D.R. Horton Says Margin Pressure Will Persist into Next Year

Dow Jones00:08

1208 ET - D.R. Horton's gross profit margin on home-sales revenue was 19.5% in its fiscal fourth quarter, down sequentially from the June quarter and below the company's expectations, SVP of Communications Jessica Hansen says on a call with analysts. "Market conditions became more challenging as the quarter progressed, which limited our ability to offset higher costs with pricing," she says, adding that higher-than-average litigation costs accounted for the remainder of the decrease. Looking ahead, D.R. Horton expects continued pressure on home-sales gross margin in the current quarter, reflecting lower average sales prices and higher incentive costs at current mortgage rates. "We expect our incentive levels to remain elevated in fiscal 2027," Hansen adds.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment