Quarterly results fall short of Wall Street expectations
Forestar Group Inc. (NYSE:FOR) reported fiscal third-quarter 2026 results on Tuesday that came in below analysts’ expectations, with both earnings and revenue missing consensus estimates.
The company posted adjusted earnings per share of $0.70, below the $0.81 forecast, while revenue reached $407.0 million compared with analyst expectations of $437.73 million.
Shares eased 1.06% in pre-market trading following the release.
Profit and revenue improve from a year earlier
Despite the earnings miss, Forestar delivered year-over-year growth across several key financial metrics.
Net income attributable to the company increased 9% to $35.9 million, or $0.70 per diluted share, compared with $32.9 million, or $0.65 per diluted share, in the same quarter last year.
Revenue rose 4% from $390.5 million to $407.0 million, while pre-tax income advanced 12% to $48.7 million. The company generated a pre-tax profit margin of 12.0% during the quarter.
Forestar also sold 3,659 residential lots, representing a 1% increase from the 3,605 lots delivered in the corresponding period of fiscal 2025.
Company maintains full-year outlook
Management left its fiscal 2026 guidance unchanged, continuing to forecast lot deliveries of between 14,000 and 14,500 and full-year revenue in the range of $1.6 billion to $1.7 billion.
“The Forestar team delivered solid third quarter results, including a 4% increase in revenues to $407.0 million and a 12% increase in pre-tax income to $48.7 million,” said Donald J. Tomnitz, Chairman of the Board.
Strong liquidity supports future development pipeline
Forestar finished the quarter with total liquidity of $1.1 billion, including $394.9 million in unrestricted cash and $669.9 million of available borrowing capacity.
The company’s net debt-to-total capital ratio was 17.7% at quarter end.
Forestar also reported ownership or control of approximately 91,700 lots, including 23,500 lots under contract that represent an estimated $2.3 billion in future revenue, providing visibility into its long-term development pipeline.
Forestar Group stock price
