D.R. Horton, Inc. (DHI) is listed on NYSE and operates in the Residential Construction industry (Consumer Cyclical sector).
D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 31 states and 98 markets under the names of D.R. Horton, America's Builder, Express Homes, Emerald Homes, and Freedom Homes. The company constructs and sells single-family detached homes; and attached homes, such as town homes, duplexes, and triplexes. It also provides mortgage financing services; and title insurance policies, and examination and closing services, as well as engages in the residential lot development business. In addition, the company develops, constructs, owns, leases, and sells multi-family and single-family rental properties; owns non-residential real estate, including ranch land and improvements; and owns and operates energy related assets. It primarily serves homebuyers. D.R. Horton, Inc. was founded in 1978 and is headquartered in Arlington, Texas.
| Rating | Analysts |
|---|---|
| Strong Buy | 2 |
| Buy | 22 |
| Hold | 25 |
| Sell | 3 |
| Strong Sell | 0 |
D.R. Horton, Inc., founded in 1978 and headquartered in Arlington, Texas, is a prominent homebuilding company operating across the United States. The company is active in the acquisition and development of land, as well as the construction and sale of residential homes in 31 states and 98 markets. It operates under various brand names, including D.R. Horton, America's Builder, Express Homes, Emerald Homes, and Freedom Homes. The company offers a range of housing options, including single-family detached homes and attached homes such as townhomes, duplexes, and triplexes. In addition to homebuilding, D.R. Horton provides mortgage financing services, title insurance, and examination and closing services. The company is also involved in residential lot development and the development, construction, ownership, leasing, and sale of multi-family and single-family rental properties. Furthermore, D.R. Horton owns non-residential real estate, including ranch land, and operates energy-related assets. The company primarily serves homebuyers across various regions, including the East, North, Southeast, South Central, Southwest, and Northwest.
Over the past three fiscal years, the company has faced challenges in maintaining its growth trajectory, with revenue showing an inconsistent decline at a CAGR of -1.7%, dropping from $35.46 billion in 2023 to $34.25 billion in 2025. This revenue contraction was accompanied by a consistent decrease in profitability margins, with the gross margin compressing by 2.7pp to 23.7%, and the operating margin declining by 4.7pp to 12.9%. Despite these pressures, the company managed to maintain positive cash flows, although both operating cash flow (OCF) and free cash flow (FCF) decreased, with FCF falling from $4.16 billion to $3.28 billion. The company's cash conversion ratio (CCR) improved to 0.95, indicating strong cash conversion relative to earnings. Notably, the company reduced its share count by 9.7% through buybacks, enhancing per-share value creation despite the overall earnings per share (EPS) decline from $13.82 to $11.57. The company's net debt position increased significantly, with net debt rising from $1.27 billion to $3.05 billion, reflecting a more leveraged balance sheet. However, the company maintains a robust liquidity position, evidenced by a current ratio of 6.62, and its free cash flow over net debt ratio of 1.08 suggests it can cover its debt obligations comfortably.
D.R. Horton recently reported its Q2 2026 earnings, surpassing profit estimates despite experiencing softer homebuilding revenue. The company's robust margins played a crucial role in offsetting the revenue decline, as highlighted in their earnings release on April 21. This positive earnings surprise was attributed to better order momentum, which has positively impacted the stock performance. Analysts and investors were keenly observing these results, as indicated by the coverage from multiple financial news outlets, including Proactive Investors and Zacks Investment Research. Additionally, Allspring Global Investments Holdings LLC reduced its position in D.R. Horton by selling 406,435 shares, as reported on March 30. This transaction was part of routine portfolio adjustments, with the firm still holding a significant stake in the company. The recent developments underscore D.R. Horton's ability to maintain profitability in a challenging market environment, while also reflecting ongoing institutional interest and adjustments in its stock.