Q4 2024 DR Horton Inc Earnings Call Transcript
Key Points
- D.R. Horton Inc (DHI) reported solid financial results with a consolidated pre-tax income of $1.7 billion and revenues of $10 billion for the fourth quarter.
- Earnings per diluted share for the year increased by 4% to $14.34, indicating strong profitability.
- The company returned all of its generated cash flow to shareholders through repurchases and dividends, with share distributions increasing by approximately $700 million or 44% from the prior year.
- D.R. Horton Inc (DHI) has a strong balance sheet with low leverage and substantial liquidity, providing significant financial flexibility.
- The company has improved its construction cycle times, positioning it to turn housing inventory faster in 2025.
- Net income for the fourth quarter decreased by 15% to $1.3 billion, indicating a decline in profitability compared to the prior year.
- The average closing price for homes in the fourth quarter was $377,600, down 1% both sequentially and from the prior year quarter.
- The cancellation rate for the quarter increased to 21%, up from 18% sequentially, indicating potential buyer hesitancy.
- Gross profit margin on home sales revenues in the fourth quarter was 23.6%, down 40 basis points sequentially due to higher incentive costs.
- The company anticipates further increases in incentive levels on homes closed over the next few months, which could impact profit margins.
Good morning and welcome to the Fourth Quarter 2024 Earnings Conference Call for D.R. Horton, America's Builder, the largest builder in the United States. At this time, all participants are in a listen only mode.
A question-and-answer session will follow the formal presentation.
If you wish to enter the Q&A queue, please press star one on your phone at any time.
I will now turn the call over to Jessica Hansen, Senior Vice President of Communications for D.R. Horton.
:
Thank you, Tom, and good morning and welcome to our call to discuss our fourth quarter of fiscal 2024 financial results. Before we get started, today's call includes forward looking statements as defined by the Private Securities Litigation Reform Act of 1995.
Although D.R. Horton believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different.
All forward looking statements are based upon
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