D.R. Horton, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>D.R. Horton, Inc. (DHI) filed its quarterly report (10-Q) for the period ending March 31, 2024, detailing its financial performance and operational status.</b>

AI Summary

HORTON D R INC /DE/ (DHI) filed a Quarterly Report (10-Q) with the SEC on April 23, 2024. D.R. Horton, Inc. filed a 10-Q report for the period ending March 31, 2024. The company's fiscal year ends on September 30. The filing is for the second quarter of fiscal year 2024. The filing date was April 23, 2024. The company's principal business address is in Arlington, Texas.

Why It Matters

For investors and stakeholders tracking HORTON D R INC /DE/, this filing contains several important signals. This filing provides investors with the latest financial data for D.R. Horton, Inc., crucial for assessing its current performance and future prospects in the homebuilding sector. Understanding the details within this 10-Q is essential for stakeholders to make informed investment decisions regarding DHI.

Risk Assessment

Risk Level: — HORTON D R INC /DE/ shows moderate risk based on this filing. The filing is a standard quarterly report and does not contain any immediate red flags or significant negative developments.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand D.R. Horton's performance trends and outlook.

Key Numbers

• 2024-03-31 — Period End Date (Quarterly report)
• 2024-04-23 — Filing Date (10-Q submission)
• 09/30 — Fiscal Year End (Company's fiscal calendar)

Key Players & Entities

• HORTON D R INC /DE/ (company) — Filer name
• DHI (company) — Ticker symbol
• 2024-03-31 (date) — Period of report
• 2024-04-23 (date) — Filing date
• Arlington, TX (location) — Business address

FAQ

Industry Context

D.R. Horton operates in the homebuilding industry, a sector sensitive to economic conditions, interest rates, and consumer confidence.

Regulatory Implications

The filing adheres to SEC regulations for quarterly reporting (Form 10-Q) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the balance sheet and income statement for the quarter ending March 31, 2024.
2. Review any disclosures regarding backlog, new orders, and cancellations.
3. Assess management's commentary on market conditions and future outlook.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-04-23: Filing Date — Date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending March 31, 2024. Previous filings would need to be compared for year-over-year or sequential changes.

Filing Documents

• dhi-20240331.htm (10-Q) — 2082KB
• a3312024exhibit221.htm (EX-22.1) — 99KB
• a3312024exhibit311.htm (EX-31.1) — 16KB
• a3312024exhibit312.htm (EX-31.2) — 16KB
• a3312024exhibit321.htm (EX-32.1) — 6KB
• a3312024exhibit322.htm (EX-32.2) — 6KB
• dhi-20240331_g1.jpg (GRAPHIC) — 136KB
• 0000882184-24-000027.txt (&nbsp;) — 8938KB
• dhi-20240331.xsd (EX-101.SCH) — 32KB
• dhi-20240331_cal.xml (EX-101.CAL) — 57KB
• dhi-20240331_def.xml (EX-101.DEF) — 211KB
• dhi-20240331_lab.xml (EX-101.LAB) — 525KB
• dhi-20240331_pre.xml (EX-101.PRE) — 367KB
• dhi-20240331_htm.xml (XML) — 1580KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (unaudited)

ITEM 1. Financial Statements (unaudited) Consolidated Balance Sheets at March 31, 202 4 and September 30, 2023 3 Consolidated Statements of Operations for the three and six months ended March 31, 202 4 and 202 3 4 Consolidated Statements of Total Equity for the three and six months ended March 31, 2024 and 202 3 5 Consolidated Statements of Cash Flows for the six months ended March 31, 2024 and 202 3 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 28

Quantitative and Qualitative Disclosures about Market Risk

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk 59

Controls and Procedures

ITEM 4. Controls and Procedures 60

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

ITEM 1. Legal Proceedings 61

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 61

Other Information

ITEM 5. Other Information 62

Exhibits

ITEM 6. Exhibits 62

SIGNATURES

SIGNATURES 63 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS D.R. HORTON, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS March 31, 2024 September 30, 2023 (In millions) (Unaudited) ASSETS Cash and cash equivalents $ 3,063.1 $ 3,873.6 Restricted cash 30.3 26.5 Total cash, cash equivalents and restricted cash 3,093.4 3,900.1 Inventories: Construction in progress and finished homes 9,708.5 9,001.4 Residential land and lots — developed and under development 11,889.9 10,621.9 Land held for development 155.2 50.0 Land held for sale 8.8 8.7 Rental properties 3,077.6 2,691.3 Total inventory 24,840.0 22,373.3 Mortgage loans held for sale 2,672.4 2,519.9 Deferred income taxes, net of valuation allowance of $ 14.7 million and $ 14.8 million at March 31, 2024 and September 30, 2023, respectively 166.5 187.2 Property and equipment, net 479.9 445.4 Other assets 2,982.5 2,993.0 Goodwill 163.5 163.5 Total assets $ 34,398.2 $ 32,582.4 LIABILITIES Accounts payable $ 1,386.5 $ 1,246.2 Accrued expenses and other liabilities 2,777.4 3,103.8 Notes payable 5,937.9 5,094.5 Total liabilities 10,101.8 9,444.5 Commitments and contingencies (Note K) EQUITY Preferred stock, $ .10 par value, 30,000,000 shares authorized, no shares issued — — Common stock, $ .01 par value, 1,000,000,000 shares authorized, 402,624,949 shares issued and 330,196,301 shares outstanding at March 31, 2024 and 401,202,253 shares issued and 334,848,565 shares outstanding at September 30, 2023 4.0 4.0 Additional paid-in capital 3,431.6 3,432.2 Retained earnings 25,510.2 23,589.8 Treasury stock, 72,428,648 shares and 66,353,688 shares at March 31, 2024 and September 30, 2023, respectively, at cost ( 5,130.3 ) ( 4,329.8 ) Stockholders' equity 23,815.5 22,696.2 Noncontrolling interests 480.9 441.7 Total equity 24,296.4 23,137.9 Total liabilities and equity $ 34,398.2 $ 32,582.4 See accompanying notes to consolidated financial statements. 3 Table of Contents D.R. HORTON, INC. AND SUBSIDIARIES CONSO

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) March 31, 2024 NOTE A – BASIS OF PRESENTATION The accompanying unaudited, consolidated financial statements include the accounts of D.R. Horton, Inc. and all of its wholly-owned, majority-owned and controlled subsidiaries, which are collectively referred to as the Company, unless the context otherwise requires. Noncontrolling interests represent the proportionate equity interests in consolidated entities that are not 100% owned by the Company. As of March 31, 2024, the Company owned a 62 % controlling interest in Forestar Group Inc. (Forestar) and therefore is required to consolidate 100% of Forestar within its consolidated financial statements, and the 38 % interest the Company does not own is accounted for as noncontrolling interests. All intercompany accounts, transactions and balances have been eliminated in consolidation. The financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, these financial statements reflect all adjustments considered necessary to fairly state the results for the interim periods shown, including normal recurring accruals and other items. These financial statements, including the consolidated balance sheet as of September 30, 2023, which was derived from audited financial statements, do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company's annual report on Form 10-K for the fiscal year ended September 30, 2023 . Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and l

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued) March 31, 2024 NOTE B – SEGMENT INFORMATION The Company is a national homebuilder that is primarily engaged in the acquisition and development of land and the construction and sale of residential homes, with operations in 119 markets across 33 states. The Company's operating segments are its 84 homebuilding divisions, its rental operations, its majority-owned Forestar residential lot development operations, its financial services operations and its other business activities. The Company's reporting segments are its homebuilding reporting segments, its rental operations segment, its Forestar lot development segment and its financial services segment. Homebuilding The homebuilding operating segments are aggregated into six reporting segments. The reporting segments and the states in which the Company has homebuilding operations are as follows: Northwest: Colorado, Oregon, Utah and Washington Southwest: Arizona, California, Hawaii, Nevada and New Mexico South Central: Arkansas, Oklahoma and Texas Southeast: Alabama, Florida, Louisiana and Mississippi East: Georgia, North Carolina, South Carolina and Tennessee North: Delaware, Illinois, Indiana, Iowa, Kentucky, Maryland, Minnesota, Nebraska, New Jersey, Ohio, Pennsylvania, Virginia and West Virginia The Company's homebuilding divisions design, build and sell single-family detached homes on lots they develop and on fully developed lots purchased ready for home construction. To a lesser extent, the homebuilding divisions also build and sell attached homes, such as townhomes, duplexes and triplexes. Most of the revenue generated by the Company's homebuilding operations is from the sale of completed homes and to a lesser extent from the sale of land and lots. Rental The Company's rental segment consists of single-family and multi-family rental operations. The single-family rental operations primarily construct and lease single-family

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued) March 31, 2024 The accounting policies of the reporting segments are described throughout Note A included in the Company's annual report on Form 10-K for the fiscal year ended September 30, 2023. Financial information relating to the Company's reporting segments is as follows: March 31, 2024 Homebuilding Rental Forestar Financial Services Eliminations and Other (1) Consolidated (In millions) Assets Cash and cash equivalents $ 2,192.6 $ 117.0 $ 416.2 $ 315.2 $ 22.1 $ 3,063.1 Restricted cash 6.7 2.5 — 21.1 — 30.3 Inventories: Construction in progress and finished homes 9,847.5 — — — ( 139.0 ) 9,708.5 Residential land and lots — developed and under development 10,053.1 — 1,981.1 — ( 144.3 ) 11,889.9 Land held for development 20.4 — 134.8 — — 155.2 Land held for sale 8.8 — — — — 8.8 Rental properties — 3,092.8 — — ( 15.2 ) 3,077.6 19,929.8 3,092.8 2,115.9 — ( 298.5 ) 24,840.0 Mortgage loans held for sale — — — 2,672.4 — 2,672.4 Deferred income taxes, net 209.1 ( 19.9 ) — — ( 22.7 ) 166.5 Property and equipment, net 449.8 2.0 6.1 3.9 18.1 479.9 Other assets 2,630.1 33.6 60.5 200.7 57.6 2,982.5 Goodwill 134.3 — — — 29.2 163.5 $ 25,552.4 $ 3,228.0 $ 2,598.7 $ 3,213.3 $ ( 194.2 ) $ 34,398.2 Liabilities Accounts payable $ 1,120.0 $ 387.1 $ 61.7 $ 0.1 $ ( 182.4 ) $ 1,386.5 Accrued expenses and other liabilities 2,434.5 36.4 358.3 227.8 ( 279.6 ) 2,777.4 Notes payable 2,363.2 985.0 705.7 1,884.0 — 5,937.9 $ 5,917.7 $ 1,408.5 $ 1,125.7 $ 2,111.9 $ ( 462.0 ) $ 10,101.8 ______________ (1) Amounts include the balances of the Company's other businesses and the elimination of intercompany transactions. 10 Table of Contents D.R. HORTON, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued) March 31, 2024 September 30, 2023 Homebuilding Rental Forestar Financial Services Eliminations and Other (1) Consolidated (In millions) Assets Cash and cash equivalents $ 2,920.2 $ 136.1 $ 616.0 $ 189.1 $ 12.2 $ 3,873.6 Restricted cash 6.5 3.3 — 16.7 — 26.5 Inventories: Construction in progress and finished homes 9,134.3 — — — ( 132.9 ) 9,001.4 Residential land and lots — developed and under development 8,992.3 — 1,760.8 — ( 131.2 ) 10,621.9 Land held for development 20.5 — 29.5 — — 50.0 Land held for sale 8.7 — — — — 8.7 Rental properties — 2,708.4 — — ( 17.1 ) 2,691.3 18,155.8 2,708.4 1,790.3 — ( 281.2 ) 22,373.3 Mortgage loans held for sale — — — 2,519.9 — 2,519.9 Deferred income taxes, net 229.8 ( 19.9 ) — — ( 22.7 ) 187.2 Property and equipment, net 415.0 2.4 5.9 4.1 18.0 445.4 Other assets 2,838.5 29.8 58.5 250.3 ( 184.1 ) 2,993.0 Goodwill 134.3 — — — 29.2 163.5 $ 24,700.1 $ 2,860.1 $ 2,470.7 $ 2,980.1 $ ( 428.6 ) $ 32,582.4 Liabilities Accounts payable $ 1,033.7 $ 698.6 $ 68.4 $ 0.1 $ ( 554.6 ) $ 1,246.2 Accrued expenses and other liabilities 2,585.5 43.2 337.4 280.4 ( 142.7 ) 3,103.8 Notes payable 2,329.9 400.0 695.0 1,669.6 — 5,094.5 $ 5,949.1 $ 1,141.8 $ 1,100.8 $ 1,950.1 $ ( 697.3 ) $ 9,444.5 ______________ (1) Amounts include the balances of the Company's other businesses and the elimination of intercompany transactions. 11 Table of Contents D.R. HORTON, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued) March 31, 2024 Three Months Ended March 31, 2024 Homebuilding Rental Forestar Financial Services Eliminations and Other (1) Consolidated (In millions) Revenues Home sales $ 8,466.7 $ — $ — $ — $ — $ 8,466.7 Land/lot sales and other 6.9 — 333.8 — ( 297.1 ) 43.6 Rental property sales — 371.3 — — — 371.3 Financial services — — — 225.6 — 225.6 8,473.6 371.3 333.8 225.6 ( 297.1 ) 9,107.2 Cost of sales Home sales (2) 6,505.6 — — — ( 68.3 ) 6,437.3 Land/lot sales and other 4.2 — 250.5 — ( 234.1 ) 20.6 Rental property sales — 302.8 — — — 302.8 Inventory and land option charges 13.1 0.3 0.2 — — 13.6 6,522.9 303.1 250.7 — ( 302.4 ) 6,774.3 Selling, general and administrative expense 614.1 61.4 29.2 171.2 4.7 880.6 Other (income) expense ( 21.0 ) ( 26.5 ) ( 5.0 ) ( 23.6 ) ( 0.1 ) ( 76.2 ) Income before income taxes $ 1,357.6 $ 33.3 $ 58.9 $ 78.0 $ 0.7 $ 1,528.5 ______________ (1) Amounts include the results of the Company's other businesses and the elimination of intercompany transactions. (2) Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. 12 Table of Contents D.R. HORTON, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued) March 31, 2024 Six Months Ended March 31, 2024 Homebuilding Rental Forestar Financial Services Eliminations and Other (1) Consolidated (In millions) Revenues Home sales $ 15,743.1 $ — $ — $ — $ — $ 15,743.1 Land/lot sales and other 27.2 — 639.7 — ( 561.6 ) 105.3 Rental property sales — 566.5 — — — 566.5 Financial services — — — 418.2 — 418.2 15,770.3 566.5 639.7 418.2 ( 561.6 ) 16,833.1 Cost of sales Home sales (2) 12,113.6 — — — ( 122.5 ) 11,991.1 Land/lot sales and other 17.3 — 483.4 — ( 456.7 ) 44.0 Rental property sales — 444.1 — — ( 4.8 ) 439.3 Inventory and land option charges 18.6 0.6 0.4 — — 19.6 12,149.5 444.7 483.8 — ( 584.0 ) 12,494.0 Selling, general and administrative expense 1,217.5 108.8 57.2 322.7 9.4 1,715.6 Other (income) expense ( 50.4 ) ( 51.6 ) ( 11.4 ) ( 48.5 ) 9.4 ( 152.5 ) Income before income taxes $ 2,453.7 $ 64.6 $ 110.1 $ 144.0 $ 3.6 $ 2,776.0 Summary Cash Flow Information Depreciation and amortization $ 37.2 $ 1.3 $ 1.4 $ 0.9 $ 0.3 $ 41.1 Cash provided by (used in) operating activities $ 408.3 $ ( 653.9 ) $ ( 216.0 ) $ ( 40.7 ) $ 32.2 $ ( 470.1 ) ______________ (1) Amounts include the results of the Company's other businesses and the elimination of intercompany transactions. (2) Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. 13 Table of Contents D.R. HORTON, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued) March 31, 2024 Three Months Ended March 31, 2023 Homebuilding Rental Forestar Financial Services Eliminations and Other (1) Consolidated (In millions) Revenues Home sales $ 7,449.7 $ — $ — $ — $ — $ 7,449.7 Land/lot sales and other 19.9 — 301.5 — ( 238.7 ) 82.7 Rental property sales — 224.1 — — — 224.1 Financial services — — — 216.4 — 216.4 7,469.6 224.1 301.5 216.4 ( 238.7 ) 7,972.9 Cost of sales Home sales (2) 5,843.0 — — — ( 61.8 ) 5,781.2 Land/lot sales and other 13.4 — 225.3 — ( 204.3 ) 34.4 Rental property sales — 157.6 — — ( 0.8 ) 156.8 Inventory and land option charges 14.2 0.4 20.3 — ( 11.1 ) 23.8 5,870.6 158.0 245.6 — ( 278.0 ) 5,996.2 Selling, general and administrative expense 545.6 53.5 22.0 146.9 5.6 773.6 Other (income) expense ( 14.5 ) ( 22.0 ) ( 2.0 ) ( 16.1 ) 12.4 ( 42.2 ) Income before income taxes $ 1,067.9 $ 34.6 $ 35.9 $ 85.6 $ 21.3 $ 1,245.3 ______________ (1) Amounts include the results of the Company's other businesses and the elimination of intercompany transactions. (2) Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. 14 Table of Contents D.R. HORTON, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued) March 31, 2024 Six Months Ended March 31, 2023 Homebuilding Rental Forestar Financial Services Eliminations and Other (1) Consolidated (In millions) Revenues Home sales $ 14,158.9 $ — $ — $ — $ — $ 14,158.9 Land/lot sales and other 54.7 — 518.2 — ( 406.2 ) 166.7 Rental property sales — 551.6 — — — 551.6 Financial services — — — 353.4 — 353.4 14,213.6 551.6 518.2 353.4 ( 406.2 ) 15,230.6 Cost of sales Home sales (2) 10,949.7 — — — ( 110.9 ) 10,838.8 Land/lot sales and other 18.3 — 392.1 — ( 352.1 ) 58.3 Rental property sales — 341.4 — — ( 2.4 ) 339.0 Inventory and land option charges 38.4 1.4 22.7 — ( 11.1 ) 51.4 11,006.4 342.8 414.8 — ( 476.5 ) 11,287.5 Selling, general and administrative expense 1,072.6 101.0 44.9 281.0 11.0 1,510.5 Other (income) expense ( 27.7 ) ( 37.1 ) ( 5.3 ) ( 31.4 ) 21.6 ( 79.9 ) Income before income taxes $ 2,162.3 $ 144.9 $ 63.8 $ 103.8 $ 37.7 $ 2,512.5 Summary Cash Flow Information Depreciation and amortization $ 30.7 $ 1.0 $ 1.5 $ 1.1 $ 12.2 $ 46.5 Cash provided by (used in) operating activities $ 1,456.4 $ ( 263.3 ) $ 21.3 $ 232.2 $ 27.0 $ 1,473.6 ______________ (1) Amounts include the results of the Company's other businesses and the eliminati