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(Sharecast News) - Second-quarter profits at DR Horton dropped 20%, the American homebuilder revealed on Tuesday, as new home demand was pressured by affordability constraints and weak consumer confidence, though the company kept its full-year guidance.
Group revenues totalled $7.56bn over the three months to 31 March, down from $7.73bn the year before but in line with the $7.55bn consensus estimate.
Homebuilding revenues were down 2% at $7.1bn in the second quarter, with homes closed up 1% at 19,486.
Net income dropped to $648m from $810m, equating to earnings per share of $2.24, comfortably beating the $2.13 market forecast.
Despite the subdued demand, executive chair David Auld said DR Horton's tenured operators "executed with discipline, driving an 11% yearoveryear increase in net sales orders, while reducing unsold completed homes by 35% from a year ago".
He said that sales incentives are expected to "remain elevated" over the rest of the year, subject to demand, mortgage interest rates and other market conditions.
"Based on our performance year to date, we remain on track to deliver results within our original fiscal 2026 guidance," Auld said.
DR Horton futures were up 1.8% at $156.10 by 1242 BST, ahead of the opening bell on Wall Street.
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