Building Products: DR Horton Inc (DHI-US) - Read-through from 3Q26 result

研报英文原文证据摘录

Building Products: DR Horton Inc (DHI-US) - Read-through from 3Q26 result

Equity Research

22 July 2026 | 10:35AM AEST

AUSTRALIA INDUSTRIALS

Building Products: DR Horton Inc (DHI-US) - Read-through from 3Q26

result

Bottom line Niraj Shah +61(2)9320-1369 | niraj.shah@gs.com

US homebuilder D.R. Horton’s (DHI-US, covered by Susan Maklari) 3Q26 results Goldman Sachs Australia Pty Ltd

characterise a housing market that remains under pressure, citing affordability Sophie Yu

+61(3)9679-1076 | sophie.x.yu@gs.com

constraints and cautious consumer sentiment. While incentives moderated slightly Goldman Sachs Australia Pty Ltd

sequentially, DR Horton continues to rely on elevated incentives to stimulate Alex Nosatti

demand, with buy-downs taking backlog buyers to ~4.9% vs a ~6.5% market rate. +61(2)9321-8342Goldman Sachs Australia| alex.nosatti@gs.comPty Ltd

That said, we are encouraged to see an aged spec inventory (completed >6 months)

at its lowest since FY23. Demand tracked in line with normal seasonality early in the

quarter but softened in April, cancellation rates rose to 20%, and management

flagged pockets of softness in software-heavy markets (notably Seattle) and noted

that a meaningful reduction in incentives is unlikely until mortgage rates moderate or

consumer confidence improves. For both REH and RWC, the read-through is

modestly negative, in our view - continued US new-construction softness (starts

guided lower, FY26 closings trimmed, incentives elevated) weighs on REH given its

new-build skew, while RWC is relatively insulated by its R&R exposure but still

pressured by the affordability-constrained, high-rate backdrop dampening housing

turnover.

Key takeaways:

n Starts expected to decline sequentially. 3Q26 starts of 23,900 were down 13%