• D.R. Horton, Inc. (NYSE:DHI) reported EPS of $2.03, beating the estimated $1.93, and revenue of $6.89 billion, exceeding the forecast of $6.59 billion.
• The company experienced a year-over-year increase in net sales orders and backlog, indicating sustained buyer interest despite market challenges.
• D.R. Horton's strong liquidity, low leverage, and strategic buybacks position it well to navigate market volatility, though affordability issues continue to pressure the housing market.

D.R. Horton, Inc. (NYSE:DHI), known as America's Builder, is a leading home construction company in the United States. On January 20, 2026, DHI reported earnings per share (EPS) of $2.03, surpassing the estimated $1.93. The company also achieved a revenue of approximately $6.89 billion, exceeding the estimated $6.59 billion. Despite these positive results, both EPS and revenues experienced a decline compared to the previous year due to softer housing demand.

The company saw an increase in net sales orders and backlog year over year, indicating sustained interest from buyers despite market challenges. D.R. Horton is well-positioned to handle market volatility driven by affordability issues, thanks to its strong liquidity, low leverage, and strategic buybacks. However, the overall housing market remains cautious due to declining consumer confidence and affordability concerns, which have led to a decrease in home closings.

To address affordability challenges, D.R. Horton has been offering intensive sales incentives, which have pressured its bottom line. The company reported a net income of $594.8 million, with earnings per diluted share amounting to $2.03. Additionally, D.R. Horton declared a quarterly dividend of $0.45 per share, reflecting its commitment to returning value to shareholders.

D.R. Horton has a price-to-earnings (P/E) ratio of approximately 12.86, indicating the market's valuation of the company's earnings. The price-to-sales ratio stands at about 1.33, suggesting the company's market value relative to its revenue. The enterprise value to sales ratio is around 1.42, reflecting the company's total valuation compared to its sales. The enterprise value to operating cash flow ratio is approximately 14.18, indicating how the company's valuation compares to its cash flow from operations.

The company's debt-to-equity ratio is approximately 0.25, showing a relatively low level of debt compared to its equity. Additionally, D.R. Horton has a strong current ratio of about 17.39, indicating its ability to cover short-term liabilities with its short-term assets. Looking ahead, D.R. Horton anticipates that affordability constraints and cautious consumer sentiment will continue to affect new housing demand.