Advertisement
Forestar Group Inc. reported a 22% year-on-year increase in fourth-quarter revenue to USD 670.5 million, surpassing analyst expectations. The company sold 4,891 lots during the quarter, down 9% from last year, but higher lot prices helped boost overall revenue. Net income declined 17% for fiscal 2025, reflecting increased costs and lower lot sales. Forestar expects to deliver 14,000-15,000 lots in fiscal 2026 with projected revenue between USD 1.6 billion and USD 1.7 billion. The firm emphasized its solid liquidity position and ongoing support from homebuilder D.R. Horton.
Forestar Group Inc. announced its fourth-quarter and full-year financial results, reporting strong revenue growth supported by resilient housing demand and higher lot pricing. The company's fourth-quarter revenue reached USD 670.5 million, marking a 22% increase compared to the same period last year and exceeding the consensus estimate of USD 556.6 million from four analysts. Advertisement
The company sold 4,891 residential lots during the quarter, representing a 9% decline from a year earlier. Despite lower sales volumes, revenue improved as the average selling price per lot rose, helped by steady demand for finished residential lots. This performance was further supported by the company's ongoing relationship with D.R. Horton, one of the largest U.S. homebuilders, which continues to be a key buyer of Forestar's developed lots.
Forestar's net income for fiscal 2025 decreased 17% to USD 87 million, translating to basic earnings per share of USD 1.71 and earnings per share of USD 1.70. The company's pretax profit for the quarter stood at USD 113.1 million. Management attributed the decline in profitability to higher operating expenses and slightly lower sales volumes compared to the prior year.
The company's balance sheet remains strong, with adequate liquidity and a disciplined capital structure. Forestar stated that its solid financial position provides it with flexibility to fund growth and manage market fluctuations effectively. Analysts currently rate the stock as a "buy," with three out of four analysts recommending "strong buy" or "buy," and one recommending "hold." There are no "sell" or "strong sell" ratings on the stock.
In terms of market outlook, the company anticipates delivering between 14,000 and 15,000 lots in fiscal 2026 and expects revenue in the range of USD 1.6 billion to USD 1.7 billion. Management highlighted that its strategy focuses on providing affordable and well-located lots to meet steady residential demand across key U.S. housing markets.
Wall Street's median 12-month price target for Forestar's shares stands at USD 31.00, about 15.9% higher than the company's recent closing price of USD 26.06. The stock is currently trading at around nine times its next 12-month earnings, compared to a price-to-earnings ratio of six three months ago, indicating stronger investor confidence following consistent performance in recent quarters.
Source Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
