Stocks of homebuilder DR Horton rise as incentives help attract buyers

What you need to know

• D.R. Horton surpassed first-quarter sales and profit forecasts due to increased demand from buyers.
• In order to draw customers to its homebuilders, the biggest U.S. builder has offered to lower mortgage rates.
• D.R. Horton’s share purchase plan for fiscal 2025 will be increased by up to $400 Million.

D.R. Horton’s (DHI), one of the largest builders in America, saw its shares rise Tuesday after it posted stronger-than-expected earnings.

It reported earnings per share for the fiscal first quarter 2025 of $2.61. The revenue fell 1.5% to $7.61bn. Visible Alpha’s analysts have compiled both estimates, and they were easily surpassed.

'Demographics Supporting Housing Demand Remain Favorable'

Executive Chair David Auld explained that even though the market continued to face buyer affordability challenges and competitive conditions, "incentives such as mortgage rate buydowns have helped to address affordability and spur demand." Auld noted that "demographics supporting housing demand remain favorable."

Auld said that D.R. Horton has "continued to start and sell more of our homes with smaller floor plans to meet homebuyer demand." 

It also stated that the company will be increasing its share buybacks from $2.4 billion in its original forecast to between $2.6 and $2.8 billion.

Despite today's nearly 2% gains, D.R. Horton stock prices are still slightly below where they were a year ago. 

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