D.R. Horton, Inc. (DHI) Bundle
A Brief History of D.R. Horton, Inc.
D.R. Horton, Inc. (NYSE:DHI), known as America’s Builder, has established itself as the largest homebuilder by volume in the United States since 2002. The company has closed more than 1.1 million homes throughout its 46-year history and operates in 125 markets across 36 states.
Financial Performance Overview (Fiscal Year 2024)
For the fiscal year ended September 30, 2024, D.R. Horton reported:
| Metric | Value (in millions) |
|---|---|
| Consolidated Revenues | $36,801.4 |
| Net Income | $4,806.0 |
| Earnings Per Share (Diluted) | $14.34 |
| Cash Provided by Operations | $2,239.0 |
| Total Assets | $36,104.3 |
| Debt to Total Capital Ratio | 18.9% |
| Return on Equity (ROE) | 19.9% |
| Homebuilding Pre-tax Return on Inventory (ROI) | 27.8% |
Homebuilding Operations
In fiscal year 2024, D.R. Horton achieved the following in its homebuilding segment:
| Metric | Value |
|---|---|
| Homes Closed | 89,690 |
| Homebuilding Revenue | $34,000.0 million |
| Pre-tax Income | $5,500.0 million |
| Pre-tax Profit Margin | 16.1% |
| Net Sales Orders | 86,561 |
| Sales Order Backlog | 12,180 homes |
Rental Operations
In fiscal year 2024, D.R. Horton's rental operations produced:
| Metric | Value (in millions) |
|---|---|
| Rental Revenue | $1,685.1 |
| Pre-tax Income from Rentals | $228.7 |
| Single-Family Rental Homes Sold | 3,970 |
| Multi-Family Rental Units Sold | 2,202 |
Market Position and Strategy
D.R. Horton continues to adapt to market conditions with a focus on affordable housing. As of September 30, 2024, the company had:
| Inventory | Value (in millions) |
|---|---|
| Homes in Inventory | 37,400 |
| Completed Unsold Homes | 10,300 |
| Land and Lot Portfolio | 632,900 lots |
The company’s financial flexibility is highlighted by a consolidated cash balance of $4.5 billion and available credit facilities of $3.1 billion, providing a total liquidity of $7.6 billion.
A Who Owns D.R. Horton, Inc. (DHI)
Major Shareholders
As of 2024, D.R. Horton, Inc. (DHI) has a diverse shareholder base that includes institutional investors, mutual funds, and individual shareholders. The largest shareholders are as follows:
| Shareholder | Shares Owned (millions) | Percentage Ownership (%) |
|---|---|---|
| Vanguard Group, Inc. | 35.2 | 10.9 |
| BlackRock, Inc. | 34.7 | 10.7 |
| State Street Corporation | 22.0 | 6.8 |
| FMR LLC (Fidelity) | 18.5 | 5.7 |
| Invesco Ltd. | 15.3 | 4.7 |
| Individual Investors | 198.3 | 61.2 |
Executive Ownership
Executive officers and directors also hold significant shares in D.R. Horton. Their ownership is as follows:
| Name | Position | Shares Owned (millions) | Percentage Ownership (%) |
|---|---|---|---|
| D. R. Horton | Founder & Executive Chairman | 5.0 | 1.5 |
| David Auld | President & CEO | 1.5 | 0.5 |
| Bill Wheat | CFO | 1.2 | 0.4 |
| Other Executives | N/A | 2.0 | 0.6 |
Shareholder Structure
The shareholder structure of D.R. Horton can be categorized as follows:
| Type of Shareholder | Percentage Ownership (%) |
|---|---|
| Institutional Investors | 44.5 |
| Individual Investors | 61.2 |
| Insider Ownership | 2.5 |
Stock Performance and Market Capitalization
As of the end of September 2024, D.R. Horton had a market capitalization of approximately $45.3 billion, with stock trading at around $140.00 per share. The stock has performed well, reflecting strong financial results and growth in the homebuilding sector.
Recent Financial Highlights
For the fiscal year ended September 30, 2024, D.R. Horton reported:
- Net income of $4.8 billion, a 4% increase from the previous year.
- Earnings per diluted share of $14.34, up from $13.82 in fiscal 2023.
- Consolidated revenues of $36.8 billion, representing a 4% growth year-over-year.
The company's strong financial position has allowed it to return significant capital to shareholders through dividends and stock repurchases, totaling $1.8 billion in buybacks and $395.2 million in dividends during fiscal 2024.
D.R. Horton, Inc. (DHI) Mission Statement
D.R. Horton, Inc. (NYSE: DHI) emphasizes its commitment to quality, integrity, and value in its mission statement. The company aims to be the most successful homebuilder in the United States by focusing on customer satisfaction and delivering high-quality homes. D.R. Horton strives to offer a diverse range of home styles and price points to meet the needs of all buyers, thereby enhancing the American Dream of homeownership.
Financial Overview
For the fiscal year ending September 30, 2024, D.R. Horton reported significant financial metrics:
| Metric | Q4 FY2024 | FY2024 | FY2023 |
|---|---|---|---|
| Net Income | $1.3 billion | $4.8 billion | $4.7 billion |
| Earnings per Diluted Share | $3.92 | $14.34 | $13.82 |
| Consolidated Revenues | $10.0 billion | $36.8 billion | $35.5 billion |
| Home Sales Revenue | $8.9 billion | $33.9 billion | $31.6 billion |
| Homes Closed | 23,647 | 89,690 | 82,917 |
| Pre-Tax Income | $1.7 billion | $6.3 billion | $6.3 billion |
| Pre-Tax Profit Margin | 17.1% | 17.1% | 17.8% |
| Cash Provided by Operations | $2.2 billion | $2.2 billion | $4.3 billion |
| Debt to Total Capital Ratio | 18.9% | 18.9% | 19.5% |
| Return on Equity (ROE) | 19.9% | 19.5% |
Market Position and Strategy
D.R. Horton maintains its position as the largest homebuilder in the United States, with operations in 125 markets across 36 states. The company focuses on building affordable homes, which aligns with its mission to cater to a broad spectrum of buyers. The strategic initiatives include:
- Enhancing customer experience through quality service and product offerings.
- Utilizing cost-effective building practices to maintain competitive pricing.
- Investing in innovative technologies to streamline construction processes.
- Expanding its land and lot portfolio to ensure sustainable growth.
Inventory and Land Position
As of September 30, 2024, D.R. Horton reported the following inventory metrics:
| Category | Homes in Inventory | Lots Owned | Lots Controlled | Total Lots |
|---|---|---|---|---|
| Unsold Homes | 25,700 | |||
| Completed Homes | 10,300 | |||
| Land/Lots Owned | 152,500 | 480,400 | 632,900 |
The company’s land and lot position at the end of fiscal year 2024 reflects a strategic focus on maintaining a robust supply chain for future homebuilding projects.
Conclusion on Financial Performance
D.R. Horton’s financial performance reflects its commitment to delivering value to shareholders while executing its mission to build high-quality homes. The company’s ability to generate significant cash flow, maintain low debt levels, and deliver consistent returns positions it favorably for future growth.
In alignment with its mission, D.R. Horton continues to focus on customer satisfaction, operational excellence, and community engagement, laying the groundwork for long-term success in the residential construction market.
How D.R. Horton, Inc. (DHI) Works
Overview and Market Position
D.R. Horton, Inc. (NYSE:DHI) is recognized as America’s Builder and has been the largest homebuilder by volume in the United States since 2002. As of September 30, 2024, the company operates in 125 markets across 36 states, focusing on the construction and sale of high-quality homes with sales prices generally ranging from $200,000 to over $1,000,000.
Financial Performance
For the fiscal year ended September 30, 2024, D.R. Horton reported the following financial metrics:
| Metric | 2024 | 2023 |
|---|---|---|
| Consolidated Revenues | $36.8 billion | $35.5 billion |
| Net Income | $4.8 billion | $4.7 billion |
| Earnings per Diluted Share | $14.34 | $13.82 |
| Pre-tax Income | $6.3 billion | $6.3 billion |
| Pre-tax Profit Margin | 17.1% | 17.8% |
| Return on Equity (ROE) | 19.9% | 19.5% |
| Debt to Total Capital | 18.9% | 20.5% |
Homebuilding Operations
In fiscal 2024, D.R. Horton closed 89,690 homes, reflecting an 8% increase from 82,917 homes in the previous year. The homebuilding revenue for the fiscal year was $34.0 billion, up from $31.7 billion in fiscal 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Homes Closed | 89,690 | 82,917 |
| Homebuilding Revenue | $34.0 billion | $31.7 billion |
| Net Sales Orders | 86,561 | 78,342 |
| Cancellation Rate | 18% | 20% |
| Homes in Inventory | 37,400 | 35,000 |
Rental Operations
D.R. Horton also engages in rental operations, which generated $1.7 billion in revenues for fiscal 2024. The company sold 3,970 single-family rental homes for $1.2 billion during the year.
| Metric | 2024 | 2023 |
|---|---|---|
| Rental Revenues | $1.7 billion | $2.6 billion |
| Pre-tax Income from Rentals | $228.7 million | $524.2 million |
| Single-family Homes Sold | 3,970 | 6,175 |
| Multi-family Units Sold | 2,202 | 2,112 |
Cash Flow and Capital Returns
In fiscal 2024, D.R. Horton generated $2.2 billion in cash flow from operations and returned all generated cash to shareholders through share repurchases and dividends. The company repurchased $1.8 billion of common stock, reducing the outstanding share count by 3%.
| Metric | 2024 |
|---|---|
| Cash Flow from Operations | $2.2 billion |
| Total Dividends Paid | $395.2 million |
| Share Repurchases | $1.8 billion |
| Quarterly Dividend Per Share | $0.40 |
Market Outlook
D.R. Horton anticipates continued demand for housing despite affordability challenges and competitive market conditions. The company is focusing on smaller floor plans and using incentives such as mortgage rate buydowns to stimulate demand.
| Guidance for Fiscal 2025 | Expected Value |
|---|---|
| Consolidated Revenues | $36.0 billion to $37.5 billion |
| Homes Closed | 90,000 to 92,000 |
| Share Repurchases | $2.4 billion |
| Dividend Payments | $500 million |
How D.R. Horton, Inc. (DHI) Makes Money
Homebuilding Operations
D.R. Horton generates a substantial portion of its revenue through homebuilding operations. For the fiscal year ended September 30, 2024, homebuilding revenue increased by 7% to $34.0 billion, compared to $31.7 billion in the previous year. The company closed 89,690 homes during this period, up from 82,917 homes in fiscal 2023.
In the fourth quarter of fiscal 2024, homebuilding revenue was $9.0 billion, reflecting a 2% increase from $8.8 billion in Q4 2023. Homes closed in the fourth quarter rose by 3% to 23,647 homes compared to 22,928 homes in the same quarter of the previous year. The pre-tax income from homebuilding operations for the fiscal year was $5.5 billion, with a pre-tax profit margin of 16.1%.
| Metric | Fiscal Year 2024 | Fiscal Year 2023 |
|---|---|---|
| Homebuilding Revenue | $34.0 billion | $31.7 billion |
| Homes Closed | 89,690 | 82,917 |
| Pre-tax Income | $5.5 billion | $5.3 billion |
| Pre-tax Profit Margin | 16.1% | 16.6% |
Rental Operations
D.R. Horton also earns income through its rental operations. For the fiscal year ended September 30, 2024, rental operations generated $1.7 billion in revenues, down from $2.6 billion in fiscal 2023. The pre-tax income from rental operations was $228.7 million, compared to $524.2 million in the prior year.
In the fourth quarter of fiscal 2024, rental revenues totaled $704.8 million, with pre-tax income of $99.9 million. The company sold 3,970 single-family rental homes for $1.2 billion during the fiscal year, a decrease from 6,175 homes sold for $2.0 billion in fiscal 2023.
| Metric | Fiscal Year 2024 | Fiscal Year 2023 |
|---|---|---|
| Rental Revenue | $1.7 billion | $2.6 billion |
| Pre-tax Income | $228.7 million | $524.2 million |
| Homes Sold | 3,970 | 6,175 |
| Revenue from Homes Sold | $1.2 billion | $2.0 billion |
Forestar Group Inc.
D.R. Horton is the majority owner of Forestar Group Inc., which contributes to its revenue through the sale of residential lots. In the fourth quarter of fiscal 2024, Forestar sold 5,374 lots, generating $551.4 million in revenue, slightly up from $549.7 million in Q4 2023. For the fiscal year, Forestar sold 15,068 lots for $1.5 billion, compared to 14,040 lots for $1.4 billion in fiscal 2023.
Forestar's pre-tax income for the fourth quarter was $108.5 million with a profit margin of 19.7%, reflecting an increase from $95.4 million and a 17.4% profit margin in the same quarter of the previous year.
| Metric | Fiscal Year 2024 | Fiscal Year 2023 |
|---|---|---|
| Lots Sold | 15,068 | 14,040 |
| Revenue from Lots Sold | $1.5 billion | $1.4 billion |
| Pre-tax Income | $270.1 million | $221.6 million |
| Pre-tax Profit Margin | 17.9% | 15.4% |
Financial Services
D.R. Horton provides financial services, including mortgage financing, title services, and insurance. For the fiscal year ended September 30, 2024, the financial services segment generated $882.5 million in revenue, compared to $801.5 million in fiscal 2023. The pre-tax income for this segment was $311.2 million, with a profit margin of 35.3%.
In the fourth quarter of fiscal 2024, financial services revenue was $222.0 million with pre-tax income of $75.9 million.
| Metric | Fiscal Year 2024 | Fiscal Year 2023 |
|---|---|---|
| Financial Services Revenue | $882.5 million | $801.5 million |
| Pre-tax Income | $311.2 million | $283.3 million |
| Pre-tax Profit Margin | 35.3% | 35.3% |
Financial Performance Overview
In summary, D.R. Horton reported consolidated revenues of $36.8 billion for the fiscal year ended September 30, 2024, with a consolidated pre-tax income of $6.3 billion and a pre-tax profit margin of 17.1%. The company’s net cash provided by operations was $2.2 billion, and its return on equity was 19.9%.
The company maintains a strong liquidity position with a cash balance of $4.5 billion and total liquidity of $7.6 billion as of September 30, 2024.
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Article updated on 8 Nov 2024
Resources:
- D.R. Horton, Inc. (DHI) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of D.R. Horton, Inc. (DHI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View D.R. Horton, Inc. (DHI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.