D.R. Horton Tops Q2 EPS at $2.24, Net Sales Orders Jump 11%
D.R. Horton posted Q2 adjusted EPS of $2.24 versus $2.17 estimate and $7.56B revenue, with net sales orders up 11% to 24,992 homes. Pretax margins widened to 11.5% on construction cost savings and a litigation win, and full-year closings guidance was narrowed to 86,000-87,500 homes.
1. Q2 Financial Results
D.R. Horton posted second-quarter adjusted EPS of $2.24 compared to a $2.17 consensus estimate and delivered $7.56 billion in revenue, while net sales orders rose 11% year-over-year to 24,992 homes.
2. Margin Drivers and Cost Savings
Pretax profit margins expanded to 11.5%, reflecting lower construction costs and a favorable litigation win that reduced warranty expenses, offsetting softer homebuilding revenue in certain markets.
3. Guidance and Outlook
Full-year home closings guidance was narrowed to 86,000-87,500 units as the company aligns production with demand, and management expects third-quarter gross margins near 19.7% supported by ongoing cost efficiencies.