D.R. Horton's quarterly profit falls as buyer incentives hurt margins

D.R. Horton

28/10/2025 11:06

Oct 28 (Reuters) -
D.R. Horton DHI.N reported a lower fourth-quarter profit on Tuesday, as the homebuilder's margins were hurt by rising costs and incentives for buyers facing challenges with high interest rates.

Shares of the company fell nearly 7% in premarket trading.

U.S. homebuilders are navigating rising costs, as well as U.S. President Donald Trump's tariffs on key construction raw material.

The sector is also grappling with weakening consumer sentiment, prompting builders to offer incentives like mortgage rate buydowns and smaller, more affordable homes to stimulate demand - which in turn has hurt their margins.

Net income for the quarter ended September 30 fell to $905.3 million or $3.04 per share, compared with $1.28 billion or $3.92 per share a year ago.

The Arlington, Texas-based company's fourth-quarter revenue fell $9.68 billion from $10.02 billion a year ago.

 (Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Leroy Leo)

 ((Aatreyee.Dasgupta@thomsonreuters.com;))