Forestar Reports Q2 Revenue of $374.3M, Exceeding Expectations
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."
