•
Dec 31, 2023

Forestar Q1 2024 Earnings Report

Reported an increase in net income and revenues, driven by a rise in residential lots sold.

Key Takeaways

Forestar Group Inc. reported a strong first quarter in fiscal year 2024, with net income increasing by 84% to $38.2 million and revenues increasing by 41% to $305.9 million. The company sold 3,150 residential lots, a 39% increase compared to the same quarter of the previous year. Forestar's strategic focus and strong balance sheet position them well to capitalize on the constrained supply of vacant developed lots.

Net income increased 84% to $38.2 million, or $0.76 per diluted share.

Pre-tax income increased 84% to $51.2 million.

Consolidated revenues increased 41% to $305.9 million.

Residential lots sold increased 39% to 3,150 lots.

Total Revenue
$306M
Previous year: $217M
+41.2%
EPS
$0.76
Previous year: $0.42
+81.0%
Lots Sold
3.15K
Previous year: 2.26K
+39.2%
Avg Sales Price per Lot
$96.4K
Previous year: $90.1K
+7.0%
Gross Profit
$73.1M
Previous year: $47.5M
+53.9%
Cash and Equivalents
$459M
Previous year: $216M
+112.1%
Free Cash Flow
-$157M
Previous year: -$49.9M
+214.4%
Total Assets
$2.53B
Previous year: $2.34B
+8.2%

Forestar

Forestar

Forestar Revenue by Segment

Forward Guidance

Forestar expects to deliver between 14,500 and 15,500 lots in fiscal 2024, generating $1.4 billion to $1.5 billion in revenue.

Positive Outlook

  • Supply of vacant developed lots, particularly at affordable price points, continues to be constrained across most of the country.
  • Forestar is uniquely positioned to take advantage of the shortage of finished lots in the homebuilding industry.
  • Expects to deliver between 14,500 and 15,500 lots in fiscal 2024.
  • Generating $1.4 billion to $1.5 billion in revenue.
  • Strong balance sheet and ample liquidity give flexibility to invest in land opportunities.