FORHIGH SIGNALFINANCIAL10-K

Forestar's operating income collapsed substantially while SG&A expenses increased significantly, despite revenue growth and expanded operations.

The dramatic decline in operating income alongside rising administrative costs suggests serious operational efficiency challenges or one-time charges that have severely impacted profitability. The company's ability to convert revenue growth into operating profits has deteriorated meaningfully, which could signal underlying business model stress or investment phase impacts.

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

While Forestar achieved solid revenue growth of 10.1% and expanded its balance sheet with assets growing to $3.1B, the company's operational performance deteriorated sharply with operating income falling substantially and SG&A expenses rising over 30%. Net income declined 17.5% and operating cash flow remained deeply negative at -$197.7M, indicating the company is consuming significant cash to fund operations despite revenue gains. The financial picture suggests a company investing heavily in growth but struggling with execution and cost management.

FINANCIAL STATEMENT CHANGES
Operating Income
P&L
-71.7%
$140.4M→$39.8M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

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.

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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