Abstract

Forestar will report quarterly results on July 21, 2026 Pre-Market; this preview summarizes last quarter’s performance, the company’s guidance for the current quarter, and the latest Street expectations and commentary.

Market Forecast

Consensus modeled on the company’s forecast implies current-quarter revenue of 437.73 million US dollars, up 12.07% year over year, EBIT of 53.59 million US dollars implying 11.56% year-over-year growth, and EPS of 0.81 with 9.70% year-over-year growth. The prior quarter’s gross margin was 21.43% and net margin was 8.58%; no company-issued guidance was found for margin, but modeled EPS and EBIT growth suggest stable-to-slightly expanding profitability year over year. Forestar’s main business is residential real estate development, with the core segment generating 331.40 million US dollars last quarter and a smaller “residential communities and other” segment at 42.90 million US dollars; growth this quarter is expected to come from steady lot demand and pricing discipline in core residential lots. The most promising segment remains residential real estate, supported by steady builder demand and a healthy order pipeline; within last quarter’s mix, residential real estate contributed 331.40 million US dollars in revenue; year-over-year growth for the segment this quarter is implied in the consolidated estimate of 12.07%.

Last Quarter Review

Forestar posted revenue of 374.30 million US dollars, a gross margin of 21.43%, GAAP net profit attributable to the parent of 32.10 million US dollars, a net margin of 8.58%, and adjusted EPS of 0.63, which declined 1.56% year over year. A notable highlight was the 108.44% quarter-on-quarter increase in net profit attributable to the parent, reflecting improved operating leverage and mix. In the main business, residential real estate delivered 331.40 million US dollars, while residential communities and other contributed 42.90 million US dollars; year-over-year growth for total revenue was 6.64%.

Current Quarter Outlook

Main business: Residential real estate lots and community development

The company’s forecast implies revenue of 437.73 million US dollars this quarter with EPS of 0.81 and EBIT of 53.59 million US dollars, suggesting continued steady demand from national and regional homebuilders for finished lots. The revenue mix continues to be anchored by lot sales tied to contracted builder programs, which help visibility into deliveries and cash conversion. Given last quarter’s 21.43% gross margin and 8.58% net margin, a revenue step-up of 12.07% year over year should support EBIT growth of 11.56% year over year, consistent with stable construction inputs and selective pricing. The prior quarter’s net profit rose 108.44% sequentially, which, while not a guide for run-rate, indicates operating momentum that can carry into the seasonally active summer quarter if community build-outs stay on schedule.

Most promising business: Core residential lots

Within the portfolio, the most promising commercial engine remains core residential lot sales to large builders, given repeat-purchase frameworks and geographic exposure to U.S. growth markets. The last quarter’s 331.40 million US dollars from residential real estate reflects the scale of this activity; the company-modeled 12.07% revenue growth this quarter is aligned with steady housing starts in key entry-level and move-up communities. Cost discipline and cycle-time management on land development are pivotal; the visibility from contracted programs helps maintain throughput and reduces demand volatility relative to spot sales. Assuming consistent entitlement progress and infrastructure completion, the lot backlog conversion should remain healthy, supporting the EPS estimate of 0.81 with 9.70% year-over-year growth.

Key stock-price drivers this quarter

Delivery cadence and mix across communities will be the primary near-term driver, given their direct impact on revenue recognition and margins. Any commentary on backlog, contracted lots with top builders, or updated closings schedules will shape investor expectations into the second half. Margin color will be a critical tell: if gross margins hold at or above last quarter’s 21.43% amid higher revenue, the quality of earnings should screen favorably; conversely, any cost inflation in site work or delays in permits could pressure the flow-through to EBIT. Management’s tone on land spend and capital rotation will also matter for free cash flow expectations; faster turns with disciplined acquisitions generally command better market confidence and can tighten the spread between EBIT growth (11.56% YoY implied) and revenue growth (12.07% YoY).

Analyst Opinions

Coverage and previews identified during the period show a majority bullish stance on Forestar’s near-term earnings setup, citing consistent builder demand for lots, disciplined land investment, and the supportive earnings cadence implied by company-modeled estimates. Analysts emphasizing the company’s contracted builder relationships and execution on community development argue that this provides revenue visibility into the current quarter and supports the modeled 12.07% year-over-year revenue growth with EPS of 0.81. The bullish view expects margins to remain broadly stable, with incremental upside if lot pricing and community mix skew favorably. This majority view highlights steady operational momentum from the prior quarter’s sequential profit ramp and anticipates that summer-season deliveries and schedule adherence will underpin the revenue and EBIT outcomes projected for July 21, 2026.