DHI · Earnings call · 2026Q3T · Full report

Operating Expense Trends

HORTON D R INC /DE/ · 2026-10-29 · Importance 18 · Surprise 14

Fourth-quarter homebuilding SG&A expense increased 7% year over year, and SG&A as a percentage of revenue rose 80 basis points to 8.7%. Fiscal-year homebuilding SG&A was 8.9% of revenue, up 60 basis points, while annual SG&A expense increased 4%. Management attributed the annual increase primarily to expansion of the operating platform, higher advertising costs, and technology investments. Management also said lower average selling prices and volume would contribute to SG&A deleverage in the first quarter of fiscal 2027.

Key facts

• D.R. Horton expects SG&A to face pressure from lower average selling prices, potential lower volume, and lower absorptions per community.
• D.R. Horton will continue managing SG&A efficiency while preserving its platform to remain flexible and take advantage of opportunities when conditions stabilize.
• D.R. Horton expects to return to SG&A operating leverage when revenue growth resumes and community absorption rates stabilize.
• D.R. Horton's fourth-quarter homebuilding SG&A expenses increased 7% year over year, and SG&A as a percentage of revenues was 8.7%, up 80 basis points.
• D.R. Horton's fiscal 2026 homebuilding SG&A was 8.9% of revenues, up 60 basis points year over year.
• D.R. Horton's annual homebuilding SG&A expenses grew 4%, primarily due to operating platform expansion, higher advertising costs, and technology investments.