DHI Stock Recent News

DHI's lowered FY2025 guidance has played out as discussed in our last article, attributed to the impacted consumer demand and uncertain macroeconomic headwinds. With borrowing costs still elevated, it goes without saying that the homebuilding sector is likely to remain impacted in the intermediate term, DHI included. Even so, it is undeniable that DHI is cheap compared to our fair value estimates, with the recent meltdown already triggering rich double digit upside potential.

Despite weak housing numbers and downward revisions in revenue and home closings in the short-term, D.R. Horton's long-term prospects remain good. DHI's capital allocation strategy includes significant share repurchases and dividends, indicating a commitment to returning value to shareholders. Gross margins were better than expected, while management is focused on balancing growth with consistent cash flows and returns to shareholders.

I track 50 high-quality dividend growth stocks to identify opportune investments, updating valuation ratings daily to focus on attractive opportunities. Despite a market sell-off, my investable universe outperformed SPY and SCHD year-to-date, with a loss of -1.83% compared to -5.49% and -4.64%. This month, 17 stocks had valuation rating changes; 10 were upgrades, including Jack Henry & Associates, West Pharma, and EOG Resources, all with strong expected returns.

D.R. Horton's revenues and margins are declining, but the impact on EPS is being mitigated by an increase in buybacks. The strong balance sheet with a 1.1x debt-to-net income ratio allows the company to issue debt at a 4.85% rate and buy back stocks at a 9% yield. The housing market slowdown is affecting all the major homebuilders, but D.R. Horton's pricing strategy might help to navigate the situation.

ARLINGTON, Texas--(BUSINESS WIRE)---- $DHI--D.R. Horton announced that it has priced $500 million of 4.850% senior notes due 2030.

RICHMOND, Va.--(BUSINESS WIRE)--Kent Farms Holding Company (“KFHC”), the developer and property owner, Preston Hollow Community Capital (“PHCC”), the capital provider, and D.R. Horton, Inc. (“D.R. Horton”), the purchaser, are pleased to announce the execution of a purchase and sale agreement for 45 townhomes to be built by D.R. Horton at The Arbors within the Farms of New Kent community. Site development is expected to begin in the coming months, pending final permitting approvals. Townhome sal.

D.R. Horton (DHI) on Thursday became the latest homebuilder to raise concerns about the housing market as it fell short of estimates.

D.R. Horton, Inc. (NYSE:DHI ) Q2 2025 Earnings Conference Call April 17, 2025 8:30 AM ET Company Participants Jessica Hansen - SVP, Communications Paul Romanowski - President and CEO Michael Murray - EVP and COO Bill Wheat - EVP and CFO Conference Call Participants Stephen Kim - Evercore ISI John Lovallo - UBS Alan Ratner - Zelman & Associates Carl Reichardt - BTIG Sam Reid - Wells Fargo Michael Rehaut - JPMorgan Eric Bosshard - Cleveland Research Matthew Bouley - Barclays Rafe Jadrosich - Bank of America Trevor Allinson - Wolfe Research Anthony Pettinari - Citi Ken Zener - Seaport Research Partners Jay McCanless - Wedbush Securities Susan Maklari - Goldman Sachs Operator Good morning, and welcome to the Second Quarter 2025 Earnings Conference Call for D.R. Horton, Americas Builder.

This morning, it's the blue-chip Dow Jones Index's turn to bring a disappointing performance. After yesterday's trade tariffs hit a snag with semiconductors to China sent the tech-heavy Nasdaq on a steeper decline, this morning's Q1 earnings miss from Dow component UnitedHealthcare is helping send that index -600 points at this hour.

D.R. Horton's second-quarter fiscal 2025 results reflect unfavorable impacts of the weak housing market. Dive in to get a clear picture of the results.