Forestar Group's Q1 2025: Strong Deliveries, Market Share Gains, and Upgraded Credit Ratings

Lot Deliveries and Revenue Growth:
- Forestar Group Inc. reported 2,333 lots delivered in Q1 2025, generating $250.4 million in revenue.
- The growth in revenue per lot was driven by a stronger mix of high-priced lots.

Increased Market Share and Lots Under Contract:
- Owned lots under contract doubled from a year ago, with 37% of the owned lot position now under contract, the highest level since June 2020.
- This increase is attributed to solid demand for finished lots and strategic investments in land acquisition and development.

Capital Investment and Liquidity:
- Forestar invested approximately $685 million in land and land development, a 50% increase from the prior year quarter.
- The company ended the quarter with $645 million in liquidity, including $132 million in unrestricted cash, maintaining a strong balance sheet and providing flexibility for future opportunities.

SG&A Expense and Employee Count:
- Forestar's SG&A expense increased by 29% from the prior year quarter to $36 million, primarily due to a 30% increase in employee count to 427 employees.
- The increase in staff supports the expansion of the operating platform, including entering new markets and increasing community count.

Liquidity and Credit Ratings:
- Forestar's significant liquidity, including $645 million, positions the company to take advantage of attractive opportunities.
- The company's credit rating was upgraded from B+ to BB- by S&P, demonstrating financial strength and stability.