D.R. Horton, Inc.

Q3 performance: solid profitability but slightly lower vs. prior year - EPS: $3.20 (vs $3.36 prior-year quarter) - Net income: $905M on $9.2B consolidated revenues; pre-tax income $1.2B → 13.3% pre-tax margin - Closings: 23,983 homes (vs 23,160 prior year); average closing price $362K (flat sequentially, -2% YoY), still ~30% below U.S. new-home average, reflecting affordability focus - Good/surprising: Home sales gross margin 20.7%—above high end of guidance due to lower stick & brick costs and slightly lower incentives (though incentives remain elevated vs history)

Gross margin + cost outlook: stable margin expected near-term - Q4 expectation: home sales gross margin ~20.5%–21.0% (vs Q3 roughly flat) - Costs: stick & brick costs down ~2% sequentially, -5% YoY; company emphasizes an ongoing “cost containment battle” - Fuel/lumber risk: expects some stick & brick support for at least Q4 (possible harder comps into 2027 if lumber headwinds return) - Incentives: while incentives improved a bit QoQ, expect incentives to remain elevated; uncertainty remains because closings/incentive needs are highly sensitive within the quarter

Demand + guidance: pulled back due to softer-than-expected orders (not just price) - Full-year delivery forecast trimmed: guidance implies lower deliveries vs earlier expectations (management said annual deliveries were reduced because Q3 demand was below internal expectations and softer than normal seasonality) - Stated reason for “still cautious” demand: affordability constraints and cautious consumer sentiment, plus broader macro/geo uncertainty - “Bottoming” posture: management did not claim a decisive bottom, but noted sales are relatively in line with normal seasonality and buyers remain present; confidence needs to improve for purchases.