HORTON D R INC /DE/ Q4 FY2024 earnings call

• D.R. Horton had solid results in 2024 with consolidated pre-tax income of $1.7 billion in Q4 on revenues of $10 billion and full year pre-tax income of $6.3 billion on revenues of $36.8 billion. • Net sales orders were slightly up year-over-year but below expectations due to affordability challenges and market uncertainty. • Used incentives like mortgage rate buydowns and focused on smaller floor plans. • Homebuilding volume and margins in 2025 dependent on spring selling season; demographics support housing demand but limited supply of homes and finished lots. • 4 Star performed well, rental operations provided synergies to homebuilding, and financial services had strong pre-tax margins. • Strong balance sheet with share repurchases and dividends, and capital allocation strategy focused on shareholder returns.

Homebuilding: Fourth quarter home sales revenues were $8.9 billion on 23,647 homes closed. Full year homebuilding revenues were $36.8 billion with pre-tax income of $6.3 billion. Rental Operations: Fourth quarter pre-tax income was $100 million from revenues of $705 million from sale of 1,692 single-family and 868 multi-family units. Full year rental pre-tax income was $229 million from revenues of $1.7 billion from sale of 3,970 single-family and 2,202 multi-family units. 4 Star: Fourth quarter revenues were $551 million with pre-tax income of $109 million. Full year 4 Star delivered 15,068 lots, generating $1.5 billion of revenues and $270 million of pre-tax income. Financial Services: Fourth quarter pre-tax income was $76 million on revenues of $222 million. Full year financial services pre-tax income was $311 million on revenues of $883 million.

• Fiscal 2025 homebuilding volume expected to be 90,000-92,000 homes closed. • Q1 2025 expected consolidated revenues of $6.8-7.3 billion and homes closed by homebuilding operations of 17,500-18,000. • Home sales gross margin expected around 22.5% in Q1, homebuilding SG&A as % of revenues ~8.9%. • Rental revenues expected relatively flat year-over-year, weighted heavier in back half of the year.

• Affordability challenges and competitive market conditions impacting sales. • Volatility in mortgage rates and election-related uncertainty causing buyers to stay on the sidelines. • Potential impact of resale market supply and insurance premiums on competitive position. • SG&A expense pressures from continued expansion of operating platform.

Q: Questions regarding revenue guide disaggregation, specifically rental revenue and ASP A: Bill Wheat stated rental revenues expected to be relatively flat year-over-year, weighted heavier in back half, and ASP assumed relatively flat with recent trends Q: On buyer traffic and market conditions, asking about buyer behavior vs previous times like 2022 A: Paul Romanowski said buyers are on the sidelines due to rate volatility and election, but traffic still consistent though below expectations Q: On inventory and SG&A growth A: Bill Wheat said SG&A growth rates expected to moderate as expansion continues, and inventory numbers discussed with limited supply in competitive price points