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Sep 30
Forestar Q4 2025 Earnings Report
Forestar Group Inc. reported increased net income and revenue for its fourth quarter of fiscal year 2025, driven by strong demand for finished lots.
Key Takeaways
Forestar Group Inc. concluded fiscal year 2025 with a strong fourth quarter, reporting a 7% increase in net income to $87.0 million and a 22% rise in revenues to $670.5 million compared to the prior year. Despite a decrease in lots sold, the company demonstrated solid demand for finished lots and maintained a robust lot position, ending the year with significant liquidity.
Fourth quarter net income increased 7% to $87.0 million, or $1.70 per diluted share.
Fourth quarter revenues increased 22% to $670.5 million.
Lots sold in the fourth quarter decreased 9% to 4,891 lots.
The company's lot position at September 30, 2025, was 99,800 lots, with 23,800 owned lots under contract to sell.
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 14,000 and 15,000 lots in fiscal 2026, generating $1.6 billion to $1.7 billion in revenue, focusing on maximizing returns and maintaining market share.
Positive Outlook
- Expected lot deliveries of 14,000 to 15,000 in fiscal 2026.
- Anticipated revenue of $1.6 billion to $1.7 billion for fiscal 2026.
- Strong balance sheet and liquidity to remain agile.
- Strategic relationship with D.R. Horton supports continued market share aggregation.
- Substantial operating platform and $2.1 billion of contracted future revenue provide stability.
Challenges Ahead
- Continued impact of ongoing affordability constraints on new home demand.
- Cautious consumer sentiment affecting new home demand.
- Cyclical nature of the homebuilding and lot development industries.
- Potential impacts of significant inflation, higher interest rates, or deflation.
- Risks associated with acquiring land, construction materials, and skilled labor.
Revenue & Expenses
Visualization of income flow from segment revenue to net income