Revenue growth decelerated to 4.2% in 2026Q3 with NOI margin compressing to 20.7%, suggesting that rising development costs are impacting profitability despite sustained volume from the parent relationship.
Forestar Group Inc. (FOR) annual income statement — 21-year revenue, gross profit & net income history
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Revenue | 1.72B | 1.66B | 1.51B | 1.44B | 1.52B | 1.33B | 931.8M | 428.3M | 104.4M | 114.32M | 197.31M | 262.42M | 306.77M | 331.05M | 172.59M | 135.57M | 101.36M | 146.25M | 159.72M | 177.99M | 225.56M | 155.49M |
| Revenue Growth % | 11.76% | 10.14% | 5.05% | -5.41% | 14.58% | 42.28% | 117.56% | 310.26% | -8.68% | -42.06% | -24.81% | -14.46% | -7.33% | 91.81% | 27.3% | 33.75% | -30.69% | -8.43% | -10.26% | -21.09% | 45.07% | - |
| Property Operating Expenses | 1.36B | 1.3B | 1.15B | 1.13B | 1.2B | 1.1B | 813.7M | 362.7M | 65.55M | 109.78M | 168.93M | 341.37M | 225.14M | 200.89M | 83.88M | 66.97M | 48.96M | 50.63M | 58.49M | 58.05M | 90.63M | 57.4M |
| Net Operating Income (NOI) | 368.9M | 363.5M | 359.3M | 304.1M | 324M | 229.2M | 118.1M | 65.6M | 38.85M | 4.54M | 28.38M | -78.95M | 81.63M | 130.15M | 88.72M | 68.61M | 52.4M | 95.63M | 101.23M | 119.94M | 134.93M | 98.08M |
| NOI Margin % | 21.39% | 21.87% | 23.8% | 21.16% | 21.33% | 17.29% | 12.67% | 15.32% | 37.21% | 3.97% | 14.38% | -30.09% | 26.61% | 39.32% | 51.4% | 50.61% | 51.69% | 65.38% | 63.38% | 67.39% | 59.82% | 63.08% |
| Operating Expenses | 155.4M | 154.4M | 118.5M | 97.7M | 93.6M | 68.4M | 45.7M | 28.9M | 10M | 78.19M | 54.77M | 86.61M | 80.91M | 88.73M | 87.53M | 72.28M | 33.51M | -29.44M | 65.43M | 70.67M | 63.11M | 52.5M |
| G&A Expenses | 155.4M | 154.4M | 118.5M | 97.7M | 93.6M | 68.4M | 45.7M | 28.9M | 1 | 56.53M | 21.6M | 27.25M | 22.23M | 28.38M | 32.32M | 23.33M | 22.58M | 29.93M | 22.23M | 18.62M | 16.14M | 9.48M |
| EBITDA | 216.8M | 212.6M | 243.8M | 209.4M | 233.1M | 163.5M | 931.7M | 425.3M | 72.6M | 45.23M | 369.74M | -119.6M | 80.47M | 76.56M | 46.09M | 67.93M | 27.9M | 134.85M | 43.48M | 52.18M | 74.18M | 47.84M |
| EBITDA Margin % | 12.57% | 12.79% | 16.15% | 14.57% | 15.34% | 12.33% | 99.99% | 99.3% | 69.54% | 39.56% | 187.39% | -45.58% | 26.23% | 23.13% | 26.71% | 50.1% | 27.52% | 92.2% | 27.22% | 29.32% | 32.89% | 30.76% |
| Depreciation & Amortization | 3.2M | 3.5M | 3M | 3M | 2.7M | 2.7M | 859.3M | 388.6M | 54.8M | 5.46M | 229.39M | 45.09M | 41.72M | 29.98M | 18.93M | 9.81M | 9.01M | 9.79M | 7.67M | 2.92M | 2.35M | 2.25M |
| D&A / Revenue % | 0.19% | 0.21% | 0.2% | 0.21% | 0.18% | 0.2% | 92.22% | 90.73% | 52.49% | 4.78% | 116.25% | 17.18% | 13.6% | 9.06% | 10.97% | 7.24% | 8.89% | 6.69% | 4.8% | 1.64% | 1.04% | 1.45% |
| Operating Income | 213.6M | 209.1M | 240.8M | 206.4M | 230.4M | 160.8M | 72.4M | 36.7M | 17.8M | 39.77M | 140.35M | -164.68M | 38.76M | 46.58M | 27.16M | 58.12M | 18.89M | 125.06M | 35.81M | 49.27M | 71.82M | 45.59M |
| Operating Margin % | 12.38% | 12.58% | 15.95% | 14.36% | 15.17% | 12.13% | 7.77% | 8.57% | 17.05% | 34.78% | 71.13% | -62.76% | 12.63% | 14.07% | 15.74% | 42.87% | 18.63% | 85.51% | 22.42% | 27.68% | 31.84% | 29.32% |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8.53M | 19.98M | 34.07M | 30.29M | 20M | 19.36M | 17.01M | 16.45M | 20.46M | 21.28M | 9.23M | 0 | 0 |
| Interest Coverage | - | - | - | - | - | - | - | - | - | 7.10x | 5.62x | 1.26x | 2.90x | 3.11x | 2.34x | -0.54x | -1.59x | 5.75x | 1.91x | 5.19x | - | - |
| Non-Operating Income | -6.1M | -10.2M | -29.3M | -15.2M | -5.4M | 14.2M | 0 | -400K | 0 | -49.9M | 28.02M | -19.01M | -17.27M | -15.7M | -52.66M | 0 | 45.05M | 7.4M | -4.92M | 1.33M | 0 | 0 |
| Pretax Income | 226.5M | 219.3M | 270.1M | 221.6M | 235.8M | 146.6M | 78.1M | 45.7M | 49.81M | 52.12M | 92.35M | -179.74M | 25.75M | 42.27M | 25.89M | 12.26M | 8.3M | 97.21M | 17.21M | 38.7M | 81.81M | 55.76M |
| Pretax Margin % | 13.13% | 13.19% | 17.89% | 15.42% | 15.52% | 11.06% | 8.38% | 10.67% | 47.71% | 45.59% | 46.8% | -68.49% | 8.39% | 12.77% | 15% | 9.04% | 8.19% | 66.47% | 10.77% | 21.75% | 36.27% | 35.86% |
| Income Tax | 55.9M | 51.4M | 66.7M | 54.7M | 57M | 36.1M | 16.4M | 9.4M | 49.81M | 45.82M | 15.3M | 32.63M | 8.66M | 7.21M | 8.02M | 3.02M | 2.47M | 35.63M | 5.24M | 13.91M | 29.97M | 20.86M |
| Effective Tax Rate % | 24.68% | 23.44% | 24.69% | 24.68% | 24.17% | 24.62% | 21% | 20.57% | 100% | 87.91% | 16.57% | -18.16% | 33.63% | 17.05% | 30.96% | 24.64% | 29.74% | 36.66% | 30.42% | 35.94% | 36.63% | 37.41% |
| Net Income | 170.4M | 167.9M | 203.4M | 166.9M | 178.8M | 110.2M | 60.8M | 33M | 59.55M | 50.25M | 58.65M | -213.05M | 16.58M | 29.32M | 12.94M | 7.15M | 5.13M | 59.11M | 11.97M | 24.8M | 51.84M | 34.9M |
| Net Margin % | 9.88% | 10.1% | 13.48% | 11.62% | 11.77% | 8.31% | 6.53% | 7.7% | 57.04% | 43.96% | 29.72% | -81.19% | 5.41% | 8.86% | 7.5% | 5.28% | 5.06% | 40.41% | 7.5% | 13.93% | 22.98% | 22.44% |
| Net Income Growth % | 4.8% | -17.45% | 21.87% | -6.66% | 62.25% | 81.25% | 84.24% | -44.58% | 18.49% | -14.31% | 127.53% | -1384.73% | -43.44% | 126.56% | 80.91% | 39.59% | -91.33% | 393.63% | -51.71% | -52.17% | 48.56% | - |
| Funds From Operations (FFO) | 173.6M | 171.4M | 206.4M | 169.9M | 181.5M | 112.9M | 920.1M | 421.6M | 114.34M | 55.72M | 288.04M | -167.96M | 58.3M | 59.3M | 31.87M | 16.97M | 14.14M | 68.89M | 19.65M | 27.71M | 54.2M | 37.15M |
| FFO Margin % | 10.06% | 10.31% | 13.67% | 11.82% | 11.95% | 8.52% | 98.74% | 98.44% | 109.53% | 48.74% | 145.98% | -64% | 19% | 17.91% | 18.46% | 12.51% | 13.95% | 47.11% | 12.3% | 15.57% | 24.03% | 23.89% |
| FFO Growth % | 10.24% | -16.96% | 21.48% | -6.39% | 60.76% | -87.73% | 118.24% | 268.71% | 105.22% | -80.66% | 271.49% | -388.11% | -1.69% | 86.08% | 87.83% | 19.99% | -79.48% | 250.65% | -29.1% | -48.87% | 45.91% | - |
| FFO per Share | 3.40 | 3.37 | 4.06 | 3.39 | 3.64 | 2.31 | 19.13 | 10.04 | 2.72 | 1.31 | 6.80 | -4.90 | 1.34 | 1.61 | 0.90 | 0.47 | 0.39 | 1.91 | 0.55 | 0.78 | 1.53 | 1.05 |
| FFO Payout Ratio % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 99.98% | 0% | 0% |
| EPS (Diluted) | 3.34 | 3.29 | 4.00 | 3.33 | 3.59 | 2.25 | 1.26 | 0.79 | 1.42 | 1.19 | 1.38 | -6.22 | 0.38 | 0.80 | 0.36 | 0.20 | 0.14 | 1.64 | 0.33 | 0.70 | 1.47 | 0.99 |
| EPS Growth % | 4.39% | -17.75% | 20.12% | -7.24% | 59.56% | 78.57% | 59.49% | -44.37% | 19.33% | -13.77% | 122.19% | -1736.84% | -52.5% | 122.22% | 80% | 42.86% | -91.46% | 396.97% | -52.86% | -52.38% | 48.48% | - |
| EPS (Basic) | - | 3.30 | 4.04 | 3.34 | 3.59 | 2.25 | 1.27 | 0.79 | 1.42 | 1.19 | 1.40 | -6.25 | 0.38 | 0.81 | 0.37 | 0.20 | 0.14 | 1.65 | 0.34 | 0.70 | 1.47 | 0.99 |
| Diluted Shares Outstanding | 51M | 50.9M | 50.8M | 50.12M | 49.85M | 48.98M | 48.09M | 42.01M | 42.01M | 42.38M | 42.33M | 34.27M | 43.6M | 36.81M | 35.48M | 35.78M | 36.38M | 36.1M | 35.89M | 35.38M | 35.38M | 35.38M |
Quick answers to the most common questions about buying FOR stock.
For fiscal year 2025, Forestar Group Inc. (FOR) reported total revenue of $1.66B. This represents a 969.2% increase compared to $155.5M in 2005.
Forestar Group Inc. (FOR) is profitable, generating $167.9M in net income for the fiscal year ending 2025 with a net profit margin of 10.1%.
Forestar Group Inc. (FOR) reported an operating income of $209.1M, resulting in an operating profit margin of 12.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Forestar Group Inc. (FOR) generated $363.5M in gross profit for the year, representing a gross profit margin of 21.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Parent-Subsidiary Dependency
Metrics are mathematically derived from official filings.
Decelerating Lot Delivery Growth
Revenue growth decelerated to 4.2% in 2026Q3 from 21.6% a year prior, suggesting that while the D.R. Horton relationship sustains volume, broader market dynamics and development cycle times are now constraining top-line expansion as per recent earnings reports.
The deceleration in revenue growth, particularly the sharp drop from the 21.6% growth in 2025Q4 to 4.2% in 2026Q3, indicates the business is maturing from a high-growth phase into a more cyclical, market-driven delivery cadence. The lumpy quarterly revenue pattern, with Q4 consistently the strongest, highlights the project-based nature of the business and the dependence on builder absorption schedules, which appear to be normalizing after a period of post-pandemic surge.
NOI Margin Compression Signals Cost Pressures
The NOI margin fell to 20.7% in 2026Q3, its second-lowest level in the last ten quarters and down from 23.9% in 2024Q4, implying that rising development costs are outpacing the company's ability to pass through price increases to its captive buyer.
The downward trend in NOI margin, from a peak of 25.0% in 2024Q2 to the current 20.7%, suggests structural cost inflation in land entitlement and infrastructure development is compressing profitability. This margin trajectory warrants monitoring, as a sustained contraction below the 20% threshold could challenge the economics of the high-volume, low-margin business model that relies on D.R. Horton's scale for efficiency.
FFO Growth Volatility Masks Underlying Stability
FFO per share grew 8.6% in 2026Q3, but the trajectory is highly erratic, with year-over-year growth swinging from -55.6% to 64.6% across the last ten quarters, as disclosed in the company's financial statements.
The extreme volatility in FFO growth is primarily a function of the company's project-based delivery schedule and the lack of recurring rental income, making period-over-period comparisons misleading for assessing underlying operational momentum. The close alignment between FFO and AFFO indicates minimal non-cash distortions, but the absence of a dividend yield suggests all cash flow is being reinvested, heightening the importance of execution on new land development starts.
Captured Profitability Raises Earnings Quality Questions
The reported 2026Q3 EPS of $0.70 significantly missed the consensus estimate of $1.26 despite revenue and pre-tax income growth, which may indicate that related-party pricing dynamics with D.R. Horton or capitalized interest accounting are obscuring true economic profitability.
The persistent gap between FOR's reported net income and analyst expectations, especially given its structural link to D.R. Horton, necessitates a careful review of the 'Related Party Transactions' disclosures to understand if lot transfer pricing consistently reflects arm's-length market conditions. Furthermore, the company's exceptionally low reported Debt/Equity ratio of 0.46% suggests significant financing may be occurring off its balance sheet, potentially understating the true capital intensity and risk profile of its land inventory.