Forestar Group Inc (NYSE:FOR) stock fell 4.38% (As on January 20, 11:28:32 AM UTC-4, Source: Google Finance) after the company posted mixed results for first quarter of FY26. The company’s net income decreased 7% to $15.4 million compared to $16.5 million in the prior-year quarter. Pre-tax income for the quarter decreased 5% to $20.8 million from $21.9 million in the same quarter of fiscal 2025. Forestar sold 1,944 lots during the quarter, a 17% decline from 2,333 lots in the same period last year. The company ended the quarter with $211.7 million in unrestricted cash and total liquidity of $819.3 million, with a net debt to total capital ratio of 24.6%. Forestar’s lot position at December 31, 2025, stood at 101,000 lots, with 24,100 lots under contract to be sold, representing approximately $2.2 billion of future revenue. Another 18,100 lots, or 28%, of the Company’s owned lots were subject to a right of first offer to D.R. Horton based on executed purchase and sale agreements at December 31, 2025. The average sales price per lot increased to $121,000 from $105,500 in the prior-year quarter. The Company’s return on equity was 9.8% for the trailing twelve months ended December 31, 2025. Forestar ended the quarter with $211.7 million of unrestricted cash and $607.6 million of available borrowing capacity on its senior unsecured revolving credit facility for total liquidity of $819.3 million. Debt at December 31, 2025 totaled $793.2 million, with no senior note maturities in the next twelve months. The Company’s net debt to total capital ratio at the end of the quarter was 24.6%. Book value per share increased 10% to $35.10

FOR in the first quarter of FY26 has reported the adjusted earnings per share of 30 cents, missing the analysts’ estimates for the adjusted earnings per share of 32 cents. The company had reported the adjusted revenue growth of 9 percent to $273 million in the first quarter of FY26, beating the analysts’ estimates for revenue of $265.48 million. The Forestar team delivered increased revenues compared to the prior year quarter and maintained strong liquidity through disciplined inventory investment amid ongoing affordability constraints and cautious consumer sentiment that continue to impact the pace of new home sales

Despite the challenges, Forestar maintained its fiscal 2026 guidance, expecting to deliver between 14,000 and 15,000 lots, generating $1.6 billion to $1.7 billion of revenue.