Forestar Reports Fiscal 2026 Results: Net Income Down 15% Despite Strong Balance Sheet

Forestar Group Inc. (NYSE: FOR) reported financial results for the fourth quarter and fiscal year ended September 30, 2026. The company reported net income attributable to Forestar of $59.2 million, or $1.15 per diluted share, for the fourth quarter of fiscal 2026. This represents a 32% decrease compared to the same period in fiscal 2025, which saw net income of $87.0 million, or $1.70 per diluted share. For the full fiscal year, net income attributable to Forestar totaled $142.6 million, or $2.78 per diluted share, a decrease of 15% from the $167.9 million, or $3.29 per diluted share, reported in fiscal 2025.

Consolidated revenues for the fourth quarter of fiscal 2026 were $580.8 million, down 13% from $670.5 million in the prior year. For the full fiscal year, revenues decreased 2% to $1.6 billion from $1.7 billion in fiscal 2025. The company sold 5,004 lots in the fourth quarter, an increase of 2% year-over-year, and 13,545 lots for the full year, a decrease of 5% from the prior year.

Forestar’s balance sheet remains strong, with total liquidity of $1.3 billion as of September 30, 2026. This includes $657.0 million in unrestricted cash and $657.8 million in available borrowing capacity. The company’s net debt to total capital ratio was 6.7%, and its book value per share increased 8% from a year ago to $37.56. The company’s return on equity was 7.8% for fiscal 2026.

Regarding its land position, Forestar owned and controlled 84,400 lots as of September 30, 2026. Of these, 21,500 lots were under contract to be sold, representing approximately $2.2 billion of future revenue. Additionally, 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.

Looking ahead, the company expects to deliver between 12,000 and 13,000 lots in fiscal 2027, generating $1.4 billion to $1.5 billion of revenue. Chairman Donald J. Tomnitz noted that new home demand is being impacted by affordability constraints and cautious consumer sentiment, with rising mortgage rates adding pressure.