D.R. Horton, Inc. (NYSE), known as America’s Builder, reported a 5% increase in net income per diluted share to $4.10 for its third fiscal quarter ending June 30, 2024, up from $3.90 in the same quarter of fiscal 2023. Net income for the quarter rose by 1% to $1.35 billion from $1.34 billion in the prior year. For the nine months ending June 30, 2024, net income per diluted share increased 11% to $10.43, compared to $9.39 in the same period of fiscal 2023. Net income for this period grew by 7% to $3.5 billion, up from $3.2 billion.
Consolidated revenues for the third quarter of fiscal 2024 were $10.0 billion, up 2% from $9.7 billion in the same quarter of fiscal 2023. For the nine months ended June 30, 2024, revenues rose 7% to $26.8 billion compared to $25.0 billion in the previous year.
The Company’s return on equity (ROE) for the trailing twelve months ending June 30, 2024, was 21.5%, while homebuilding return on inventory (ROI) was 29.5%. ROE is calculated as net income divided by average stockholders’ equity, and ROI is calculated as homebuilding pre-tax income divided by average inventory.
During the nine months ending June 30, 2024, net cash provided by operations was $228.2 million. The consolidated cash balance as of June 30, 2024, was $3.0 billion, with $2.8 billion in available credit, totaling $5.8 billion in liquidity. Debt stood at $5.7 billion, with $500 million in senior notes maturing in the next twelve months. The debt to total capital ratio was 18.8%.
David Auld, Executive Chairman, stated, “Our team delivered strong results in the third fiscal quarter of 2024, highlighted by earnings of $4.10 per diluted share, up 5% from last year. Consolidated pre-tax income was $1.8 billion on $10.0 billion in revenues, with a pre-tax profit margin of 18.1%. Despite ongoing inflation and high mortgage rates, limited supply of affordable homes and favorable demographics continue to drive housing demand.”
Auld added, “We are well-positioned with our affordable product offerings and flexible lot supply, aiming to maximize returns across our communities. We anticipate increasing levels of operating cash flow and maintain significant financial flexibility with strong liquidity and low leverage. Our disciplined capital allocation approach includes consistent capital returns to shareholders through share repurchases and dividends. Our Board of Directors has approved a new share repurchase authorization of $4.0 billion.”
Auld also paid tribute to the company’s founder, Don Horton, noting, “Don built an incredible legacy by helping Americans achieve homeownership. We honor his memory and continue to build upon his work. We appreciate all who have reached out with condolences and shared memories.
