-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
DHI reported mixed Q2 FY 26 (Sep.) results with closings up 1% to 19,486 homes but revenue down 2% to $7.0B due to a 3% decline in average selling prices to $362K. EPS of $2.24 beat consensus of $2.12 despite falling 13% as net income dropped 20% to $647.9M, while homebuilding pre-tax margin compressed 230 bps to 10.7%. We see DHI differentiating itself from peers through market share gains, evidenced by accelerated order value growth despite elevated sales incentives. Management updated FY 26 guidance to $33.5B-$34.5B in revenues and 86K-87.5K homes closed, acknowledging incentives will remain elevated through FY 26. Net sales orders accelerated 11% to 24,992 homes valued at $9.2B, though demand remains softer than historical seasonality. The sales backlog of 16,882 homes worth $6.4B provides improved visibility, up 19% and 17%, respectively. We believe DHI's value proposition continues resonating with consumers despite mortgage rate uncertainty impacting seasonal demand patterns.