FORMEDIUM SIGNALFINANCIAL10-K

Forestar shows mixed operational performance with revenue growth and improved operating income offset by declining net income and deteriorating cash flow metrics.

The company demonstrates operational leverage with operating income surging 221% despite only 10% revenue growth, suggesting improved operational efficiency. However, the 17.5% decline in net income combined with worsening operating cash flow (-$197.7M) and reduced cash position raises questions about working capital management and cash conversion efficiency.

Comparing 2025-11-19 vs 2024-11-19View on EDGAR →
FINANCIAL ANALYSIS

Forestar delivered solid top-line growth with revenue increasing 10.1% to $1.7B and operating income dramatically improving 221% to $39.8M, indicating strong operational leverage. However, net income declined 17.5% to $167.9M while operating cash flow deteriorated significantly to -$197.7M and cash reserves dropped 21% to $379.2M. The mixed financial picture suggests operational improvements are being offset by working capital challenges and cash management issues, requiring investor attention to the company's liquidity management and capital allocation strategy.

FINANCIAL STATEMENT CHANGES
Operating Income
P&L
+221.2%
$12.4M→$39.8M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

SG&A Expense
P&L
+30.3%
$118.5M→$154.4M

SG&A up 30.3% — significant increase in sales or administrative costs, monitor impact on operating leverage.

Operating Cash Flow
Cash Flow
-24.8%
-$158.4M→-$197.7M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Cash & Equivalents
Balance Sheet
-21.2%
$481.2M→$379.2M

Cash decreased 21.2% — monitor burn rate and upcoming capital needs.

Net Income
P&L
-17.5%
$203.4M→$167.9M

Net income declined 17.5% — review whether driven by operations, interest costs, or non-recurring items.

Total Debt
Balance Sheet
+13.6%
$706.4M→$802.7M

Debt rose 13.6% — additional borrowing for investment or operations; monitor coverage ratios.

Stockholders Equity
Balance Sheet
+10.9%
$1.6B→$1.8B

Equity base grew 10.9% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Gross Profit
P&L
-10.5%
$11.3M→$10.1M

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Total Assets
Balance Sheet
+10.5%
$2.8B→$3.1B

Asset base grew 10.5% — expansion through organic growth, acquisitions, or capital deployment.

Revenue
P&L
+10.1%
$1.5B→$1.7B

Revenue growing 10.1% — solid top-line momentum, watch margins for quality of growth.

LANGUAGE CHANGES
NEW — 2025-11-19
PRIOR — 2024-11-19
ADDED
As of November 14, 2025, there were 50,842,077 shares of Common Stock outstanding.
Our common stock is listed on the New York Stock Exchange (NYSE) and the NYSE Texas under the ticker symbol "FOR." The listing and trading of the Common Stock on the NYSE Texas commenced on July 1, 2025.
The terms "Forestar," the "Company," "we" and "our" used herein refer to Forestar Group Inc., a Delaware corporation, and its predecessors and subsidiaries.
For the year ended September 30, 2025, we sold 14,240 lots with an average sales price of $108,400.
At September 30, 2025, our lot position consisted of 99,800 residential lots, of which approximately 65,100 were owned and 34,700 were controlled through purchase contracts.
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REMOVED
As of November 14, 2024, there wer e 50,669,946 sha res of Common Stock outstanding.
Our common stock is listed on the New York Stock Exchange (NYSE) under the ticker symbol "FOR." The terms "Forestar," the "Company," "we" and "our" used herein refer to Forestar Group Inc., a Delaware corporation, and its predecessors and subsidiaries.
For the year ended September 30, 2024, we sold 15,068 lots with an average sales price of $96,600.
At September 30, 2024, our lot position consisted of 95,100 residential lots, of which approximately 57,800 were owned and 37,300 were controlled through purchase contracts.
Of our 57,800 owned lots, approximately 21,000 lots are under contract to be sold for an aggregate remaining sales price of approximately $1.9 billion.
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