Forestar stock faces lower profit and fiscal 2027 targets

Forestar Group reported lower earnings for the quarter and fiscal year ended September 30, 2026. The residential lot developer posted fiscal fourth-quarter revenue of USD 580.8 million, down 13 percent from the prior-year period, while net income attributable to Forestar fell 32 percent to USD 59.2 million, according to the company's October 29 earnings release.

Forestar stock traded at 22.30 euros on Lang & Schwarz at 23:00 CET on Wednesday, November 4, 2026. The internal real-time quote of Forestar stock provides the latest market reference.

Fourth-quarter margins came under pressure

Forestar sold 5,004 lots in the quarter, 2 percent more than a year earlier, but the average sales price per lot declined to USD 108,300 from USD 115,700. The company reported a pre-tax margin of 13.5 percent, compared with 16.9 percent in the prior-year quarter.

Fourth-quarter results included a USD 10.0 million pre-tax gain on asset sales and USD 7.6 million in real estate impairment charges. The company said affordability constraints, cautious consumer sentiment and higher mortgage rates continued to weigh on new-home demand and the timing of builders' lot purchases.

Fiscal 2027 outlook sets lower target

For the full fiscal year, revenue declined 2 percent to USD 1.635 billion and net income attributable to Forestar fell 15 percent to USD 142.6 million, or USD 2.78 per diluted share. Annual lot sales decreased 5 percent to 13,545, while book value per share rose 8 percent to USD 37.56.

Forestar expects to deliver between 12,000 and 13,000 lots in fiscal 2027 and generate revenue of USD 1.4 billion to USD 1.5 billion. Management also reported USD 1.3 billion of liquidity and a 6.7 percent net debt-to-total-capital ratio at the end of fiscal 2026.

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Forestar focuses on finished lots

Forestar acquires entitled land and develops it into finished residential lots for homebuilders. Based in Arlington, Texas, the company operates in 65 markets across 24 states and is majority-owned by D.R. Horton. Its specialized lot-development model differs from vertically integrated homebuilders such as D.R. Horton, Lennar and PulteGroup, which build and sell completed homes; Forestar supplies a critical land component to that industry.