Real estate developer Forestar's Q4 revenue beats estimates on higher residential demand

Forestar

28/10/2025 10:39

Overview

Forestar Q4 revenue grew 22% yr/yr, beating analyst expectations

Net income for fiscal 2025 decreased 17% yr/yr

Company sold 4,891 lots in Q4, a 9% decrease yr/yr

Outlook

Forestar expects to deliver 14,000 to 15,000 lots in fiscal 2026

Company forecasts fiscal 2026 revenue between $1.6 bln and $1.7 bln

Forestar highlights strong balance sheet and liquidity for resilience

Result Drivers

LOT SALES REVENUE - Revenue growth driven by increased residential lot sales despite fewer lots sold

STRATEGIC RELATIONSHIP - Demand for finished lots supported by strategic relationship with D.R. Horton

HIGHER LOT PRICES - Increase in average sales price per lot contributed to revenue growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$670.50 mln
$556.60 mln (4 Analysts)
Q4 EPS
$1.70
Q4 Net Income
$87 mln
Q4 Basic EPS
$1.71
Q4 Pretax Profit
$113.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the construction & engineering peer group is "buy"

Wall Street's median 12-month price target for Forestar Group Inc is $31.00, about 15.9% above its October 27 closing price of $26.06

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nBw5kWhrMa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)