Forestar Group Q2 Revenue Rises 7% to $374.3M, Backlog Hits $2.2B
Forestar Group delivered Q2 revenue of $374.3 million, up 7%, with pre-tax income rising 8% to $43.9 million and net income up 2% to $32.1 million on a 21.4% gross margin. Liquidity topped $1 billion, book value per share climbed 10% to $35.66, and backlog visibility reached $2.2 billion.
1. Q2 Financial Results
Forestar Group reported Q2 revenue of $374.3 million, a 7% increase over the prior year. Pre-tax income rose 8% to $43.9 million, net income increased 2% to $32.1 million, and SG&A expenses declined 1% to $37.9 million.
2. Balance Sheet Strength
The company ended the quarter with over $1 billion in liquidity, including $362 million in unrestricted cash. Net debt to capital stood at 19.2%, while book value per share climbed 10% year-over-year to $35.66.
3. Lot Position and Backlog
Forestar sold 2,938 lots at an average price of $112,800 and holds a total lot position of 94,400 lots, 67% owned and 33% controlled. Contracted backlog visibility reaches $2.2 billion, supporting future revenue growth.
4. Cost Pressures and Margins
Gross margin dipped to 21.4% from 22.6% as land option charges rose to $6.3 million from $0.9 million. Sales to builders other than D.R. Horton declined nearly 50%, reflecting continued affordability constraints.