D.R. Horton Inc, the largest homebuilder in the United States, has once again demonstrated its prowess in the industry, delivering impressive financial results for the third quarter of fiscal 2024. The company's unwavering focus on operational excellence, strategic land acquisition, and diversified product offerings have solidified its position as a market leader.

For the nine months ended June 30, 2024, D.R. Horton reported annual net income of $4.75 billion and annual revenue of $35.46 billion, showcasing its ability to navigate the complexities of the real estate market. The company's annual operating cash flow reached $4.30 billion, while its annual free cash flow stood at $4.16 billion, underscoring its financial strength and flexibility.

In the third quarter, D.R. Horton's consolidated revenues increased 2% year-over-year to $10 billion, with net income attributable to the company rising 1% to $1.35 billion. Diluted earnings per share grew 5% to $4.10, reflecting the company's disciplined approach to capital allocation and operational efficiency.

The homebuilding segment, which accounts for the majority of D.R. Horton's business, reported a 6% increase in revenues to $9.2 billion, driven by a 5% rise in homes closed to 24,155 units. The average selling price of homes closed during the quarter was $382,200, up 1% from the prior-year period. The segment's pre-tax income increased 7% to $1.6 billion, with a pre-tax margin of 17.0%.

D.R. Horton's rental operations, which include single-family and multi-family rental properties, generated $413.7 million in revenues and $64.2 million in pre-tax income during the quarter. The company's majority-owned residential lot development company, Forestar, reported revenues of $318.4 million and pre-tax income of $51.6 million.

The financial services segment, which provides mortgage financing and title agency services, contributed $242.3 million in revenues and $91.3 million in pre-tax income, reflecting a pre-tax margin of 37.7%.

Geographically, D.R. Horton's performance was mixed, with the Northwest, Southwest, and North regions reporting strong year-over-year growth in homebuilding revenues and pre-tax income, while the South Central and Southeast regions experienced some softness. The company's ability to adapt its product offerings and pricing strategies to local market conditions has been a key driver of its success.

Looking ahead, D.R. Horton provided guidance for the fourth quarter of fiscal 2024, expecting consolidated revenues to be in the range of $10 billion to $10.4 billion and homes closed by the homebuilding operations to be between 24,000 and 24,500 units. The company anticipates a home sales gross margin of around 24% and a financial services pre-tax profit margin of approximately 35% for the quarter.

For the full fiscal year 2024, D.R. Horton now expects to generate consolidated revenues of $36.8 billion to $37.2 billion and homes closed by the homebuilding operations to be in the range of 90,000 to 90,500 units. The company plans to repurchase approximately $1.8 billion of its common stock for the full year, in addition to annual dividend payments of around $400 million, reflecting its commitment to enhancing shareholder value.

D.R. Horton's strong financial performance, market leadership, and strategic initiatives position the company well to navigate the evolving housing market. The company's diversified product offerings, focus on affordable housing, and efficient land acquisition and development strategies have been key drivers of its success. As the company continues to leverage its operational expertise and financial strength, investors can expect D.R. Horton to maintain its position as a dominant force in the homebuilding industry.