Forestar reported net income of $15.4 million, or $0.30 per diluted share, in its fiscal first quarter ended December 31, 2025, down 7% from $16.5 million, or $0.32 per diluted share, in the comparable period a year earlier. Pre-tax income declined 5% to $20.8 million from $21.9 million, while consolidated revenues rose 9% to $273.0 million on the sale of 1,944 residential lots, compared with $250.4 million and 2,333 lots in the prior-year quarter. The company achieved a trailing-twelve-month return on equity of 9.8%, and book value per share increased 10% to $35.10 over the period ended December 31, 2025.

During the quarter, Forestar sold 1,944 lots, including 317 to customers other than its majority owner, compared with 2,333 total lots and 221 non-owner sales in the prior-year period. Its owned and controlled lot position stood at 101,000 lots as of quarter-end, with 65,600 owned (10,400 fully developed) and 35,400 controlled under purchase contracts. Of the owned lots, 24,100 (37%) were under binding contract, representing approximately $2.2 billion of future revenue, while an additional 18,100 (28%) were subject to a right of first offer by its majority owner.

As of December 31, 2025, Forestar held $211.7 million of unrestricted cash and possessed $607.6 million of undrawn capacity on its senior unsecured revolving credit facility, for total liquidity of $819.3 million. Total debt was $793.2 million with no senior note maturities in the next twelve months, resulting in a net debt to total capital ratio of 24.6%. Real estate assets on the balance sheet totaled $2.9 billion, supporting the company’s low-leverage profile and capacity for selective land acquisitions.

Management expects to deliver between 14,000 and 15,000 lots in fiscal 2026, generating $1.6 billion to $1.7 billion of revenue. The company intends to align lot sales pacing and pricing with market demand to maximize returns, leveraging its strategic relationship with its majority owner and its national platform of operations in 64 markets across 23 states. Forestar plans to maintain disciplined capital allocation, uphold its strong liquidity position, and focus on aggregating market share through contracted future revenue of $2.2 billion and sustained balance-sheet flexibility.