Forestar Group Inc (NYSE: FOR) is a residential land development company that acquires raw land and develops it into finished residential lots for sale to homebuilders. Revenue is transactional, generated lot-by-lot at an average sales price of $108,400 per lot in FY2025, up from $96,600 in FY2024. D.R. Horton is the dominant customer, purchasing 11,751 of the 14,240 total lots sold in FY2025, representing the vast majority of Forestar's revenue. Total revenues were $1,662.4 million in FY2025, up from $1,509.4 million in FY2024. Residential lot sales accounted for $1,544.3 million of FY2025 revenue, with tract sales and other contributing $118.1 million. The company operates development projects and lot banking projects, with development projects generating $1,499.8 million in lot sales in FY2025. Income before income taxes was $219.3 million in FY2025. As of September 30, 2025, Forestar had $853.4 million in performance bonds outstanding. The company's fiscal year ends September 30, and its 10-K was filed November 19, 2025.

Revenue model

Transactional lot sales to homebuilders. Revenue recognized on a per-lot basis at closing. Average sales price per lot was $108,400 in FY2025. Secondary revenue from tract sales and other ($118.1 million in FY2025).

Products and services

Finished residential lots from development projects and lot banking projects. Lot banking involves acquiring and holding land for future development. Tract sales involve bulk land dispositions outside the standard lot development pipeline.

Customers and end markets

Homebuilders are the direct customers. D.R. Horton purchased 11,751 lots in FY2025 out of 14,240 total lots sold, making it the dominant customer. Third-party homebuilders other than D.R. Horton purchased 2,489 lots in FY2025, up from 1,801 in FY2024. End market is new single-family residential housing.

Value-chain role

Land developer and intermediary between raw land sellers and homebuilders. Forestar acquires land, manages entitlement and infrastructure development, then sells finished lots to homebuilders who construct homes.

Geographic exposure

Operations include at least one project in Maryland, as referenced in an MDE enforcement action filed September 6, 2024. Broader geographic footprint not detailed in the provided excerpts.

Source: SEC 10-K, filed 2025-11-19

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