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What changed in D. R. Horton's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of D. R. Horton's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+352 added−337 removedSource: 10-K (2025-11-19) vs 10-K (2024-11-19)

Top changes in D. R. Horton's 2025 10-K

352 paragraphs added · 337 removed · 307 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

60 edited+1 added−1 removed53 unchanged
Biggest changeLucie New Jersey Northern New Jersey Arizona Phoenix Tallahassee Southern New Jersey Tucson Tampa/Sarasota Ohio Cincinnati/Dayton California Bakersfield Volusia County Columbus Bay Area Louisiana Baton Rouge Pennsylvania Central Pennsylvania Fresno/Tulare Lake Charles/Lafayette Philadelphia Los Angeles County Mississippi Gulf Coast Pittsburgh Modesto/Merced/Stockton Hattiesburg Virginia Northern Virginia Redding/Chico/Yuba City Jackson Richmond Riverside County Virginia Beach/Williamsburg Sacramento East Region Western Virginia San Bernardino County Georgia Atlanta West Virginia Eastern West Virginia Hawaii Oahu Augusta Northern West Virginia Nevada Las Vegas Central Georgia Wisconsin Southeast Wisconsin Reno Savannah New Mexico Albuquerque Valdosta Santa Fe North Carolina Asheville Charlotte South Central Region Greensboro/Winston-Salem Arkansas Little Rock New Bern/Greenville Northwest Arkansas Raleigh/Durham/Fayetteville Oklahoma Oklahoma City Wilmington Tulsa South Carolina Charleston Texas Abilene Columbia Austin Greenville/Spartanburg Beaumont Hilton Head Bryan/College Station Myrtle Beach Corpus Christi Tennessee Chattanooga Dallas Knoxville East Texas Memphis Fort Worth Nashville Houston Northeast Tennessee Killeen/Temple/Waco Lubbock Midland/Odessa New Braunfels/San Marcos San Antonio 3 Table of Contents When evaluating new or existing homebuilding markets for purposes of capital allocation, we consider local, market-specific factors, including among others: • Economic conditions; • Employment levels and job growth; • Income level of potential homebuyers; • Local housing affordability and typical mortgage products utilized; • Market for homes at our targeted price points; • Availability of land and lots in desirable locations on acceptable terms; • Land entitlement and development processes; • Availability of qualified subcontractors; • New and secondary home sales activity; • Competition; • Prevailing housing products, features, cost and pricing; and • Performance capabilities of our local management team.
Biggest changeLucie Southern New Jersey Tucson Tallahassee Ohio Cincinnati/Dayton California Bakersfield Tampa/Sarasota/Punta Gorda Columbus Bay Area West Palm Beach Pennsylvania Central Pennsylvania Fresno/Tulare Louisiana Baton Rouge Philadelphia Los Angeles County Lake Charles/Lafayette Pittsburgh Modesto/Merced/Stockton Mississippi Gulf Coast Virginia Northern Virginia Redding/Chico/Yuba City Hattiesburg Richmond Riverside County Jackson Virginia Beach/Williamsburg Sacramento Western Virginia San Bernardino County East Region West Virginia Eastern West Virginia Hawaii Oahu Georgia Atlanta Northern West Virginia Nevada Las Vegas Augusta Wisconsin Southeast Wisconsin Reno Central Georgia New Mexico Albuquerque Savannah/Brunswick Santa Fe Valdosta North Carolina Asheville South Central Region Charlotte Arkansas Little Rock Greensboro/Winston-Salem Northwest Arkansas New Bern/Greenville Oklahoma Oklahoma City Raleigh/Durham/Fayetteville Tulsa Wilmington Texas Abilene South Carolina Charleston Austin Columbia Beaumont Greenville/Spartanburg Bryan/College Station Hilton Head Corpus Christi Myrtle Beach Dallas Tennessee Chattanooga East Texas Knoxville Fort Worth Memphis Houston Nashville Killeen/Temple/Waco Northeast Tennessee Lubbock Midland/Odessa New Braunfels/San Marcos San Antonio 3 Table of Contents When evaluating new or existing homebuilding markets for purposes of capital allocation, we consider local, market-specific factors, including among others: • Economic conditions; • Employment levels and job growth; • Income level of potential homebuyers; • Local housing affordability and typical mortgage products utilized; • Demand for homes at our targeted price points; • Availability of land and lots in desirable locations on acceptable terms; • Land entitlement and development processes; • Availability of qualified subcontractors; • New and secondary home sales activity; • Competition; • Prevailing housing products, features, cost and pricing; and • Performance capabilities of our local management team.
We market and sell our homes primarily through commissioned employees, and the majority of our home closings also involve an independent real estate broker. We typically conduct home sales from sales offices located in furnished model homes in each subdivision, and we generally do not offer our model homes for sale until the completion of a subdivision.
We market and sell our homes primarily through commissioned sales employees, and the majority of our home closings also involve an independent real estate broker. We typically conduct home sales from sales offices located in furnished model homes in each subdivision, and we generally do not offer our model homes for sale until the completion of a subdivision.
As market conditions warrant, we may provide potential homebuyers with a variety of incentives to be competitive in a particular market or to attain our targeted sales pace. We market our homes and communities to prospective homebuyers and real estate brokers digitally, through email, search engine marketing, social media and our company website and other real estate websites.
As market conditions warrant, we may provide potential homebuyers with a variety of incentives to be competitive in a particular market or to attain our targeted sales pace. We market our homes and communities to prospective homebuyers and real estate brokers digitally, through email, search engine marketing, social media, our company website and other real estate websites.
To limit the risks associated with our mortgage operations, DHI Mortgage originates loan products that we believe can be sold to third-party purchasers of mortgage loans, the majority of which are eligible for sale to Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) or Government National Mortgage Association (Ginnie Mae).
To limit the risks associated with our mortgage operations, DHI Mortgage originates loan products that we believe can be sold to third-party purchasers of mortgage loans, the majority of which are eligible for sale to the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) or the Government National Mortgage Association (Ginnie Mae).
We believe that our national, regional and local scale of operations provides us with benefits that may not be available to the same degree to some other smaller homebuilders, such as: • Greater access to and lower cost of capital due to our balance sheet strength and our lending and capital markets relationships; • Volume discounts and rebates from national, regional and local materials suppliers and lower labor rates from certain subcontractors; and • Enhanced leverage of our general and administrative activities, which allows us flexibility to adjust to changes in market conditions and compete effectively across our markets.
We believe that our national, regional and local scale provides us with benefits that may not be available to the same degree to some other smaller homebuilders, such as: • Greater access to and lower cost of capital due to our balance sheet strength and our lending and capital markets relationships; • Volume discounts and rebates from national, regional and local materials suppliers and lower labor rates from certain subcontractors; and • Enhanced leverage of our general and administrative activities, which allows us flexibility to adjust to changes in market conditions and compete effectively across our markets.
Following is a summary of our homebuilding activities that are decentralized in our local operating divisions and the control and oversight functions that are centralized in our regional and corporate offices. 4 Table of Contents Operating Division Responsibilities Each homebuilding operating division is responsible for: • Site selection, which involves — A feasibility study; — Soil and environmental reviews; — Review of existing zoning and other governmental requirements; — Review of the need for and extent of offsite work required to obtain project entitlements; and — Financial analysis of the potential project; • Negotiating lot purchase, land acquisition and related contracts; • Obtaining all necessary land development and home construction approvals; • Selecting subcontractors and ensuring their work meets our contracted scopes; • Selecting building and architectural plans; • Planning and managing home construction schedules; • Determining the pricing for each house plan and options in a given community; • Developing and implementing local marketing and sales plans; • Coordinating all interactions with customers and real estate brokers during the sales, construction and home closing processes; and • Ensuring the quality and timeliness of post-closing service and warranty repairs provided to customers.
Following is a summary of our homebuilding activities that are decentralized in our local operating divisions and the control and oversight functions that are centralized in our regional and corporate offices. 4 Table of Contents Operating Division Responsibilities Each homebuilding operating division is responsible for: • Site selection, which involves — A feasibility study; — Soil and environmental reviews; — Review of existing zoning and other governmental requirements; — Review of the need for and extent of offsite work required to obtain project entitlements and to complete necessary infrastructure; and — Financial analysis of the potential project; • Negotiating lot purchase, land acquisition and related contracts; • Obtaining all necessary land development and home construction approvals; • Selecting subcontractors and ensuring their work meets our contracted scopes; • Selecting building and architectural plans; • Planning and managing home construction schedules; • Determining the pricing for each house plan and options in a given community; • Developing and implementing local marketing and sales plans; • Coordinating all interactions with customers and real estate brokers during the sales, construction and home closing processes; and • Ensuring the quality and timeliness of post-closing service and warranty repairs provided to customers.
(Forestar), a publicly traded residential lot development company listed on the NYSE under the ticker symbol “FOR.” Forestar operates across many of our homebuilding operating markets and is a key part of our homebuilding strategy to maintain relationships with land developers and to control a large portion of our land and lot position through land purchase contracts.
(Forestar), a publicly traded residential lot development company listed on the NYSE and NYSE Texas under the ticker symbol “FOR.” Forestar operates across many of our homebuilding operating markets and is a key part of our homebuilding strategy to maintain relationships with land developers and control a large portion of our land and lot position through land purchase contracts.
Our construction and land development activities are also subject to an extensive array of local, state and federal statutes, ordinances, rules and regulations concerning protection of health, safety and the environment. The particular compliance requirements for each site vary greatly according to location, environmental condition and the present and former uses of the site and adjoining properties.
Our construction and land development activities are also subject to an extensive array of local, state and federal statutes, ordinances, rules and regulations concerning protection of health, safety and the environment. The compliance requirements for each site vary greatly according to location, environmental condition and the present and former uses of the site and adjoining properties.
Business Acquisitions We routinely evaluate opportunities to profitably expand our operations, including potential acquisitions of other homebuilding or related businesses. Acquisitions of homebuilding and related businesses usually provide us with immediate land and home inventories and control of additional land and lot positions through purchase contracts.
Business Acquisitions We routinely evaluate opportunities to expand our operations, including potential acquisitions of other homebuilding or related businesses. Acquisitions of homebuilding and related businesses usually provide us with immediate land and home inventories and control of additional land and lot positions through purchase contracts.
We also provide our teams with many safety resources, including safety checklists, policies, procedures and best practices, and we communicate with all of our employees through a monthly safety newsletter to inform and reinforce our commitment to and concern for their well-being.
We also provide our teams with many safety resources, including safety checklists, policies, procedures and best practices, and we communicate with all employees through a monthly safety newsletter to inform and reinforce our commitment to and concern for their well-being.
We also build speculative homes in essentially all of our communities, which allow us to compete effectively with existing homes available in the market and improve our returns.
We build speculative homes in essentially all of our communities, which allow us to compete effectively with existing homes available in the market and improve our returns.
In addition to our SEC filings, our corporate governance documents, including our Code of Ethical Conduct for the Chief Executive Officer, Chief Financial Officer and senior financial officers, are available on the “Investor Relations” section of our website under “ESG.” Our stockholders may also obtain these documents in paper format free of charge upon request made to our Investor Relations department.
In addition to our SEC filings, our corporate governance documents, including our Code of Ethical Conduct for the Chief Executive Officer, Chief Financial Officer and senior financial officers, are available on the “Investor Relations” section of our website under “Corporate Governance.” Our stockholders may also obtain these documents in paper format free of charge upon request made to our Investor Relations department.
Forestar is a key part of our homebuilding strategy to maintain relationships with land developers and to control a large portion of our land and lot position through land purchase contracts.
Forestar is a key part of our strategy to maintain relationships with land developers and to control a large portion of our land and lot position through land purchase contracts.
The corporate office also has primary responsibility for direct management of certain key risk elements and initiatives through the following centralized functions: • Financing; • Cash management; • Allocation of capital; • Issuance and monitoring of inventory investment guidelines; • Approval and funding of land and lot acquisitions; • Monitoring and analysis of profitability, returns, costs and inventory levels; • Risk and litigation management; • Environmental assessments of land and lot acquisitions; • Technology systems to support management of operations, marketing and financial information, including preventing, monitoring and reporting of cybersecurity issues; • Accounting and management reporting; • Income taxes; • Internal audit; • Public reporting and investor and media relations; • Administration of payroll and employee benefits; • Negotiation of national purchasing contracts; • Administration, reporting and monitoring of customer surveys and resolutions of issues; and • Approval of major personnel decisions and management incentive compensation plans.
The corporate office also has primary responsibility for direct management of certain key risk elements and initiatives through the following centralized functions: • Cash management; • Financing; • Allocation of capital; • Issuance and monitoring of inventory investment guidelines; • Approval and funding of land and lot acquisitions; • Monitoring and analysis of profitability, returns, costs and inventory levels; • Environmental assessments of land and lot acquisitions; • Risk and litigation management; • Technology systems to support management of operations, marketing and financial information, including preventing, monitoring and reporting of cybersecurity issues; • Accounting and management reporting; • Income taxes; • Internal audit; • Public financial reporting and investor and media relations; • Administration of payroll and employee benefits; • Negotiation of national purchasing contracts; • Administration, reporting and monitoring of customer surveys and resolution of homeowner concerns; and • Approval of major personnel decisions and management incentive compensation plans.
OPERATING STRUCTURE AND PROCESSES Following is an overview of our company’s operating structure and the significant processes that support our business controls, strategies and performance. Homebuilding Markets Our homebuilding business operates in 125 markets across 36 states, which provides us with geographic diversification in our homebuilding inventory investments and our sources of revenues and earnings.
OPERATING STRUCTURE AND PROCESSES Following is an overview of our company’s operating structure and the significant processes that support our business controls, strategies and performance. Homebuilding Markets Our homebuilding business operates in 126 markets across 36 states, which provides us with geographic diversification in our homebuilding inventory investments and our sources of revenues and earnings.
ITEM 1. BUSINESS D.R. Horton, Inc. is the largest homebuilding company in the United States as measured by number of homes closed. We construct and sell homes through our operating divisions in 125 markets across 36 states.
ITEM 1. BUSINESS D.R. Horton, Inc. is the largest homebuilding company in the United States as measured by number of homes closed. We construct and sell homes through our operating divisions in 126 markets across 36 states.
Our sales personnel assist prospective homebuyers by providing floor plans and pricing information, demonstrating the features and layouts of our homes and assisting with the selection of options, if available. We train and inform our sales personnel regarding construction schedules and marketing and advertising plans.
Our sales personnel assist prospective homebuyers by providing available floor plans and pricing information, demonstrating the features and layouts of our homes and assisting with the selection of options, when available. We train and inform our sales personnel regarding construction schedules and marketing and advertising plans.
Economies of Scale We are the largest homebuilding company in the United States as measured by number of homes closed in fiscal 2024, and we are also one of the largest builders in most of the markets in which we operate.
Economies of Scale We are the largest homebuilding company in the United States as measured by number of homes closed in fiscal 2025, and we are also one of the largest builders in most of the markets in which we operate.
The length of time between the signing of a sales contract for a home and delivery of the home to the buyer (closing) is generally from one to four months; therefore, substantially all of the homes in our sales backlog at September 30, 2024 are scheduled to close in fiscal 2025. 8 Table of Contents Customer Service and Quality Control Our homebuilding operating divisions are responsible for pre-closing quality control inspections and responding to customers’ post-closing needs.
The length of time between the signing of a sales contract for a home and delivery of the home to the buyer (closing) is generally from one to three months; therefore, substantially all of the homes in our sales backlog at September 30, 2025 are scheduled to close in fiscal 2026. 8 Table of Contents Customer Service and Quality Control Our homebuilding operating divisions are responsible for pre-closing quality control inspections and responding to customers’ post-closing needs.
Land/Lot Acquisition and Inventory Management We acquire land for use in our operations after we have completed due diligence and generally after we have obtained the rights (known as entitlements) to begin development or construction work resulting in an acceptable number of residential lots.
Land/Lot Acquisition and Inventory Management We acquire land for use in our operations after we have completed due diligence and generally after we have obtained the entitlements to begin development or construction work resulting in an acceptable number of residential lots.
Forestar is investing in land acquisition and development to expand its residential lot development business across a geographically diversified national platform and consolidate market share in the fragmented U.S. lot development industry. Our homebuilding operations acquire finished lots from Forestar in accordance with the master supply agreement between the two companies.
Forestar continues to invest in land acquisition and development to expand its residential lot development business across a geographically diversified national platform and consolidate market share in the fragmented U.S. lot development industry. Our homebuilding operations acquire finished lots from Forestar in accordance with the master supply agreement between the two companies.
We completed the construction of most homes in two to five months in fiscal 2024. We are subject to governmental regulations that affect our land development and construction operations. We frequently experience delays in receiving the necessary approvals from municipalities or other government agencies, which often delays our anticipated development and construction activities.
We completed the construction of most homes in two to four months in fiscal 2025. We are subject to governmental regulations that affect our land development and construction operations. We frequently experience delays in receiving the necessary approvals from municipalities or other government agencies, which often delays our anticipated development and construction activities.
DHI Mortgage sells substantially all of the loans and the related servicing rights to third-party purchasers after origination with limited recourse provisions. DHI Mortgage centralizes most of its control and oversight functions, including those related to loan underwriting, quality control, regulatory compliance, secondary marketing of loans, hedging activities, accounting and financial reporting.
DHI Mortgage sells substantially all of the loans and the related servicing rights to third-party purchasers after origination. DHI Mortgage centralizes most of its control and oversight functions, including those related to loan underwriting, quality control, regulatory compliance, secondary marketing of loans, hedging activities, accounting and financial reporting.
The report also covers topics that are of significant importance to our company and our stakeholders, including, but not limited to: • Risk management; • Board oversight, ethics, diversity and independence; • Home affordability and community impact; • Home energy efficiency, quality and safety; • Workplace health and safety; • Talent retention and employee well-being; • Diversity, equity and inclusion; • Responsible land development; • Water management and efficiency; and • Greenhouse gas emissions.
The report also covers topics of importance to our company and our stakeholders, including, but not limited to: • Risk management; • Board oversight, ethics, diversity and independence; • Home affordability and community impact; • Home energy efficiency, quality and safety; • Workplace health and safety; • Talent retention and employee well-being; • Responsible land development; • Water management and efficiency; and • Greenhouse gas emissions.
We have closed more than 1.1 million homes during our 46-year history, and we have been the largest volume homebuilder in the United States each year since 2002. Our business operations consist of homebuilding, rental, a majority-owned residential lot development company, financial services and other activities.
We have closed more than 1.2 million homes during our 47-year history, and we have been the largest volume homebuilder in the United States every year since 2002. Our business operations consist of homebuilding, rental, a majority-owned residential lot development company, financial services and other activities.
Our focus on retention is evident in the length of service of our executive, regional and divisional management teams. The average tenure of our executive team is 27 years, our homebuilding region presidents and vice presidents is 20 years and our homebuilding division presidents and city managers is 13 years.
Our focus on retention is evident in the length of service of our executive, regional and divisional management teams. The average tenure of our executive team is 28 years, our homebuilding region presidents and vice presidents is 20 years and our homebuilding division presidents and city managers is 15 years.
These homes enhance our marketing and sales efforts to prospective homebuyers who are renters or who are relocating to these markets and require a home within a short time frame, as well as to independent brokers who represent these homebuyers.
These homes enhance our marketing and sales efforts to homebuyers who are currently renting or who are relocating to these markets and require a home within a short time frame, as well as to independent brokers who represent these homebuyers.
Our most recent ESG report published in January 2024 includes data aligned with the homebuilders industry reporting standards prepared by the Sustainability Accounting Standards Board, now a part of the International Sustainability Standards Board. Our ESG report is not considered part of or incorporated by reference in this Annual Report.
Our most recent Sustainability Report published in September 2025 includes data aligned with the homebuilders industry reporting standards prepared by the Sustainability Accounting Standards Board, now a part of the International Sustainability Standards Board. Our Sustainability Report is not considered part of or incorporated by reference in this Annual Report.
Additionally, because substantially all of our land development and home construction work is performed by subcontractors, we require that our subcontractors maintain safety programs as well. Additional information regarding human capital is available in the “ESG” section of our Investor Relations website at investor.drhorton.com. Environmental, Social & Governance (ESG) We publish consistent and relevant ESG information on an annual basis.
Additionally, because substantially all land development and home construction work is performed by subcontractors, we require that our subcontractors maintain safety programs as well. Additional information regarding human capital is available in the “Sustainability” section of our Investor Relations website at investor.drhorton.com. Sustainability We publish consistent and relevant sustainability information on an annual basis.
DHI Mortgage, our wholly-owned subsidiary, provides mortgage financing services primarily to our homebuyers and sells substantially all of the mortgages it originates and the related servicing rights to third-party purchasers after origination. For the year ended September 30, 2024, DHI Mortgage originated or brokered 70,693 mortgage loans.
DHI Mortgage, our wholly owned subsidiary, provides mortgage financing services primarily to our homebuyers and sells substantially all of the mortgages it originates and the related servicing rights to third-party purchasers after origination. For the year ended September 30, 2025, DHI Mortgage originated or brokered 68,982 mortgage loans.
We primarily focus on constructing garden style apartment communities in high growth suburban markets. We sold 2,202 multi-family rental units in fiscal 2024 compared to 2,112 units in fiscal 2023.
We primarily focus on constructing garden style apartment communities in high growth suburban markets. We sold 2,947 multi-family rental units in fiscal 2025 compared to 2,202 units in fiscal 2024.
Our rental segment consists of single-family and multi-family rental operations. The single-family rental operations construct and lease single-family homes within a community and then generally market each community for a bulk sale of rental homes. The multi-family rental operations develop, construct, lease and sell residential rental properties, the majority of which are apartment communities.
The single-family rental operations construct and lease single-family homes within a community and market each community for a bulk sale of rental homes. The multi-family rental operations develop, construct, lease and sell residential rental properties, the majority of which are apartment communities.
During the fiscal year, 17 employees were placed into a new homebuilding market leadership position, and of those 100% were promoted from within the organization. The long-term retention of our employees provides us with an experienced, cohesive workforce, which has been vital to achieving our goals.
During fiscal 2025, 18 people were placed into a new homebuilding market leadership position, and 100% of those were promoted from within the company. The long-term retention of our employees provides us with an experienced, cohesive workforce, which has been vital to achieving our goals.
State Reporting Region/Market State Reporting Region/Market State Reporting Region/Market Northwest Region Southeast Region North Region Colorado Colorado Springs Alabama Baldwin County Delaware Northern Delaware Denver Birmingham Southern Delaware Fort Collins Huntsville Illinois Chicago Oregon Bend Mobile Indiana Fort Wayne Eugene/Springfield Montgomery Indianapolis Medford Tuscaloosa Northwest Indiana Portland/Salem Florida Fort Myers/Naples Iowa Des Moines Utah Salt Lake City Gainesville Iowa City/Cedar Rapids St.
State Reporting Region/Market State Reporting Region/Market State Reporting Region/Market Northwest Region Southeast Region North Region Colorado Colorado Springs Alabama Baldwin County Delaware Northern Delaware Denver Birmingham Southern Delaware Fort Collins Huntsville Illinois Chicago Oregon Bend Mobile Indiana Fort Wayne Eugene/Springfield Montgomery Indianapolis Medford Tuscaloosa Northwest Indiana Portland/Salem Florida Cape Coral/Fort Myers Iowa Des Moines Utah Salt Lake City/Provo/Ogden Deltona/Daytona Beach Iowa City/Cedar Rapids St.
Of our homebuilding employees, 3,897 are involved in construction, 2,779 are sales and marketing personnel and 3,395 are office personnel. We believe the people who work for our company are our most important resources and are critical to our continued success. We focus significant attention toward attracting and retaining talented and experienced individuals to manage and support our operations.
Of our homebuilding employees, 3,626 are involved in construction, 2,935 are sales and marketing personnel and 3,411 are office personnel. We believe the people who work for our company are our most important resource and are critical to our continued success. We focus significant attention toward attracting and retaining talented and experienced individuals to manage and support our operations.
Many of the contracts in our sales order backlog are subject to contingencies, such as those described above, which can result in cancellations. As a percentage of gross sales orders, cancellations of sales contracts were 18% in fiscal 2024 compared to 20% in fiscal 2023.
Many of the contracts in our sales order backlog are subject to contingencies, such as those described above, which can result in cancellations. As a percentage of gross sales orders, cancellations of sales contracts were 18% in both fiscal 2025 and 2024.
At September 30, 2024, we had 88 separate homebuilding operating divisions, many of which operate in more than one market area.
At September 30, 2025, we had 92 separate homebuilding operating divisions, many of which operate in more than one market area.
For the year ended September 30, 2024, our rental operations closed 3,970 single-family rental homes and 2,202 multi-family rental units. At September 30, 2024, we owned 62% of the outstanding shares of Forestar Group Inc.
For the year ended September 30, 2025, our rental operations closed 3,460 single-family rental homes and 2,947 multi-family rental units. At September 30, 2025, we owned 62% of the outstanding shares of Forestar Group Inc.
We believe our geographic diversification lowers our operational risks by mitigating the effects of local and regional economic cycles, and it also enhances our earnings potential by providing more diverse opportunities to invest in our business. 2 Table of Contents We conduct our homebuilding operations in the geographic regions, states and markets listed below.
We believe our geographic diversification lowers our operational risks by mitigating the effects of local and regional economic cycles, and it also enhances our earnings potential by providing more diverse opportunities to invest in our business and provide a strong platform for us to consolidate market share. 2 Table of Contents We conduct our homebuilding operations in the geographic regions, states and markets listed below.
Rental Properties Our single-family rental operations construct and lease single-family homes within a community and then generally market each community for a bulk sale of rental homes. We sold 3,970 single-family rental homes in fiscal 2024 compared to 6,175 homes in fiscal 2023. Our multi-family rental operations develop, construct, lease and sell residential rental properties.
Rental Properties Our single-family rental operations construct and lease single-family homes within a community and market each community for a bulk sale of rental homes. We sold 3,460 single-family rental homes in fiscal 2025 compared to 3,970 homes in fiscal 2024. Our multi-family rental operations develop, construct, lease and sell residential rental properties.
We compete on the basis of price, location, quality and design of our homes and on mortgage financing terms. 11 Table of Contents The competitors to our financial services businesses include other mortgage lenders and title companies, including national, regional and local mortgage banks and other financial institutions.
We compete based on price, location, quality and design of our homes and on mortgage financing terms. 11 Table of Contents Competition to our financial services businesses includes other mortgage lenders and title companies, including national, regional and local mortgage banks and other financial institutions.
George Jacksonville Kansas/Missouri Kansas City Washington Bremerton Lakeland Kentucky Louisville Central Washington Melbourne/Vero Beach Maryland Baltimore Kennewick/Pasco/Richland Miami/Fort Lauderdale Eastern Maryland Seattle/Tacoma/Everett/Olympia Ocala Suburban Washington, D.C. Spokane Orlando Western Maryland Vancouver Panama City Minnesota Minneapolis/St. Paul Pensacola Nebraska Omaha Southwest Region Port St.
George Gainesville Kansas/Missouri Kansas City Washington Bremerton Jacksonville Kentucky Louisville Central Washington Lakeland Maryland Baltimore Kennewick/Pasco/Richland Miami/Fort Lauderdale Eastern Maryland Seattle/Tacoma/Everett/Olympia Ocala Suburban Washington, D.C. Spokane Orlando Western Maryland Vancouver Palm Bay/Melbourne Minnesota Minneapolis/St. Paul Panama City Nebraska Omaha Southwest Region Pensacola New Jersey Northern New Jersey Arizona Phoenix Port St.
Our wholly-owned subsidiary title companies serve as title insurance agents by providing title insurance policies, examination, underwriting and closing services primarily to our homebuilding customers. In addition to our homebuilding, rental, Forestar and financial services operations, we engage in other business activities through our subsidiaries.
Our wholly owned subsidiary title companies issue title insurance policies and provide examination, underwriting and closing services primarily to our homebuilding customers. In addition to our homebuilding, rental, Forestar and financial services operations, we engage in other business activities through our subsidiaries.
Forestar Residential Lot Development Operations We own approximately 62% of the outstanding shares of Forestar, a publicly traded residential lot development company with operations in 59 markets across 24 states as of September 30, 2024.
Forestar Residential Lot Development Operations We own approximately 62% of the outstanding shares of Forestar, a publicly traded residential lot development company with operations in 64 markets across 23 states as of September 30, 2025.
During the year ended September 30, 2024, DHI Mortgage provided mortgage financing services for 78% of the homes closed by our homebuilding operations, and those loans accounted for virtually all of DHI Mortgage’s total loan volume. Our homebuilding divisions may also work with additional mortgage lenders that offer a range of mortgage financing programs to our homebuyers.
During fiscal 2025, DHI Mortgage provided mortgage financing services for 81% of the homes closed by our homebuilding operations, and those loans accounted for substantially all of DHI Mortgage’s total loan volume. Our homebuilding divisions may also work with additional mortgage lenders that offer a range of mortgage financing programs to our homebuyers.
Our division presidents receive performance-based compensation if they achieve targeted financial and operating metrics related to their operating divisions.
Our division presidents receive performance-based compensation for achieving targeted financial and operating metrics related to their operating divisions.
Our common stock is included in the S&P 500 Index and listed on the New York Stock Exchange (NYSE) under the ticker symbol “DHI.” Unless the context otherwise requires, the terms “D.R. Horton,” the “Company,” “we” and “our” used herein refer to D.R. Horton, Inc., a Delaware corporation, and its predecessors and subsidiaries.
Our common stock is included in the S&P 500 Index and listed on the New York Stock Exchange (NYSE) and NYSE Texas under the ticker symbol “DHI.” Our listing on NYSE Texas became effective in June 2025. Unless the context otherwise requires, the terms “D.R. Horton,” the “Company,” “we” and “our” used herein refer to D.R.
We have an active recruiting team that partners with college campuses and external organizations to identify strong new hires and experienced professionals. Our paid internship program provides college students and recent graduates an opportunity to work alongside some of the most experienced professionals in the homebuilding industry.
We have an active recruiting team that partners with college campuses and external organizations to identify promising new talent and established professionals. Through our paid internship program, college students and recent graduates gain valuable experience working alongside some of the most experienced professionals in the homebuilding industry.
For the year ended September 30, 2024, Forestar sold 15,068 lots to homebuilders, including 13,267 lots sold to D.R. Horton. Our financial services operations provide mortgage financing and title agency services to homebuyers in many of our homebuilding markets.
For the year ended September 30, 2025, Forestar sold 14,240 lots, of which 83% were sold to D.R. Horton. Our financial services operations provide mortgage financing and title agency services to homebuyers in many of our homebuilding markets.
Additional benefits offered include a 401(k) savings plan, employee stock purchase plan and access to professional resources to support employees with their mental and physical health, financial planning, identity theft protection and legal needs. We are committed to supporting our employees in their health, wellness and financial planning goals.
Additional benefits offered include a 401(k) savings plan, employee stock purchase plan and access to professional resources to support employees with their mental and physical health, family and financial planning, identity theft protection and legal needs. We host events and challenges, both virtually and in person, to encourage our employees to stay active and healthy.
During fiscal 2024, we held specialized trainings for employees within key business functions of our homebuilding operations, such as purchasing, construction, sales and financial management, as well as our Leadership Development Program, which provides internal training for future leaders across all of our operations.
We regularly conduct specialized training for employees within key business functions of our homebuilding operations, such as purchasing, construction, sales and financial management. Additionally, our Leadership Development Program provides internal training designed to equip future leaders for roles across all areas of our operations.
We host events and challenges, both virtually and in person, to encourage our employees to stay active and healthy. Additional information about our compensation and employee benefit plans is included in Note K to the accompanying financial statements. 10 Table of Contents Workplace Safety and Wellness The safety and well-being of our employees is our first priority.
We are committed to supporting our employees in their health, wellness and financial planning goals. Additional information about our compensation and employee benefit plans is included in Note K to the accompanying financial statements. 10 Table of Contents Workplace Safety and Wellness The safety and well-being of our employees is our first priority.
Title Services Through our subsidiary title companies, we serve as a title insurance agent in many of our homebuilding markets by providing title insurance policies, examination, underwriting and closing services primarily to our homebuilding customers. 9 Table of Contents Human Capital Resources People and Culture As of September 30, 2024, we employed 14,766 people, of whom 10,071 work in our homebuilding operations, 3,149 in our financial services operations, 596 at our corporate office, 505 in our rental operations, 393 at our Forestar subsidiary and 52 in our other businesses.
Title Services Through our subsidiary title companies, we issue title insurance policies and provide examination, underwriting and closing services primarily to our homebuilding customers in many of our markets. 9 Table of Contents Human Capital Resources People and Culture As of September 30, 2025, we employed 14,341 people, of whom 9,972 work in our homebuilding operations, 2,967 in our financial services operations, 586 at our corporate office, 330 in our rental operations, 433 at Forestar and 53 in our other businesses.
Department of Agriculture (USDA), the climate-related disclosure legislation recently enacted by the State of California and the climate-related disclosure rules adopted by the SEC, which are currently under judicial review, could increase our costs to comply with such regulations, as discussed in “Item 1A.
However, changes in regulations, such as the climate-related disclosure legislation recently enacted by the State of California, could increase our costs to comply with such regulations, as discussed in “Item 1A.
At September 30, 2024, the value of our backlog of sales orders was $4.8 billion (12,180 homes), a decrease of 19% from $5.9 billion (15,197 homes) at September 30, 2023. The average sales price of homes in backlog was $391,700 at September 30, 2024, up from the $389,800 average at September 30, 2023.
At September 30, 2025, the value of our backlog of sales orders was $4.1 billion (10,785 homes), a decrease of 14% from $4.8 billion (12,180 homes) at September 30, 2024. The average sales price of homes in backlog was $382,000 at September 30, 2025, down from the $391,700 average at September 30, 2024.
Our homebuilding business began in 1978 in Fort Worth, Texas, and our common stock has been publicly traded since 1992. We have expanded and diversified our homebuilding operations geographically over the years by investing capital and building teams of people in our existing markets, start-up operations in new markets and acquisitions of other homebuilding companies.
We have expanded and diversified our homebuilding operations geographically over the years by investing capital and building teams of people in our existing markets, starting new operations in additional markets and acquiring other homebuilding companies.
Our product offerings include a broad range of homes for entry-level, move-up, active adult and luxury buyers. Our homes generally range in size from 1,000 to 4,000 square feet and in price from $200,000 to more than $1,000,000. For the year ended September 30, 2024, our homebuilding operations closed 89,690 homes with an average closing price of $378,000.
Our homes generally range in size from 1,000 to 4,000 square feet and in price from $250,000 to more than $1,000,000. For the year ended September 30, 2025, our homebuilding operations closed 84,863 homes with an average closing price of $370,400. Our rental segment consists of single-family and multi-family rental operations.
Our homebuilding operations generate most of their revenues from the sale of completed homes and to a lesser extent from the sale of land and lots. Approximately 87% of our home sales revenue in fiscal 2024 was generated from the sale of single-family detached homes, with the remainder from the sale of attached homes, such as townhomes, duplexes and triplexes.
Approximately 84% of our home sales revenue in fiscal 2025 was generated from the sale of single-family detached homes, with the remainder from the sale of attached homes, such as townhomes and duplexes. Our product offerings include a broad range of homes for entry-level, move-up, active adult and luxury buyers.
Our homebuilding operations are our core business, generating 92% of consolidated revenues of $36.8 billion in fiscal 2024, 90% of consolidated revenues of $35.5 billion in fiscal 2023 and 95% of consolidated revenues of $33.5 billion in fiscal 2022.
Homebuilding is our core business, generating 92% of consolidated revenues of $34.3 billion and $36.8 billion in fiscal 2025 and 2024, respectively, and 90% of consolidated revenues of $35.5 billion in fiscal 2023. Most of our homebuilding revenue is generated from the sale of completed homes and to a lesser extent from the sale of land and lots.
Recruitment, Development and Retention We are committed to hiring, developing and supporting an energetic, diverse workforce and maintaining a productive, positive and inclusive workplace. We believe diversity in the workplace produces unique perspectives and fresh ideas and helps us better serve our customers.
Recruitment, Development and Retention We are committed to hiring, developing and supporting an energetic workforce and maintaining a productive, positive and inclusive workplace. We believe that when people feel included and have ample opportunities for professional growth, they bring forward a variety of perspectives and ideas that strengthen our company.
Removed
However, changes in regulations, such as the Minimum Energy Standards recently adopted by the U.S. Department of Housing and Urban Development and the U.S.
Added
Horton, Inc., a Delaware corporation, and its predecessors and subsidiaries. Our homebuilding business began in 1978 in Fort Worth, Texas, and our common stock has been publicly traded since 1992.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

55 edited+10 added−2 removed139 unchanged
Biggest changeIf the maturity of the Forestar revolving credit facility and/or other indebtedness of Forestar and its restricted subsidiaries together having an aggregate principal amount outstanding of $40 million or more is accelerated, an event of default would result under the indentures governing the Forestar notes, entitling the trustee for the Forestar notes or holders of at least 25% in aggregate principal amount of the then outstanding Forestar notes to declare all such Forestar notes to be due and payable immediately.
Biggest changeIf any indebtedness of Forestar or any of its restricted subsidiaries together having an aggregate principal amount outstanding of $40 million or more, in the case of the indenture governing Forestar’s 5.0% senior notes due 2028 (2028 notes), or $75 million or more, in the case of Forestar’s 6.5% senior notes due 2033 (2033 notes), were accelerated and such acceleration were not rescinded or such indebtedness were not satisfied, in either case within 30 days, an event of default would result under the indentures governing the Forestar notes, entitling the trustee for the Forestar notes or holders of at least 25%, in the case of the 2028 notes, or 30%, in the case of the 2033 notes, in aggregate principal amount of the applicable series of Forestar notes to declare all such Forestar notes to be due and payable immediately.
ITEM 1A. RISK FACTORS Discussion of our business and operations included in this annual report on Form 10-K should be read together with the risk factors set forth below. They describe various risks and uncertainties we are or may become subject to, many of which are difficult to predict or beyond our control.
ITEM 1A. RISK FACTORS Discussion of our business and operations included in this annual report on Form 10-K should be read together with the risk factors set forth below. They describe various risks and uncertainties we are or may become subject to, many of which are difficult to predict and beyond our control.
Although past cybersecurity incidents have not had a material effect on our business or operations to date, in the future, a data security breach, a significant and extended disruption in the functioning of our information technology systems or a breach of any of our data security controls could disrupt our business operations, damage our reputation and cause us to lose customers.
Although past cybersecurity incidents have not had a material effect on our business or operations to date, in the future, a significant and extended disruption in the functioning of our information technology systems or a breach of any of our data security controls could disrupt our business operations, damage our reputation and cause us to lose customers.
In addition, although our financial services business is conducted through subsidiaries that are not restricted by the indentures governing our and Forestar’s senior unsecured notes or the agreements governing the homebuilding, rental and Forestar revolving credit facilities, the ability of our financial services subsidiaries to distribute funds to our homebuilding operations would be restricted in the event such distribution would cause an event of default under the mortgage repurchase facilities or if an event of default had occurred under these facilities.
In addition, although our financial services business is conducted through subsidiaries that are not restricted by the indentures governing our and Forestar’s senior notes or the agreements governing the homebuilding, rental and Forestar revolving credit facilities, the ability of our financial services subsidiaries to distribute funds to our homebuilding operations would be restricted in the event such distribution would cause an event of default under the mortgage repurchase facilities or if an event of default had occurred under these facilities.
Similarly, the State of California has recently enacted its own legislation requiring extensive climate-related disclosures for companies deemed to be doing business in California, and other states are considering similar laws.
Similarly, the State of California has enacted its own legislation requiring extensive climate-related disclosures for companies deemed to be doing business in California, and other states are considering similar laws.
Any loss of sensitive information and failure to comply with these requirements or other applicable laws and regulations in this area could result in substantial penalties, reputational damage or litigation. 19 Table of Contents We routinely utilize information technology security experts to assist us in our evaluations of the effectiveness of the security of our information technology systems, and we regularly enhance our security measures, which include multiple redundant safeguards, to protect our systems and data.
Any loss of personal information and failure to comply with these requirements or other applicable laws and regulations in this area could result in substantial penalties, reputational damage or litigation. 19 Table of Contents We routinely utilize information technology security experts to assist us in our evaluations of the effectiveness of the security of our information technology systems, and we regularly enhance our security measures, which include multiple redundant safeguards, to protect our systems and data.
Increasing governmental and societal attention to ESG matters, including expanding mandatory and voluntary reporting, diligence and disclosure on topics such as climate change, human capital, labor, cybersecurity and risk oversight, could expand the nature, scope, and complexity of matters that we are required to control, assess and report. In March 2024, the SEC adopted new rules regarding climate-related disclosures.
Increasing governmental and societal attention to sustainability matters, including expanding mandatory and voluntary reporting, diligence and disclosure on topics such as climate change, human capital, labor, cybersecurity and risk oversight, could expand the nature, scope and complexity of matters that we are required to control, assess and report. In March 2024, the SEC adopted new rules regarding climate-related disclosures.
Additionally, phishing attacks, whereby perpetrators attempt to fraudulently induce employees, customers, vendors or other users of a company’s systems to disclose sensitive information to gain access to its data, have increased significantly in recent years. With the use of artificial intelligence, these phishing attacks may contain highly convincing language making them difficult to distinguish from legitimate messages.
Additionally, phishing attacks, whereby perpetrators attempt to fraudulently induce employees, customers, vendors or other users of a company’s systems to disclose personal information to gain access to its data, have increased significantly in recent years. With the use of artificial intelligence, these phishing attacks may contain highly convincing language making them difficult to distinguish from legitimate messages.
However, given the rapidly changing nature of environmental laws and matters that may arise that are not currently known, we cannot predict our future exposure concerning such matters, and our future costs to achieve compliance or remedy potential violations could be significant. 20 Table of Contents Additionally, actual or perceived ESG and other sustainability matters and our response to these matters could harm our business.
However, given the rapidly changing nature of environmental laws and matters that may arise that are not currently known, we cannot predict our future exposure concerning such matters, and our future costs to achieve compliance or remedy potential violations could be significant. 20 Table of Contents Additionally, actual or perceived sustainability matters and our response to these matters could harm our business.
Activist stockholders may create perceived uncertainties as to the future direction of our business or strategy, including with respect to our ESG efforts, which may be exploited by our competitors and may make it more difficult to attract and retain qualified personnel, potential homebuyers and business partners and may affect our relationships with current homebuyers, subcontractors, investors and other third parties.
Activist stockholders may create perceived uncertainties as to the future direction of our business or strategy, including with respect to our sustainability efforts, which may be exploited by our competitors and may make it more difficult to attract and retain qualified personnel, potential homebuyers and business partners and may affect our relationships with current homebuyers, subcontractors, investors and other third parties.
We are required to obtain performance bonds, the unavailability of which could adversely affect our results of operations and cash flows. We often are required to provide surety bonds to secure our performance or obligations under construction contracts, development agreements and other arrangements. At September 30, 2024, we had $3.5 billion of outstanding surety bonds.
We are required to obtain performance bonds, the unavailability of which could adversely affect our results of operations and cash flows. We often are required to provide surety bonds to secure our performance or obligations under construction contracts, development agreements and other arrangements. At September 30, 2025, we had $3.5 billion of outstanding surety bonds.
We regularly assess our projected capital requirements to fund growth in our business, repay debt obligations, pay dividends, repurchase our common stock under our $4.0 billion stock repurchase authorization and support other general corporate and operational needs, and we regularly evaluate our opportunities to raise additional capital. D.R.
We regularly assess our projected capital requirements to fund growth in our business, repay debt obligations, pay dividends, repurchase our common stock under our $5.0 billion stock repurchase authorization and support other general corporate and operational needs, and we regularly evaluate our opportunities to raise additional capital. D.R.
Horton, Inc. or any of the subsidiaries that guarantee the debt of our homebuilding, Forestar or financial services operations. 14 Table of Contents Our mortgage subsidiary, DHI Mortgage, utilizes a $1.6 billion committed mortgage repurchase facility to finance the majority of the loans it originates.
Horton, Inc. or any of the subsidiaries that guarantee the debt of our homebuilding, Forestar or financial services operations. 14 Table of Contents Our mortgage subsidiary, DHI Mortgage, utilizes a $1.4 billion committed mortgage repurchase facility to finance the majority of the loans it originates.
Our homebuilding operations utilize a $2.19 billion senior unsecured revolving credit facility with an uncommitted accordion feature that could increase the size of the facility to $3.0 billion, subject to certain conditions and availability of additional bank commitments.
Our homebuilding operations utilize a $2.305 billion senior unsecured revolving credit facility with an uncommitted accordion feature that could increase the size of the facility to $3.0 billion, subject to certain conditions and availability of additional bank commitments.
If repayments of the loans under DHI Mortgage’s mortgage repurchase facilities were required, we can give no assurance that DHI Mortgage would have sufficient funds to pay the required amounts. 24 Table of Contents General Risk Factors Damage to our corporate reputation or brands from negative publicity could adversely affect our business, financial results and/or stock price.
If repayments of the loans under DHI Mortgage’s mortgage repurchase facilities were required, we can give no assurance that DHI Mortgage would have sufficient funds to pay the required amounts. General Risk Factors Damage to our corporate reputation or brands from negative publicity could adversely affect our business, financial results and/or stock price.
Risks Related to our Business Operations Our homebuilding, rental and land development operations are cyclical and affected by changes in economic, real estate or other conditions that could adversely affect our business and financial results.
Risks Related to our Business and our Industry Our homebuilding, rental and land development operations are cyclical and significantly affected by changes in economic, real estate or other conditions that could adversely affect our business and financial results.
If we are unable to adequately address such ESG matters or fail to comply with all laws, regulations, policies and related interpretations, it could negatively impact our reputation and our business results.
If we are unable to adequately address such sustainability matters or fail to comply with all laws, regulations, policies and related interpretations, it could negatively impact our reputation and our business results.
Any claims we may have to funds from our financial services subsidiaries would be subordinate to subsidiary indebtedness to the extent of any security for such indebtedness and to any indebtedness otherwise recognized as senior to our claims. Our access to capital and our ability to obtain additional financing could be affected by any downgrade of our debt ratings.
Any claims we may have to funds from our financial services subsidiaries would be subordinate to subsidiary indebtedness to the extent of any security for such indebtedness and to any indebtedness otherwise recognized as senior to our claims. 23 Table of Contents Our access to capital and our ability to obtain additional financing could be affected by any downgrade of our debt ratings.
Any lowering of Forestar’s debt ratings could also make Forestar’s ability to access the public capital markets or obtain additional credit from banks more difficult and/or more expensive. 23 Table of Contents The instruments governing our indebtedness contain change of control provisions which could affect the timing of repayment.
Any lowering of Forestar’s debt ratings could also make Forestar’s ability to access the public capital markets or obtain additional credit from banks more difficult and/or more expensive. The instruments governing our indebtedness contain change of control provisions which could affect the timing of repayment.
The maturity date of the committed mortgage repurchase facility is May 9, 2025. DHI Mortgage also utilizes an uncommitted mortgage repurchase facility, which had a capacity of $500 million at September 30, 2024. The mortgage repurchase facilities are not guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the debt of our homebuilding, rental or Forestar operations.
The maturity date of the committed mortgage repurchase facility is May 6, 2026. DHI Mortgage also utilizes an uncommitted mortgage repurchase facility, which had a capacity of $500 million at September 30, 2025. The mortgage repurchase facilities are not guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the debt of our homebuilding, rental or Forestar operations.
If repayment of the borrowings under the rental revolving credit facility were required, we can give no assurance that DRH Rental would have sufficient funds to pay the required amounts. Change of control default under mortgage repurchase facilities .
If repayment of the borrowings under the rental revolving credit facility were required, we can give no assurance that DRH Rental would have sufficient funds to pay the required amounts. 24 Table of Contents Change of control default under mortgage repurchase facilities .
The unintended or unauthorized disclosure of personal identifying and confidential information as a result of a security breach by any means could lead to litigation or other proceedings against us by the affected individuals or business partners, or by regulators. The outcome of such proceedings, which could include penalties or fines, could have a significant negative impact on our business.
The unintended or unauthorized disclosure of personal identifying and confidential information as a result of a cybersecurity incident by any means could lead to litigation or other proceedings against us by the affected individuals or business partners, or by regulators. The outcome of such proceedings, which could include penalties or fines, could have a significant negative impact on our business.
Competition can also affect our ability to acquire suitable land, raw materials and skilled labor at acceptable prices or terms, or cause delays in land development or in construction. The competitors to our financial services businesses include other mortgage lenders and title companies, including national, regional and local mortgage banks and other financial institutions.
Competition can also affect our ability to acquire suitable land, raw materials and skilled labor at acceptable prices or terms, or cause delays in land development or in construction. 21 Table of Contents The competitors to our financial services businesses include other mortgage lenders and title companies, including national, regional and local mortgage banks and other financial institutions.
The U.S. and other countries have experienced, and may experience in the future, outbreaks of contagious diseases that affect public health and public perception of health risk. In the event of a widespread, prolonged, actual or perceived outbreak of any contagious disease, such as COVID-19, our operations could be negatively impacted.
The U.S. and other countries have experienced, and may experience in the future, outbreaks of contagious diseases that affect public health and public perception of health risk. In the event of a widespread, prolonged, actual or perceived outbreak of any contagious disease, our operations could be negatively impacted.
During fiscal 2024, approximately 73% of our mortgage loans were sold directly to Fannie Mae, Freddie Mac or into securities backed by Ginnie Mae, and 26% were sold to one other major financial entity. On an ongoing basis, we seek to establish loan purchase arrangements with additional financial entities.
During fiscal 2025, approximately 71% of our mortgage loans were sold directly to Fannie Mae, Freddie Mac or into securities backed by Ginnie Mae, and 27% were sold to one other major financial entity. On an ongoing basis, we seek to establish loan purchase arrangements with additional financial entities.
We use information technology and other computer resources to carry out important operational and marketing activities and to maintain our business records.
We use information technology and other computer resources, including artificial intelligence, to carry out important operational and marketing activities and to maintain our business records.
These information technology systems are dependent upon global communications providers, web browsers, third-party software and data storage providers and other aspects of the Internet infrastructure that have experienced security breaches, cyber incidents, ransomware attacks, significant systems failures and service outages in the past.
These information technology systems are dependent upon global communications providers, web browsers, third-party software and data storage providers and other aspects of the Internet infrastructure that have experienced cybersecurity incidents, significant systems failures and service outages in the past.
We may also be required to incur significant costs to protect against damages caused by information technology failures, security breaches, and the failure to satisfy privacy and data protection laws and regulations in the future as legal requirements continue to increase.
We may also be required to incur significant costs to protect against damages caused by information technology failures, cybersecurity incidents, and the failure to satisfy privacy, data protection, and artificial intelligence laws and regulations in the future as legal requirements continue to increase.
In addition, tariffs, duties and/or trade restrictions imposed or increased on imported materials and goods that are used in connection with the construction and delivery of our homes, including steel, aluminum and lumber, may raise our costs for these items or for the products made with them.
In addition, newly imposed or increased tariffs, duties and/or trade restrictions, such as those imposed by the current administration, on imported materials and goods that are used in connection with the construction and delivery of our homes, including steel, aluminum and lumber, may raise our costs for these items or for the products made with them.
Horton, Inc. has an automatically effective universal shelf registration statement filed with the SEC in July 2024, registering debt and equity securities that may be issued from time to time in amounts to be determined. Forestar also has an effective shelf registration statement filed with the SEC in September 2024, registering $750 million of equity securities.
Horton, Inc. has an automatically effective universal shelf registration statement filed with the SEC in July 2024, registering debt and equity securities that may be issued from time to time in amounts to be determined.
During the last few years, we experienced multiple disruptions in our supply chain, which resulted in shortages of certain building materials and tightness in the labor market. This caused our construction cycle to lengthen and costs of building materials to increase.
In the recent past, we experienced multiple disruptions in our supply chain, which resulted in shortages of certain building materials and tightness in the labor market. This caused our construction cycle to lengthen and costs of building materials to increase.
In addition, actions of activist stockholders may cause periods of fluctuation in our stock price based on temporary or speculative market perceptions or other factors that do not necessarily reflect the underlying fundamentals and prospects of our business. ITEM 1B. UNRESOLVED STAFF COMMENTS None. 25 Table of Contents
In addition, actions of activist stockholders may cause periods of fluctuation in our stock price based on temporary or speculative market perceptions or other factors that do not necessarily reflect the underlying fundamentals and prospects of our business.
The use of remote work environments and virtual platforms may increase our risk of cyber incidents or data security breaches. Further, geopolitical tensions or conflicts may create a heightened risk of cyber incidents or other data security breaches.
The use of remote work environments and virtual platforms may increase our risk of cyber incidents that could compromise our data. Further, geopolitical tensions or conflicts may create a heightened risk of these incidents.
In response to increased inflation, the Federal Reserve has raised interest rates significantly in recent years, which, notwithstanding the recent reduction, has resulted in higher mortgage interest rates. The increase in mortgage interest rates has reduced the affordability of our homes and has required us to use pricing adjustments and incentives to adapt to current market conditions.
In an effort to lower the rate of inflation, the Federal Reserve raised interest rates significantly, which has resulted in higher mortgage interest rates. The increase in mortgage interest rates has reduced the affordability of our homes and has required us to use pricing adjustments and incentives to adapt to current market conditions.
If repayment of more than $50 million outstanding under our homebuilding revolving credit facility were accelerated and such acceleration were not rescinded or such indebtedness were not satisfied, in either case within 30 days, an event of default would result under the indenture governing our homebuilding senior notes, entitling the trustee for the notes or holders of at least 25% in principal amount of the relevant series of notes then outstanding to declare all such notes to be due and payable immediately.
If any indebtedness of us or any guarantor together having an aggregate principal amount outstanding of $50 million or more, or in the case of our 5.5% senior notes due 2035 and 4.85% senior notes due 2030, $150 million or more, were accelerated and such acceleration were not rescinded or such indebtedness were not satisfied, in either case within 30 days, an event of default would result under the indenture governing our homebuilding senior notes, entitling the trustee for the notes or holders of at least 25% in principal amount of the relevant series of notes then outstanding to declare all such notes to be due and payable immediately.
We began to see improvements in our construction cycle time in fiscal 2023 and our cycle times have recently normalized; however, if shortages and cost increases in building materials and tightness in the labor market increase, our construction cycle time and profit margins could be adversely impacted.
Our construction cycle times have since improved and recently normalized; however, if shortages and cost increases in building materials and tightness in the labor market increase, our construction cycle time and profit margins could be adversely impacted.
We cannot provide assurances that a security breach, cyber incident, data theft or other significant systems or security failures will not occur in the future, and such occurrences could have a material and adverse effect on our consolidated results of operations or financial position.
Additionally, if a cybersecurity incident is determined to be material, we are subject to additional reporting requirements. We cannot provide assurances that a cyber incident, including data theft or other significant systems or security failures will not occur in the future, and such occurrences could have a material and adverse effect on our consolidated results of operations or financial position.
Forestar has a $410 million senior unsecured revolving credit facility with an uncommitted accordion feature that could increase the size of the facility to $600 million, subject to certain conditions and availability of additional bank commitments.
As of September 30, 2025, Forestar had a $640 million senior unsecured revolving credit facility with an uncommitted accordion feature that could increase the size of the facility to $1.0 billion, subject to certain conditions and availability of additional bank commitments.
Although these items have had no material effect on our business, they could adversely affect our business in the future. Information technology failures, data security breaches, and the failure to satisfy privacy and data protection laws and regulations could harm our business.
Although these factors have not had a material effect on our business to date, they could adversely impact our business in the future. Information technology failures, cybersecurity incidents, and the failure to satisfy privacy and data protection laws and regulations could harm our business.
If the subcontractors who construct our homes fail to comply with all applicable laws, we can suffer reputational damage, and may be exposed to possible liability.
If the subcontractors who construct our homes fail to comply with all applicable laws, we can suffer reputational damage and may be exposed to liability. Changes in income tax and securities laws could adversely affect our business and financial results.
As of September 30, 2024, our consolidated debt was $5.9 billion, which consisted of $2.9 billion related to our homebuilding segment, $1.5 billion related to our financial services segment, $751 million related to our rental segment and $706 million related to our Forestar segment.
As of September 30, 2025, our consolidated debt was $6.0 billion, which consisted of $3.2 billion related to our homebuilding segment, $1.4 billion related to our financial services segment, $803 million related to our Forestar segment and $600 million related to our rental segment.
If we are unable to attract and retain key employees, managers or executives, our business could be adversely affected. 21 Table of Contents Risks Related to our Indebtedness We have significant amounts of debt and may incur additional debt, which could affect our financial health and our ability to raise additional capital to fund our operations or potential acquisitions.
Risks Related to our Indebtedness We have significant amounts of debt and may incur additional debt, which could affect our financial health and our ability to raise additional capital to fund our operations or potential acquisitions.
Our businesses compete with other companies across all industries to attract and retain highly skilled and experienced employees, managers and executives.
Our businesses compete with other companies across all industries to attract and retain highly skilled and experienced employees, managers and executives. If we are unable to attract and retain key employees, managers or executives, our business could be adversely affected.
Though these rules are currently being challenged in legal proceedings and their effectiveness has been stayed by the SEC, these rules, if they become effective, would require public companies to make a wide range of climate-related disclosures.
These rules were subsequently challenged in legal proceedings, and their effectiveness was stayed by the SEC pending judicial review. In March 2025, the SEC terminated its defense of the rules; however, if they become effective, they would require public companies to make a wide range of climate-related disclosures.
We have incurred costs in an effort to comply with these requirements, but our costs may increase significantly if new requirements are enacted and based on how individuals exercise their rights.
Among other things, these regulations impose certain obligations for handling specified personal information in our systems, including notifying individuals regarding information we have collected from them. We have incurred costs in an effort to comply with these requirements, but our costs may increase significantly if new requirements are enacted and based on how individuals exercise their rights.
The restrictions imposed by our and certain of our subsidiaries’ indebtedness could limit our or our subsidiaries’ ability to plan for or react to market or economic conditions or meet capital needs or otherwise restrict our activities or business plans and adversely affect our or our subsidiaries’ ability to finance our operations, acquisitions, investments or strategic alliances or other capital needs or to engage in other business activities that would be in our interest. 22 Table of Contents The agreements governing our indebtedness contain restrictions on our and our guarantor subsidiaries’ ability to, among other things, engage in sale and leaseback transactions with respect to certain assets, incur secured debt, create liens, pay dividends and make other distributions on or redeem or repurchase equity securities, sell certain assets and engage in mergers, consolidations or sales of all or substantially all of our assets.
The agreements governing our indebtedness contain restrictions on our and our guarantor subsidiaries’ ability to, among other things, engage in sale and leaseback transactions with respect to certain assets, incur secured debt, create liens, pay dividends and make other distributions on or redeem or repurchase equity securities, sell certain assets and engage in mergers, consolidations or sales of all or substantially all of our assets.
Further, existing and prospective regulatory and societal initiatives intended to reduce potential climate change impacts may increase the upfront costs of purchasing a home, costs to maintain the home and its systems, energy and utility costs and the cost to obtain homeowner and various hazard and flood insurance, or limit homeowners’ ability to obtain these insurance policies altogether.
Further, existing and prospective regulatory and societal initiatives intended to reduce potential climate change impacts may lead to higher upfront costs of purchasing a home, increased expenses to maintain the home and its systems and greater ongoing energy and utility costs.
The climates and geology of many of the states in which we operate, including California, Florida, Texas and other coastal areas where we have some of our larger operations and which have experienced recent natural disasters, present increased risks of adverse weather or natural disasters. 17 Table of Contents Homebuilding is subject to home warranty and construction defect claims in the ordinary course of business that can be significant.
The climates and geology of many of the states in which we operate, including California, Florida, Texas and other coastal areas where we have some of our larger operations, present increased risks of adverse weather or natural disasters, such as wildfires and hurricanes.
Building and land development sites are inherently dangerous, and operating in this industry poses certain inherent health and safety risks. Due to health and safety regulatory requirements and the number of homes we construct, health and safety performance is critical to the success of our business.
Due to health and safety regulatory requirements and the number of homes we construct, health and safety performance is critical to the success of our business.
The European Union and other international regulators, as well as state governments, have enacted or enhanced data privacy regulations, such as the California Privacy Rights Act, and other governments are considering establishing similar or stronger protections. These regulations impose certain obligations for handling specified personal information in our systems, including notifying individuals regarding information we have collected from them.
The European Union and other international regulators, as well as state governments, have enacted or enhanced privacy, data protection, and artificial intelligence regulations, such as the California Privacy Rights Act and the Colorado Privacy Act, and other governments are considering establishing similar or stronger protections.
The instruments governing our and our subsidiaries’ indebtedness impose certain restrictions on our and our subsidiaries’ business, and the ability of us and our subsidiaries to comply with related covenants, restrictions or limitations could adversely affect our and our subsidiaries’ financial condition or operating flexibility.
Changes in prevailing interest rates may affect the cost of our debt service obligations, because borrowings under the homebuilding, rental and Forestar revolving credit facilities and mortgage repurchase facilities bear interest at floating rates. 22 Table of Contents The instruments governing our and our subsidiaries’ indebtedness impose certain restrictions on our and our subsidiaries’ business, and the ability of us and our subsidiaries to comply with related covenants, restrictions or limitations could adversely affect our and our subsidiaries’ financial condition or operating flexibility.
We have experienced temporary delays in production and short-term impacts on our sales and closings activity from weather events in recent years. There have been no material lasting impacts on our business from these events or material permanent operational challenges resulting from these events, but they could adversely affect our business in the future.
We have experienced temporary delays in production and short-term impacts on our sales and closings activity from weather events in recent years.
The Forestar revolving credit facility also provides for the issuance of letters of credit with a sublimit equal to the greater of $100 million and 50% of the total revolving credit commitments. The maturity date of the facility is October 28, 2026.
Our homebuilding revolving credit facility also provides for the issuance of letters of credit with a sublimit equal to 100% of the total revolving credit commitments. The facility includes bank commitments of $2.04 billion maturing on December 18, 2029 and $265 million maturing on October 28, 2027.
Our homebuilding revolving credit facility also provides for the issuance of letters of credit with a sublimit equal to 100% of the total revolving credit commitments. The maturity date of the facility is October 28, 2027. Our homebuilding revolving credit facility and our homebuilding senior unsecured notes are guaranteed by D.R. Horton, Inc.’s significant wholly-owned homebuilding subsidiaries.
Our homebuilding revolving credit facility and our homebuilding senior notes are guaranteed by D.R. Horton, Inc.’s significant wholly owned homebuilding subsidiaries.
If costs to resolve our future warranty and construction defect claims exceed our estimates, our financial results and liquidity could be adversely affected. A health and safety incident relating to our operations could be costly in terms of potential liability and reputational damage.
If costs to resolve our future warranty and construction defect claims exceed our estimates, our financial results and liquidity could be adversely affected. In addition, other types of lawsuits, claims and proceedings have been and may in the future be instituted or asserted against us.
Removed
Additionally, if a cybersecurity incident is determined to be material, we are subject to additional reporting requirements.
Added
In October 2025, Forestar utilized the accordion feature and increased the size of its revolving credit facility to $665 million through an additional commitment. The facility includes bank commitments of $600 million maturing on December 18, 2029 and $65 million maturing on October 28, 2026.
Removed
Changes in prevailing interest rates may affect the cost of our debt service obligations, because borrowings under the homebuilding, rental and Forestar revolving credit facilities and mortgage repurchase facilities bear interest at floating rates.
Added
The Forestar revolving credit facility also provides for the issuance of letters of credit with a sublimit equal to the greater of $100 million and 50% of the total revolving credit commitments. Borrowings under the revolving credit facility are subject to a borrowing base calculation based on the book value of Forestar’s real estate assets and unrestricted cash.
Added
Forestar also has an effective shelf registration statement filed with the SEC in September 2024, registering $750 million of equity securities, of which $300 million is reserved for sales under its at-the-market equity offering program that was entered into in November 2024.
Added
There have been no material lasting impacts on our business from these events or material permanent operational challenges resulting from these events, but they could adversely affect our business in the future. 17 Table of Contents Our business is subject to home warranty and construction defect claims and other litigation that can be significant.
Added
Some of these claims may result in significant defense costs and potentially significant judgments against us, some of which are not, or cannot be, insured against.
Added
We intend to defend ourselves vigorously in any litigation that has been or may be instituted or asserted against us; however, litigation is inherently uncertain and we cannot be certain of the ultimate outcomes of any claims that have arisen or may arise.
Added
A health and safety incident relating to our operations could be costly in terms of potential liability and reputational damage. Building and land development sites are inherently dangerous, and operating in this industry poses certain inherent health and safety risks.
Added
Additionally, in certain regions, the cost to obtain homeowner and various hazard and flood insurance has risen significantly in recent years, reflecting the increasing frequency and severity of damage caused by severe weather and natural disasters. In some areas, these events have limited the ability of homeowners to secure insurance coverage.
Added
We are subject to income taxes at the federal, state and local levels, and any changes in tax legislation could adversely affect our future effective tax rates and the value of our deferred tax assets.
Added
The restrictions imposed by our and certain of our subsidiaries’ indebtedness could limit our or our subsidiaries’ ability to plan for or react to market or economic conditions or meet capital needs or otherwise restrict our activities or business plans and adversely affect our or our subsidiaries’ ability to finance our operations, acquisitions, investments or strategic alliances or other capital needs or to engage in other business activities that would be in our interest.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

5 edited+0 added−0 removed11 unchanged
Biggest changeTo date, we have not identified any risks from known cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect our business strategy, results of operations or financial condition.
Biggest changeThese include periodic exercises to help employees identify phishing schemes and other social engineering tactics, and we provide various methods for them to report suspicious activity that may give rise to a cybersecurity incident. 26 Table of Contents To date, we have not identified any risks from known cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect our business strategy, results of operations or financial condition.
For more information on how cybersecurity risk could materially affect our business, please refer to Item 1A, “Risk Factors.” 26 Table of Contents Governance Our Board considers cybersecurity and other information technology risk as part of its risk oversight function.
For more information on how cybersecurity risk could materially affect our business, please refer to Item 1A, “Risk Factors.” Governance Our Board considers cybersecurity and other information technology risk as part of its risk oversight function.
While in those roles, our CIO has led governance, risk, and compliance technology programs and information security programs. The CIO currently reports to the CFO. Our CSRO has more than 23 years of experience working in information technology and cybersecurity roles including software development, identity and access management projects, privilege account management and multi-factor authentication implementations.
While in those roles, our CIO has led governance, risk, and compliance technology programs and information security programs. The CIO currently reports to the CFO. Our CSRO has 24 years of experience working in information technology and cybersecurity roles including software development, identity and access management projects, privilege account management and multi-factor authentication implementations.
Our CIO and CSRO work closely with our legal team to oversee compliance with legal, regulatory and contractual security requirements. Our CIO has more than 35 years of experience working in information technology including roles in the commercial software development, healthcare, industrial and professional services sectors.
Our CIO and CSRO work closely with our legal team to oversee compliance with legal, regulatory and contractual security requirements. Our CIO has 36 years of experience working in information technology including roles in the commercial software development, healthcare, industrial and professional services sectors.
In addition to the above-described technology controls, we have implemented mandatory training and awareness programs designed to educate our employees on cybersecurity risks. These include periodic exercises to help employees identify phishing schemes and other social engineering tactics, and we provide various methods for them to report suspicious activity that may give rise to a cybersecurity incident.
In addition to the above-described technology controls, we have implemented mandatory training and awareness programs designed to educate our employees on cybersecurity risks.

Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed2 unchanged
Biggest changeWe also own office buildings totaling approximately 1.8 million square feet, and we lease approximately 750,000 square feet of office space under leases expiring through August 2032. These properties are located in our various operating markets to house our homebuilding, rental, Forestar and financial services operating divisions and our regional and corporate offices.
Biggest changeWe also own office buildings totaling approximately 2.1 million square feet, and we lease approximately 760,000 square feet of office space under leases expiring through September 2032. These properties are located in our various operating markets to house our homebuilding, rental, Forestar and financial services operating divisions and our regional and corporate offices.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

2 edited+5 added−1 removed5 unchanged
Biggest changeWe do not believe it is reasonably possible that any future obligations related to this matter would result in a loss that would have a material effect on our consolidated financial position, results of operations or cash flows. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 28 Table of Contents PART II
Biggest changeWhile the aggregate costs of the civil penalty, the project and stipulated penalties have exceeded $1 million, we do not believe it is reasonably possible that any future obligations related to this matter would result in a loss that would have a material effect on our consolidated financial position, results of operations or cash flows.
The Consent Decree also provides for ongoing reporting obligations and stipulated penalties for any future noncompliance with the Consent Decree in EPA Region 4.
In addition to a $400,000 civil penalty, we agreed to complete a supplemental environmental project intended to provide a tangible environmental benefit. The Consent Decree also provides for ongoing reporting obligations and stipulated penalties for future noncompliance with the Consent Decree in EPA Region 4.
Removed
In addition to a stipulated monetary penalty, we agreed to complete a supplemental environmental project intended to provide a tangible environmental benefit. Collectively, the cost of the penalty and the project is not expected to exceed $1 million.
Added
In September 2024, the Maryland Department of Environment (MDE) filed suit in the Circuit Court for Harford County, Maryland against D.R. Horton, Inc. and Forestar regarding various alleged stormwater compliance issues and violations at a project in Maryland dating from 2022 through 2024, seeking injunctive relief, including restoration of impacted waters, and civil penalties.
Added
We are seeking to resolve these matters through further discussions with MDE. We do not believe it is reasonably possible that this matter would result in a loss that would have a material effect on our consolidated financial position, results of operations or cash flows.
Added
On April 29, 2025, a verified stockholder of Forestar filed a derivative complaint in the Delaware Court of Chancery, on behalf of Forestar, against D.R. Horton, Inc., Forestar’s Executive Chairman, and certain of Forestar’s directors. The complaint, which is captioned Mississippi Public Employees’ Retirement System v. D.R. Horton, Inc., C.A.
Added
No. 2025-0465-MTZ, asserts claims for breach of fiduciary duty arising out of lot sale transactions between Forestar and D.R. Horton. The complaint seeks judgment awarding Forestar damages against the defendants and awarding the plaintiff the costs and disbursements of the action, including reasonable attorneys’ and experts’ fees. The Company disputes the allegations of wrongdoing in this matter.
Added
The outcome of this lawsuit is uncertain; however, we do not anticipate this matter would have a material adverse effect on our business, financial condition, results of operations or liquidity. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 28 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

10 edited+0 added−1 removed2 unchanged
Biggest changeThe share repurchases may be effected through Rule 10b5-1 plans or open market purchases, each in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended (Exchange Act). Shares repurchased in July 2024 included 1,404,544 shares purchased pursuant to a trading plan under Rule 10b5-1 of the Exchange Act.
Biggest changePeriod Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that may yet be Purchased Under the Plans or Programs (In millions) July 2025 2,599,304 $ 140.69 2,599,304 $ 3,607.1 August 2025 1,529,310 160.98 1,529,310 3,360.9 September 2025 432,700 177.77 432,700 3,284.0 Total 4,561,314 $ 151.01 4,561,314 $ 3,284.0 The share repurchases may be effected through Rule 10b5-1 plans or open market purchases, each in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended (Exchange Act).
Shareholder returns over the indicated period are based on historical data and should not be considered indicative of future shareholder returns. The graph and related disclosure in no way reflect our forecast of future financial performance. September 30, 2019 2020 2021 2022 2023 2024 D.R.
Shareholder returns over the indicated period are based on historical data and should not be considered indicative of future shareholder returns. The graph and related disclosure in no way reflect our forecast of future financial performance. September 30, 2020 2021 2022 2023 2024 2025 D.R.
Horton common stock for the last five fiscal years through September 30, 2024, compared to the S&P 500 Index and the S&P 1500 Homebuilding Index. The comparison assumes a hypothetical investment in D.R. Horton common stock and in each of the foregoing indices of $100 at September 30, 2019 and assumes that all dividends were reinvested.
Horton common stock for the last five fiscal years through September 30, 2025, compared to the S&P 500 Index and the S&P 1500 Homebuilding Index. The comparison assumes a hypothetical investment in D.R. Horton common stock and in each of the foregoing indices of $100 at September 30, 2020 and assumes that all dividends were reinvested.
The following table sets forth information concerning our common stock repurchases during the three months ended September 30, 2024.
The following table sets forth information concerning our common stock repurchases during the three months ended September 30, 2025.
We may repurchase shares of our common stock from time to time pursuant to our $4.0 billion common stock repurchase authorization, which was approved by our Board effective July 18, 2024 and replaced our prior $1.5 billion common stock repurchase authorization that was effective as of October 31, 2023. The authorization has no expiration date.
We may repurchase shares of our common stock from time to time pursuant to our $5.0 billion common stock repurchase authorization, which was approved by our Board effective April 17, 2025 and replaced our prior $4.0 billion repurchase authorization that was effective as of July 18, 2024. The authorization has no expiration date.
During fiscal 2024, we purchased 12.5 million shares of our common stock at a total cost, including commissions and excise taxes, of $1.8 billion, of which $1.4 billion was repurchased under previous authorizations. At September 30, 2024, there was $3.6 billion remaining on the repurchase authorization.
During fiscal 2025, we purchased 30.7 million shares of our common stock at a total cost, including commissions and excise taxes, of $4.3 billion, of which $2.6 billion was repurchased under the previous authorization. At September 30, 2025, there was $3.3 billion remaining on the repurchase authorization.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the NYSE under the symbol “DHI.” As of November 14, 2024, the closing price of our common stock on the NYSE was $163.74, and there were approximately 240 holders of record.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the NYSE and NYSE Texas under the symbol “DHI.” As of November 13, 2025, the closing price of our common stock was $143.40, and there were approximately 228 holders of record.
In October 2024, our Board of Directors approved a quarterly cash dividend of $0.40 per common share, payable on November 19, 2024 to stockholders of record on November 12, 2024.
In October 2025, our Board of Directors approved a quarterly cash dividend of $0.45 per share, payable on November 20, 2025 to stockholders of record on November 13, 2025.
During fiscal years 2024, 2023 and 2022, we did not sell any equity securities that were not registered under the Securities Act of 1933, as amended (Securities Act).
Shares repurchased in July 2025 included 1,236,092 shares purchased pursuant to a trading plan under Rule 10b5-1 of the Exchange Act. During fiscal years 2025, 2024 and 2023, we did not sell any equity securities that were not registered under the Securities Act of 1933, as amended (Securities Act).
Horton, Inc. $ 100.00 $ 145.26 $ 162.81 $ 132.03 $ 212.75 $ 380.76 S&P 500 Index 100.00 115.15 149.70 126.54 153.89 209.83 S&P 1500 Homebuilding Index 100.00 133.20 149.58 118.48 193.38 342.07 This performance graph shall not be deemed to be incorporated by reference into our SEC filings and should not constitute soliciting material or otherwise be considered filed under the Securities Act or the Exchange Act.
Horton, Inc. $ 100.00 $ 112.08 $ 90.89 $ 146.46 $ 262.12 $ 235.46 S&P 500 Index 100.00 130.00 109.89 133.65 182.23 214.30 S&P 1500 Homebuilding Index 100.00 112.30 88.95 145.19 256.82 218.81 This performance graph shall not be deemed to be incorporated by reference into our SEC filings and should not constitute soliciting material or otherwise be considered filed under the Securities Act or the Exchange Act.
Removed
Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that may yet be Purchased Under the Plans or Programs (In millions) July 2024 (1) 1,985,844 $ 151.73 1,985,844 $ 3,896.6 August 2024 1,155,312 178.73 1,155,312 3,690.1 September 2024 281,800 189.71 281,800 3,636.7 Total 3,422,956 $ 163.97 3,422,956 $ 3,636.7 _________________________ (1) Our $4.0 billion common stock repurchase authorization was in effect for much of the quarter; however, share repurchases in July 2024 included 1,404,544 shares purchased for $197.9 million under the previous authorization.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

167 edited+29 added−25 removed75 unchanged
Biggest changeOur homebuilding segment’s inventories at September 30, 2024 and 2023 are summarized as follows: September 30, 2024 Construction in Progress and Finished Homes Residential Land/Lots Developed and Under Development Land Held for Development Land Held for Sale Total Inventory (In millions) Northwest $ 719.6 $ 1,215.6 $ — $ — $ 1,935.2 Southwest 1,378.1 1,889.3 6.8 4.7 3,278.9 South Central 1,701.5 2,024.5 0.3 1.7 3,728.0 Southeast 2,146.9 2,124.3 13.1 0.2 4,284.5 East 1,626.4 2,347.3 — 4.5 3,978.2 North 1,287.6 1,262.2 — 1.4 2,551.2 Corporate and unallocated (1) 126.0 148.5 0.3 0.2 275.0 $ 8,986.1 $ 11,011.7 $ 20.5 $ 12.7 $ 20,031.0 September 30, 2023 Construction in Progress and Finished Homes Residential Land/Lots Developed and Under Development Land Held for Development Land Held for Sale Total Inventory (In millions) Northwest $ 819.5 $ 1,087.5 $ — $ 0.5 $ 1,907.5 Southwest 1,280.0 1,845.0 6.7 1.3 3,133.0 South Central 2,040.2 1,769.6 0.3 0.4 3,810.5 Southeast 2,390.5 1,549.8 13.2 5.0 3,958.5 East 1,393.5 1,630.4 — 0.8 3,024.7 North 1,083.7 993.7 — 0.6 2,078.0 Corporate and unallocated (1) 126.9 116.3 0.3 0.1 243.6 $ 9,134.3 $ 8,992.3 $ 20.5 $ 8.7 $ 18,155.8 _____________ (1) Corporate and unallocated inventory consists primarily of capitalized interest and property taxes. 41 Table of Contents Our land and lot position and homes in inventory at September 30, 2024 and 2023 are summarized as follows: September 30, 2024 Land/Lots Owned (1) Lots Controlled Through Land and Lot Purchase Contracts (2)(3) Total Land/Lots Owned and Controlled Homes in Inventory (4) Northwest 13,000 18,600 31,600 2,100 Southwest 22,200 29,200 51,400 4,200 South Central 39,000 109,600 148,600 9,000 Southeast 29,500 134,300 163,800 9,700 East 32,500 129,300 161,800 7,500 North 16,300 59,400 75,700 4,900 152,500 480,400 632,900 37,400 24 % 76 % 100 % September 30, 2023 Land/Lots Owned (1) Lots Controlled Through Land and Lot Purchase Contracts (2)(3) Total Land/Lots Owned and Controlled Homes in Inventory (4) Northwest 14,100 20,300 34,400 2,800 Southwest 22,600 30,500 53,100 4,700 South Central 36,700 69,500 106,200 10,800 Southeast 24,700 132,900 157,600 12,100 East 27,700 118,400 146,100 7,100 North 15,300 55,700 71,000 4,500 141,100 427,300 568,400 42,000 25 % 75 % 100 % _________________________ (1) Land/lots owned included approximately 64,400 and 50,300 owned lots that are fully developed and ready for home construction at September 30, 2024 and 2023, respectively.
Biggest changeOur homebuilding segment’s inventories at September 30, 2025 and 2024 are summarized as follows: September 30, 2025 Construction in Progress and Finished Homes Residential Land/Lots Developed and Under Development Land Held for Development Land Held for Sale Total Inventory (In millions) Northwest $ 647.4 $ 1,225.3 $ 16.2 $ 2.9 $ 1,891.8 Southwest 1,003.8 2,047.1 8.7 8.9 3,068.5 South Central 1,643.0 2,288.6 0.3 — 3,931.9 Southeast 1,537.8 2,502.3 12.6 9.1 4,061.8 East 1,561.4 2,836.3 — — 4,397.7 North 1,222.8 1,414.6 — 0.2 2,637.6 Corporate and unallocated (1) 127.5 198.9 0.5 0.3 327.2 $ 7,743.7 $ 12,513.1 $ 38.3 $ 21.4 $ 20,316.5 September 30, 2024 Construction in Progress and Finished Homes Residential Land/Lots Developed and Under Development Land Held for Development Land Held for Sale Total Inventory (In millions) Northwest $ 719.6 $ 1,215.6 $ — $ — $ 1,935.2 Southwest 1,378.1 1,889.3 6.8 4.7 3,278.9 South Central 1,701.5 2,024.5 0.3 1.7 3,728.0 Southeast 2,146.9 2,124.3 13.1 0.2 4,284.5 East 1,626.4 2,347.3 — 4.5 3,978.2 North 1,287.6 1,262.2 — 1.4 2,551.2 Corporate and unallocated (1) 126.0 148.5 0.3 0.2 275.0 $ 8,986.1 $ 11,011.7 $ 20.5 $ 12.7 $ 20,031.0 _______________ (1) Corporate and unallocated inventory consists primarily of capitalized interest and property taxes. 41 Table of Contents Our land and lot position and homes in inventory at September 30, 2025 and 2024 are summarized as follows: September 30, 2025 Land/Lots Owned (1) Lots Controlled Through Land and Lot Purchase Contracts (2)(3) Total Land/Lots Owned and Controlled Homes in Inventory (4) Northwest 12,200 17,100 29,300 1,700 Southwest 19,600 31,200 50,800 3,200 South Central 35,900 111,900 147,800 7,700 Southeast 31,500 113,600 145,100 6,300 East 31,500 111,100 142,600 6,300 North 16,300 60,000 76,300 4,400 147,000 444,900 591,900 29,600 25 % 75 % 100 % September 30, 2024 Land/Lots Owned (1) Lots Controlled Through Land and Lot Purchase Contracts (2)(3) Total Land/Lots Owned and Controlled Homes in Inventory (4) Northwest 13,000 18,600 31,600 2,100 Southwest 22,200 29,200 51,400 4,200 South Central 39,000 109,600 148,600 9,000 Southeast 29,500 134,300 163,800 9,700 East 32,500 129,300 161,800 7,500 North 16,300 59,400 75,700 4,900 152,500 480,400 632,900 37,400 24 % 76 % 100 % _______________ (1) Land/lots owned included approximately 78,400 and 64,400 owned lots that are fully developed and ready for home construction at September 30, 2025 and 2024, respectively.
The seasonal nature of our business can also cause significant variations in the working capital requirements for our homebuilding, lot development, financial services and rental operations.
The seasonal nature of our business can also cause significant variations in the working capital requirements for our homebuilding, rental, lot development and financial services operations.
(Guarantors or Guarantor Subsidiaries). Each of the Guarantor Subsidiaries is 100% owned, directly or indirectly, by D.R. Horton, Inc. Our subsidiaries associated with the single-family and multi-family rental operations, Forestar lot development operations, financial services operations and certain other subsidiaries do not guarantee the homebuilding senior notes or the homebuilding revolving credit facility (collectively, Non-Guarantor Subsidiaries).
Each of the Guarantor Subsidiaries is 100% owned, directly or indirectly, by D.R. Horton, Inc. Our subsidiaries associated with the single-family and multi-family rental operations, Forestar lot development operations, financial services operations and certain other subsidiaries do not guarantee the homebuilding senior notes or the homebuilding revolving credit facility (collectively, Non-Guarantor Subsidiaries).
These reporting segments, which we also refer to as reporting regions, have homebuilding operations located in the following states: Northwest: Colorado, Oregon, Utah and Washington Southwest: Arizona, California, Hawaii, Nevada and New Mexico South Central: Arkansas, Oklahoma and Texas Southeast: Alabama, Florida, Louisiana and Mississippi East: Georgia, North Carolina, South Carolina and Tennessee North: Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Minnesota, Missouri, Nebraska, New Jersey, Ohio, Pennsylvania, Virginia, West Virginia and Wisconsin The following tables and related discussion set forth key operating and financial data for our homebuilding operations by reporting segment as of and for the fiscal years ended September 30, 2024 and 2023.
These reporting segments, which we also refer to as reporting regions, have homebuilding operations located in the following states: Northwest: Colorado, Oregon, Utah and Washington Southwest: Arizona, California, Hawaii, Nevada and New Mexico South Central: Arkansas, Oklahoma and Texas Southeast: Alabama, Florida, Louisiana and Mississippi East: Georgia, North Carolina, South Carolina and Tennessee North: Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Minnesota, Missouri, Nebraska, New Jersey, Ohio, Pennsylvania, Virginia, West Virginia and Wisconsin The following tables and related discussion set forth key operating and financial data for our homebuilding operations by reporting segment as of and for the fiscal years ended September 30, 2025 and 2024.
Forestar’s revolving credit facility and its senior unsecured notes are guaranteed by Forestar’s wholly-owned subsidiaries that are not immaterial subsidiaries and have not been designated as unrestricted subsidiaries. They are not guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the debt of our homebuilding, rental or financial services operations.
Forestar’s revolving credit facility and its senior notes are guaranteed by Forestar’s wholly owned subsidiaries that are not immaterial subsidiaries and have not been designated as unrestricted subsidiaries. They are not guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the debt of our homebuilding, rental or financial services operations.
Our strategy includes the following initiatives: • Developing and retaining highly experienced and productive teams of personnel throughout our company that are aligned and focused on continuous improvement in our operational execution and financial performance. • Maintaining a significant cash balance and strong overall liquidity position while controlling our level of debt. • Allocating and actively managing our inventory investments across our operating markets to diversify our geographic risk. • Offering new home communities that appeal to a broad range of entry-level, move-up, active adult and luxury homebuyers based on consumer demand in each market. • Modifying product offerings, sales pace, home prices and incentives as necessary in each of our markets to meet consumer demand and maintain affordability. • Delivering high quality homes and a positive experience to our customers both during and after the sale. • Managing our inventory of homes under construction relative to demand in each of our markets, including starting construction on unsold homes to capture new home demand and actively controlling the number of unsold, completed homes in inventory. • Investing in lots, land and land development in desirable markets, while controlling the level of land and lots we own in each market relative to the local new home demand. • Controlling a significant portion of our land and finished lot position through purchase contracts and prioritizing the purchase of finished lots from Forestar and other land developers when possible. • Controlling the cost of labor and goods provided by subcontractors and vendors. • Improving the efficiency of our land development, construction, sales and other key operational activities. • Controlling our selling, general and administrative (SG&A) expense infrastructure to match production levels. • Ensuring that our financial services business provides high quality mortgage and title services to homebuyers efficiently and effectively. • Investing in the construction and leasing of single-family and multi-family rental properties to meet rental demand in high growth suburban markets and selling these properties profitably. • Opportunistically evaluating potential acquisitions to enhance our operating platform.
Our strategy includes the following initiatives: • Developing and retaining highly experienced and productive teams of personnel throughout our company that are aligned and focused on continuous improvement in our operational execution and financial performance. • Maintaining a significant cash balance and strong overall liquidity position while controlling our level of debt. • Allocating and actively managing our inventory investments across our operating markets to diversify our geographic risk. • Offering new home communities that appeal to a broad range of entry-level, move-up, active adult and luxury homebuyers based on consumer demand in each market. • Modifying product offerings, sales pace, home prices and incentives as necessary in each of our markets to meet consumer demand and maintain affordability. • Delivering high quality homes and a positive experience to our customers both during and after the sale. • Managing our inventory of homes under construction relative to demand in each of our markets, including starting construction on unsold homes to capture new home demand and actively controlling the number of unsold, completed homes in inventory. • Investing in lots, land and land development in desirable markets, while controlling the level of land and lots we own in each market relative to the local new home demand. • Controlling a significant portion of our land and finished lot position through purchase contracts and prioritizing the purchase of finished lots from Forestar and other land developers when possible. • Controlling the cost of labor and goods provided by subcontractors and vendors. • Improving the efficiency of our land development, construction, sales and other key operational activities. • Controlling our selling, general and administrative (SG&A) expense infrastructure to match production levels. • Ensuring that our financial services business provides high quality mortgage and title services to homebuyers efficiently and effectively. • Investing in our rental operations to meet rental demand in high growth suburban markets and selling these properties profitably. • Opportunistically evaluating potential acquisitions to enhance our operating platform.
These risks, uncertainties and other factors include, but are not limited to: • the cyclical nature of the homebuilding, rental and lot development industries and changes in economic, real estate or other conditions; • adverse developments affecting the capital markets and financial institutions, which could limit our ability to access capital, increase our cost of capital and impact our liquidity and capital resources; • reductions in the availability of mortgage financing provided by government agencies, changes in government financing programs, a decrease in our ability to sell mortgage loans on attractive terms or an increase in mortgage interest rates; • the risks associated with our land, lot and rental inventory; • our ability to effect our growth strategies, acquisitions, investments or other strategic initiatives successfully; • the impact of an inflationary, deflationary or higher interest rate environment; • risks of acquiring land, building materials and skilled labor and challenges obtaining regulatory approvals; • the effects of public health issues such as a major epidemic or pandemic on the economy and our businesses; • the effects of weather conditions and natural disasters on our business and financial results; • home warranty and construction defect claims; • the effects of health and safety incidents; • reductions in the availability of performance bonds; • increases in the costs of owning a home; • the effects of information technology failures, data security breaches, and the failure to satisfy privacy and data protection laws and regulations; • the effects of governmental regulations and environmental matters on our land development and housing operations; • the effects of governmental regulations on our financial services operations; • the effects of competitive conditions within the industries in which we operate; • our ability to manage and service our debt and comply with related debt covenants, restrictions and limitations; • the effects of negative publicity; • the effects of the loss of key personnel; and • the effects of actions by activist stockholders.
These risks, uncertainties and other factors include, but are not limited to: • the cyclical nature of the homebuilding, rental and lot development industries and changes in economic, real estate or other conditions; • adverse developments affecting the capital markets and financial institutions, which could limit our ability to access capital, increase our cost of capital and impact our liquidity and capital resources; • reductions in the availability of mortgage financing provided by government agencies, changes in government financing programs, a decrease in our ability to sell mortgage loans on attractive terms or an increase in mortgage interest rates; • the risks associated with our land, lot and rental inventory; • our ability to effect our growth strategies, acquisitions, investments or other strategic initiatives successfully; • the impact of an inflationary, deflationary or higher interest rate environment; • risks of acquiring land, building materials and skilled labor and challenges obtaining regulatory approvals; • the effects of public health issues such as a major epidemic or pandemic on the economy and our businesses; • the effects of weather conditions and natural disasters on our business and financial results; • home warranty and construction defect claims; • the effects of health and safety incidents; • reductions in the availability of performance bonds; • increases in the costs of owning a home; • the effects of information technology failures, cybersecurity incidents, and the failure to satisfy privacy and data protection laws and regulations; • the effects of governmental regulations and environmental matters on our land development and housing operations; • the effects of changes in income tax and securities laws; • the effects of governmental regulations on our financial services operations; • the effects of competitive conditions within the industries in which we operate; • our ability to manage and service our debt and comply with related debt covenants, restrictions and limitations; • the effects of negative publicity; • the effects of the loss of key personnel; and • the effects of actions by activist stockholders.
Additional information about issues that could lead to material changes in performance and risk factors that have the potential to affect us is contained in Item 1A, “Risk Factors” under Part I of this annual report on Form 10-K. 58 Table of Contents Critical Accounting Policies and Estimates General — A comprehensive enumeration of the significant accounting policies of D.R.
Additional information about issues that could lead to material changes in performance and risk factors that have the potential to affect us is contained in Item 1A, “Risk Factors” under Part I of this annual report on Form 10-K. 56 Table of Contents Critical Accounting Policies and Estimates General — A comprehensive enumeration of the significant accounting policies of D.R.
Horton, Inc. and subsidiaries is presented in Note A to the accompanying financial statements as of September 30, 2024 and 2023, and for the years ended September 30, 2024, 2023 and 2022. Each of our accounting policies has been chosen based upon current authoritative literature that collectively comprises U.S. generally accepted accounting principles (GAAP).
Horton, Inc. and subsidiaries is presented in Note A to the accompanying financial statements as of September 30, 2025 and 2024, and for the years ended September 30, 2025, 2024 and 2023. Each of our accounting policies has been chosen based upon current authoritative literature that collectively comprises U.S. generally accepted accounting principles (GAAP).
Impairment charges are also recorded on finished homes in substantially completed communities and completed rental properties when events or circumstances indicate that the carrying values are greater than the fair values less estimated costs to sell these homes. 60 Table of Contents We rarely purchase land for resale.
Impairment charges are also recorded on finished homes in substantially completed communities and completed rental properties when events or circumstances indicate that the carrying values are greater than the fair values less estimated costs to sell these homes. 58 Table of Contents We rarely purchase land for resale.
MD&A is provided as a supplement to, and should be read in conjunction with our consolidated financial statements and notes to those statements that appear elsewhere in this Form 10-K. This section discusses the results of operations for fiscal 2024 compared to 2023.
MD&A is provided as a supplement to, and should be read in conjunction with our consolidated financial statements and notes to those statements that appear elsewhere in this Form 10-K. This section discusses the results of operations for fiscal 2025 compared to 2024.
The standard is effective for our annual periods beginning in fiscal 2028 and interim periods beginning in the first quarter of fiscal 2029, with early adoption permitted. We are currently evaluating the impact this standard will have on our disclosures. 62 Table of Contents
The standard is effective for our annual periods beginning in fiscal 2028 and interim periods beginning in the first quarter of fiscal 2029, with early adoption permitted. We are currently evaluating the impact this standard will have on our disclosures. 60 Table of Contents
The following tables provide further information regarding Forestar’s revenues and lot position as of and for the fiscal years ended September 30, 2024 and 2023. Year Ended September 30, Lots Sold Value (In millions) 2024 2023 2024 2023 Residential single-family lots sold Lots sold to D.R.
The following tables provide further information regarding Forestar’s revenues and lot position as of and for the fiscal years ended September 30, 2025 and 2024: Year Ended September 30, Lots Sold Value (In millions) 2025 2024 2025 2024 Residential single-family lots sold Lots sold to D.R.
The facilities contain financial covenants as to the mortgage subsidiary’s minimum required tangible net worth, its maximum allowable indebtedness to tangible net worth ratio and its minimum required liquidity. At September 30, 2024, DHI Mortgage was in compliance with all of the conditions and covenants of the mortgage repurchase facilities. These mortgage repurchase facilities are not guaranteed by D.R.
The facilities contain financial covenants as to the mortgage subsidiary’s minimum required tangible net worth, its maximum allowable indebtedness to tangible net worth ratio and its minimum required liquidity. At September 30, 2025, DHI Mortgage was in compliance with all of the conditions and covenants of the mortgage repurchase facilities. The mortgage repurchase facilities are not guaranteed by D.R.
Fluctuations in financial services G&A expense as a percentage of revenues can occur because some components of revenue fluctuate differently than loan volumes, and some expenses are not directly related to mortgage loan volume or to changes in the amount of revenue earned. Our financial services operations employed 3,149 and 2,895 people at September 30, 2024 and 2023, respectively.
Fluctuations in financial services G&A expense as a percentage of revenues can occur because some components of revenue fluctuate differently than loan volumes, and some expenses are not directly related to mortgage loan volume or to changes in the amount of revenue earned. Our financial services operations employed 2,967 and 3,149 people at September 30, 2025 and 2024, respectively.
This provision may not be effective to protect such guarantees from fraudulent transfer challenges or, if it does, it may reduce such Guarantor’s obligation such that the remaining amount due and collectible under the guarantees would not suffice, if necessary, to pay the notes in full when due. 55 Table of Contents The following tables present summarized financial information for D.R.
This provision may not be effective to protect such guarantees from fraudulent transfer challenges or, if it does, it may reduce such Guarantor’s obligation such that the remaining amount due and collectible under the guarantees would not suffice, if necessary, to pay the notes in full when due. The following tables present summarized financial information for D.R.
Our homebuilding operations employed 10,071 and 9,190 people at September 30, 2024 and 2023, respectively. We attempt to control our homebuilding SG&A costs while ensuring that our infrastructure adequately supports our operations; however, we cannot make assurances that we will be able to maintain or improve upon the current SG&A expense as a percentage of revenues.
Our homebuilding operations employed 9,972 and 10,071 people at September 30, 2025 and 2024, respectively. We attempt to control our homebuilding SG&A costs while ensuring that our infrastructure adequately supports our operations; however, we cannot make assurances that we will be able to maintain or improve upon the current SG&A expense as a percentage of revenues.
Any changes to the estimated total development costs subsequent to the initial home or lot closings in a community are generally allocated on a pro-rata basis to the remaining homes or lots in the community associated with the relevant development activity. 59 Table of Contents When a home is closed, we generally have not paid all incurred costs necessary to complete the home.
Any changes to the estimated total development costs after the initial home or lot closings in a community are generally allocated on a pro-rata basis to the remaining homes or lots in the community associated with the relevant development activity. 57 Table of Contents When a home is closed, we generally have not paid all of the incurred costs necessary to complete the home.
For similar operating and financial data and discussion of our fiscal 2023 results compared to our fiscal 2022 results, refer to Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under Part II of our annual report on Form 10-K for the fiscal year ended September 30, 2023, which was filed with the SEC on November 17, 2023.
For similar operating and financial data and discussion of our fiscal 2024 results compared to our fiscal 2023 results, refer to Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under Part II of our annual report on Form 10-K for the fiscal year ended September 30, 2024, which was filed with the SEC on November 19, 2024.
We plan to generate strong cash flows from our operations and manage our product offerings, incentives, home pricing, sales pace and inventory levels to optimize the return on our inventory investments in each of our communities based on local housing market conditions. 31 Table of Contents Strategy Our operating strategy focuses on consistently enhancing long-term value to our shareholders by leveraging our financial and competitive position to maximize the returns on our inventory investments and generate consistent, sustainable profitability and cash flows, while managing risk and maintaining financial flexibility to navigate changing economic conditions.
We plan to generate strong cash flows from our operations and manage our product offerings, incentives, home pricing, sales pace and inventory levels to optimize the return on our inventory investments in each of our communities based on local housing market conditions. 31 Table of Contents Strategy Our operating strategy focuses on consistently enhancing long-term value to our shareholders by leveraging our financial and competitive positions to maximize the returns on our inventory investments and generate strong profits and cash flows from operations, while managing risk and maintaining financial flexibility to navigate changing economic conditions.
We have a valuation allowance of $14.9 million and $14.8 million at September 30, 2024 and 2023, respectively, related to deferred tax assets for state net operating loss (NOL) and tax credit carryforwards that are expected to expire before being realized.
We have a valuation allowance of $14.6 million and $14.9 million at September 30, 2025 and 2024, respectively, related to deferred tax assets for state net operating loss (NOL) and tax credit carryforwards that are expected to expire before being realized.
Consolidated net cash provided by operating activities was $2.2 billion in fiscal 2024 and $4.3 billion in fiscal 2023, and cash provided by our homebuilding operations was $2.2 billion in fiscal 2024 compared to $3.1 billion in fiscal 2023.
Consolidated net cash provided by operating activities was $3.4 billion in fiscal 2025 and $2.2 billion in fiscal 2024, and cash provided by our homebuilding operations was $3.4 billion in fiscal 2025 compared to $2.2 billion in fiscal 2024.
Cash provided by a decrease in construction in progress and finished home inventory was $141.3 million in fiscal 2024 compared to $861.8 million in fiscal 2023, due to a decrease in our homes in inventory. Cash used to increase residential land and lots was $2.6 billion and $1.2 billion in fiscal 2024 and 2023, respectively.
Cash provided by a decrease in construction in progress and finished home inventory was $1.2 billion in fiscal 2025 compared to $141.3 million in fiscal 2024, due to a decrease in our homes in inventory. Cash used to increase residential land and lots was $1.9 billion and $2.6 billion in fiscal 2025 and 2024, respectively.
Factors that could cause or contribute to any differences include, but are not limited to, those discussed under the caption “Forward-Looking Statements” and under Item 1A, “Risk Factors.” Results of Operations — Overview Fiscal 2024 Operating Results In fiscal 2024, our number of homes closed and home sales revenues increased 8% and 7%, respectively, compared to the prior year, and our consolidated revenues increased 4% to $36.8 billion compared to $35.5 billion in the prior year.
Factors that could cause or contribute to any differences include, but are not limited to, those discussed under the caption “Forward-Looking Statements” and under Item 1A, “Risk Factors.” Results of Operations — Overview Fiscal 2025 Operating Results In fiscal 2025, our number of homes closed and our home sales revenues decreased 5% and 7%, respectively, compared to the prior year, and our consolidated revenues decreased 7% to $34.3 billion compared to $36.8 billion.
The liquidity of our financial services business depends upon its continued ability to renew and extend the committed mortgage repurchase facility or to obtain other additional financing in sufficient capacities. Operating Cash Flow Activities In fiscal 2024, net cash provided by operating activities was $2.2 billion compared to $4.3 billion in fiscal 2023.
The liquidity of our financial services business depends upon its continued ability to renew and extend the committed mortgage repurchase facility, utilize the uncommitted mortgage repurchase facility or obtain other additional financing in sufficient capacities. 53 Table of Contents Operating Cash Flow Activities In fiscal 2025, net cash provided by operating activities was $3.4 billion compared to $2.2 billion in fiscal 2024.
Income Taxes Our income tax expense was $1.5 billion in both fiscal 2024 and 2023, and our effective tax rate was 23.5% and 24.1%, respectively, in those years. The effective tax rates for both years include an expense for state income taxes and tax benefits related to stock-based compensation and federal energy efficient homes tax credits.
Income Taxes Our income tax expense was $1.1 billion and $1.5 billion in fiscal 2025 and 2024, respectively, and our effective tax rate was 23.6% and 23.5% in those years. The effective tax rates for both years include an expense for state income taxes and tax benefits related to stock-based compensation and federal energy efficient home tax credits.
At September 30, 2024, there were no borrowings outstanding and $210.1 million of letters of credit issued under the revolving credit facility, resulting in available capacity of $1.98 billion. 50 Table of Contents Our homebuilding revolving credit facility imposes restrictions on our operations and activities, including requiring the maintenance of a maximum allowable leverage ratio and a borrowing base restriction if our leverage ratio exceeds a certain level.
At September 30, 2025, there were no borrowings outstanding and $231.2 million of letters of credit issued under the revolving credit facility, resulting in available capacity of $2.07 billion. 50 Table of Contents Our homebuilding revolving credit facility imposes restrictions on our operations and activities, including requiring the maintenance of a maximum allowable leverage ratio and a borrowing base restriction if our leverage ratio exceeds a certain level.
(3) Multi-family rental units at September 30, 2024 consist of 7,900 units under construction and 4,060 units that were substantially complete and in the lease-up phase compared to 7,200 units under construction and 1,950 units that were substantially complete at September 30, 2023. 44 Table of Contents Results of Operations — Forestar At September 30, 2024, we owned 62% of the outstanding shares of Forestar.
(3) Multi-family rental units at September 30, 2025 consist of 4,910 units under construction and 7,570 units that were substantially complete and in the lease-up phase compared to 7,900 units under construction and 4,060 units that were substantially complete at September 30, 2024. 44 Table of Contents Results of Operations — Forestar At September 30, 2025, we owned 62% of the outstanding shares of Forestar.
The percentage of homes closed for which DHI Mortgage handled our homebuyers’ financing was 78% in fiscal 2024, up from 76% in fiscal 2023. This increase reflects DHI Mortgage’s ongoing efforts to align their business with our homebuilding operations by offering competitive products and pricing. The number of loans sold increased 14% in fiscal 2024 compared to the prior year.
The percentage of homes closed for which DHI Mortgage handled our homebuyers’ financing was 81% in fiscal 2025, up from 78% in fiscal 2024. This increase reflects DHI Mortgage’s ongoing efforts to align their business with our homebuilding operations by offering competitive products and pricing. The number of loans sold decreased 3% in fiscal 2025 compared to the prior year.
To adjust to changes in market conditions during fiscal 2023 and 2024, we have used a higher level of incentives and reduced home prices and sizes of our home offerings where necessary to provide better affordability to homebuyers.
To adjust to changes in market conditions during recent years, we have used a higher level of incentives and reduced home prices and sizes of our home offerings where necessary to provide better affordability to homebuyers.
The total remaining purchase price of lots controlled through land and lot purchase contracts at September 30, 2024 and 2023 included $1.9 billion and $1.3 billion, respectively, related to lot purchase contracts with Forestar, secured by $193.3 million and $139.1 million, respectively, of earnest money.
The total remaining purchase price of lots controlled through land and lot purchase contracts at September 30, 2025 and 2024 included $2.0 billion and $1.9 billion, respectively, related to lot purchase contracts with Forestar, secured by $200.2 million and $193.3 million, respectively, of earnest money.
At September 30, 2024, we had outstanding letters of credit of $242.9 million and surety bonds of $3.5 billion, issued by third parties to secure performance under various contracts.
At September 30, 2025, we had outstanding letters of credit of $282.3 million and surety bonds of $3.5 billion, issued by third parties to secure performance under various contracts.
Horton has an automatically effective universal shelf registration statement filed with the SEC in July 2024, registering debt and equity securities that may be issued from time to time in amounts to be determined. Forestar also has an effective shelf registration statement filed with the SEC in September 2024, registering $750 million of equity securities.
Horton has an automatically effective universal shelf registration statement filed with the SEC in July 2024, registering debt and equity securities that may be issued from time to time in amounts to be determined.
Forestar: • Forestar’s revenues increased 5% to $1.5 billion compared to $1.4 billion. Revenues in fiscal 2024 and 2023 included $1.3 billion and $1.2 billion, respectively, of revenue from land and lot sales to our homebuilding segment. • Forestar’s lots sold increased 7% to 15,068 compared to 14,040. Lots sold to D.R.
Forestar: • Forestar’s revenues increased 10% to $1.7 billion compared to $1.5 billion. Revenues in fiscal 2025 and 2024 included $1.4 billion and $1.3 billion, respectively, of revenue from land and lot sales to our homebuilding segment. • Forestar’s lots sold decreased 5% to 14,240 compared to 15,068. Lots sold to D.R.
As a result of this review, there were $8.3 million of impairments recorded in our homebuilding segment during the three months ended September 30, 2024. During fiscal 2024, impairment charges related to our homebuilding segment totaled $14.0 million compared to $7.7 million in fiscal 2023.
As a result of this review, there were $6.7 million of impairments recorded in our homebuilding segment during the three months ended September 30, 2025. During fiscal 2025, impairment charges related to our homebuilding segment totaled $29.9 million compared to $14.0 million in fiscal 2024.
(See Note B to the accompanying financial statements for additional Forestar segment information.) Results of operations for the Forestar segment for the fiscal years ended September 30, 2024 and 2023 were as follows: Year Ended September 30, 2024 2023 (In millions) Total revenues $ 1,509.4 $ 1,436.9 Cost of land/lot sales and other 1,145.9 1,108.9 Inventory and land option charges 4.1 24.0 Total cost of sales 1,150.0 1,132.9 Selling, general and administrative expense 118.5 97.7 Other (income) expense (29.2) (15.3) Income before income taxes $ 270.1 $ 221.6 Forestar’s revenues are primarily derived from sales of single-family residential lots to local, regional and national homebuilders and land bankers for homebuilders.
(See Note B to the accompanying financial statements for additional Forestar segment information.) Results of operations for the Forestar segment for the fiscal years ended September 30, 2025 and 2024 were as follows: Year Ended September 30, 2025 2024 (In millions) Total revenues $ 1,662.4 $ 1,509.4 Cost of land/lot sales and other 1,291.7 1,145.9 Inventory and land option charges 7.2 4.1 Total cost of sales 1,298.9 1,150.0 Selling, general and administrative expense 154.4 118.5 Other (income) expense (10.2) (29.2) Income before income taxes $ 219.3 $ 270.1 Forestar’s revenues are primarily derived from sales of single-family residential lots to local, regional and national homebuilders and land bankers for homebuilders.
Many of the contracts in our sales order backlog are subject to contingencies, including mortgage loan approval and buyers selling their existing homes, which can result in cancellations.
Many of the contracts in our sales order backlog are subject to contingencies, including mortgage loan approval and buyers selling their existing homes, which can result in cancellations. A portion of the contracts in backlog will not result in closings due to cancellations.
However, we cannot provide any assurances that the initiatives listed above will continue to be successful, and we may need to adjust parts of our strategy to meet future market conditions. 32 Table of Contents Key Results Key financial results as of and for our fiscal year ended September 30, 2024, as compared to fiscal 2023, were as follows: Consolidated Results: • Consolidated revenues increased 4% to $36.8 billion compared to $35.5 billion. • Consolidated pre-tax income was $6.3 billion in both years. • Consolidated pre-tax income was 17.1% of consolidated revenues compared to 17.8%. • Income tax expense was $1.5 billion in both years, and our effective tax rate was 23.5% compared to 24.1%. • Net income attributable to D.R.
However, we cannot provide any assurance that the initiatives listed above will continue to be successful, and we may need to adjust parts of our strategy to meet future market conditions. 32 Table of Contents Key Results Key financial results as of and for our fiscal year ended September 30, 2025, as compared to fiscal 2024, were as follows: Consolidated Results: • Consolidated revenues decreased 7% to $34.3 billion compared to $36.8 billion. • Consolidated pre-tax income decreased 25% to $4.7 billion compared to $6.3 billion. • Consolidated pre-tax income was 13.8% of consolidated revenues compared to 17.1%. • Income tax expense was $1.1 billion compared to $1.5 billion, and our effective tax rate was 23.6% compared to 23.5%. • Net income attributable to D.R.
During fiscal 2024 and 2023, earnest money and pre-acquisition cost write-offs related to our homebuilding segment’s land purchase contracts that we have terminated or expect to terminate were $54.9 million and $53.0 million, respectively. Selling, General and Administrative (SG&A) Expense SG&A expense from homebuilding activities increased 14% to $2.6 billion in fiscal 2024 from $2.2 billion in fiscal 2023.
During fiscal 2025 and 2024, earnest money and pre-acquisition cost write-offs related to our homebuilding segment’s land purchase contracts that we have terminated or expect to terminate were $114.3 million and $54.9 million, respectively. Selling, General and Administrative (SG&A) Expense SG&A expense from homebuilding activities increased 3% to $2.62 billion in fiscal 2025 from $2.55 billion in fiscal 2024.
Forestar’s ratio of net debt to total capital (notes payable net of cash divided by stockholders’ equity plus notes payable net of cash) was 12.4% compared to 5.5% at September 30, 2023. Cash and Cash Equivalents — At September 30, 2024, Forestar had cash and cash equivalents of $481.2 million.
Forestar’s ratio of net debt to total capital (notes payable net of cash divided by stockholders’ equity plus notes payable net of cash) was 19.3% compared to 12.4% at September 30, 2024. Cash and Cash Equivalents — At September 30, 2025, Forestar had cash and cash equivalents of $379.2 million.
A 10% increase in the claim frequency and the average cost per claim used to estimate the reserves would result in an increase of approximately $172.3 million in our reserves and a $43.3 million increase in our insurance receivable, resulting in additional expense of $129.0 million.
A 10% increase in the claim frequency and the average cost per claim used to estimate the reserves would result in an increase of approximately $198.4 million in our reserves and a $43.3 million increase in our insurance receivable, resulting in additional expense of $155.1 million.
Our net debt to total capital (notes payable net of cash divided by stockholders’ equity plus notes payable net of cash) was 5.2% at September 30, 2024 compared to 5.1% at September 30, 2023. Over the long term, we intend to maintain our ratio of debt to total capital around or slightly below 20%.
Our net debt to total capital (notes payable net of cash divided by stockholders’ equity plus notes payable net of cash) was 11.0% at September 30, 2025 compared to 5.2% at September 30, 2024. Over the long term, we intend to maintain our ratio of debt to total capital around 20%.
Virtually all of the mortgage loans held for sale on September 30, 2024 were eligible for sale to Fannie Mae, Freddie Mac or Ginnie Mae. During fiscal 2024, approximately 73% of our mortgage loans were sold directly to Fannie Mae, Freddie Mac or into securities backed by Ginnie Mae, and 26% were sold to one other major financial entity.
Substantially all mortgage loans held for sale on September 30, 2025 were eligible for sale to Fannie Mae, Freddie Mac or Ginnie Mae. During fiscal 2025, approximately 71% of our mortgage loans were sold directly to Fannie Mae, Freddie Mac or into securities backed by Ginnie Mae, and 27% were sold to one other major financial entity.
As a percentage of homebuilding revenues, SG&A expenses increased by 60 basis points in 2024 compared to 2023, primarily due to an increase in SG&A expenses. 39 Table of Contents East Region — Homebuilding revenues increased 14% in fiscal 2024 compared to fiscal 2023, due to increases in the number of homes closed, particularly in our North Carolina markets.
As a percentage of homebuilding revenues, SG&A expenses increased by 130 basis points in fiscal 2025 compared to fiscal 2024 due to the decrease in homebuilding revenues. 39 Table of Contents East Region — Homebuilding revenues increased 1% in fiscal 2025 compared to fiscal 2024, due to an increase in the number of homes closed, particularly in our North Carolina markets.
A s a percentage of homebuilding revenues, SG&A expenses increased by 10 basis points in 2024 compared to 2023 . 40 Table of Contents Homebuilding Inventories, Land and Lot Position and Homes in Inventory We routinely enter into contracts to purchase land or developed residential lots at predetermined prices on a defined schedule commensurate with planned development or anticipated new home demand.
As a percentage of homebuilding revenues, SG&A expenses increased by 40 basis points in fiscal 2025 compared to fiscal 2024, primarily due to an increase in employee compensation costs. 40 Table of Contents Homebuilding Inventories, Land and Lot Position and Homes in Inventory We routinely enter into contracts to purchase land or developed residential lots at predetermined prices on a defined schedule commensurate with planned development or anticipated new home demand.
Horton, Inc. had $2.8 billion principal amount of homebuilding senior unsecured notes outstanding due through October 2034 and no amounts outstanding on its homebuilding revolving credit facility. All of the homebuilding senior notes and the homebuilding revolving credit facility are fully and unconditionally guaranteed, on a joint and several basis, by certain subsidiaries of D.R. Horton, Inc.
Horton, Inc. had $3.0 billion principal amount of homebuilding senior notes outstanding due through October 2035 and no amounts outstanding on its homebuilding revolving credit facility. All of the homebuilding senior notes and the homebuilding revolving credit facility are fully and unconditionally guaranteed, on a joint and several basis, by certain subsidiaries of D.R. Horton, Inc. (Guarantors or Guarantor Subsidiaries).
Of these lots, 37,700 were under contract to sell to or subject to a right of first offer with D.R. Horton compared to 31,400. • Forestar’s debt was $706.4 million compared to $695.0 million. • Forestar’s debt to total capital was 30.7% compared to 33.7%, and Forestar’s net debt to total capital was 12.4% compared to 5.5%.
Of these lots, 40,400 were under contract to sell to or subject to a right of first offer with D.R. Horton compared to 37,700. • Forestar’s debt was $802.8 million compared to $706.4 million. • Forestar’s debt to total capital was 31.2% compared to 30.7%, and Forestar’s net debt to total capital was 19.3% compared to 12.4%.
(2) The total remaining purchase price of lots controlled through land and lot purchase contracts at September 30, 2024 and 2023 was $25.2 billion and $21.1 billion, respectively, secured by earnest money deposits of $2.2 billion and $1.8 billion, respectively.
(2) The total remaining purchase price of lots controlled through land and lot purchase contracts at September 30, 2025 and 2024 was $26.0 billion and $25.2 billion, respectively, secured by earnest money deposits of $2.3 billion and $2.2 billion, respectively.
We will continue to evaluate both the positive and negative evidence in determining the need for a valuation allowance with respect to our remaining state NOL and tax credit carryforwards.
We will continue to evaluate both the positive and negative evidence in determining the need for a valuation allowance with respect to our remaining state NOL and tax credit carryforwards. Any reversal of the valuation allowance in future periods will impact our effective tax rate.
At September 30, 2024, approximately 10,300 of our unsold homes were completed, of which approximately 1,100 homes had been completed for more than six months. At September 30, 2023, approximately 7,000 of our unsold homes were completed, of which approximately 620 homes had been completed for more than six months.
At September 30, 2025, approximately 9,300 of our unsold homes were completed, of which approximately 800 homes had been completed for more than six months. At September 30, 2024, approximately 10,300 of our unsold homes were completed, of which approximately 1,100 homes had been completed for more than six months.
These covenants are measured as defined in the credit agreement governing the facility and are reported to the lenders quarterly. A failure to comply with these financial covenants could allow the lending banks to terminate the availability of funds under the revolving credit facility or cause any outstanding borrowings to become due and payable prior to maturity.
A failure to comply with these financial covenants could allow the lending banks to terminate the availability of funds under the revolving credit facility or cause any outstanding borrowings to become due and payable prior to maturity.
(2) Single-family rental lots at September 30, 2024 consist of 910 undeveloped lots and 1,000 finished lots compared to 2,210 undeveloped lots and 1,170 finished lots at September 30, 2023.
(2) Single-family rental lots at September 30, 2025 consist of 440 undeveloped lots and 710 finished lots compared to 910 undeveloped lots and 1,000 finished lots at September 30, 2024.
Forestar is a publicly traded residential lot development company with operations in 59 markets across 24 states as of September 30, 2024.
Forestar is a publicly traded residential lot development company with operations in 64 markets across 23 states as of September 30, 2025.
At September 30, 2024, the uncommitted mortgage repurchase facility had a borrowing capacity of $500 million, of which DHI Mortgage had an obligation of $304.5 million at a 6.1% annual interest rate.
At September 30, 2025, DHI Mortgage had an obligation of $1.1 billion under the committed mortgage repurchase facility at a 5.8% annual interest rate. At September 30, 2025, the uncommitted mortgage repurchase facility had a borrowing capacity of $500 million, of which DHI Mortgage had an obligation of $304.8 million at a 5.4% annual interest rate.
Our pre-tax income was $6.3 billion in both fiscal 2024 and 2023, and our pre-tax operating margin was 17.1% compared to 17.8%. Net income was $4.8 billion in both years, and our diluted earnings per share was $14.34 compared to $13.82.
Our pre-tax income was $4.7 billion in fiscal 2025 compared to $6.3 billion in fiscal 2024, and our pre-tax operating margin was 13.8% compared to 17.1%. Net income was $3.6 billion in fiscal 2025 compared to $4.8 billion in fiscal 2024, and our diluted earnings per share were $11.57 compared to $14.34.
Homebuilding ROI is calculated as homebuilding pre-tax income for the year divided by average inventory, where average inventory is the sum of ending homebuilding inventory balances for the trailing five quarters divided by five. ROA is calculated as net income attributable to D.R.
Horton for the year divided by average stockholders’ equity, where average stockholders’ equity is the sum of ending stockholders’ equity balances for the trailing five quarters divided by five. ROA is calculated as net income attributable to D.R.
At September 30, 2023, our rental property inventory of $2.7 billion included $1.3 billion of inventory related to our single-family rental operations and $1.4 billion of inventory related to our multi-family rental operations.
At September 30, 2024, our rental property inventory of $2.9 billion included $800.3 million of inventory related to our single-family rental operations and $2.1 billion of inventory related to our multi-family rental operations.
The region generated pre-tax income of $1.1 billion in 2024 compared to $935.7 million in 2023. Home sales gross profit percentage increased by 30 basis points in 2024 compared to 2023 , primarily due to the average cost of homes closed decreasing by more than the average selling price of those homes .
The region generated pre-tax income of $964.6 million in fiscal 2025 compared to $1.3 billion in fiscal 2024. Home sales gross profit percentage decreased by 220 basis points in fiscal 2025 compared to fiscal 2024, primarily due to the average selling price of homes closed decreasing by more than the average cost of those homes.
Single-family rental homes and lots and multi-family rental units at September 30, 2024 and 2023 consisted of the following: Rental Inventory September 30, 2024 2023 Single-family rental homes (1) 3,140 5,630 Single-family rental lots (2) 1,910 3,380 Multi-family rental units (3) 11,960 9,150 ________________________ (1) Single-family rental homes at September 30, 2024 consist of 340 homes under construction and 2,800 completed homes compared to 1,260 homes under construction and 4,370 completed homes at September 30, 2023.
Single-family rental homes and lots and multi-family rental units at September 30, 2025 and 2024 consisted of the following: Rental Inventory September 30, 2025 2024 Single-family rental homes (1) 1,420 3,140 Single-family rental lots (2) 1,150 1,910 Multi-family rental units (3) 12,480 11,960 _______________ (1) Single-family rental homes at September 30, 2025 consist of 370 homes under construction and 1,050 completed homes compared to 340 homes under construction and 2,800 completed homes at September 30, 2024.
Our deferred tax assets, net of deferred tax liabilities, were $182.4 million at September 30, 2024 compared to $202.0 million at September 30, 2023.
Our deferred tax assets, net of deferred tax liabilities, were $59.1 million at September 30, 2025 compared to $182.4 million at September 30, 2024.
The pre-tax income in fiscal 2024 includes other income of $27.9 million related to a sale of mineral rights. 48 Table of Contents Results of Operations — Consolidated Income before Income Taxes Pre-tax income was $6.3 billion in both fiscal 2024 and 2023.
The pre-tax income in fiscal 2024 includes other income of $27.9 million related to a sale of mineral rights. Results of Operations — Consolidated Income before Income Taxes Pre-tax income was $4.7 billion in fiscal 2025 compared to $6.3 billion in fiscal 2024.
Home sales gross profit percentage decreased by 20 basis points in 2024 compared to 2023, primarily due to the average selling price of homes closed decreasing by more than the average cost of those homes .
Home sales gross profit percentage increased by 70 basis points in fiscal 2025 compared to fiscal 2024, primarily due to the average selling price of homes closed increasing by more than the average cost of those homes.
Lots controlled at September 30, 2023 included approximately 31,400 lots owned by Forestar, 14,400 of which our homebuilding divisions had under contract to purchase and 17,000 of which our homebuilding divisions had a right of first offer to purchase. (4) Approximately 25,700 and 27,000 of our homes in inventory were unsold at September 30, 2024 and 2023, respectively.
Lots controlled at September 30, 2024 included approximately 37,700 lots owned by Forestar, 20,500 of which our homebuilding divisions had under contract to purchase and 17,200 of which our homebuilding divisions had a right of first offer to purchase. (4) Approximately 19,600 and 25,700 of our homes in inventory were unsold at September 30, 2025 and 2024, respectively.
We are prioritizing the purchase of finished lots from Forestar and other land developers when possible. During fiscal 2024, 63% of the homes we closed were on lots developed by either Forestar or a third party. We believe our strong balance sheet and liquidity provide us with the flexibility to operate effectively through changing economic conditions.
During fiscal 2025, 65% of the homes we closed were on lots developed by either Forestar or a third party compared to 63% in fiscal 2024. We believe our strong balance sheet and liquidity provide us with flexibility to operate effectively through changing economic conditions.
A 10% decrease in the claim frequency and the average cost per claim would result in a decrease of approximately $154.6 million in our reserves and a $41.5 million decrease in our insurance receivable, resulting in a reduction in expense of $113.1 million.
A 10% decrease in the claim frequency and the average cost per claim would result in a decrease of approximately $178.0 million in our reserves and a $40.5 million decrease in our insurance receivable, resulting in a reduction in expense of $137.5 million.
In fiscal 2024, our homebuilding, rental, financial services and Forestar businesses generated pre-tax income of $5.5 billion, $228.7 million, $311.2 million and $270.1 million, respectively, compared to $5.3 billion, $524.2 million, $283.3 million and $221.6 million, respectively, in fiscal 2023.
In fiscal 2025, our homebuilding, rental, financial services and Forestar businesses generated pre-tax income of $4.1 billion, $170.0 million, $278.7 million and $219.3 million, respectively, compared to $5.5 billion, $228.7 million, $311.2 million and $270.1 million, respectively, in fiscal 2024.
The annual effective interest rate of these notes after giving effect to the amortization of the discount and financing costs is 5.2%. In October 2024, we repaid $500 million principal amount of our 2.5% senior notes at maturity. The indenture governing our senior notes imposes restrictions on the creation of secured debt and liens.
The annual effective interest rate of these notes after giving effect to the amortization of the discount and financing costs is 5.1%. Interest on our senior notes is payable semi-annually. Redemptions — In October 2024, we repaid $500 million principal amount of our 2.5% senior notes at maturity.
Financial Services: • Financial services revenues increased 10% to $882.5 million compared to $801.5 million. • Financial services pre-tax income increased 10% to $311.2 million compared to $283.3 million. • Financial services pre-tax income was 35.3% of financial services revenues in both years. 34 Table of Contents Results of Operations — Homebuilding Our operating segments are our 88 homebuilding divisions, our rental operations, our majority-owned Forestar residential lot development operations, our financial services operations and our other business activities.
Financial Services: • Financial services revenues decreased 5% to $841.2 million compared to $882.5 million. • Financial services pre-tax income was $278.7 million compared to $311.2 million. • Financial services pre-tax income was 33.1% of financial services revenues compared to 35.3%. 34 Table of Contents Results of Operations — Homebuilding Our operating segments are our 92 homebuilding divisions, our rental operations, our majority-owned Forestar residential lot development operations, our financial services operations and our other business activities.
Homebuilding Operating Margin Analysis Percentages of Related Revenues Year Ended September 30, 2024 2023 Gross profit — home sales 23.5 % 23.5 % Gross profit — land/lot sales and other 31.3 % 47.4 % Inventory and land option charges (0.2) % (0.2) % Gross profit — total homebuilding 23.3 % 23.4 % Selling, general and administrative expense 7.5 % 7.1 % Other (income) expense (0.3) % (0.2) % Homebuilding pre-tax income 16.1 % 16.6 % Home Sales Gross Profit Gross profit from home sales increased to $8.0 billion in 2024 from $7.4 billion in 2023 and was 23.5% of home sales revenues in both years.
Homebuilding Operating Margin Analysis Percentages of Related Revenues Year Ended September 30, 2025 2024 Gross profit — home sales 21.5 % 23.5 % Gross profit — land/lot sales and other 40.0 % 31.3 % Inventory and land option charges (0.5) % (0.2) % Gross profit — total homebuilding 21.1 % 23.3 % Selling, general and administrative expense 8.3 % 7.5 % Other (income) expense (0.3) % (0.3) % Homebuilding pre-tax income 13.1 % 16.1 % Home Sales Gross Profit Gross profit from home sales decreased to $6.8 billion in fiscal 2025 from $8.0 billion in fiscal 2024 and decreased 200 basis points to 21.5% as a percentage of home sales revenues.
In fiscal 2024, the volume of first-lien loans originated or brokered by DHI Mortgage for our homebuyers increased 12%, primarily due to the 8% increase in the number of homes closed by our homebuilding operations, as well as an increase in the percentage of homes closed for which DHI Mortgage handled our homebuyers’ financing.
In fiscal 2025, the volume of first-lien loans originated or brokered by DHI Mortgage for our homebuyers decreased 2%, primarily due to the 5% decrease in the number of homes closed by our homebuilding operations, partially offset by an increase in the percentage of homes closed for which DHI Mortgage handled our homebuyers’ financing.
Horton homes financed by DHI Mortgage 78 % 76 % Loans sold by DHI Mortgage to third parties 70,877 62,350 14 % Year Ended September 30, 2024 2023 % Change (In millions) Loan origination and other fees $ 88.3 $ 71.8 23 % Gains on sale of mortgage loans and mortgage servicing rights 589.9 538.4 10 % Servicing income 3.4 6.1 (44) % Total mortgage operations revenues 681.6 616.3 11 % Title policy premiums 200.9 185.2 8 % Total revenues 882.5 801.5 10 % General and administrative expense 672.4 594.9 13 % Other (income) expense (101.1) (76.7) 32 % Financial services pre-tax income $ 311.2 $ 283.3 10 % Financial Services Operating Margin Analysis Percentages of Financial Services Revenues Year Ended September 30, 2024 2023 General and administrative expense 76.2 % 74.2 % Other (income) expense (11.5) % (9.6) % Financial services pre-tax income 35.3 % 35.3 % 47 Table of Contents Mortgage Loan Activity DHI Mortgage’s primary focus is to originate loans for our homebuilding operations, and those loan originations account for virtually all of its total loan volume.
Horton homes financed by DHI Mortgage 81 % 78 % Total number of loans originated or brokered by DHI Mortgage 68,982 70,693 (2) % Loans sold by DHI Mortgage to third parties 68,529 70,877 (3) % Year Ended September 30, 2025 2024 % Change (In millions) Loan origination and other fees $ 86.2 $ 88.3 (2) % Gains on sale of mortgage loans and mortgage servicing rights 566.3 589.9 (4) % Servicing income 2.8 3.4 (18) % Total mortgage operations revenues 655.3 681.6 (4) % Title policy premiums 185.9 200.9 (7) % Total revenues 841.2 882.5 (5) % General and administrative expense 651.4 672.4 (3) % Other (income) expense (88.9) (101.1) (12) % Financial services pre-tax income $ 278.7 $ 311.2 (10) % Financial Services Operating Margin Analysis Percentages of Financial Services Revenues Year Ended September 30, 2025 2024 General and administrative expense 77.4 % 76.2 % Other (income) expense (10.6) % (11.5) % Financial services pre-tax income 33.1 % 35.3 % 47 Table of Contents Mortgage Loan Activity DHI Mortgage’s primary focus is to originate loans for our homebuilding operations, and those loan originations account for substantially all of its total loan volume.
SG&A expense for fiscal 2024 and 2023 included charges of $5.6 million and $3.8 million, respectively, related to the shared services agreement between Forestar and D.R. Horton whereby D.R.
SG&A expense for fiscal 2025 and 2024 included charges of $7.3 million and $5.6 million, respectively, related to the shared services agreement between Forestar and D.R. Horton whereby D.R. Horton provides Forestar with certain administrative, compliance, operational and procurement services.
Unsecured Debt — As of September 30, 2024, Forestar had $700 million principal amount of senior notes issued pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended, which represent unsecured obligations of Forestar.
Unsecured Debt — As of September 30, 2025, Forestar had $800 million principal amount of senior notes issued pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended, that mature from March 2028 through March 2033 and represent unsecured obligations of Forestar.
The decline in rental revenues and pre-tax income was primarily due to a decrease in the number of single-family homes closed and a decrease in the average selling price of multi-family units closed. 43 Table of Contents At September 30, 2024, our rental property inventory of $2.9 billion included $800.3 million of inventory related to our single-family rental operations and $2.1 billion of inventory related to our multi-family rental operations.
The decline in rental revenues and pre-tax income was primarily due to a decrease in the number and average selling price of single-family rental homes closed, combined with lower gross margins on single-family home and multi-family unit closings. 43 Table of Contents At September 30, 2025, our rental property inventory of $2.7 billion included $378.3 million of inventory related to our single-family rental operations and $2.3 billion of inventory related to our multi-family rental operations.
Our current levels of cash, borrowing capacity and balance sheet leverage provide us with the operational flexibility to adjust to changes in economic and market conditions. We are making investments in our homebuilding and rental inventories to expand our operations and consolidate market share.
Our current levels of cash, borrowing capacity and balance sheet leverage provide us with the operational flexibility to adjust to changes in economic and market conditions. We continue to invest in our homebuilding and rental inventories to expand our operations and consolidate market share. We are also returning capital to shareholders through repurchases of our common stock and dividend payments.
Interest income is earned from the date a mortgage loan is originated until the loan is sold. Mortgage loans are sold with limited recourse provisions, which can result in repurchases of loans previously sold to investors or payments to reimburse investors for loan losses.
Mortgage loans are sold with limited recourse provisions, which can result in repurchases of loans previously sold to investors or payments to reimburse investors for loan losses.
In fiscal 2023, net cash used in financing activities was $2.7 billion, consisting primarily of cash used to repurchase shares of our common stock of $1.2 billion, repayment of $300 million principal amount of our 4.75% homebuilding senior notes and $400 million principal amount of our 5.75% homebuilding senior notes, net payments on our rental revolving credit facility of $400 million and payment of cash dividends totaling $341.2 million.
In fiscal 2025, net cash used in financing activities was $4.8 billion, consisting primarily of cash used to repurchase shares of our common stock of $4.3 billion, repayment of $1.0 billion principal amount of homebuilding senior notes, Forestar’s repayment of $400 million principal amount of senior notes, payment of cash dividends totaling $494.8 million and net payments on our rental revolving credit facility and mortgage repurchase facilities of $145 million and $125.5 million, respectively.
The region generated pre-tax income of $703.5 million in 2024 compared to $489.3 million in 2023. Home sales gross profit percentage increased by 270 basis points in 2024 compared to 2023, primarily due to the average selling price of homes closed increasing while the average cost of those homes decreased.
The region generated pre-tax income of $834.0 million in fiscal 2025 compared to $1.1 billion in fiscal 2024. Home sales gross profit percentage decreased by 310 basis points in fiscal 2025 compared to fiscal 2024, primarily due to the average cost of homes closed increasing while the average selling price of those homes decreased.
(3) Lots controlled at September 30, 2024 included approximately 37,700 lots owned by Forestar, 20,500 of which our homebuilding divisions had under contract to purchase and 17,200 of which our homebuilding divisions had a right of first offer to purchase.
(3) Lots controlled at September 30, 2025 included approximately 40,400 lots owned by Forestar, 22,800 of which our homebuilding divisions had under contract to purchase and 17,600 of which our homebuilding divisions had a right of first offer to purchase.
Horton increased 4% to $14.34 compared to $13.82. • Net cash provided by operations was $2.2 billion compared to $4.3 billion. • Stockholders’ equity was $25.3 billion compared to $22.7 billion. • Book value per common share increased to $78.12 compared to $67.78. • Debt to total capital was 18.9% compared to 18.3%, and net debt to total capital was 5.2% compared to 5.1%.
Horton per diluted share decreased 19% to $11.57 compared to $14.34. • Net cash provided by operations was $3.4 billion compared to $2.2 billion. • Stockholders’ equity was $24.2 billion compared to $25.3 billion. • Book value per share increased to $82.15 compared to $78.12. • Debt to total capital was 19.8% compared to 18.9%, and net debt to total capital was 11.0% compared to 5.2%.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeFiscal Year Ending September 30, Fair Value at September 30, 2024 2025 2026 2027 2028 2029 Thereafter Total ($ in millions) Debt: Fixed rate $ 633.6 $ 910.3 $ 600.4 $ 800.0 $ 17.5 $ 700.0 $ 3,661.8 $ 3,575.5 Average interest rate 3.1 % 3.4 % 1.5 % 3.0 % 6.0 % 5.3 % 3.3 % Variable rate $ 1,533.8 $ — $ — $ 745.0 $ — $ — $ 2,278.8 $ 2,278.8 Average interest rate 6.4 % — % — % 6.9 % — % — % 6.6 % 63 Table of Contents
Biggest changeFiscal Year Ending September 30, Fair Value at September 30, 2025 2026 2027 2028 2029 2030 Thereafter Total ($ in millions) Debt: Fixed rate $ 168.3 $ 604.7 $ 800.0 $ 17.5 $ — $ 2,400.0 $ 3,990.5 $ 4,001.6 Average interest rate 4.9 % 1.5 % 3.0 % 6.0 % — % 5.7 % 4.5 % Variable rate $ 1,408.3 $ — $ 600.0 $ — $ — $ — $ 2,008.3 $ 2,008.3 Average interest rate 5.7 % — % 6.2 % — % — % — % 5.9 % 61 Table of Contents
Hedging instruments related to funded, uncommitted loans are accounted for at fair value, with changes recognized in revenues in the consolidated statements of operations, along with changes in the fair value of the funded, uncommitted loans. The fair value change related to the hedging instruments generally offsets the fair value change in the uncommitted loans.
Hedging instruments related to funded, uncommitted loans are accounted for at fair value, with changes recognized in revenues in the consolidated statements of operations, along with changes in the fair value of the funded, uncommitted loans. The fair value change related to hedging instruments generally offsets the fair value change in the uncommitted loans.
Because the mortgage repurchase facilities are effectively secured by certain mortgage loans held for sale that are typically sold within 60 days, the outstanding balances related to those facilities are included in the most current period presented. The interest rate for our variable rate debt represents the weighted average interest rate in effect at September 30, 2024.
Because the mortgage repurchase facilities are effectively secured by certain mortgage loans held for sale that are typically sold within 60 days, the outstanding balances related to those facilities are included in the most current period presented. The interest rate for our variable rate debt represents the weighted average interest rate in effect at September 30, 2025.
The following table sets forth principal cash flows by scheduled maturity, effective weighted average interest rates and estimated fair value of our debt obligations as of September 30, 2024.
The following table sets forth principal cash flows by scheduled maturity, effective weighted average interest rates and estimated fair value of our debt obligations as of September 30, 2025.
Uncommitted IRLCs totaled a notional amount of approximately $2.0 billion and uncommitted mortgage loans held for sale totaled a notional amount of approximately $1.9 billion at September 30, 2024. We also use hedging instruments as part of a program to offer below market interest rate financing to our homebuyers.
Uncommitted IRLCs totaled a notional amount of approximately $2.0 billion and uncommitted mortgage loans held for sale totaled a notional amount of approximately $2.3 billion at September 30, 2025. We also use hedging instruments as part of a program to offer below market interest rate financing to our homebuyers.
The net fair value change, which for the years ended September 30, 2024 and 2023 was not significant, is recognized in current earnings. At September 30, 2024, hedging instruments used to mitigate interest rate risk related to uncommitted mortgage loans held for sale and uncommitted IRLCs totaled a notional amount of $3.8 billion.
The net fair value change, which for the years ended September 30, 2025 and 2024 was not significant, is recognized in current earnings. At September 30, 2025, hedging instruments used to mitigate interest rate risk related to uncommitted mortgage loans held for sale and uncommitted IRLCs totaled a notional amount of $4.2 billion.
At September 30, 2024 and 2023, we had MBS totaling $637.9 million and $1.1 billion, respectively, that did not yet have IRLCs or closed loans created or assigned and recorded an asset of $2.4 million and $15.7 million, respectively, for the fair value of such MBS position.
At September 30, 2025 and 2024, we had MBS totaling $677.5 million and $637.9 million, respectively, that did not yet have IRLCs or closed loans created or assigned and recorded an asset of $1.9 million and $2.4 million, respectively, for the fair value of such MBS position.