Forestar Reports Fiscal 2025 First Quarter Results
Forestar Group (NYSE: FOR) reported its fiscal 2025 first quarter results, with net income decreasing 57% to $16.5 million ($0.32 per diluted share) compared to $38.2 million ($0.76 per diluted share) in Q1 fiscal 2024. Revenues declined to $250.4 million from $305.9 million year-over-year.
The company sold 2,333 lots during Q1, down 26% from 3,150 lots in the same quarter last year. Their lot position stands at 106,000 lots, with 68,300 owned and 37,700 controlled through contracts. Of the owned lots, 25,200 are under contract for future sales, representing approximately $2.2 billion in future revenue.
Forestar maintains strong liquidity of $644.5 million, including $132.0 million in unrestricted cash. The company amended its credit facility, increasing commitments to $640 million and extending maturity to December 2029. For fiscal 2025, Forestar expects to deliver 16,000-16,500 lots, generating $1.6-1.65 billion in revenue.
Forestar Group (NYSE: FOR) ha riportato i risultati del primo trimestre del suo esercizio fiscale 2025, con un reddito netto che è diminuito del 57% a 16,5 milioni di dollari (0,32 dollari per azione diluita) rispetto ai 38,2 milioni di dollari (0,76 dollari per azione diluita) del primo trimestre dell'esercizio fiscale 2024. I ricavi sono scesi a 250,4 milioni di dollari rispetto ai 305,9 milioni di dollari dell'anno precedente.
Durante il primo trimestre, l'azienda ha venduto 2.333 lotti, in calo del 26% rispetto ai 3.150 lotti nello stesso trimestre dell'anno scorso. La loro posizione di lotti è di 106.000, con 68.300 di proprietà e 37.700 controllati tramite contratti. Dei lotti posseduti, 25.200 sono sotto contratto per vendite future, rappresentando circa 2,2 miliardi di dollari in ricavi futuri.
Forestar mantiene una solida liquidità di 644,5 milioni di dollari, inclusi 132,0 milioni di dollari in contante non vincolato. L'azienda ha modificato la sua linea di credito, aumentando gli impegni a 640 milioni di dollari e prolungando la scadenza a dicembre 2029. Per l'esercizio fiscale 2025, Forestar prevede di consegnare tra 16.000 e 16.500 lotti, generando ricavi tra 1,6 e 1,65 miliardi di dollari.
Forestar Group (NYSE: FOR) reportó sus resultados del primer trimestre del ejercicio fiscal 2025, con un ingreso neto que disminuyó un 57% a 16,5 millones de dólares (0,32 dólares por acción diluida) en comparación con 38,2 millones de dólares (0,76 dólares por acción diluida) en el primer trimestre del ejercicio fiscal 2024. Los ingresos cayeron a 250,4 millones de dólares desde 305,9 millones de dólares año con año.
La compañía vendió 2,333 lotes durante el primer trimestre, una disminución del 26% con respecto a 3,150 lotes en el mismo trimestre del año pasado. Su posición de lotes se sitúa en 106,000 lotes, con 68,300 en propiedad y 37,700 controlados a través de contratos. De los lotes poseídos, 25,200 están bajo contrato para ventas futuras, representando aproximadamente 2,2 mil millones de dólares en ingresos futuros.
Forestar mantiene una sólida liquidez de 644,5 millones de dólares, incluidos 132,0 millones de dólares en efectivo sin restricciones. La compañía enmendó su línea de crédito, aumentando los compromisos a 640 millones de dólares y extendiendo el vencimiento a diciembre de 2029. Para el ejercicio fiscal 2025, Forestar espera entregar entre 16,000 y 16,500 lotes, generando ingresos entre 1,6 y 1,65 mil millones de dólares.
Forestar Group (NYSE: FOR)은 2025 회계연도 1분기 실적을 발표하며 순이익이 57% 감소한 1,650만 달러(희석 주당 0.32달러)로 2024 회계연도 1분기의 3,820만 달러(희석 주당 0.76달러)와 비교되었음을 밝혔습니다. 매출은 전년 대비 3억 5,900만 달러에서 2억 5,040만 달러로 감소했습니다.
회사는 1분기 동안 2,333개의 구획을 판매했으며, 이는 지난해 같은 분기의 3,150개 구획에 비해 26% 감소한 수치입니다. 보유 구획은 106,000개로, 68,300개는 소유하고 있고 37,700개는 계약을 통해 통제하고 있습니다. 소유 구획 중 25,200개는 향후 판매를 위한 계약 중이며, 이는 약 22억 달러의 미래 수익을 나타냅니다.
Forestar는 644.5백만 달러의 강력한 유동성을 유지하고 있으며, 이 중 132.0백만 달러는 제한 없는 현금입니다. 회사는 신용 시설을 수정하여 약정을 6억 4천만 달러로 늘리고 만기를 2029년 12월로 연장했습니다. 2025 회계연도에 대해 Forestar는 16,000-16,500개 구획을 제공하여 16억-16억 5천만 달러의 매출을 생성할 것으로 예상하고 있습니다.
Forestar Group (NYSE: FOR) a publié les résultats de son premier trimestre de l'exercice fiscal 2025, avec un revenu net en baisse de 57 % à 16,5 millions de dollars (0,32 dollar par action diluée) par rapport à 38,2 millions de dollars (0,76 dollar par action diluée) au premier trimestre de l'exercice fiscal 2024. Les revenus ont chuté à 250,4 millions de dollars contre 305,9 millions de dollars l'année précédente.
La société a vendu 2 333 lots au cours du premier trimestre, soit une baisse de 26 % par rapport à 3 150 lots au même trimestre l'année dernière. Sa position en matière de lots s'élève à 106 000, dont 68 300 sont détenus et 37 700 contrôlés par le biais de contrats. Parmi les lots détenus, 25 200 sont sous contrat pour des ventes futures, représentant environ 2,2 milliards de dollars de revenus futurs.
Forestar maintient une solide liquidité de 644,5 millions de dollars, dont 132,0 millions de dollars en liquidités non restreintes. L'entreprise a modifié sa ligne de crédit, augmentant ses engagements à 640 millions de dollars et prolongeant l'échéance jusqu'en décembre 2029. Pour l'exercice fiscal 2025, Forestar s'attend à livrer entre 16 000 et 16 500 lots, générant entre 1,6 et 1,65 milliard de dollars de revenus.
Forestar Group (NYSE: FOR) hat die Ergebnisse des ersten Quartals für das Geschäftsjahr 2025 veröffentlicht, mit einem Nettoeinkommen, das um 57 % auf 16,5 Millionen USD (0,32 USD pro verwässerter Aktie) gesunken ist im Vergleich zu 38,2 Millionen USD (0,76 USD pro verwässerter Aktie) im ersten Quartal des Geschäftsjahres 2024. Die Einnahmen gingen von 305,9 Millionen USD im Vorjahr auf 250,4 Millionen USD zurück.
Das Unternehmen verkaufte im ersten Quartal 2.333 Grundstücke, was einem Rückgang von 26 % gegenüber 3.150 Grundstücken im selben Quartal des Vorjahres entspricht. Ihre Grundstücksposition beträgt 106.000 Grundstücke, wobei 68.300 im Eigentum sind und 37.700 durch Verträge kontrolliert werden. Von den eigenen Grundstücken sind 25.200 unter Vertrag für zukünftige Verkäufe, was etwa 2,2 Milliarden USD an zukünftigen Einnahmen repräsentiert.
Forestar hält eine starke Liquidität von 644,5 Millionen USD, einschließlich 132,0 Millionen USD in nicht eingeschränkter Liquidität. Das Unternehmen hat seine Kreditfazilität geändert, die Verpflichtungen auf 640 Millionen USD erhöht und die Fälligkeit auf Dezember 2029 verlängert. Für das Geschäftsjahr 2025 erwartet Forestar, 16.000 bis 16.500 Grundstücke zu liefern und dabei Einnahmen von 1,6 bis 1,65 Milliarden USD zu erzielen.
- Strong liquidity position of $644.5 million
- Book value per share increased 13% YoY to $31.84
- Future revenue of $2.2 billion from contracted lots
- Credit facility increased to $640 million with extended maturity
- Net income decreased 57% YoY to $16.5 million
- Revenue declined 18% YoY to $250.4 million
- Lot sales decreased 26% YoY to 2,333 lots
- Return on equity declined to 12.0%
Insights
The Q1 FY2025 results reveal concerning trends in Forestar's operational performance. Net income dropped
Despite these headwinds, the company maintains a solid financial foundation with
The forward-looking guidance of 16,000-16,500 lot deliveries and
The current market dynamics present a mixed picture for Forestar's business model. The reduction in lots sold to non-D.R. Horton customers (221 vs 316 YoY) signals broader market hesitancy, yet the company's strategic positioning remains strong with 106,000 total lots in inventory. The
The company's land bank strategy appears well-calibrated, with 37% of owned lots under contract and an additional 28% subject to D.R. Horton's right of first offer. This structured approach to inventory management helps mitigate market risks while maintaining optionality for future growth. The expansion into new markets and continued platform development, despite current market softness, positions Forestar to capitalize on the structural shortage of finished lots in the homebuilding sector.
Fiscal 2025 First Quarter Highlights
-
Net income totaled
$16.5 million $0.32 -
Pre-tax income of
$21.9 million -
Revenues of
$250.4 million -
Land acquisition and development investments totaled
$684.4 million - Owned and controlled lots of 106,000 lots at December 31, 2024
-
Return on equity of
12.0% for the trailing twelve months ended December 31, 2024 -
Book value per share increased
13% from a year ago to$31.84 -
Amended the Company’s senior unsecured revolving credit facility, increasing lender commitments to
$640 million
Financial Results
Net income for the first quarter of fiscal 2025 decreased
The Company’s return on equity was
Operational Results
Lots sold during the first quarter decreased
The Company’s lot position at December 31, 2024 was 106,000 lots, of which 68,300 were owned and 37,700 were controlled through land and lot purchase contracts. Lots owned at December 31, 2024 included 8,100 that were fully developed. Of the Company’s owned lot position at December 31, 2024, 25,200 lots, or
Capital Structure, Leverage and Liquidity
Forestar ended the quarter with
Debt at December 31, 2024 totaled
Outlook
Donald J. Tomnitz, Chairman of the Board, said, “In the first quarter, the Forestar team continued the expansion of our operating platform by making significant investments in land acquisition and development, adding key personnel in our local markets and entering new markets. We continue to expect that the first quarter will be our lowest delivery quarter with lot deliveries expected to increase over the remaining three quarters. In fiscal 2025, we still expect to deliver between 16,000 and 16,500 lots, generating
Tomnitz concluded, “Forestar is uniquely positioned to take advantage of the shortage of finished lots in the homebuilding industry. Our strong balance sheet and liquidity give us the flexibility to adapt to changing market conditions and invest in land development opportunities that position the Company for growth in fiscal 2025 and beyond. With a robust pipeline of future projects, we expect to continue aggregating significant market share over the next few years and will maintain our disciplined approach to investing capital to enhance the long-term value of Forestar.”
Conference Call and Webcast Details
The Company will host a conference call today (Tuesday, January 21) at 11:00 a.m. Eastern Time. The dial-in number is 888-506-0062, the entry code is 917712, and the call will also be webcast from the Company’s website at investor.forestar.com.
About Forestar Group Inc.
Forestar Group Inc. is a residential lot development company with operations in 62 markets and 24 states. Based in
Forward-Looking Statements
Portions of this document may constitute “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Although Forestar believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to Forestar on the date this release was issued. Forestar does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements in this release include we currently expect to deliver between 16,000 and 16,500 lots, generating
Factors that may cause the actual results to be materially different from the future results expressed by the forward-looking statements include, but are not limited to: the effect of D.R. Horton’s controlling level of ownership on us and the holders of our securities; our ability to realize the potential benefits of the strategic relationship with D.R. Horton; the effect of our strategic relationship with D.R. Horton on our ability to maintain relationships with our customers; the cyclical nature of the homebuilding and lot development industries and changes in economic, real estate and other conditions; the impact of significant inflation, higher interest rates or deflation; supply shortages and other risks of acquiring land, construction materials and skilled labor; the effects of public health issues such as a major epidemic or pandemic; the impacts of weather conditions and natural disasters; health and safety incidents relating to our operations; our ability to obtain or the availability of surety bonds to secure our performance related to construction and development activities and the pricing of bonds; the impact of governmental policies, laws or regulations and actions or restrictions of regulatory agencies; our ability to achieve our strategic initiatives; continuing liabilities related to assets that have been sold; the cost and availability of property suitable for residential lot development; general economic, market or business conditions where our real estate activities are concentrated; our dependence on relationships with national, regional and local homebuilders; competitive conditions in our industry; obtaining reimbursements and other payments from governmental districts and other agencies and timing of such payments; our ability to succeed in new markets; the conditions of the capital markets and our ability to raise capital to fund expected growth; our ability to manage and service our debt and comply with our debt covenants, restrictions and limitations; the volatility of the market price and trading volume of our common stock; our ability to hire and retain key personnel; and the strength of our information technology systems and the risk of cybersecurity breaches and our ability to satisfy privacy and data protection laws and regulations. Additional information about issues that could lead to material changes in performance is contained in Forestar’s annual report on Form 10-K and its most recent quarterly report on Form 10-Q, both of which are or will be filed with the Securities and Exchange Commission.
FORESTAR GROUP INC. |
|||||
Consolidated Balance Sheets |
|||||
(Unaudited) |
|||||
|
December 31, 2024 |
|
September 30, 2024 |
||
|
(In millions, except share data) |
||||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
132.0 |
|
$ |
481.2 |
Real estate |
|
2,736.8 |
|
|
2,266.2 |
Investment in unconsolidated ventures |
|
— |
|
|
0.3 |
Property and equipment, net |
|
6.8 |
|
|
7.1 |
Other assets |
|
85.0 |
|
|
85.3 |
Total assets |
$ |
2,960.6 |
|
$ |
2,840.1 |
LIABILITIES |
|
|
|
||
Accounts payable |
$ |
78.6 |
|
$ |
85.9 |
Accrued development costs |
|
131.4 |
|
|
144.6 |
Earnest money on sales contracts |
|
206.7 |
|
|
172.3 |
Deferred tax liability, net |
|
66.6 |
|
|
67.5 |
Accrued expenses and other liabilities |
|
56.4 |
|
|
68.3 |
Debt |
|
806.8 |
|
|
706.4 |
Total liabilities |
|
1,346.5 |
|
|
1,245.0 |
EQUITY |
|
|
|
||
Common stock, par value |
|
50.7 |
|
|
50.7 |
Additional paid-in capital |
|
667.7 |
|
|
665.2 |
Retained earnings |
|
894.7 |
|
|
878.2 |
Stockholders' equity |
|
1,613.1 |
|
|
1,594.1 |
Noncontrolling interests |
|
1.0 |
|
|
1.0 |
Total equity |
|
1,614.1 |
|
|
1,595.1 |
Total liabilities and equity |
$ |
2,960.6 |
|
$ |
2,840.1 |
FORESTAR GROUP INC. |
||||||||
Consolidated Statements of Operations |
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(Unaudited) |
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|
|
Three Months Ended December 31, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(In millions, except per share amounts) |
||||||
Revenues |
|
$ |
250.4 |
|
|
$ |
305.9 |
|
Cost of sales |
|
|
195.4 |
|
|
|
233.0 |
|
Selling, general and administrative expense |
|
|
36.0 |
|
|
|
28.0 |
|
Interest and other income |
|
|
(2.9 |
) |
|
|
(6.3 |
) |
Income before income taxes |
|
|
21.9 |
|
|
|
51.2 |
|
Income tax expense |
|
|
5.4 |
|
|
|
13.0 |
|
Net income |
|
$ |
16.5 |
|
|
$ |
38.2 |
|
|
|
|
|
|
||||
Basic net income per common share |
|
$ |
0.32 |
|
|
$ |
0.76 |
|
Weighted average number of common shares |
|
|
50.8 |
|
|
|
50.1 |
|
|
|
|
|
|
||||
Diluted net income per common share |
|
$ |
0.32 |
|
|
$ |
0.76 |
|
Adjusted weighted average number of common shares |
|
|
51.1 |
|
|
|
50.5 |
|
FORESTAR GROUP INC. |
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Revenues, Residential Lots Sold and Lot Position |
|||||
|
REVENUES |
||||
|
Three Months Ended December 31, |
||||
|
2024 |
|
2023 |
||
|
(In millions) |
||||
Residential lot sales: |
|
|
|
||
Development projects |
$ |
241.0 |
|
$ |
303.5 |
Lot banking projects |
|
5.2 |
|
|
— |
Decrease in contract liabilities |
|
1.2 |
|
|
0.7 |
|
|
247.4 |
|
|
304.2 |
Deferred development projects |
|
— |
|
|
1.3 |
|
|
247.4 |
|
|
305.5 |
Tract sales and other |
|
3.0 |
|
|
0.4 |
Total revenues |
$ |
250.4 |
|
$ |
305.9 |
|
|
|
|
||
|
|
|
|
||
|
RESIDENTIAL LOTS SOLD |
||||
|
Three Months Ended December 31, |
||||
|
2024 |
|
2023 |
||
Development projects |
|
2,291 |
|
|
3,150 |
Lot banking projects |
|
42 |
|
|
— |
|
|
2,333 |
|
|
3,150 |
|
|
|
|
||
Average sales price per lot (1) |
$ |
105,500 |
|
$ |
96,400 |
|
|
|
|
||
|
|
|
|
||
|
LOT POSITION |
||||
|
December 31, 2024 |
|
September 30, 2024 |
||
Lots owned |
|
68,300 |
|
|
57,800 |
Lots controlled under land and lot purchase contracts |
|
37,700 |
|
|
37,300 |
Total lots owned and controlled |
|
106,000 |
|
|
95,100 |
|
|
|
|
||
Owned lots under contract to sell to D.R. Horton |
|
24,500 |
|
|
20,500 |
Owned lots under contract to customers other than D.R. Horton |
|
700 |
|
|
500 |
Total owned lots under contract |
|
25,200 |
|
|
21,000 |
|
|
|
|
||
Owned lots subject to right of first offer with D.R. Horton based on executed
|
|
19,300 |
|
|
17,200 |
Owned lots fully developed |
|
8,100 |
|
|
6,300 |
_____________
(1) |
Excludes any impact from change in contract liabilities. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250121680831/en/
Chris Hibbetts, 817-769-1860
Vice President of Finance & Investor Relations
InvestorRelations@forestar.com
Source: Forestar Group Inc.
FAQ
What was Forestar's (FOR) revenue and net income for Q1 fiscal 2025?
How many lots did Forestar (FOR) sell in Q1 2025 compared to Q1 2024?
What is Forestar's (FOR) revenue guidance for fiscal 2025?
What is Forestar's (FOR) current lot position as of December 31, 2024?
How much future revenue does Forestar (FOR) have under contract?
