Solid Financial Performance: D.R. Horton reported earnings of $3.36 per diluted share for the third quarter of fiscal 2025, down from $4.10 in the prior year. Net income was $1 billion with revenues of $9.2 billion. This demonstrates a resilient performance in a challenging market, considering the ongoing affordability constraints impacting homebuyers.

Sales and Margins: Net sales orders were flat year-over-year, reflecting cautious consumer sentiment. The average closing price was $369,600, down 3% YoY. Gross profit margin on home sales was 21.8%, stable over the previous quarter, but expected to decrease to 21% - 21.5% in Q4 due to increased sales incentives. The cancellation rate remained low at 17%, indicating sturdy buyer commitment despite economic challenges.

Increased Incentives and Future Outlook: D.R. Horton plans to increase sales incentives further in Q4 based on demand, changes in mortgage rates, and competitive pressures. This strategy aims to drive traffic and maintain sales momentum as the company expects to close between 23,500 to 24,000 homes in Q4.