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FOR

Forestar Group Inc.

FOR

Forestar Group Inc. • NYSE
$25.52 ▼ -1.05% (-0.27)
Market Cap $1.30 B
52w High $30.28
52w Low $18.00
Dividend Yield 0%
P/E 7.76
Volume 54.13K
Outstanding Shares 50.84M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q4-2025 $670.5M ▲ $42.7M ▲ $87M ▲ 12.975% ▲ $1.71 ▲ $113.1M ▲
Q3-2025 $390.5M ▲ $37.4M ▼ $32.9M ▲ 8.425% ▼ $0.65 ▲ $43.1M ▲
Q2-2025 $351M ▲ $38.4M ▲ $31.6M ▲ 9.003% ▲ $0.62 ▲ $41.8M ▲
Q1-2025 $250.4M ▼ $36M ▲ $16.5M ▼ 6.589% ▼ $0.32 ▼ $19.8M ▼
Q4-2024 $551.4M $32M $81.6M 14.799% $1.61 $100.6M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q4-2025 $481.2M ▲ $2.84B ▼ $1.245B ▼ $1.595B ▼
Q3-2025 $189.2M ▲ $3.12B ▲ $1.44B ▲ $1.679B ▲
Q2-2025 $174.3M ▲ $3.043B ▲ $1.397B ▲ $1.646B ▲
Q1-2025 $132M ▼ $2.961B ▲ $1.347B ▲ $1.614B ▲
Q4-2024 $481.2M $2.84B $1.245B $1.594B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $32.9M ▲ $15.8M ▲ $-800K ▼ $-100K ▼ $14.9M ▼ $15M ▲
Q2-2025 $31.6M ▲ $-19.8M ▲ $-700K ▼ $62.8M ▼ $42.3M ▲ $-19.8M ▲
Q1-2025 $16.5M ▼ $-450M ▼ $900K ▼ $99.9M ▲ $-349.2M ▼ $-450M ▼
Q4-2024 $81.5M ▲ $119.2M ▲ $3.6M ▼ $-800K ▼ $122M ▲ $118.4M ▲
Q3-2024 $38.7M $-61.7M $4.5M $200K $-57M $-62.3M

Revenue by Products

Product Q3-2023Q4-2023Q1-2024Q2-2024
Real Estate
Real Estate
 $330.00M ▲$510.00M ▲$300.00M ▼$330.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Forestar’s revenue has generally trended upward over the past several years, with only modest ups and downs, showing it can grow through a cyclical industry. Profitability has been consistently positive, and earnings per share have improved meaningfully compared with earlier years, though the most recent full year looked like a peak with a slight easing afterward. The latest period’s profit data look somewhat incomplete, but overall the company appears to run at healthy margins for a land developer. The main watchpoints are how well it can sustain those margins as the housing cycle evolves and whether recent strength represents a new baseline or more of a cyclical high.

Balance Sheet

Balance Sheet The balance sheet looks like a key strength. Assets and shareholders’ equity have grown steadily over time, suggesting the company is reinvesting and building its underlying land and lot portfolio. Cash levels have risen from quite low to much more comfortable territory, while financial debt has been worked down to the point where it has effectively disappeared in the latest period. This points to a conservative and resilient capital structure for a typically capital‑intensive business. The main risk is that much of the asset base is tied to land and housing activity, so the quality of these assets depends heavily on regional housing demand and entitlement conditions.

Cash Flow

Cash Flow Cash flow is more volatile than the income statement, which is common for land developers. Some years show strong cash inflows from operations, while others show meaningful outflows, reflecting the timing of land purchases, development spending, and lot sales. Free cash flow essentially mirrors this pattern, since traditional capital expenditures are minimal and most “investment” occurs through inventory and project spending. This means that even with solid accounting profits, the business can go through periods where it ties up a lot of cash in new projects, requiring careful liquidity management and ongoing discipline in how aggressively it grows its land pipeline.

Competitive Edge

Competitive Edge Forestar’s competitive position is anchored by its majority ownership and supply agreement with D.R. Horton, the largest U.S. homebuilder. This relationship gives Forestar a built‑in, reliable customer for a large portion of its lots, which is a major advantage in a cyclical and fragmented industry. Its “lot manufacturing” model emphasizes faster turnover and capital efficiency, helping it avoid the long, speculative land bets that have hurt many developers in past cycles. A wide geographic footprint and focus on entry‑level and first‑move‑up buyers further support demand resilience. The flip side is meaningful customer concentration and ongoing exposure to housing cycles, interest rates, and local land‑use regulation, all of which can still affect volumes and pricing.

Innovation and R&D

Innovation and R&D Forestar’s innovation is more about process than breakthrough technology. It treats lot development like a manufacturing operation, using standardized, repeatable processes to turn raw land into finished lots quickly and efficiently. The company applies available technologies—such as project management tools and data‑driven market analysis—to keep projects on schedule and capital‑light, rather than investing heavily in proprietary R&D. It also differentiates itself by taking on partially completed or distressed communities and finishing them, which requires development expertise and risk management more than new tech. Looking ahead, its exploration of build‑to‑rent communities and continued refinement of its lot manufacturing approach are the key “innovation” levers to watch, even if they don’t look like classic tech R&D.

Summary

Overall, Forestar combines steady top‑line growth and consistent profitability with a strengthening, low‑debt balance sheet, which is notable for a land‑focused real estate developer. Its strategic alignment with D.R. Horton provides a durable source of demand and underpins a business model built around efficient, repeatable lot development rather than speculative land holding. Cash flow can swing sharply as the company invests in new projects, so reported earnings should be viewed alongside the timing and scale of land spending and lot deliveries. The main opportunities lie in continued geographic expansion, deeper penetration of entry‑level housing, and potential growth in build‑to‑rent, while key risks center on housing market cycles, interest rates, and dependence on a major affiliate customer. For a reader, the story is one of disciplined growth in a cyclical sector, supported by a strong parent relationship and a relatively conservative financial posture.

NEWS

October 28, 2025 · 6:30 AM UTC

Forestar Reports Fourth Quarter and Fiscal 2025 Results

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September 8, 2025 · 9:00 AM UTC

Forestar Group Inc. to Release 2025 Fourth Quarter and Fiscal Year-End Earnings on October 28, 2025

Read more