Sep 30, 2022

D.R. Horton Q4 2022 Earnings Report

Net income per diluted share increased 26% to $4.67 and consolidated revenues increased 19% to $9.6 billion.

Key Takeaways

D.R. Horton reported a strong fourth quarter and fiscal year 2022. Net income per diluted share increased 26% to $4.67, and consolidated revenues increased 19% to $9.6 billion for the quarter. The company's homebuilding operations closed a record 83,518 homes in fiscal 2022, marking its 21st consecutive year as the largest homebuilder in the United States.

Net income per diluted share increased 26% to $4.67.

Net income attributable to D.R. Horton increased 22% to $1.6 billion.

Consolidated revenues increased 19% to $9.6 billion.

Consolidated pre-tax income increased 20% to $2.1 billion, with a pre-tax profit margin of 21.4%.

Total Revenue
$9.64B
Previous year: $8.11B
+18.9%
EPS
$4.67
Previous year: $3.7
+26.2%
Homes Closed
23.21K
Previous year: 21.94K
+5.8%
Net Sales Orders
13.58K
Previous year: 15.95K
-14.8%
Cancellation Rate
32%
Gross Profit
$2.88B
Previous year: $2.41B
+19.6%
Cash and Equivalents
$2.54B
Previous year: $3.21B
-20.9%
Free Cash Flow
$1.08B
Previous year: $521M
+108.0%
Total Assets
$30.4B
Previous year: $24B
+26.4%

D.R. Horton

D.R. Horton

D.R. Horton Revenue by Segment

Forward Guidance

D.R. Horton has seen a moderation in housing demand caused by significant increases in mortgage interest rates and general economic uncertainty. The company is well-positioned to navigate changing market conditions and is focused on turning inventory to maximize returns and capital efficiency.

Positive Outlook

  • Supply of homes at affordable price points remains limited.
  • Demographics supporting housing demand remain favorable.
  • Well-positioned to navigate changing market conditions.
  • Focused on turning inventory to maximize returns and capital efficiency.
  • Strong balance sheet, liquidity and low leverage provide significant financial flexibility.

Challenges Ahead

  • Moderation in housing demand.
  • Significant increases in mortgage interest rates.
  • General economic uncertainty.
  • Pressures may persist for some time.
  • Changing market conditions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income