DHI · Earnings call · 2026Q3T · Full report

Supply Chain and Construction Costs

HORTON D R INC /DE/ · 2026-10-29 · Importance 37 · Surprise 32

Management cited earlier lumber price increases flowing through the production process, some labor inflation and labor shortages, and additional costs to bring workers to job sites. Fourth-quarter stick-and-brick costs rose 1% sequentially, while management expected first-quarter costs to be flat to slightly higher; lot costs were also expected to be flat to slightly higher sequentially. The company said it continues working with trades and LaborSource to obtain value in labor and materials, while fuel-related surcharges and labor availability vary by community.

Key facts

• D.R. Horton expects first-quarter stick-and-brick costs to be flat to slightly up, and lot costs flat to slightly up sequentially and higher year over year for the next couple of quarters.
• On a per-square-foot basis in the fourth quarter, D.R. Horton's home sales revenues and stick-and-brick costs each increased 1% sequentially, while lot cost increased 4%.
• For fiscal 2026, D.R. Horton's home sales revenues declined 2%, stick-and-brick costs declined 4%, and lot costs increased 6%.
• D.R. Horton works with its trades and LaborSource to achieve the best stick-and-brick value and meet buyer price points.
• D.R. Horton's fourth-quarter median homebuilding cycle time increased roughly 10 days from the third quarter but was slightly below the year-earlier level.