Forestar Group Inc. Earnings Summary — Q1 FY2026

• Revenue increased to $374.3 million in the latest quarter, driven by a surge in tract sales and other revenue which grew to $42.9 million from $4.1 million YoY.
• Net income attributable to the company rose slightly YoY to $32.1 million, despite higher income tax expense and land option charges.
• Land purchase contract deposit and pre-acquisition cost write-offs increased significantly to $6.3 million, compared to $0.9 million in the prior year quarter.
• The capital relationship with D.R. Horton remained critical, with Horton accounting for over 10% of total revenues and maintaining a 62% ownership stake.
• The company strengthened its liquidity position by increasing its revolving credit facility capacity to $715 million, with $672.1 million currently available.
• Real estate investment continues with $67.1 million used in operating activities primarily for real estate asset increases during the first six months.

Management emphasizes a focus on high-volume residential lot manufacturing while maintaining a disciplined approach to land acquisition. The company notes seasonality, where results typically peak in the fourth fiscal quarter.

Improving

Revenue growth is accelerating on a QoQ basis, and the substantial increase in tract sales suggests successful monetization of non-core assets or large-scale project milestones.

Forestar is positioned as a pure-play residential lot manufacturer with an outlook tied closely to D.R. Horton's demand; despite cyclical risks, the company maintains a robust shelf registration for future equity needs.