Mar 31, 2023

D.R. Horton Q2 2023 Earnings Report

D.R. Horton reported a decrease in net income but showed resilience through strategic pricing and incentives.

Key Takeaways

D.R. Horton's second quarter fiscal 2023 saw a decrease in net income attributable to D.R. Horton to $942.2 million, or $2.73 per diluted share, a 34% decrease compared to the same quarter of fiscal 2022. Despite challenges like higher mortgage rates and inflationary pressures, the company saw encouraging results with net sales orders increasing 73% sequentially from the first quarter.

Net income attributable to D.R. Horton decreased 34% to $942.2 million, or $2.73 per diluted share.

Consolidated pre-tax income was $1.2 billion, with a pre-tax profit margin of 15.6%.

Net sales orders decreased 5% to 23,142 homes, with an order value decreasing 11% to $8.6 billion.

The company repurchased 3.2 million shares of common stock for $303.2 million.

Total Revenue
$7.97B
Previous year: $8B
-0.3%
EPS
$2.73
Previous year: $4.03
-32.3%
Homes Closed
19.66K
Previous year: 19.83K
-0.8%
Net Sales Orders
23.14K
Previous year: 24.34K
-4.9%
Cancellation Rate
18%
Previous year: 16%
+12.5%
Gross Profit
$1.98B
Previous year: $2.57B
-23.1%
Cash and Equivalents
$3.05B
Previous year: $1.66B
+83.4%
Free Cash Flow
$613M
Previous year: -$702M
-187.3%
Total Assets
$31.2B
Previous year: $26.7B
+16.8%

D.R. Horton

D.R. Horton

D.R. Horton Revenue by Segment

D.R. Horton Revenue by Geographic Location

Forward Guidance

D.R. Horton provided fiscal year 2023 guidance based on current market conditions and first-half results.

Positive Outlook

  • Consolidated revenues are expected to be in the range of $31.5 billion to $33.0 billion.
  • Between 77,000 and 80,000 homes are expected to be closed.
  • Rental homes/units closed are expected to be between 4,000 and 5,000 homes/units.
  • The income tax rate is expected to be approximately 24%.
  • Cash provided by both consolidated and homebuilding operations is expected to be greater than fiscal 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income