D.R. Horton Reports Q4 2026 Results and Outlines Strategy Amid High Mortgage Rates
D.R. Horton (DHI) reported fourth-quarter 2026 consolidated pre-tax income of $1 billion on revenues of $9.4 billion. Despite the strong top-line figures, management warned that elevated mortgage rates and cautious consumer sentiment are pressuring gross margins. The company expects home sales gross margins to fall into the 18% to 18.5% range in the first quarter due to increased spending on buyer incentives and rate buydowns. To mitigate cyclical risks, D.R. Horton is employing a 'land-light' model, controlling 77% of its lot supply through contracts rather than outright ownership, which has reduced its owned lot position by 11% year-over-year. The company remains focused on capital returns, having returned $4.1 billion to shareholders in fiscal 2026, and plans to repurchase $3 billion of common stock in fiscal 2027 to support future earnings per share.
Coverage
- Matson expects Q4 2026 operating income about 50% higher amid elevated China freight rates into early 2027
- Douglas Emmett outlines 2026 FFO per share of $1.39-$1.43 as office occupancy backlog remains elevated
- D.R. Horton Reports Q4 2026 Results and Outlines Strategy Amid High Mortgage Rates
- D.R. Horton Reports Q4 2026 Decline in Revenue and EPS Amid Rising Mortgage Rates
- D.R. Horton Projects Fiscal 2027 Revenue Between $30B and $32B Amid Rising Mortgage Rates