In a challenging market where uncertainty is causing buyers to approach the housing market more cautiously, D.R. Horton reported positive growth in home sales revenues and home closings during the builder’s fiscal third quarter. Sales revenues increased 1% to $8.7 billion while closings increased 4% to 23,983 in the quarter, ended June 30 for the No. 1 company on the 2026 Builder 100 list.
“Our teams are managing each community with discipline, balancing pace, price, incentives, and inventory levels to maximize returns,” said executive chairman David Auld. “Affordability constraints and cautious consumer sentiment continue to impact new-home demand, and we expect sales incentives to remain elevated during the fourth quarter, with incentive levels dependent on demand, mortgage rates, and other market conditions.”
Despite the positive growth in revenue and closings, profit in the quarter declined for D.R. Horton. The builder reported a profit of $904.9 million, or $3.20 per share, declines of 12% and 5%, respectively, compared to the prior-year period. The builder’s average closing price in the quarter was down 2% year over year at $362,000. According to executive vice president and chief operating officer Mike Murray, D.R. Horton’s average price is approximately 30% lower than the average price of new homes in the United States.
Lot costs were flat sequentially for D.R. Horton while stick and brick costs were 2% lower sequentially. On a year-over-year basis, D.R. Horton lowered stick and brick costs by 5%.
The builder started 23,900 homes in the period and ended the third quarter with 38,000 homes in inventory. In the third quarter, D.R. Horton’s cancellation rate was 20%, up from 17% in the third quarter of 2025.
“For homes closed in the third quarter, our median cycle time from home start to home close improved by roughly three weeks year over year,” president and CEO Paul Romanowski said during the builder’s quarterly earnings call. “Our improved cycle times enable us to hold less housing inventory and turn it more efficiently. We expect starts in the fourth quarter to be lower than the third quarter and we will continue to manage our inventory levels and starts pace based on market conditions.”
In the quarter, D.R. Horton generated 23,084 net orders with an order value of $8.4 billion, flat compared to the third quarter of 2025. The builder’s average number of active selling communities increased 9% year over year.
At quarter’s end, D.R. Horton’s lot position consisted of approximately 570,00 lots, of which 22% were owned and 78% were controlled via purchase contracts. Overall, the builder’s lot position is down 13% compared to the same period in 2025. During the third quarter, the company allocated $2.1 billion to lots, land, and development, including $75 million for land acquisition and $520 million for land development.
“Our results and positioning reflect the strength of our experienced teams, industry leading market share, broad geographic footprint, and focus on delivering quality homes at affordable price points,” said Romanowski. “We recognize the current volatility and uncertainty in the broader economy and we will remain agile and disciplined as we focus on enhancing the long term value of D.R. Horton.”
