Forestar Reports Fourth Quarter and Fiscal 2025 Results
Fiscal 2025 Fourth Quarter Highlights
All comparisons are year-over-year
-
Net income increased
7% to$87.0 million $1.70 -
Pre-tax income increased
4% to$113.1 million 16.9% -
Consolidated revenues increased
22% to$670.5 million
Fiscal 2025 Highlights
All comparisons are year-over-year
-
Net income totaled
$167.9 million $3.29 -
Pre-tax income of
$219.3 million 13.2% -
Consolidated revenues increased
10% to$1.7 billion - Owned and controlled 99,800 lots at September 30, 2025
-
Lots contracted for sale increased
13% to 23,800 lots at September 30, 2025 -
Real estate of
$2.6 billion -
Return on equity of
10.1% -
Book value per share increased
11% to$34.78 -
Net debt to total capital ratio of
19.3% , with total liquidity of$968.1 million
Financial Results
Net income for the fourth quarter of fiscal 2025 increased
Net income for the fiscal year ended September 30, 2025 decreased
The Company’s return on equity was
Operational Results
Lots sold during the fourth quarter decreased
Lots sold during fiscal 2025 decreased
The Company’s lot position at September 30, 2025 was 99,800 lots, of which 65,100 were owned and 34,700 were controlled through land and lot purchase contracts. Lots owned at September 30, 2025 included 8,900 that were fully developed. Of the Company’s owned lot position at September 30, 2025, 23,800 lots, or
Capital Structure, Leverage and Liquidity
Forestar ended the fiscal year with
Outlook
Donald J. Tomnitz, Chairman of the Board, said, “The Forestar team finished the year with a strong fourth quarter, demonstrating demand for finished lots is solid despite the continued impact of ongoing affordability constraints and cautious consumer sentiment on new home demand. We delivered over 14,200 finished lots in fiscal 2025, and our revenues exceeded the high end of our most recent guidance range.
“Over the last five years, Forestar invested more than
“As we look forward to fiscal 2026, we currently expect to deliver between 14,000 and 15,000 lots, generating
Tomnitz concluded, “Forestar is uniquely positioned to consistently supply finished lots that are essential to the homebuilding industry. Our strong balance sheet and liquidity allow us to remain agile and resilient through changing market conditions. We expect to continue aggregating market share, supported by our financial strength, substantial operating platform, strategic relationship with D.R. Horton and
Conference Call and Webcast Details
The Company will host a conference call today (Tuesday, October 28) at 11:00 a.m. Eastern Time. The dial-in number is 888-506-0062, the entry code is 756007, and the call will also be webcast from the Company’s website at investor.forestar.com.
First Quarter Conference Call
The Company plans to release financial results for its first quarter ended December 31, 2025 on January 20, 2026 before the market opens. The Company will host a conference call that morning at 11:00 a.m. Eastern Time. Details on how to access the conference call will be available at a later date.
About Forestar Group Inc.
Forestar Group Inc. is a residential lot development company with operations in 64 markets and 23 states. Based in
Forward-Looking Statements
Portions of this document may constitute “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Although Forestar believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to Forestar on the date this release was issued. Forestar does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements in this release include we currently expect to deliver between 14,000 and 15,000 lots, generating
Factors that may cause the actual results to be materially different from the future results expressed by the forward-looking statements include, but are not limited to: the effect of D.R. Horton’s controlling level of ownership on us and the holders of our securities; our ability to realize the potential benefits of the strategic relationship with D.R. Horton; the effect of our strategic relationship with D.R. Horton on our ability to maintain relationships with our customers; the cyclical nature of the homebuilding and lot development industries and changes in economic, real estate and other conditions; the impact of significant inflation, higher interest rates or deflation; supply shortages and other risks of acquiring land, construction materials and skilled labor; the effects of public health issues such as a major epidemic or pandemic on the economy and our business; the impacts of weather conditions and natural disasters; health and safety incidents relating to our operations; our ability to obtain or the availability of surety bonds to secure our performance related to construction and development activities and the pricing of bonds; the effects of information technology failures, cybersecurity incidents, and the failure to satisfy privacy and data protection laws and regulations; the impact of governmental policies, laws or regulations and actions or restrictions of regulatory agencies; the effects of changes in income tax and securities law; our ability to achieve our strategic initiatives; continuing liabilities related to assets that have been sold; the cost and availability of property suitable for residential lot development; general economic, market or business conditions where our real estate activities are concentrated; our dependence on relationships with national, regional and local homebuilders; competitive conditions in our industry; obtaining reimbursements and other payments from governmental districts and other agencies and timing of such payments; our ability to succeed in new markets; the conditions of the capital markets and our ability to raise capital to fund expected growth; our ability to manage and service our debt and comply with our debt covenants, restrictions and limitations; the volatility of the market price and trading volume of our common stock; and our ability to hire and retain key personnel. Additional information about issues that could lead to material changes in performance is contained in Forestar’s annual report on Form 10-K and its most recent quarterly report on Form 10-Q, both of which are or will be filed with the Securities and Exchange Commission.
FORESTAR GROUP INC. Consolidated Balance Sheets (Unaudited) |
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September 30, |
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|
|
2025 |
|
|
2024 |
|
(In millions, except share data) |
||||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
379.2 |
|
$ |
481.2 |
Real estate |
|
2,645.1 |
|
|
2,266.2 |
Investment in unconsolidated ventures |
|
— |
|
|
0.3 |
Property and equipment, net |
|
8.1 |
|
|
7.1 |
Other assets |
|
104.6 |
|
|
85.3 |
Total assets |
$ |
3,137.0 |
|
$ |
2,840.1 |
LIABILITIES |
|
|
|
||
Accounts payable |
$ |
71.0 |
|
$ |
85.9 |
Accrued development costs |
|
131.8 |
|
|
144.6 |
Earnest money on sales contracts |
|
193.3 |
|
|
172.3 |
Deferred tax liability, net |
|
86.2 |
|
|
67.5 |
Accrued expenses and other liabilities |
|
83.1 |
|
|
68.3 |
Debt |
|
802.7 |
|
|
706.4 |
Total liabilities |
|
1,368.1 |
|
|
1,245.0 |
EQUITY |
|
|
|
||
Common stock, par value |
|
50.8 |
|
|
50.7 |
Additional paid-in capital |
|
671.0 |
|
|
665.2 |
Retained earnings |
|
1,046.1 |
|
|
878.2 |
Stockholders' equity |
|
1,767.9 |
|
|
1,594.1 |
Noncontrolling interests |
|
1.0 |
|
|
1.0 |
Total equity |
|
1,768.9 |
|
|
1,595.1 |
Total liabilities and equity |
$ |
3,137.0 |
|
$ |
2,840.1 |
FORESTAR GROUP INC. Consolidated Statements of Operations (Unaudited) |
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|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
(In millions, except per share amounts) |
||||||||||||||
Revenues |
$ |
670.5 |
|
|
$ |
551.4 |
|
|
$ |
1,662.4 |
|
|
$ |
1,509.4 |
|
Cost of sales |
|
520.8 |
|
|
|
419.5 |
|
|
|
1,298.9 |
|
|
|
1,150.1 |
|
Selling, general and administrative expense |
|
42.7 |
|
|
|
32.0 |
|
|
|
154.4 |
|
|
|
118.5 |
|
Equity in earnings of unconsolidated ventures |
|
— |
|
|
|
— |
|
|
|
(0.6 |
) |
|
|
— |
|
Gain on sale of assets |
|
(4.5 |
) |
|
|
(4.5 |
) |
|
|
(4.5 |
) |
|
|
(9.5 |
) |
Interest and other income |
|
(1.7 |
) |
|
|
(4.1 |
) |
|
|
(6.3 |
) |
|
|
(19.8 |
) |
Loss on extinguishment of debt |
|
0.1 |
|
|
|
— |
|
|
|
1.2 |
|
|
|
— |
|
Income before income taxes |
|
113.1 |
|
|
|
108.5 |
|
|
|
219.3 |
|
|
|
270.1 |
|
Income tax expense |
|
26.1 |
|
|
|
26.9 |
|
|
|
51.4 |
|
|
|
66.7 |
|
Net income |
$ |
87.0 |
|
|
$ |
81.6 |
|
|
$ |
167.9 |
|
|
$ |
203.4 |
|
|
|
|
|
|
|
|
|
||||||||
Basic net income per common share |
$ |
1.71 |
|
|
$ |
1.61 |
|
|
$ |
3.30 |
|
|
$ |
4.03 |
|
Weighted average number of common shares |
|
50.9 |
|
|
|
50.7 |
|
|
|
50.9 |
|
|
|
50.4 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted net income per common share |
$ |
1.70 |
|
|
$ |
1.60 |
|
|
$ |
3.29 |
|
|
$ |
4.00 |
|
Adjusted weighted average number of common shares |
|
51.1 |
|
|
|
51.0 |
|
|
|
51.1 |
|
|
|
50.8 |
|
FORESTAR GROUP INC. Revenues, Residential Lots Sold and Lot Position |
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|
REVENUES |
||||||||||
|
Three Months Ended September 30, |
|
Year Ended September 30, |
||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
(In millions) |
||||||||||
Residential lot sales: |
|
|
|
|
|
|
|
||||
Development projects |
$ |
546.4 |
|
$ |
496.4 |
|
$ |
1,499.8 |
|
$ |
1,418.5 |
Lot banking projects |
|
19.4 |
|
|
26.8 |
|
|
43.4 |
|
|
37.9 |
Decrease in contract liabilities |
|
1.3 |
|
|
0.3 |
|
|
1.1 |
|
|
2.9 |
|
|
567.1 |
|
|
523.5 |
|
|
1,544.3 |
|
|
1,459.3 |
Deferred development projects |
|
— |
|
|
4.5 |
|
|
— |
|
|
8.1 |
|
|
567.1 |
|
|
528.0 |
|
|
1,544.3 |
|
|
1,467.4 |
Tract sales and other |
|
103.4 |
|
|
23.4 |
|
|
118.1 |
|
|
42.0 |
Total revenues |
$ |
670.5 |
|
$ |
551.4 |
|
$ |
1,662.4 |
|
$ |
1,509.4 |
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
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|
RESIDENTIAL LOTS SOLD |
||||||||||
|
Three Months Ended September 30, |
|
Year Ended September 30, |
||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
Development projects |
|
4,743 |
|
|
5,176 |
|
|
13,892 |
|
|
14,769 |
Lot banking projects |
|
148 |
|
|
198 |
|
|
348 |
|
|
299 |
|
|
4,891 |
|
|
5,374 |
|
|
14,240 |
|
|
15,068 |
|
|
|
|
|
|
|
|
||||
Average sales price per lot (1) |
$ |
115,700 |
|
$ |
97,300 |
|
$ |
108,400 |
|
$ |
96,600 |
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
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LOT POSITION |
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|
|
|
|
|
September 30, |
||||||
|
|
|
|
|
|
2025 |
|
|
2024 |
||
Lots owned |
|
|
65,100 |
|
|
57,800 |
|||||
Lots controlled under land and lot purchase contracts |
|
|
34,700 |
|
|
37,300 |
|||||
Total lots owned and controlled |
|
|
99,800 |
|
|
95,100 |
|||||
|
|
|
|
|
|
|
|
||||
Owned lots under contract to sell to D.R. Horton |
|
|
22,800 |
|
|
20,500 |
|||||
Owned lots under contract to customers other than D.R. Horton |
|
|
1,000 |
|
|
500 |
|||||
Total owned lots under contract |
|
|
23,800 |
|
|
21,000 |
|||||
|
|
|
|
|
|
|
|
||||
Owned lots subject to right of first offer with D.R. Horton based on executed purchase and sale agreements |
|
|
17,600 |
|
|
17,200 |
|||||
Owned lots fully developed |
|
|
8,900 |
|
|
6,300 |
|||||
_____________ |
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(1) Excludes any impact from change in contract liabilities. |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20251028349486/en/
Chris Hibbetts, 817-769-1860
Vice President of Finance & Investor Relations
InvestorRelations@forestar.com
Source: Forestar Group Inc.
