Fiscal year ends SepLast earnings: Apr 21, 2026Est. next earnings: Jul 21, 2026
Latest Score
2.0/ 10
±0.0vs prior
4-Period Change
+1.0
vs Q2 '25
Challenge RatePercentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions.
6%
All quarters
2.0out of 10Cautious
Sentiment · FY2026 Q2
Q4 '24Q2 '26
Top Analysts & Firms
Most Active Analysts
Analyst
Firm
Questions
ChallengePercentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions.
Base4Base 4GAAP revenue YoY -2.27% → base 4. The base score is anchored to the GAAP revenue YoY band before transcript, EPS, and guidance adjustments.+Transcript0Transcript 0GAAP revenue is clean, no distortion. Homebuilders not on Sector Rules Table.+EPS-1EPS -1GAAP EPS YoY -13.18% vs revenue YoY -2.27%, spread -10.91 percentage points → outside -5 percentage points. operating income YoY -20.12%, operating income spread -17.85 percentage points → same direction, confirms margin compression from elevated incentives. Both outside, same direction → EPS adjustment = -1.+Guidance-1Guidance -1FY2026 revenue guidance top end lowered from $35B to $34.5B (midpoint from $34.25B to $34.0B). Change: ($34.0 - $34.25) / $34.25 = -0.73%. Homes closed top end lowered from 88,000 to 87,500. Hansen explicitly stated closings guide lowered by 500 plus lighter ASP. Lower <3%.=Final2
How this score was built
Base4Base 4GAAP revenue YoY -2.27% → base 4. The base score is anchored to the GAAP revenue YoY band before transcript, EPS, and guidance adjustments.+Transcript0Transcript 0GAAP revenue is clean, no distortion. Homebuilders not on Sector Rules Table.+
Macro Signals
→Housing→Consumer Spending→Labor Market
Revenue declined 2% to $7.6 billion with EPS down 13% to $2.24 as net sales orders surged 11% year-over-year, signaling demand recovery, but incentives remained elevated at approximately 10% of revenues. FY2026 guidance top end was reduced from $35 billion to $34.5 billion on lower closings and average selling prices. Stick and brick cost savings began flowing through while completed spec inventory declined 35% from a year ago.
Key Themes9
positive📊 company
Net Sales Orders Surged 11% Year Over Year
Net sales orders increased 11% year-over-year to 24,992 homes with order value up 10% to $9.2 billion. Cancellation rate at 16%, down from 18% sequentially. Active selling communities up 11% year over year.
DemandRevenue Growth
positive📊 company
Pretax Margin Exceeded Guidance Range
Consolidated pretax profit margin of 11.5% above the high end of guidance range. Home sales gross margin of 20.1% included 40 basis point benefit from favorable litigation and lower warranty costs.
EPS -1GAAP EPS YoY -13.18% vs revenue YoY -2.27%, spread -10.91 percentage points → outside -5 percentage points. operating income YoY -20.12%, operating income spread -17.85 percentage points → same direction, confirms margin compression from elevated incentives. Both outside, same direction → EPS adjustment = -1.
+
Guidance-1Guidance -1FY2026 revenue guidance top end lowered from $35B to $34.5B (midpoint from $34.25B to $34.0B). Change: ($34.0 - $34.25) / $34.25 = -0.73%. Homes closed top end lowered from 88,000 to 87,500. Hansen explicitly stated closings guide lowered by 500 plus lighter ASP. Lower <3%.
=
Final2
Completed Spec Inventory Down 35% From A Year Ago
Completed unsold homes at 5,500, down 25% from December and 35% from a year ago. Both unsold as a percentage of total inventory and completed unsold at lowest levels since fiscal 2023.
InventorySupply Chain
positive📊 company
Stick And Brick Cost Savings Beginning To Flow Through
Stick and brick costs down 4% year-over-year per square foot and down 2% sequentially. Expects incremental construction cost benefits in Q3 and Q4 from prior renegotiations with trades.
Cost PressureMargin
negative📊 company
Revenue Still Declining On Lower Average Sales Price
Home sales revenues of $7 billion compared to $7.2 billion in the prior year on slightly more homes closed. Average closing price of $361,600, down 3% year-over-year and down 1% sequentially.
Revenue GrowthPricing
negative📊 company
Incentives Elevated At Approximately 10% Of Revenues
Incentives as a percent of revenues roughly 10%. 90% of mortgage company buyers received some form of buydown. 73% of overall closings had some form of rate buydown. Expects incentives to remain elevated.
PricingMargin
negative📊 company
FY2026 Guidance Top End Reduced On Lower Closings And ASP
FY2026 consolidated revenues now expected at $33.5 billion to $34.5 billion. Homes closed now expected at 86,000 to 87,500. Hansen stated closings guide lowered by 500 with lighter ASP not expected to increase in back half.
Guidance ReliabilityDemand
negative📊 company
Lot Costs Remain Sticky Up 4% Year Over Year
Lot costs up 4% year-over-year per square foot, moderating from 6% last quarter. Lot costs essentially flat sequentially. Expects stick and brick savings to offset lot cost increases for the year.
Cost PressurePricing
negative📊 company
SG&A Deleverage Continuing On Lower Revenue Per Closing
SG&A as a percentage of revenues was 9.2%, up from 8.9% in prior year quarter. Increase driven by lower home closings revenue reflecting decline in average sales price. Expects leverage improvement in Q3 and Q4.
Cost PressureMargin
I was recently in San Antonio and saw you guys had several communities priced in the high 100s, low 200s. And I was wondering if that's just something you're only doing in that market
Can you talk about your exposure to land banking, maybe as a percentage of the option mix and then your ability to actually slow down the pace of the lot takedowns
how would you respond to folks who are worried that this is becoming a new normal, that the buyer has become conditioned to expect very elevated level of incentives
Any thoughts there on potential upside or changes to the guide? And how you're thinking about balancing investments in growth relative to the dividend and the buyback
Is it your expectation that lot count kind of still continues to move lower sequentially here as maybe fewer deals just meet your underwriting standards