Overview

• U.S. residential lot developer's fiscal Q3 revenue rose 4% but missed analyst expectations

• Net income for fiscal Q3 grew 9% to $35.9 mln, with EPS at $0.70

• Company maintained fiscal 2026 guidance for lot deliveries and revenue

Outlook

• Forestar maintains fiscal 2026 lot delivery guidance of 14,000 to 14,500 lots

• Company maintains fiscal 2026 revenue guidance of $1.6 bln to $1.7 bln

• Forestar cites continued affordability constraints and cautious consumer sentiment in current market

Result Drivers

• CAPITAL DISCIPLINE - Co attributed results to disciplined capital management amid affordability constraints and cautious consumer sentiment

• LOT SALES PACE - Co said it is aligning the pace and price of lot sales with timing of investments and market demand

Company press release: ID:nBw8XPrBMa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Revenue	Miss	$407 mln	$437.73 mln (3 Analysts)
Q3 EPS		$0.70
Q3 Net Income		$36 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Forestar Group Inc is $35.00, about 24.1% above its July 20 closing price of $28.20

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

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