Overview

• Forestar Q4 revenue grew 22% yr/yr, beating analyst expectations

• Net income for fiscal 2025 decreased 17% yr/yr

• Company sold 4,891 lots in Q4, a 9% decrease yr/yr

Outlook

• Forestar expects to deliver 14,000 to 15,000 lots in fiscal 2026

• Company forecasts fiscal 2026 revenue between $1.6 bln and $1.7 bln

• Forestar highlights strong balance sheet and liquidity for resilience

Result Drivers

• LOT SALES REVENUE - Revenue growth driven by increased residential lot sales despite fewer lots sold

• STRATEGIC RELATIONSHIP - Demand for finished lots supported by strategic relationship with D.R. Horton

• HIGHER LOT PRICES - Increase in average sales price per lot contributed to revenue growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Forestar Group Inc is $31.00, about 15.9% above its October 27 closing price of $26.06

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nBw5kWhrMa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)