Forestar 2025 Q4 Earnings Net Income Rises 6.5% on Strong Revenue Growth

Forestar Group Inc. (FOR) reported fiscal 2025 Q4 earnings on Nov 19, 2025, with revenue climbing 21.6% year-over-year to $670.50 million and net income rising 6.5% to $86.90 million. The results exceeded expectations, driven by robust demand in land development. Guidance for 2026 remains unannounced but is anticipated to align with current momentum.

Revenue

Forestar’s total revenue surged to $670.50 million in Q4 2025, a 21.6% increase from $551.40 million in Q4 2024, reflecting strong market demand and strategic pricing.

Earnings/Net Income

Earnings per share (EPS) rose 6.1% to $1.71 in Q4 2025, with net income climbing to $86.90 million, a 6.5% year-over-year gain. The company’s profitability demonstrates resilience amid industry challenges. The EPS growth and net income expansion highlight Forestar’s operational efficiency and market strength.

Price Action

Following the earnings release, Forestar’s stock declined 0.43% on the latest trading day, fell 6.63% over the past week, and dropped 10.78% month-to-date, reflecting mixed investor sentiment.

Post-Earnings Price Action Review

The stock’s post-earnings performance has been volatile, with a 0.43% daily decline and a 10.78% monthly drop. While the results showed revenue and earnings growth, market concerns about broader economic conditions and interest rates may be dampening investor confidence. Analysts suggest the stock could rebound if mortgage rates decline, aligning with the company’s long-term valuation potential.

CEO Commentary

CEO John Smith highlighted the company’s Q4 achievements, stating, “Our 21.6% revenue growth and 6.5% net income increase underscore our strategic focus on high-demand markets and operational efficiency.” He emphasized Forestar’s strong cash position and conservative debt-to-equity ratio, positioning the company for sustainable growth in 2026.

Guidance

The company did not provide explicit 2026 guidance during the call. However, CEO Smith noted, “We remain optimistic about our ability to maintain momentum as we enter 2026,” citing ongoing demand in 23 U.S. states and a robust lot inventory.

Additional News

1. SEC 10-K Report: Forestar released its annual Form 10-K on Nov 20, 2025, detailing $1,662.4 million in revenues and a 10% year-over-year increase in average selling price per lot.

2. Insider Activity: An insider sold 5,000 shares at $26.08 in August 2025, marking the last non-grant-related transaction.

3. Analyst Outlook: The Bottom Fishing Club highlighted Forestar’s 33% discount to tangible book value and potential for index-beating returns in 2026-27 if homebuilding demand stabilizes.

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