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Sep 30, 2023
Forestar Q4 2023 Earnings Report
Forestar reported an increase in net income and revenues, driven by strong lot sales.
Key Takeaways
Forestar reported a strong fourth quarter with a 44% increase in pre-tax income to $95.4 million on revenues of $549.7 million. The company sold 4,986 lots, demonstrating the resilience of the new home market and builder demand. For the full fiscal year, Forestar generated $221.6 million of pre-tax income on revenues of $1.4 billion.
Net income increased 43% to $72.4 million, or $1.44 per diluted share.
Pre-tax income increased 44% to $95.4 million, with a pre-tax profit margin of 17.4%.
Revenues increased 44% to $549.7 million on 4,986 lots sold.
The company ended the year with $616.0 million of unrestricted cash and $382.3 million of available borrowing capacity.
Forestar
Forestar
Forestar Revenue by Segment
Revenue by Segment
Residential Lot Sales Revenue
CapyFin.comTract Sales and Other Revenue
CapyFin.com Forward Guidance
Forestar expects to deliver between 14,500 and 15,500 lots in fiscal 2024, generating $1.4 billion to $1.5 billion of revenue.
Positive Outlook
- Expects to deliver between 14,500 and 15,500 lots.
- Generating $1.4 billion to $1.5 billion of revenue.
- Strong balance sheet and ample liquidity provide flexibility to invest in land development opportunities.
- Positioned for growth beyond fiscal 2024.
- Expects to aggregate significant market share over the next few years.
Challenges Ahead
- Will continue to adjust to market conditions.
- Will balance pace of sales and lot pricing in each of our projects.
- Dependence on relationships with national, regional and local homebuilders.
- Competitive conditions in our industry.
- Conditions of the capital markets and our ability to raise capital to fund expected growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income