Mar 31

D.R. Horton Q2 2025 Earnings Report

D.R. Horton reported lower earnings and revenue in Q2 2025 amid slower home sales and affordability concerns.

Key Takeaways

D.R. Horton saw a 27% decline in EPS and 15% drop in revenue as home closings and sales orders fell. Despite this, the company maintained strong margins and returned capital to shareholders.

Total Revenue
$7.73B
Previous year: $9.11B
-15.1%
EPS
$2.58
Previous year: $3.52
-26.7%
Pre-Tax Margin
13.8%
Previous year: 16.8%
-17.9%
Homes Closed
19.28K
Previous year: 22.55K
-14.5%
Net Sales Orders
22.44K
Previous year: 26.46K
-15.2%
Gross Profit
$1.9B
Previous year: $2.33B
-18.5%
Cash and Equivalents
$2.47B
Previous year: $3.1B
-20.3%
Free Cash Flow
-$471M
Previous year: -$340M
+38.2%
Total Assets
$35.7B
Previous year: $34.4B
+3.8%

D.R. Horton

D.R. Horton

D.R. Horton Revenue by Segment

D.R. Horton Revenue by Geographic Location

Forward Guidance

D.R. Horton reaffirmed its full-year outlook but noted a slower-than-expected spring season, impacting near-term performance.

Positive Outlook

  • Maintained guidance for FY2025 revenue between $33.3B and $34.8B
  • Planned home closings of 85,000 to 87,000
  • Projected free cash flow from operations above $3.0B
  • Authorized $5.0B new share repurchase program
  • Expecting dividend payments to total approximately $500M

Challenges Ahead

  • Spring selling season began slower than expected
  • Net sales orders down 15% YoY
  • Homebuilding revenue declined 15% YoY
  • Cancellation rate increased to 16%
  • Sales backlog dropped 21% YoY in homes and 22% in value

Revenue & Expenses

Visualization of income flow from segment revenue to net income