Forestar (FOR) Q2 2026 Earnings Call Transcript

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Tuesday, April 21, 2026 astatine 11 a.m. ET

• Chief Executive Officer — Andy Oxley

• Chief Financial Officer — Jim Allen

• Chief Operating Officer — Mark Walker

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Andy Oxley: Thanks, Chris. Good morning, everyone. I americium besides joined connected the telephone contiguous by Jim Allen, our Chief Financial Officer, and Mark Walker, our Chief Operating Officer. The Forestar Group Inc. squad achieved coagulated 2nd 4th results, generating revenues of $374.3 million, a 7% summation from the prior-year quarter, connected 2,938 tons sold. Our pre-tax income accrued 8% from the prior-year 4th to $43.9 million. Our publication worth per stock accrued 10% from a twelvemonth agone to $35.66, and our contracted backlog remains beardown with visibility towards $2.2 cardinal of aboriginal revenue. Persistent affordability constraints and cautious user sentiment proceed to interaction the gait of caller location sales.

In response, we are managing our inventory investments with subject and flexibility, which allowed america to extremity the 4th with much than $1 cardinal of liquidity. We stay focused connected turning our inventory, maximizing returns, and consolidating marketplace stock successful the highly fragmented batch improvement industry. Our unsocial operation of fiscal strength, operating expertise, and a divers nationalist footprint enables america to consistently supply indispensable finished tons to homebuilders and navigate existent marketplace conditions effectively. We volition present sermon our 2nd 4th fiscal results successful much detail. Jim.

Jim Allen: Thank you, Andy. In the 2nd quarter, nett income attributable to Forestar Group Inc. accrued 2% to $32.1 million, oregon $0.63 per diluted share, compared to $31.6 million, oregon $0.62 per diluted share, successful the prior-year quarter. Our pre-tax income accrued 8% to $43.9 million, compared to $40.7 cardinal successful the 2nd 4th of past year, and our pre-tax nett borderline this 4th was 11.7% versus 11.6% successful the prior-year quarter. Revenues for the 2nd 4th accrued 7% to $374.3 million, compared to $351.0 cardinal successful the prior-year quarter.

The existent 4th includes $42.9 cardinal successful tract income and different revenue, which was chiefly from income of residential and commercialized tracts and, to a lesser extent, the merchantability of a multifamily site. Mark.

Mark Walker: We sold 2,938 tons successful the quarter, with an mean income terms of $112,800. We expect continued quarterly fluctuations successful our mean income terms based connected the geographic and lot-size premix of our deliveries. Our gross nett borderline for the 4th was 21.4%, compared to 22.6% for the aforesaid 4th past year. The existent 4th borderline includes $6.3 cardinal of planned enactment charges related to deposits and pre-acquisition outgo write-offs, compared to $0.9 cardinal successful the prior-year quarter. Excluding the effect of the nett alteration successful write-offs, our existent 4th gross borderline would person been astir 22.9%. Chris.