, Forestar sold 1,279 lots and generated $109.2 million of revenue.