(Disclosure: Rose Law Group represents D.R. Horton.)
By Leah Draffen | Builder
As affordability constraints and elevated incentives continued to pressure margins, D.R. Horton reported lower year‑over‑year earnings for its fiscal 2026 second quarter, even as demand held up and net sales orders increased.
For the second quarter, home building revenue decreased 2% to $7.1 billion, and homes closed increased 1% to 19,486 homes.
“Affordability constraints and cautious consumer sentiment continue to impact new-home demand,” executive chairman David Auld said, noting that disciplined execution helped drive higher orders and reduce unsold completed homes by 35% from a year ago. The company expects sales incentives to remain elevated throughout fiscal 2026.
The cancellation rate was 16%, consistent with the prior‑year quarter. Net sales orders increased 11% year over year to 24,992 homes, representing $9.2 billion in order value.
