AI Earnings Predictions for Forestar Group Inc (FOR)

EX-99.1

2 a9302026exhibit991.htm

EX-99.1

Document

Exhibit 99.1

FORESTAR REPORTS FOURTH QUARTER AND FISCAL 2026 RESULTS

ARLINGTON, Texas (Business Wire) - October 29, 2026 — Forestar Group Inc. (“Forestar”) (NYSE: FOR), a leading national residential lot developer, today reported financial results for its fourth quarter and fiscal year ended September 30, 2026.

Fiscal 2026 Fourth Quarter Highlights

•Net income attributable to Forestar totaled $59.2 million or $1.15 per diluted share

•Pre-tax income of $78.6 million, with a pre-tax profit margin of 13.5%

•Consolidated revenues of $580.8 million on 5,004 lots sold

Fiscal 2026 Highlights

•Net income attributable to Forestar totaled $142.6 million or $2.78 per diluted share

•Pre-tax income of $192.1 million, with a pre-tax profit margin of 11.7%

•Consolidated revenues of $1.6 billion on 13,545 lots sold

•Owned and controlled 84,400 lots

•21,500 lots contracted for sale

•Real estate of $2.5 billion

•Book value per share increased 8% from a year ago to $37.56

•Net debt to total capital ratio of 6.7%, with total liquidity of $1.3 billion

Financial Results

Net income attributable to Forestar for the fourth quarter of fiscal 2026 decreased 32% to $59.2 million, or $1.15 per diluted share, compared to $87.0 million, or $1.70 per diluted share, in the same quarter of fiscal 2025. Pre-tax income for the quarter decreased 31% to $78.6 million from $113.1 million in the same quarter of fiscal 2025. Fourth quarter results include a pre-tax gain on sale of assets of $10.0 million and real estate impairment charges of $7.6 million compared to a pre-tax gain on sale of $4.5 million and no real estate impairment charges in the same quarter of fiscal 2025. Revenues for the fourth quarter decreased 13% to $580.8 million from $670.5 million in the same quarter of fiscal 2025.

Net income attributable to Forestar for the fiscal year ended September 30, 2026 decreased 15% to $142.6 million, or $2.78 per diluted share, compared to $167.9 million, or $3.29 per diluted share, in fiscal 2025. Pre-tax income for fiscal 2026 decreased 12% to $192.1 million from $219.3 million in fiscal 2025. Fiscal 2026 results include a total pre-tax gain on sale of assets of $10.0 million and real estate impairment charges of $7.6 million compared to a pre-tax gain on sale of $4.5 million and no real estate impairment charges in fiscal 2025. Revenues for fiscal 2026 decreased 2% to $1.6 billion from $1.7 billion in fiscal 2025.

The Company’s return on equity was 7.8% for fiscal 2026. Return on equity is calculated as net income attributable to Forestar for the year divided by average stockholders’ equity, where average stockholders’ equity is the sum of ending stockholders’ equity balances of the trailing five quarters divided by five.

Operational Results

Lots sold during the fourth quarter increased 2% to 5,004 lots compared to 4,891 lots in the same quarter of fiscal 2025. During the fourth quarter of fiscal 2026, Forestar sold 822 lots to customers other than D.R. Horton, Inc. (“D.R. Horton”), compared to 828 lots in the same quarter of fiscal 2025. Lots sold to customers other than D.R. Horton in the fourth quarter of fiscal 2025 included 234 lots that were sold to lot bankers who expect to sell those lots to D.R. Horton at a future date.

Lots sold during fiscal 2026 decreased 5% to 13,545 lots compared to 14,240 lots in fiscal 2025. During fiscal 2026, 1,916 lots were sold to customers other than D.R. Horton compared to 2,489 lots in fiscal 2025. Lots sold to customers other than D.R. Horton in fiscal 2026 included 146 lots that were sold to lot bankers who expect to sell those lots to D.R. Horton at a future date compared to 927 lots in fiscal 2025.

The Company’s lot position at September 30, 2026 was 84,400 lots, of which 58,200 were owned and 26,200 were controlled through land and lot purchase contracts. Lots owned at September 30, 2026 included 8,100 fully developed lots. Of the Company’s owned lot position at September 30, 2026, 21,500 lots, or 37%, were under contract to be sold, representing approximately $2.2 billion of future revenue. Another 18,600 lots, or 32% of owned lots, were subject to a right of first offer to D.R. Horton under executed purchase and sale agreements at September 30, 2026.

Capital Structure, Leverage and Liquidity

At September 30, 2026, the Company had $657.0 million of unrestricted cash and $657.8 million of available borrowing capacity on its senior unsecured revolving credit facility for total liquidity of $1.3 billion. Debt at September 30, 2026 totaled $794.2 million, with no senior note maturities until fiscal 2028. The Company’s net debt to total capital ratio at the end of the year was 6.7%. Net debt to total capital is calculated as debt net of unrestricted cash divided by stockholders’ equity plus debt net of unrestricted cash.

Outlook

Donald J. Tomnitz, Chairman of the Board, said, “The Forestar team produced solid results for

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