Forestar Group Inc. reported its fourth‑quarter and fiscal 2025 results, posting net income of $87.0 million, up 7% from $81.6 million in Q4 2024. Diluted earnings per share were $1.70, compared with $1.58 a year earlier. Revenue for the quarter reached $670.5 million, a 22% increase over $551.4 million in Q4 2024. For the full year, net income was $167.9 million, down 17% from $203.4 million in 2024, and diluted EPS was $3.29, versus $3.99 in the prior year. Fiscal 2025 revenue totaled $1.662 billion, up 10% from $1.509 billion in 2024.
The company beat analyst expectations, which projected Q4 revenue of $556.6 million and diluted EPS of $1.26. It also exceeded its own guidance for fiscal 2025, delivering between 14,000 and 15,000 lots and $1.6 billion to $1.7 billion in revenue.
Liquidity stood at $968.1 million, comprising $379.2 million in cash and $588.9 million of available borrowing capacity. Debt was $802.7 million, giving a net debt to total capital ratio of 19.3%. Return on equity for the year was 10.1%.
Quarterly lots sold fell 9% to 4,891, with 828 sold to customers other than D.R. Horton. The lot position at September 30 grew to 99,800, of which 65,100 were owned and 34,700 were controlled under purchase contracts. Average sales price per lot increased 12% to $108,400.
Forestar invested $347 million in land and development during Q4 and redeemed $70.6 million of 3.85% senior unsecured notes due 2026, strengthening its balance sheet. CEO Daniel Bartok highlighted the company’s disciplined capital structure and operational efficiencies as key to capturing market share in a constrained lot‑supply environment.
The company’s relationship with D.R. Horton remains a key driver of demand, with the homebuilder accounting for a significant portion of sales and a large share of owned lots under contract or right of first offer.
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