Forestar Reports Q2 Revenue of $374.3M, Exceeding Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy FOR?
Reports Q2 revenue $374.3M, consensus $373.65M. Book value per share increased 10% to $35.66.Chairman of the Board Donald Tomnitz said, "The Forestar team achieved solid Q2 results including a 7% increase in revenues and an 8% increase in pre-tax income. Liquidity increased to $1.0B driven by financial discipline despite ongoing affordability constraints and cautious consumer sentiment that continue to impact the pace of new home sales. We continue to focus on maximizing returns in each of our projects by aligning the pace and price of lot sales with the timing of our investments to meet demand. Based on our fiscal year-to-date results and current market conditions, we are updating our FY26 lot delivery guidance to 14,000-14,500 lots vs. our prior guidance of 14,000-15,000 lots. We maintain our previous FY26 revenue guidance of $1.6B-$1.7B. Forestar is uniquely positioned to consistently supply finished lots that are essential to the homebuilding industry. Our strong balance sheet and liquidity provide flexibility and resilience to navigate 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 $2.2B of contracted future revenue. We remain committed to disciplined capital allocation while positioning Forestar for growth and long-term shareholder value."
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Analyst Views on FOR
Wall Street analysts forecast FOR stock price to rise
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 26.460
Low
26.00
Averages
32.00
High
38.00
Current: 26.460
Low
26.00
Averages
32.00
High
38.00
About FOR
Forestar Group Inc. is a residential lot development company, which is focused on making investments in land acquisition and development to sell finished single-family residential lots to homebuilders. It manages its operations through its real estate segment. Its real estate segment conducts a wide range of project planning and management activities related to the entitlement, acquisition, community development and sale of residential lots. It primarily invests in entitled short-duration projects that can be developed in phases, enables to complete and sell lots at a pace that matches market demand. The Company has diversified its lot development operations across 62 markets in 24 states. Its customers are primarily local, regional and national homebuilders.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
FORESTAR REPORTS USD 32.2 MILLION NET INCOME FOR Q2
- Financial Performance: Forestar reported a net income of USD 32.2 million for the second quarter.
- Quarterly Results: The financial results indicate a strong performance compared to previous quarters.
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FORESTAR Q2 REVENUE REACHES USD 374.3 MILLION, EXCEEDING IBES ESTIMATE OF USD 373.6 MILLION
- ForestAR Q2 Revenue: ForestAR reported a revenue of USD 374.3 million for the second quarter.
- Comparison with Estimates: This figure exceeds the Ibes estimate, which was USD 373.6 million.
See More
Forestar Group Q2 Earnings Announcement Scheduled
- Earnings Release Date: Forestar Group (FOR) is set to announce its Q2 earnings on April 21 before market open, with a consensus EPS estimate of $0.63, reflecting a modest year-over-year increase of 1.6%, indicating slight improvement in profitability.
- Revenue Expectations: The anticipated revenue for Q2 is $373.65 million, representing a 6.5% year-over-year growth, which suggests the company can still achieve revenue growth despite challenges in new home demand, showcasing its market adaptability.
- Historical Performance Review: Over the past two years, Forestar has beaten EPS and revenue estimates 63% of the time, indicating a level of stability and reliability in its financial performance that may bolster investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and two downward adjustments, while revenue estimates experienced two upward and two downward revisions, reflecting market uncertainty regarding the company's future performance.
See More
Forestar Reports Increased Q2 Earnings Amid Revenue Growth
- Earnings Growth: Forestar Group reported net earnings of $32.1 million for Q2, translating to $0.63 per share, which is an increase from $31.6 million and $0.62 per share last year, indicating steady improvement in profitability.
- Revenue Increase: The company achieved quarterly revenue of $374.3 million, up from $351.0 million a year ago, reflecting strong market demand and effective sales strategies.
- Lot Position: As of Q2, Forestar's lot position stood at 94,400 lots, with 63,500 owned and 30,900 controlled through purchase contracts, showcasing the company's robust land development capabilities.
- Future Guidance: The company updated its lot delivery guidance for fiscal 2026 to between 14,000 and 14,500 lots while maintaining revenue guidance of $1.6 billion to $1.7 billion, demonstrating confidence in future market conditions.
See More
Forestar Group Q2 Earnings Highlights
- Earnings Performance: Forestar Group reported Q2 GAAP EPS of $0.63, aligning with expectations, while revenue reached $374.3 million, reflecting a 6.6% year-over-year increase and exceeding estimates by $0.65 million, indicating stable market performance.
- Land Control Status: The company currently owns and controls 94,400 lots, with 24,100 lots contracted for sale, representing an anticipated future revenue of $2.2 billion, showcasing strong demand and sales potential in the real estate market.
- Financial Health: Forestar Group maintains total liquidity of $1.0 billion and a net debt to total capital ratio of 19.2%, demonstrating robust financial management that supports future expansion and investment opportunities.
- Shareholder Returns: For the twelve months ending March 31, 2026, the company achieved a return on equity of 9.6%, with book value per share increasing by 10% to $35.66, reflecting strong shareholder returns and ongoing value creation.
See More
Wall Street Earnings Season Faces Major Test
- Earnings Season Significance: Wall Street is set for a packed earnings season featuring key companies like Capital One and Boeing, with investors eager to glean insights into the economic impact of the Iran war from these reports.
- Capital One Performance Focus: Capital One is scheduled to report earnings on Tuesday, with market attention on its consumer health metrics and the progress of its acquisitions of Discover and Brex, particularly amid rising economic uncertainties.
- Boeing Earnings Outlook: Boeing is expected to release its earnings report on Wednesday, with market focus on order volumes in both its commercial and defense sectors, as well as free cash flow performance, especially after previous unexpected losses.
- GE Vernova Order Growth: GE Vernova will report alongside Boeing, with first-quarter new orders anticipated to reach $14.4 billion, reflecting a 65% year-over-year increase, indicating strong market performance amid rising electricity demand.
See More
FORESTAR REPORTS USD 32.2 MILLION NET INCOME FOR Q2
- Financial Performance: Forestar reported a net income of USD 32.2 million for the second quarter.
- Quarterly Results: The financial results indicate a strong performance compared to previous quarters.
See More
FORESTAR Q2 REVENUE REACHES USD 374.3 MILLION, EXCEEDING IBES ESTIMATE OF USD 373.6 MILLION
- ForestAR Q2 Revenue: ForestAR reported a revenue of USD 374.3 million for the second quarter.
- Comparison with Estimates: This figure exceeds the Ibes estimate, which was USD 373.6 million.
See More
Forestar Group Q2 Earnings Announcement Scheduled
- Earnings Release Date: Forestar Group (FOR) is set to announce its Q2 earnings on April 21 before market open, with a consensus EPS estimate of $0.63, reflecting a modest year-over-year increase of 1.6%, indicating slight improvement in profitability.
- Revenue Expectations: The anticipated revenue for Q2 is $373.65 million, representing a 6.5% year-over-year growth, which suggests the company can still achieve revenue growth despite challenges in new home demand, showcasing its market adaptability.
- Historical Performance Review: Over the past two years, Forestar has beaten EPS and revenue estimates 63% of the time, indicating a level of stability and reliability in its financial performance that may bolster investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and two downward adjustments, while revenue estimates experienced two upward and two downward revisions, reflecting market uncertainty regarding the company's future performance.
See More
Forestar Reports Increased Q2 Earnings Amid Revenue Growth
- Earnings Growth: Forestar Group reported net earnings of $32.1 million for Q2, translating to $0.63 per share, which is an increase from $31.6 million and $0.62 per share last year, indicating steady improvement in profitability.
- Revenue Increase: The company achieved quarterly revenue of $374.3 million, up from $351.0 million a year ago, reflecting strong market demand and effective sales strategies.
- Lot Position: As of Q2, Forestar's lot position stood at 94,400 lots, with 63,500 owned and 30,900 controlled through purchase contracts, showcasing the company's robust land development capabilities.
- Future Guidance: The company updated its lot delivery guidance for fiscal 2026 to between 14,000 and 14,500 lots while maintaining revenue guidance of $1.6 billion to $1.7 billion, demonstrating confidence in future market conditions.
See More
Forestar Group Q2 Earnings Highlights
- Earnings Performance: Forestar Group reported Q2 GAAP EPS of $0.63, aligning with expectations, while revenue reached $374.3 million, reflecting a 6.6% year-over-year increase and exceeding estimates by $0.65 million, indicating stable market performance.
- Land Control Status: The company currently owns and controls 94,400 lots, with 24,100 lots contracted for sale, representing an anticipated future revenue of $2.2 billion, showcasing strong demand and sales potential in the real estate market.
- Financial Health: Forestar Group maintains total liquidity of $1.0 billion and a net debt to total capital ratio of 19.2%, demonstrating robust financial management that supports future expansion and investment opportunities.
- Shareholder Returns: For the twelve months ending March 31, 2026, the company achieved a return on equity of 9.6%, with book value per share increasing by 10% to $35.66, reflecting strong shareholder returns and ongoing value creation.
See More
Wall Street Earnings Season Faces Major Test
- Earnings Season Significance: Wall Street is set for a packed earnings season featuring key companies like Capital One and Boeing, with investors eager to glean insights into the economic impact of the Iran war from these reports.
- Capital One Performance Focus: Capital One is scheduled to report earnings on Tuesday, with market attention on its consumer health metrics and the progress of its acquisitions of Discover and Brex, particularly amid rising economic uncertainties.
- Boeing Earnings Outlook: Boeing is expected to release its earnings report on Wednesday, with market focus on order volumes in both its commercial and defense sectors, as well as free cash flow performance, especially after previous unexpected losses.
- GE Vernova Order Growth: GE Vernova will report alongside Boeing, with first-quarter new orders anticipated to reach $14.4 billion, reflecting a 65% year-over-year increase, indicating strong market performance amid rising electricity demand.
See More
