DHI FY3Q26 earnings debrief takeaways

Research evidence excerpt

DHI FY3Q26 earnings debrief takeaways

Global Research

27 July 2026ab

D.R. Horton Inc Equities

United StatesDHI FY3Q26 earnings debrief takeaways

Home Construction

12-month rating Buy *

DHI earnings debrief - key takeaways

We hosted Jessica Hansen (SVP - Communications & People and Head of IR) and Katie 12m price target US$206.00

Smith (VP - Investor Relations) at DHI to discuss FY3Q26 financial results. The key

takeaways from our interactive discussion are below.

Price (24 Jul 2026) US$145.96

Key takeaways RIC: DHI.N BBG: DHI US

DHI lowered the midpoint of its FY26 delivery outlook by roughly -3% as FY3Q Trading data and key metrics

absorption pace was relatively in-line with normal seasonality, versus the prior

52-wk range US$184.04-132.53

expectation for modestly better than normal seasonality. DHI believes longer-term/

Market cap. US$41.3b

through cycle absorption pace is higher than it is today.

Shares o/s 283m (COM)

DHI modestly reduced its incentive load QoQ in FY3Q (to slightly <10%), driven by Free float 90%

its strategy of empowering local operators to maximize returns. DHI noted that the Avg. daily volume ('000) 777

industry has largely remained disciplined in aligning starts w/ demand. Avg. daily value (m) US$116.8

DHI exceeded the top end of its homebuilding gross margin outlook by ~50bps in Common s/h equity (09/26E) US$24.1b

FY3Q, which the company attributed to better than expected stick/brick savings, P/BV (09/26E) 1.7x

coupled with lower incentives. Net debt to EBITDA (09/26E) 0.8x

DHI's stick/brick costs declined -5% YoY in FY3Q (-2% QoQ), driven EPS (UBS, diluted) (USD)

predominantly by lower labor costs. The company achieved the greatest savings in 09/26E

framing and mechanical/finishes in FY3Q. UBS Cons.

Q1 2.03 2.03