D.R. Horton Lowers Revenue Forecast

(Reuters) – U.S. homebuilder D.R. Horton has reduced its full-year revenue forecast and missed second-quarter profit and revenue estimates due to weak home demand.

Shares of the company fell 3.2% before the bell.

> “The 2025 spring selling season started slower than expected as potential homebuyers have been more cautious due to continued affordability constraints and declining consumer confidence,” said D.R. Horton CEO Paul Romanowski.

Rising economic uncertainty in the U.S., stemming from President Donald Trump’s tariff policies, could further impact homebuilders as consumer affordability faces challenges amid high interest rates.

In January, the homebuilder flagged increased costs from its buydown incentives and lower home sales gross margins in the second quarter sequentially.

D.R. Horton now anticipates full-year revenue to range between $33.3 billion and $34.8 billion, revising down from its earlier forecast of $36 billion to $37.5 billion.

The company projects around 85,000 to 87,000 transaction closings from homebuilding operations, also a decrease from the prior estimate of 90,000 to 92,000 homes.

The Arlington, Texas-based company reported second-quarter revenue of $7.73 billion, a 15% decline from a year ago and below analysts’ estimate of $8.03 billion, according to data compiled by LSEG.

On an adjusted basis, it earned $2.58 per share in the quarter ended March 31, compared to analysts’ average estimate of $2.63 per share.