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Jun 30, 2025
Forestar Q3 2025 Earnings Report
Forestar reported its third fiscal quarter results for 2025, with increased revenues and residential lot sales compared to the prior year quarter, despite a decrease in net income and pre-tax income.
Key Takeaways
Forestar Group Inc. reported mixed results for its third fiscal quarter ended June 30, 2025. While consolidated revenues increased by 23% to $390.5 million and residential lots sold increased by 11% to 3,605 lots, net income decreased by 15% to $32.9 million, and pre-tax income decreased by 16% to $43.6 million.
Consolidated revenues increased 23% to $390.5 million, up from $318.4 million in the prior year quarter.
Net income decreased 15% to $32.9 million, or $0.65 per diluted share, compared to $38.7 million, or $0.76 per diluted share, in the same quarter of fiscal 2024.
Residential lots sold increased 11% to 3,605 lots, compared to 3,255 lots in the prior year quarter.
The company's lot position at June 30, 2025, was 102,300 lots, with 25,700 lots under contract to be sold, representing approximately $2.3 billion of future revenue.
Revenue by Segment
Forward Guidance
Forestar updated its lot delivery guidance for fiscal 2025, expecting to deliver between 14,500 and 15,000 lots, a slight reduction from prior guidance, while maintaining its revenue guidance of $1.50 billion to $1.55 billion.
Positive Outlook
- Maintaining previous revenue guidance of $1.50 billion to $1.55 billion for fiscal 2025.
- Uniquely positioned to consistently supply finished lots essential to the homebuilding industry.
- Strong balance sheet and liquidity provide flexibility to operate effectively through changing market conditions.
- Expects to continue aggregating significant market share, supported by its operating platform and strategic relationship with D.R. Horton.
- Maintains a disciplined approach to capital allocation while positioning for growth and long-term shareholder value.
Challenges Ahead
- Updated lot delivery guidance for fiscal 2025 to between 14,500 and 15,000 lots, down from prior guidance of 15,000 to 15,500 lots.
- Affordability constraints continue to impact the pace of new home sales.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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