Forestar reported increased revenues in Q1 FY2026 despite a decrease in lots sold, driven by higher average sales prices and disciplined inventory management amidst ongoing affordability constraints.
Consolidated revenues increased 9% to $273.0 million from $250.4 million in the prior year quarter.
positiveAverage sales price per lot increased to $121,000 from $105,500 in the prior year quarter.
positiveMaintained strong liquidity with $211.7 million of unrestricted cash and $607.6 million of available borrowing capacity.
positiveBook value per share increased 10% to $35.10.
positiveNet income decreased 7% to $15.4 million, or $0.30 per diluted share, compared to $16.5 million, or $0.32 per diluted share, in the prior year quarter.
negativeLots sold decreased 17% to 1,944 lots compared to 2,333 lots in the prior year quarter.
negativePre-tax income decreased 5% to $20.8 million from $21.9 million in the prior year quarter.
attentionOngoing affordability constraints and cautious consumer sentiment continue to impact the pace of new home sales.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Consolidated | $273000.0B | — | +9.0% | 100.0% |
| Total Revenue | $273000.0B | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Forestar team delivered increased revenues compared to the prior year quarter and maintained strong liquidity.
Disciplined inventory investment amid ongoing affordability constraints and cautious consumer sentiment.
Focused on maximizing returns by aligning pace and price of lot sales with investment timing.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.