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FOR · Analysis updated Nov 6, 2026, 9:52 AM ET
Why is Forestar Group (FOR) stock moving?
Forestar reported fiscal Q4 results on Oct 29 that missed expectations. EPS was $1.15 against a $1.25 consensus, and revenue was $580.8M against $603.1M. Net income fell 32% and gross margin dropped to 17.8% from 22.3%. Management attributed part of the margin hit to $7.6M of impairments and extra regulatory-related closeout costs. Excluding those items, margin would have been 20.8%. Lots sold rose 2% in the quarter. The balance sheet is strong, with net debt to capital of 6.7%, $1.3B of liquidity, no senior-note maturities until fiscal 2028, and book value per share of $37.56. Shares fell from about $25.92 on Oct 28 to a low close of $23.50 on Nov 3, on volume of roughly 250K–350K a day, well above the earlier 100K–150K range. They have since recovered slightly to $24.46. The stock trades below book value near the lower end of its 52-week range of $22.81 to $32.06. Housing affordability pressures and cautious buyers remain the main headwinds. The next catalyst, the next earnings report, is not expected until around Jan 26, 2027.
News behind the analysis
- Forestar Reports Fourth Quarter and Fiscal 2026 ResultsQ4 net income fell 32% to $59.2M ($1.15/share) and revenue fell 13% to $580.8M. Pre-tax income fell 31% to $78.6M.
- Forestar Group Inc. - Form 8-K Exhibit 99.1 (Q4 and FY2026 results)FY2026 net income was $142.6M ($2.78/share) on $1.6B revenue and 13,545 lots sold. Net debt to capital was 6.7%, liquidity $1.3B, and book value per share $37.56.
- Forestar (FOR) Q4 2026 Earnings Call TranscriptManagement stressed capital discipline and liquidity in a volatile housing market. Q4 gross margin was 17.8% against 22.3% a year earlier.
- Forestar Group Q4 Earnings Call HighlightsForestar ended the year with $657M of unrestricted cash and an undrawn revolver. Total debt is $794M, with no senior-note maturities until fiscal 2028.
- Forestar Group Q4 2026 Earnings Call TranscriptForestar plans $1.3B of land acquisition and development investment in fiscal 2027. It is focusing on smaller, quicker-turning projects.
- Forestar Group (NYSE:FOR) Issues Quarterly Earnings ResultsEPS of $1.15 missed the $1.25 consensus. Revenue of $580.8M missed the $603.1M estimate.
- Forestar Group Inc. Reports Earnings Results for the Fourth Quarter and Full Year Ended September 30, 2026Full-year sales were $1,635.1M against $1,662.4M a year earlier. Diluted EPS was $2.78 against $3.29.
- Forestar Group (FOR) Stock Price, News & AnalysisShares closed at $25.03 on Oct 29, with volume of 345,598. The 52-week range is $22.81 to $32.06, and the next earnings date is estimated for Jan 26, 2027.