Residential lot developer Forestar Q4 net income drops on affordability constraints
FOR•Forestar's fourth-quarter revenue fell 13% year over year to $580.8 million, while net income attributable to the company dropped 32% to $59.4 million. It forecast fiscal 2027 revenue of $1.4 billion to $1.5 billion and expects to deliver 12,000 to 13,000 lots.
1. Quarterly results
Forestar reported fourth-quarter revenue of $580.8 million, down 13% year over year and below the $613.84 million consensus estimate. Net income attributable to the company fell 32% to $59.4 million, and earnings per share were $1.15.
2. Demand and outlook
The company said affordability constraints, cautious consumer sentiment and higher mortgage rates impacted demand for new homes. It recorded $7.6 million in real estate impairment charges, compared with none in the prior-year quarter. For fiscal 2027, Forestar expects to deliver 12,000 to 13,000 lots and forecasts revenue of $1.4 billion to $1.5 billion.
