Forestar Reports Fiscal 2025 Second Quarter Results
Forestar Group (NYSE: FOR) reported its fiscal 2025 second quarter results with mixed performance. Net income decreased 30% to $31.6 million ($0.62 per diluted share) compared to $45.0 million ($0.89 per diluted share) in Q2 2024. Despite the decline in profits, consolidated revenues increased 5% to $351.0 million, with residential lots sold up 4% to 3,411 lots.
The company strengthened its financial position by issuing $500 million of 6.50% senior unsecured notes due 2033 and completing a tender offer to purchase $329.4 million of existing 3.85% notes due 2026. Forestar maintained a strong lot position of 105,900 lots (68,400 owned and 37,500 controlled) with $2.3 billion in future contracted revenue.
Due to home affordability constraints and declining consumer confidence, Forestar revised its fiscal 2025 guidance downward to 15,000-15,500 lot deliveries and revenue of $1.5-1.55 billion, compared to previous guidance of 16,000-16,500 lots and $1.6-1.65 billion revenue.
Forestar Group (NYSE: FOR) ha comunicato i risultati del secondo trimestre fiscale 2025 con performance contrastanti. Il utile netto è diminuito del 30%, attestandosi a 31,6 milioni di dollari (0,62 dollari per azione diluita) rispetto ai 45,0 milioni di dollari (0,89 dollari per azione diluita) del secondo trimestre 2024. Nonostante il calo degli utili, i ricavi consolidati sono aumentati del 5%, raggiungendo i 351,0 milioni di dollari, con le vendite di lotti residenziali in crescita del 4% a 3.411 lotti.
L’azienda ha rafforzato la propria posizione finanziaria emettendo 500 milioni di dollari di obbligazioni senior non garantite al 6,50% con scadenza 2033 e completando un’offerta di acquisto per 329,4 milioni di dollari di obbligazioni esistenti al 3,85% con scadenza 2026. Forestar ha mantenuto una solida posizione di lotti pari a 105.900 (68.400 di proprietà e 37.500 sotto controllo), con 2,3 miliardi di dollari di ricavi futuri contrattualizzati.
A causa delle difficoltà legate all’accessibilità abitativa e al calo della fiducia dei consumatori, Forestar ha rivisto al ribasso le previsioni per il 2025, stimando una consegna di 15.000-15.500 lotti e ricavi tra 1,5 e 1,55 miliardi di dollari, rispetto alla precedente stima di 16.000-16.500 lotti e ricavi tra 1,6 e 1,65 miliardi di dollari.
Forestar Group (NYSE: FOR) reportó sus resultados del segundo trimestre fiscal 2025 con un desempeño mixto. El ingreso neto disminuyó un 30%, situándose en 31,6 millones de dólares (0,62 dólares por acción diluida) en comparación con 45,0 millones de dólares (0,89 dólares por acción diluida) en el segundo trimestre de 2024. A pesar de la caída en las ganancias, los ingresos consolidados aumentaron un 5%, alcanzando los 351,0 millones de dólares, con un incremento del 4% en la venta de lotes residenciales, que llegaron a 3.411 lotes.
La empresa fortaleció su posición financiera emitiendo 500 millones de dólares en bonos senior no garantizados al 6,50% con vencimiento en 2033 y completando una oferta de compra para adquirir 329,4 millones de dólares en bonos existentes al 3,85% con vencimiento en 2026. Forestar mantuvo una sólida posición de lotes de 105.900 (68.400 propios y 37.500 controlados), con 2.300 millones de dólares en ingresos futuros contratados.
Debido a las limitaciones en la accesibilidad a la vivienda y a la disminución de la confianza del consumidor, Forestar revisó a la baja sus previsiones para el 2025, estimando entregas de 15.000 a 15.500 lotes y unos ingresos de 1,5 a 1,55 mil millones de dólares, en comparación con la guía anterior de 16.000 a 16.500 lotes y 1,6 a 1,65 mil millones de dólares en ingresos.
Forestar Group (NYSE: FOR)는 2025 회계연도 2분기 실적을 혼조된 성과로 발표했습니다. 순이익은 2024년 2분기의 4,500만 달러(희석 주당 0.89달러)에서 30% 감소한 3,160만 달러(희석 주당 0.62달러)를 기록했습니다. 이익 감소에도 불구하고, 통합 매출은 5% 증가한 3억 5,100만 달러를 기록했으며, 주거용 부지 판매는 4% 증가한 3,411 필지를 기록했습니다.
회사는 2033년 만기 6.50% 선순위 무담보 채권 5억 달러를 발행하고, 2026년 만기 3.85% 기존 채권 3억 2,940만 달러를 매입하는 공개매수 제안을 완료하며 재무구조를 강화했습니다. Forestar는 105,900 필지(소유 68,400 필지, 관리 37,500 필지)의 견고한 부지 포지션을 유지하며, 향후 계약된 매출은 23억 달러에 달합니다.
주택 구매력 제한과 소비자 신뢰 하락으로 인해, Forestar는 2025 회계연도 가이던스를 하향 조정하여 15,000~15,500 필지 인도와 15억~15억 5천만 달러 매출을 예상하며, 이전 가이던스인 16,000~16,500 필지 및 16억~16억 5천만 달러 매출에서 조정했습니다.
Forestar Group (NYSE : FOR) a publié ses résultats du deuxième trimestre de l’exercice 2025 avec des performances mitigées. Le résultat net a diminué de 30 %, s’établissant à 31,6 millions de dollars (0,62 dollar par action diluée) contre 45,0 millions de dollars (0,89 dollar par action diluée) au deuxième trimestre 2024. Malgré la baisse des bénéfices, le chiffre d’affaires consolidé a augmenté de 5 % pour atteindre 351,0 millions de dollars, avec une hausse de 4 % des ventes de lots résidentiels à 3 411 lots.
L’entreprise a renforcé sa position financière en émettant 500 millions de dollars de billets seniors non garantis à 6,50 % échéant en 2033, et en réalisant une offre publique d’achat portant sur 329,4 millions de dollars de billets existants à 3,85 % échéant en 2026. Forestar a maintenu une solide position foncière de 105 900 lots (68 400 en propriété et 37 500 sous contrôle), avec 2,3 milliards de dollars de revenus futurs contractés.
En raison des contraintes d’accessibilité au logement et de la baisse de confiance des consommateurs, Forestar a révisé à la baisse ses prévisions pour l’exercice 2025, estimant une livraison de 15 000 à 15 500 lots et un chiffre d’affaires de 1,5 à 1,55 milliard de dollars, contre des prévisions précédentes de 16 000 à 16 500 lots et de 1,6 à 1,65 milliard de dollars de revenus.
Forestar Group (NYSE: FOR) meldete gemischte Ergebnisse für das zweite Quartal des Geschäftsjahres 2025. Der Nettoertrag sank um 30 % auf 31,6 Millionen US-Dollar (0,62 US-Dollar je verwässerter Aktie) im Vergleich zu 45,0 Millionen US-Dollar (0,89 US-Dollar je verwässerter Aktie) im zweiten Quartal 2024. Trotz des Gewinnrückgangs stiegen die konsolidierten Umsätze um 5 % auf 351,0 Millionen US-Dollar, wobei der Verkauf von Wohnbaugrundstücken um 4 % auf 3.411 Grundstücke zunahm.
Das Unternehmen stärkte seine Finanzlage durch die Ausgabe von unbesicherten Senior Notes in Höhe von 500 Millionen US-Dollar mit einem Zinssatz von 6,50 % und Fälligkeit 2033 sowie durch den Abschluss eines Rückkaufangebots für bestehende Notes mit 3,85 % Zinsen und Fälligkeit 2026 im Wert von 329,4 Millionen US-Dollar. Forestar hielt eine starke Grundstücksposition von 105.900 Grundstücken (68.400 im Eigentum und 37.500 kontrolliert) mit zukünftigen vertraglich gesicherten Umsätzen von 2,3 Milliarden US-Dollar.
Aufgrund von Einschränkungen bei der Erschwinglichkeit von Wohnraum und sinkendem Verbrauchervertrauen senkte Forestar seine Prognose für das Geschäftsjahr 2025 auf 15.000 bis 15.500 Grundstücksübergaben und Umsätze von 1,5 bis 1,55 Milliarden US-Dollar, verglichen mit der vorherigen Prognose von 16.000 bis 16.500 Grundstücken und Umsätzen von 1,6 bis 1,65 Milliarden US-Dollar.
- Revenue increased 5% to $351.0 million in Q2 2025
- Residential lots sold increased 4% to 3,411 lots
- Strong lot position of 105,900 lots with $2.3 billion in future contracted revenue
- Improved liquidity position with $792.0 million total available
- Successfully refinanced debt with new $500 million notes issuance
- Net income decreased 30% to $31.6 million in Q2 2025
- Pre-tax income declined 31% to $40.7 million
- Return on equity decreased to 10.7%
- Downward revision of fiscal 2025 guidance for lots and revenue
- Six-month revenue decreased 6% to $601.3 million
Insights
Forestar's Q2 shows shrinking margins despite sales growth; lowered guidance signals housing market headwinds despite strong balance sheet.
Forestar's Q2 fiscal 2025 results paint a picture of operational growth but significant margin compression. While revenues increased
The company's capital structure remains robust with
Most concerning is management's downward revision of fiscal 2025 guidance, reducing expected lot deliveries to 15,000-15,500 (from 16,000-16,500) and revenue to
The company's
Forestar's reduced guidance reveals deepening housing market challenges despite strategic inventory positioning and strong liquidity foundation.
Forestar's operational metrics reveal both strengths and emerging challenges in the residential lot development sector. Their inventory position of 105,900 lots (68,400 owned, 37,500 controlled) provides substantial runway, but the company's lowered guidance reflects underlying market softness that deserves attention.
The
The company's explicit mention of "home affordability constraints and declining consumer confidence" impacting the spring selling season signals broader market challenges. High mortgage rates (still near
The lot portfolio structure remains solid with
Fiscal 2025 Second Quarter Highlights
All comparisons to the prior year quarter
-
Net income totaled
$31.6 million $0.62 -
Pre-tax income of
$40.7 million -
Consolidated revenues increased
5% to$351.0 million -
Residential lots sold increased
4% to 3,411 lots - Owned and controlled 105,900 lots at March 31, 2025
-
Return on equity of
10.7% for the trailing twelve months ended March 31, 2025 -
Book value per share increased
11% to$32.36 -
Issued
$500 million 6.50% senior unsecured notes due 2033 -
Completed a tender offer to purchase
$329.4 million 3.85% senior unsecured notes due 2026
Financial Results
Net income for the second quarter of fiscal 2025 decreased
For the six months ended March 31, 2025, net income decreased
The Company’s return on equity was
Operational Results
Lots sold during the second quarter increased
Lots sold during the six months ended March 31, 2025 decreased
The Company’s lot position at March 31, 2025 was 105,900 lots, of which 68,400 were owned and 37,500 were controlled through land and lot purchase contracts. Lots owned at March 31, 2025 included 9,500 that were fully developed. Of the Company’s owned lot position at March 31, 2025, 25,400 lots, or
Capital Structure, Leverage and Liquidity
Forestar ended the quarter with
Debt at March 31, 2025 totaled
Outlook
Donald J. Tomnitz, Chairman of the Board, said, “The Forestar team delivered increased revenues and lot deliveries compared to the prior year quarter and further strengthened its balance sheet by increasing liquidity and extending the Company’s debt maturity profile. However, home affordability constraints and declining consumer confidence continue to impact the pace of new home sales, resulting in a slower than expected start to the spring selling season.
“Based on our fiscal year-to-date results and current market conditions, we are updating our guidance for fiscal 2025. We now expect to deliver between 15,000 and 15,500 lots generating
“Forestar is uniquely positioned to consistently provide essential finished lots to the homebuilding industry. Our strong balance sheet and liquidity give us the flexibility to operate effectively through changing market conditions. We expect to continue aggregating significant market share, supported by our substantial operating platform, strategic relationship with D.R. Horton and
Conference Call and Webcast Details
The Company will host a conference call today (Thursday, April 17) at 11:00 a.m. Eastern Time. The dial-in number is 888-506-0062, the entry code is 865137, and the call will also be webcast from the Company’s website at investor.forestar.com.
Third Quarter Conference Call
The Company plans to release financial results for its third quarter ended June 30, 2025 on Tuesday, July 22, 2025 before the market opens. The Company will host a conference call that morning at 11:00 a.m. Eastern Time. Details on how to access the conference call will be available at a later date.
About Forestar Group Inc.
Forestar Group Inc. is a residential lot development company with operations in 65 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 now expect to deliver between 15,000 and 15,500 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. |
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Consolidated Balance Sheets |
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(Unaudited) |
||||||
|
March 31, 2025 |
|
September 30, 2024 |
|||
|
(In millions, except share data) |
|||||
ASSETS |
|
|
|
|||
Cash and cash equivalents |
$ |
174.3 |
|
$ |
481.2 |
|
Real estate |
|
2,759.4 |
|
|
2,266.2 |
|
Investment in unconsolidated ventures |
|
— |
|
|
0.3 |
|
Property and equipment, net |
|
7.1 |
|
|
7.1 |
|
Other assets |
|
101.9 |
|
|
85.3 |
|
Total assets |
$ |
3,042.7 |
|
$ |
2,840.1 |
|
LIABILITIES |
|
|
|
|||
Accounts payable |
$ |
70.0 |
|
$ |
85.9 |
|
Accrued development costs |
|
122.9 |
|
|
144.6 |
|
Earnest money on sales contracts |
|
212.1 |
|
|
172.3 |
|
Deferred tax liability, net |
|
74.9 |
|
|
67.5 |
|
Accrued expenses and other liabilities |
|
44.4 |
|
|
68.3 |
|
Debt |
|
872.5 |
|
|
706.4 |
|
Total liabilities |
|
1,396.8 |
|
|
1,245.0 |
|
EQUITY |
|
|
|
|||
Common stock, par value |
|
50.8 |
|
|
50.7 |
|
Additional paid-in capital |
|
667.8 |
|
|
665.2 |
|
Retained earnings |
|
926.3 |
|
|
878.2 |
|
Stockholders' equity |
|
1,644.9 |
|
|
1,594.1 |
|
Noncontrolling interests |
|
1.0 |
|
|
1.0 |
|
Total equity |
|
1,645.9 |
|
|
1,595.1 |
|
Total liabilities and equity |
$ |
3,042.7 |
|
$ |
2,840.1 |
|
FORESTAR GROUP INC. |
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Consolidated Statements of Operations |
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(Unaudited) |
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Three Months Ended March 31, |
|
Six Months Ended March 31, |
|||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|||||||||
|
(In millions, except per share amounts) |
|||||||||||||||
Revenues |
$ |
351.0 |
|
|
$ |
333.8 |
|
|
$ |
601.3 |
|
|
$ |
639.7 |
|
|
Cost of sales |
|
271.8 |
|
|
|
250.7 |
|
|
|
467.2 |
|
|
|
483.7 |
|
|
Selling, general and administrative expense |
|
38.4 |
|
|
|
29.2 |
|
|
|
74.3 |
|
|
|
57.2 |
|
|
Equity in earnings of unconsolidated ventures |
|
— |
|
|
|
— |
|
|
|
(0.6 |
) |
|
|
— |
|
|
Interest and other income |
|
(1.0 |
) |
|
|
(5.0 |
) |
|
|
(3.3 |
) |
|
|
(11.3 |
) |
|
Loss on extinguishment of debt |
|
1.1 |
|
|
|
— |
|
|
|
1.1 |
|
|
|
— |
|
|
Income before income taxes |
|
40.7 |
|
|
|
58.9 |
|
|
|
62.6 |
|
|
|
110.1 |
|
|
Income tax expense |
|
9.1 |
|
|
|
13.9 |
|
|
|
14.5 |
|
|
|
26.9 |
|
|
Net income |
$ |
31.6 |
|
|
$ |
45.0 |
|
|
$ |
48.1 |
|
|
$ |
83.2 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic net income per common share |
$ |
0.62 |
|
|
$ |
0.90 |
|
|
$ |
0.95 |
|
|
$ |
1.66 |
|
|
Weighted average number of common shares |
|
50.8 |
|
|
|
50.1 |
|
|
|
50.8 |
|
|
|
50.1 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted net income per common share |
$ |
0.62 |
|
|
$ |
0.89 |
|
|
$ |
0.94 |
|
|
$ |
1.65 |
|
|
Adjusted weighted average number of common shares |
|
51.0 |
|
|
|
50.6 |
|
|
|
51.1 |
|
|
|
50.5 |
|
|
FORESTAR GROUP INC. |
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Revenues, Residential Lots Sold and Lot Position |
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|
|
REVENUES |
||||||||||
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
|||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|||||
|
(In millions) |
|||||||||||
Residential lot sales: |
|
|
|
|
|
|
|
|||||
Development projects |
$ |
338.9 |
|
$ |
323.1 |
|
$ |
579.9 |
|
$ |
626.6 |
|
Lot banking projects |
|
8.0 |
|
|
0.7 |
|
|
13.1 |
|
|
0.7 |
|
Decrease in contract liabilities |
|
— |
|
|
2.1 |
|
|
1.2 |
|
|
2.8 |
|
|
|
346.9 |
|
|
325.9 |
|
|
594.2 |
|
|
630.1 |
|
Deferred development projects |
|
— |
|
|
1.7 |
|
|
— |
|
|
3.0 |
|
|
|
346.9 |
|
|
327.6 |
|
|
594.2 |
|
|
633.1 |
|
Tract sales and other |
|
4.1 |
|
|
6.2 |
|
|
7.1 |
|
|
6.6 |
|
Total revenues |
$ |
351.0 |
|
$ |
333.8 |
|
$ |
601.3 |
|
$ |
639.7 |
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||
|
RESIDENTIAL LOTS SOLD |
|||||||||||
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
|||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|||||
Development projects |
|
3,334 |
|
|
3,280 |
|
|
5,625 |
|
|
6,430 |
|
Lot banking projects |
|
77 |
|
|
9 |
|
|
119 |
|
|
9 |
|
|
|
3,411 |
|
|
3,289 |
|
|
5,744 |
|
|
6,439 |
|
|
|
|
|
|
|
|
|
|||||
Average sales price per lot (1) |
$ |
101,700 |
|
$ |
98,400 |
|
$ |
103,200 |
|
$ |
97,400 |
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
LOT POSITION |
|||||||
|
|
|
|
|
March 31, 2025 |
|
September 30, 2024 |
|||||
Lots owned |
|
|
68,400 |
|
|
57,800 |
||||||
Lots controlled under land and lot purchase contracts |
|
|
37,500 |
|
|
37,300 |
||||||
Total lots owned and controlled |
|
|
105,900 |
|
|
95,100 |
||||||
|
|
|
|
|
|
|
|
|||||
Owned lots under contract to sell to D.R. Horton |
|
|
24,700 |
|
|
20,500 |
||||||
Owned lots under contract to customers other than D.R. Horton |
|
|
700 |
|
|
500 |
||||||
Total owned lots under contract |
|
|
25,400 |
|
|
21,000 |
||||||
|
|
|
|
|
|
|
|
|||||
Owned lots subject to right of first offer with D.R. Horton based on executed purchase and sale agreements |
|
|
19,200 |
|
|
17,200 |
||||||
Owned lots fully developed |
|
|
9,500 |
|
|
6,300 |
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(1) Excludes any impact from change in contract liabilities. |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250417327456/en/
Chris Hibbetts, 817-769-1860
Vice President of Finance & Investor Relations
InvestorRelations@forestar.com
Source: Forestar Group Inc.
FAQ
What caused Forestar's (FOR) net income to decline in Q2 2025?
How many residential lots did Forestar (FOR) sell in Q2 2025?
What is Forestar's (FOR) revised revenue guidance for fiscal 2025?
How much future revenue does Forestar (FOR) have under contract as of March 2025?
What is Forestar's (FOR) current liquidity position as of Q2 2025?
