D.R. Horton Posts $34.3B Revenue, Boosts Shareholder Returns 118%

Ticker: DHI · Form: DEF 14A · Filed: 2025-12-10T00:00:00.000Z

Sentiment: bullish

Topics: Homebuilding, Financial Performance, Shareholder Returns, Affordable Housing, Corporate Governance, Cash Flow, Market Share

Related Tickers: DHI, LEN, PHM, TOL, NVR

TL;DR

**DHI is America's Builder, crushing it with $3.4B cash flow returned to shareholders and dominating the affordable housing market; buy the dip!**

AI Summary

D.R. Horton, Inc. (DHI) reported solid financial results for fiscal 2025, achieving $34.3 billion in revenues and $4.7 billion in consolidated pre-tax income, resulting in a pre-tax profit margin of 13.8%. Earnings per diluted share totaled $11.57. The company provided homeownership to nearly 85,000 individuals and families, including approximately 43,000 first-time homebuyers, with total homebuilding and rental operations serving over 91,200 households. DHI generated $3.4 billion of cash flow from operations, a 56% increase over fiscal 2024, and returned all of it to stockholders through share repurchases and dividends, marking a 118% increase in distributions from the prior year. Key performance metrics included a homebuilding pre-tax return on inventory of 20.1%, return on equity of 14.6%, and return on assets of 10.0%. Over the past five years, DHI expanded into 7 new states and 38 markets, growing consolidated revenues at an 11% compound annual rate and more than doubling book value per share.

Why It Matters

D.R. Horton's strong fiscal 2025 performance, including $3.4 billion in operating cash flow returned to stockholders, signals robust financial health and a commitment to shareholder value, which is crucial for investors. The company's focus on affordability and serving nearly 85,000 homebuyers, including 43,000 first-time buyers, demonstrates its significant impact on the housing market and broader economy, especially amidst challenging affordability constraints. This positions DHI competitively against other builders by addressing a critical market need, potentially attracting more customers and sustaining market share. Employees benefit from a resilient company, while customers gain access to affordable housing options.

Risk Assessment

Risk Level: low — D.R. Horton exhibits a low risk profile due to its strong financial performance, including $3.4 billion in cash flow from operations in fiscal 2025 and a consolidated leverage ratio below 20%. The company's robust stock ownership guidelines for executives and directors, coupled with clawback and anti-hedging policies, further mitigate compensation-related risks and align management interests with long-term shareholder value.

Analyst Insight

Investors should consider D.R. Horton's consistent cash flow generation and significant shareholder returns as indicators of financial stability. The company's strategic focus on affordable housing and market expansion suggests continued growth potential, making it a compelling long-term holding in the homebuilding sector.

Financial Highlights

revenue
$34.3B
eps
$11.57

Executive Compensation

NameTitleTotal Compensation
DAVID V. AULDExecutive Chairman of the Board

Key Numbers

Key Players & Entities

FAQ

What were D.R. Horton's key financial achievements in fiscal 2025?

D.R. Horton achieved $34.3 billion in revenues and $4.7 billion in consolidated pre-tax income in fiscal 2025. The company also reported earnings per diluted share of $11.57 and generated $3.4 billion in cash flow from operations.

How did D.R. Horton's shareholder returns perform in fiscal 2025?

In fiscal 2025, D.R. Horton returned all $3.4 billion of cash flow from operations to stockholders through share repurchases and dividends. This represented a significant 118% increase in stockholder distributions from the prior year.

What is D.R. Horton's strategy for addressing housing affordability?

D.R. Horton focuses on affordability, particularly for entry-level, first-time, and first-time move-up homebuyers, by offering one of the lowest average selling prices in the industry. In fiscal 2025, they provided homeownership to approximately 43,000 first-time homebuyers.

Who is not standing for re-election to D.R. Horton's Board of Directors in 2026?

Director Michael Buchanan, who has served on D.R. Horton's Board since 2003, is not standing for re-election at the 2026 Annual Meeting, concluding 22 years of service.

What are D.R. Horton's corporate governance highlights?

D.R. Horton's governance includes one vote per share, annual election of directors by majority vote, stockholder proxy access, and no 'poison pill'. Six of eight director nominees are independent, and all three standing Board committees are 100% independent.

How does D.R. Horton manage executive compensation risk?

D.R. Horton mitigates executive compensation risk through robust stock ownership guidelines, a clawback policy triggered by financial restatements for cash and equity incentives, and prohibitions on pledging or hedging company stock by directors and executive officers.

What is D.R. Horton's approach to sustainability and environmental impact?

D.R. Horton considers environmental impacts in all phases of home construction, from site selection to including energy-efficient features. They publish annual Sustainability Reports, track Scope 1 & 2 GHG emissions, and are preparing for California Climate Laws compliance.

When and where is D.R. Horton's 2026 Annual Meeting of Stockholders?

The 2026 Annual Meeting of Stockholders for D.R. Horton, Inc. will be held on Thursday, January 15, 2026, at 11:00 a.m. Central Time, at their corporate offices located at 1341 Horton Circle, Arlington, Texas 76011.

How has D.R. Horton expanded its market presence over the past five years?

Over the past five years, D.R. Horton has significantly expanded its housing platform by entering 7 new states and 38 markets, increasing its community count by 40%. This expansion contributed to an 11% compound annual growth rate in consolidated revenues.

What is the Board's recommendation for the director nominees at the 2026 Annual Meeting?

The Board of Directors unanimously recommends that stockholders vote 'FOR' each of the eight director nominees. These nominees include David V. Auld, Paul J. Romanowski, Brad S. Anderson, Benjamin S. Carson, Sr., M. Chad Crow, Elaine D. Crowley, Maribess L. Miller, and Barbara R. Smith.

Risk Factors

Industry Context

D.R. Horton operates as the largest homebuilder in the United States, a sector highly sensitive to economic conditions, interest rates, and consumer confidence. The industry is characterized by cyclicality, significant capital requirements, and reliance on a robust supply chain for materials and labor. Competitors range from large national builders to smaller regional players, with market share often driven by scale, geographic diversification, and product offerings.

Regulatory Implications

The company faces increasing regulatory scrutiny, particularly concerning environmental disclosures, as evidenced by its preparation for California's climate laws (SB-253 and SB-261). Compliance with these and other evolving environmental, social, and governance (ESG) regulations will require ongoing data collection, reporting, and potentially investments in emissions reduction strategies.

What Investors Should Do

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Key Dates

Glossary

DEF 14A
A filing with the U.S. Securities and Exchange Commission (SEC) that provides detailed information to shareholders about matters to be voted on at an annual meeting, including executive compensation, director elections, and auditor ratification. (This document is the primary source of information for the shareholder meeting and contains details on executive compensation, governance, and financial performance.)
Proxy Statement
A document that is required by the SEC to be distributed to shareholders before a shareholder meeting, containing information about the company and the matters to be voted upon. (This is the core document for the annual meeting, detailing proposals and providing background information for shareholders to make informed voting decisions.)
Performance Stock Units (PSUs)
A type of equity compensation granted to executives that vests and pays out only if specific performance goals are met over a defined period. (The company uses PSUs as a significant part of its equity compensation, aligning executive pay with company performance and long-term value creation.)
Scope 1, 2, and 3 GHG emissions
Scopes 1 and 2 refer to direct and indirect emissions from owned or controlled sources and purchased energy, respectively. Scope 3 includes all other indirect emissions in the value chain, such as those from the use of sold products or supply chain activities. (The company is preparing to report on these emissions, indicating increasing focus on environmental impact and potential regulatory requirements related to climate change.)

Year-Over-Year Comparison

The provided excerpt focuses on the upcoming 2026 Proxy Statement and fiscal 2025 performance, highlighting strong revenue growth (11% CAGR over five years) and EPS growth (80% over five years) compared to prior periods. The company also reported a significant 56% increase in cash flow from operations year-over-year for fiscal 2025 and an 118% increase in stockholder distributions. New risk considerations include preparations for California's climate disclosure laws, suggesting an evolving regulatory landscape compared to previous filings.

Filing Stats: 4,337 words · 17 min read · ~14 pages · Grade level 12.1 · Accepted 2025-12-10 15:50:54

Key Financial Figures

Filing Documents

executive compensation;

executive compensation; FOR 3. To ratify the appointment of Ernst & Young LLP as our independent registered public accounting firm for fiscal 2026 ; and FOR 4. To conduct other business properly brought before the meeting. FOR Record Date: Only stockholders of record at the close of business on Monday , December 1, 2025 are entitled to notice of and to vote at the 2026 Annual Meeting or any adjournment thereof. The Proxy Statement is furnished in connection with the solicitation of proxies by the Board of Directors of D.R. Horton. D.R. Horton expects that the Proxy Statement and the accompanying form of proxy will first be released to our stockholders of record on or about December 10, 2025 . Whether or not you plan to attend the meeting, your vote is very important. For the convenience of our stockholders, proxies may be submitted either by telephone, electronically through the Internet, or by mail. For casting your vote by mail, a form of proxy on which to indicate your vote and a postage-paid envelope in which to return your proxy are enclosed. WE URGE YOU TO COMPLETE AND RETURN YOUR PROXY BY ONE OF THESE METHODS SO THAT YOUR SHARES WILL BE REPRESENTED. If you decide later to attend the 2026 Annual Meeting, you may revoke your proxy at that time and vote your shares in person. If you desire any additional information concerning the 2026 Annual Meeting, we would be glad to hear from you. Sincerely, DAVID V. AULD Executive Chairman of the Board Arlington, Texas December 10, 2025 D.R. HORTON, INC. 202 6 PROXY STATEMENT Table of Contents Table of Contents Page Proxy Statement Summary 1 Key Operating and Financial Highlights 1 Corporate Governance Highlights 2

Executive Compensation Highlights

Executive Compensation Highlights 3 Sustainability 4 Proposal One – Election of Directors 5 Information Regarding the Director Nominees 6 Director Nominees 7 Corporate Governance and Board Matters 11 Board Refreshment and Composition 11 Corporate Governance Standards 12 Board Leadership Structure, Board's Role in Risk Oversight and Board and Committee Meetings 17 Compensation of Directors 20 Non-Employee Director Compensation for Fiscal 2025 21 Proposal Two – Advisory Vote on the Approval of Executive Compensation 22 Executive Officers 23 Non-Director Executive Officers 23

Executive Compensation

Executive Compensation 25 Compensation Discussion and Analysis 25 Components of Compensation 28 Cash Compensation: Base Salaries and Performance Bonuses 28 Equity Compensation: Performance and Time-Based 31 Other Compensation and Stock Matters 35 Process for Determining Compensation 36 Use of Compensation Peer Group Data 37 Compensation Risk Analysis 38 Compensation Committee Report 38

Executive Compensation Tables

Executive Compensation Tables 39 Nonqualified Deferred Compensation Plans 42 Potential Payments Upon Termination or Change in Control 43 CEO Pay Ratio 46 Pay Versus Performance 47 Independent Registered Public Accountants 50 Audit Fees and All Other Fees 50 Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services 50 Audit Committee Report 51 Page Proposal Three – Ratification of Appointment of Independent Registered Public Accounting Firm 52 Beneficial Ownership of Common Stock 53 Management 53 Certain Other Beneficial Owners 54 Certain Relationships and Related Person Transactions 55 Other Related Party Transactions 58 General Information 59 Time, Place and Purposes of Meeting 59 Solicitation of Proxies 59 Revocation and Voting of Proxies 59 Outstanding Shares and Voting Rights 59 Quorum Requirement 60 Vote Required 60 Stockholders Sharing the Same Address 61 Future Stockholder Communications through the Internet 61 Stockholder Proposals for 2027 Annual Meeting 62 Requesting Documents from the Company 63 Other Matters 63 D.R. HORTON, INC. | 2026 PROXY STATEMENT | 1 Table of Contents Proxy Statement Summary Proxy Statement Summary Key Operating and Financial Highlights The D.R. Horton team, led by our executive officers, delivered outstanding operating and financial results during fiscal 2025 . D.R. Horton, Inc. is referred to as "D.R. Horton," the "Company," "we," and "our" in this Proxy Statement. Our results reflect the strength of our experienced operational teams, industry-leading market share, broad geographic footprint and diverse product offerings across multiple brands. We closed 88,323 homes in our homebuilding and single-family rental operations during fiscal 2025 , completing our 24 th consecutive fiscal year as the largest homebuilder in the United States. Over the last five years, we have grown

Executive Compensation Highlights

Executive Compensation Highlights Our Compensation Committee is committed to providing a fair and competitive compensation program for executive officers that rewards performance, promotes long-term stockholder value creation and attracts, motivates and retains highly qualified and experienced executives. Executive Compensation Principles

Executive Compensation Objectives

Executive Compensation Objectives Business Resilience P Achieve long-term sustainability of our business Alignment of Interests P Align executive and stockholder interests with the goal of maximizing long-term stockholder value Pay-for-Performance P Recognize valuable short- and long-term individual contributions as well as overall Company performance Attract and Retain P Motivate and retain highly qualified and experienced executives who are capable of driving strategic objectives To achieve these objectives, our executive compensation program incorporates the features below. Feature Rationale and Impact

Business

Business Resilience Alignment of Interests Pay for Performance Attract and Retain Emphasize At-Risk and Performance- based Compensation 92% of fiscal 2025 CEO Target Pay is contingent on performance ("at-risk") P P P Balance Short- and Long-Term Incentives Reward for actions that are intended to create short and long-term stockholder value P P P P Equity Pay Mix Majority of equity granted as Performance Stock Units ("PSUs") P P P P Annual Cash and Equity Incentive Tied to Profitability Reward for profitability that creates stockholder value No guaranteed bonuses P P P P Stock Ownership Guidelines Align executives' interests with those of long-term stockholders P P P Clawback and Anti-hedging and Pledging Policies Mitigate compensation risk and reinforce strong alignment with stockholder interests P P P D.R. HORTON, INC. | 2026 PROXY STATEMENT | 4 Table of Contents Proxy Statement Summary Sustainability Our management team and Board have focused on providing sustainability information to our stockholders, including metrics that may assist with evaluating and mitigating our impacts on the environment and climate. As the largest homebuilder in the United States, our business activities, including the acquisition and development of land and the construction and sale of residential homes, may impact the environment. We consider environmental impacts in each phase of constructing our homes, from the performance of environmental studies during site selection through completion of our homes by including or offering energy efficient and energy-saving features. Our Board, both directly and through the Nominating and Governance Committee, provides oversight of key sustainability matters. We continue to improve and expand upon our internal processes for tracking metrics related to the energy efficiency and environmental impacts of our operations, and we publish and updat

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