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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.
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 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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