Forestar ( (FOR) ) has released its Q1 earnings. Here is a breakdown of the information Forestar presented to its investors.
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Forestar Group Inc., based in Arlington, Texas, operates as a national residential lot developer, focusing on the acquisition and development of real estate for homebuilding, primarily as a majority-owned subsidiary of D.R. Horton.
In the fiscal first quarter of 2025, Forestar reported a net income of $16.5 million or $0.32 per diluted share, with revenues reaching $250.4 million from the sale of 2,333 lots. Despite the decrease in net income and lot sales compared to the previous year, the company maintained a strong land acquisition strategy.
The company’s financial performance saw a 57% decrease in net income from the same quarter last year, with revenues also declining from $305.9 million. However, Forestar made significant investments in land acquisition and development, totaling $684.4 million, and increased its book value per share by 13% to $31.84. The company also amended its credit facility to extend maturity and increase commitments to $640 million.
Forestar’s outlook remains optimistic, with expectations to deliver between 16,000 and 16,500 lots in fiscal 2025, generating up to $1.65 billion in revenue. The company continues to leverage its strong balance sheet and liquidity to adapt to market conditions and seize growth opportunities, aiming to further expand its market share.
Overall, Forestar is strategically positioned to capitalize on the shortage of finished lots in the homebuilding industry, with plans to invest significantly in land development to sustain growth in the coming years.
