Forestar Reports Fiscal 2026 Fourth Quarter Results Amidst Mortgage Rate Pressures
Forestar (FOR) reported its fiscal 2026 fourth-quarter results, characterized by a decline in revenue and net income compared to the previous year. Consolidated Q4 revenue fell 13% to $580.8 million, while full-year net income decreased 15% to $142.6 million. Despite these declines, the company saw an increase in average sales price per lot for the full year and managed to grow its book value per share by 8%. Management attributed the softened performance to higher mortgage interest rates and ongoing affordability constraints affecting homebuyer demand. To mitigate these headwinds, Forestar is focusing on shortening cycle times and prioritizing investments in undersupplied markets with faster turnover. The company maintains a strong liquidity position of $1.3 billion and enters fiscal 2027 with a significant contracted backlog expected to generate $2.2 billion in future revenue.
Tickers: $FOR
Topics: Gross Profit Margin Net Income Residential Lots Sold Revenue