Forestar Group Inc. — Call Transcript 2025

Good morning, and welcome to Forestar's Fourth Quarter and Fiscal 2025 Earnings Conference Call. At this time, all participants are on a listen-only mode, and the question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. And please note, this conference is being recorded. I will now turn the call over to Mr. Chris Hibbetts, Vice President of Finance and Investor Relations for Forestar. Sir, the floor is yours. Thank you, Ali. Good morning, and welcome to the call to discuss Forestar's Fourth Quarter and Fiscal Year results. Thank you for joining us. Before we get started, today's call includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Although Forestar believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to Forestar on the date of this conference call, and we do not undertake any obligation to update or revise any forward-looking statements publicly. Additional information about factors that could lead to material changes in performance is contained in Forestar's annual report on Form 10-K and its most recent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission. Our earnings release is available on our website at investor.forestar.com, and we plan to file our 10-K in the next few weeks. After this call, we will post an updated investor presentation to our investor relations site under Events and Presentations for your reference. Now, I will turn the call over to Andy Oxley, our President and CEO. Thanks, Chris. Good morning, everyone. I'm also joined on the call today by Jim Allen, our Chief Financial Officer, and Mark Walker, our Chief Operating Officer. As always, we appreciate your interest in Forestar and taking the time to discuss our Fourth Quarter and Fiscal Year results. The Forestar team finished the year strong, generating over $670 million of revenue in the fourth quarter and $1.7 billion of revenue for the full year, which was above a high end of our most recent guidance range. Despite the challenges for new home demand due to ongoing affordability constraints and cautious consumer sentiment this year, we grew annual revenues by 10% and increased our book value per share to $34.78, up 11% from a year ago. We achieved these results all while maintaining a strong balance sheet and ending the year with $968 million of liquidity. Over the last five years, Forestar invested more than $7.3 billion in land acquisition and development and delivered more than 75,000 finished lots to approximately 60 local, regional, and national home builders. During the same period, our book value per share has increased 92%. These results reflect the strength of our business model and our market-leading teams we have built out across our national footprint. Thank you to all the Forestar team members for your efforts this year. In Fiscal 2026, we will continue to execute our strategic plan by investing for future growth, turning our inventory, maximizing returns, and consolidating market share in the highly fragmented lot development industry. Our unique combination of financial strength, operating expertise, and diverse national footprint enables us to provide essential finished lots to home builders and effectively navigate current market conditions. Jim will now discuss our Fourth Quarter and Fiscal Year 2025 financial results in more detail. Thank you, Andy. In the fourth quarter, net income increased 7% to $87 million or $1.70 per diluted share. For the year, net income totaled $167.9 million or $3.29 per diluted share. Revenues for the fourth quarter increased 22% to $670.5 million. The current quarter includes $103.4 million in tract sales and other revenue, which was primarily for sales of residential tracts and, to a lesser extent, our first sale of a multifamily site. Revenue increased 10% to $1.7 billion in Fiscal 2025, which includes $118.1 million of tract sales and other revenue. In the fourth quarter, we sold 4,891 lots with an average lot sales price of $115,700, and for the year, we sold 14,240 lots with an average lot sales price of $108,400. We expect continued quarterly fluctuations in our average sales price based on the geographic location and lot size mix of our deliveries. Our gross profit margin this quarter was 22.3%, down 160 basis points from a year ago. Our gross profit margin in the prior year fourth quarter was positively impacted by lot sales from an unusually high margin project. Our fourth quarter pre-tax income increased 4% to $113.1 million, and our pre-tax profit margin was 16.9%. Pre-tax income for the year totaled $219.3 million, and our pre-tax profit margin this year was 13.2%. Our pre-tax income and profit margin for the quarter and the year were positively impacted by a gain on sale of assets of $4.5 million. Chris. SG&A expense for the fourth quarter was $42.7 million or 6.4% as a percentage of revenues. For the year, SG&A expense was $154.4 million or 9.3%. Our average employee count for Fiscal Year 2025 increased 24% compared to the prior year, which has supported the continued expansion of our platform, including entering new markets and increasing community count. Roughly 90% of new hires in Fiscal 2025 were in our local market operations. We are pleased with the progress we have made building our team and our ability to attract high-quality talent. We remain focused on efficiently managing our SG&A while investing in our teams to support our continued growth. Mark? New home sales have been slower than last year as continued affordability constraints and cautious consumer sentiment continue to weigh on demand. However, mortgage rate buy-down incentives offered by builders are helping to bridge the affordability gap. Transfer demand for new homes, mainly at more affordable price points. Our primary focus remains developing lots for new homes at prices for entry-level and first-time buyers, which is the largest segment of the new home market. The availability of contractors and necessary materials remains solid, and land development costs have been stable. We have also seen improvement in cycle times despite continued governmental delays. Our teams utilize best management practices and work closely with our trade partners to develop lots to drive operational efficiency. Jim? D.R. Horton is our largest and most important customer. 15% of the homes D.R. Horton started this year were on a Forestar-developed lot. With a mutually stated goal of one out of every three homes D.R. Horton sells to be on a lot developed by Forestar, we have a significant opportunity to grow our market share within D.R. Horton. We also continue to work on expanding our relationships with other home builders. 17% of our Fiscal 2025 deliveries for 2,489 lots were sold to other customers, which includes 927 lots that were sold to a lot banker who expects to sell those lots to D.R. Horton at a future date. We also sold lots to more than 20 different home builders this year, including six new customers. Chris? Forestar's underwriting criteria for new development projects remains unchanged at a minimum 15% pre-tax return on average inventory and a return of our initial cash investment within 36 months. During the fourth quarter, we invested $347 million in land and land development, of which approximately 80% was for land development and 20% was for land. For the full year, we invested approximately $1.7 billion in land and land development, of which two-thirds was for land development and one-third was for land. In Fiscal 2026, we currently expect to invest approximately $1.4 billion in land acquisition and development. Mark? The lot position on September 30th was 99,800 lots, of which 65,100 were 65% our own and 34,700 were 35% our control through purchase contracts. 8,900 of our owned lots are finished, which is down 11% from the third quarter. The majority of our finished lots are under contract to be sold. Consistent with our focus on capital efficiency, we target owning a three- to four-year supply of land and lots and manage our development in phases to deliver finished lots at a pace that matches market demand. Owned lots under contract to sell increased 13% compared to a year ago. 23,800 lots were 37% of our owned lot supply. $193 million of our earnest money deposits secure these contracts, which are expected to generate approximately $2.1 billion of future revenue. Another 27% of our owned lots are subject to a right of first offer to D.R. Horton based on executed purchase and sale agreements. Jim? We have significant liquidity and are using modest leverage to keep our balance sheet strong. We ended the quarter with $968 million of liquidity, including an unrestricted cash balance of $379 million and $589 million of available capacity on our undrawn revolving credit facility. During September, we redeemed the remaining $70.6 million of 3.85% senior unsecured notes that were due in 2026. Total debt at September 30th was $803 million, with no senior note maturities until Fiscal 2028, and our net debt to capital ratio was 19.3%. We ended the quarter with $1.8 billion of stockholders' equity, and our book value per share increased 11% from a year ago to $34.78. Forestar's capital structure is one of our biggest competitive advantages, and it sets us apart from other land developers. Project-level land acquisition and development loans are less available today and have continued to be more expensive, which impacts the majority of our competitors. Other developers generally use project-level development loans, which are typically more restrictive, have floating rates, and create administrative complexity, particularly in an elevated interest rate environment. Our capital structure provides us with operational flexibility, while our strong liquidity positions us to take advantage of attractive opportunities when they arise. Andy, I'll now turn it back over to you for closing remarks. Thanks, Jim. Fiscal 2025 was another successful year for Forestar. We delivered revenue growth of 10% and increased our book value per share by 11%. We continue to execute our strategy to expand the business through significant investments in land and land development and growth of our team. These investments helped us enter seven new markets and increased our community count by over 10%. We further strengthened our balance sheet through extending near-term debt maturities and increasing our liquidity. As we look forward to Fiscal 2026, based on current market conditions, we expect to deliver between 14,000 and 15,000 lots and to generate $1.6-$1.7 billion of revenue. We currently expect our first quarter will be our lowest delivery quarter of the year, and we expect our revenues in the second half of Fiscal 2026 to be higher than the first half. We are closely monitoring each market as we strive to balance pace and price to maximize returns for each project. While we expect home affordability constraints and cautious home buyers to continue to be near-term headwinds for new home demand, we are confident in the long-term demand for finished lots and our ability to gain market share in the highly fragmented lot development industry. We are well-positioned to continue success with our lot portfolio across our diverse national footprint, operating expertise, and strong balance sheet. Ali, at this time, we'll open the line for questions. Thank you, sir. Ladies and gentlemen, at this time, we will be conducting our question-and-answer session. If you would like to ask a question, please press 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press 2 if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the * keys. One moment, please, while we poll for questions. Thank you. Our first question today is coming from Trevor Allinson with Wolfe Research. Your line is live. Hi, good morning. Thank you for taking my question. Looking at your 2026 guidance, it looks like you're expecting deliveries to be up low single digits. That's roughly the same growth as your largest customer. As we think about you deepening your penetration with Horton, why would you not grow faster as we look into next year? Is it an expectation that sales to other builders come down, or is it just some conservatism? What's driving kind of the inline growth with Horton? Thanks, Trevor. You know, it's just their size. If they grow at low single digits, we need to grow at mid-single digits just to maintain pace with them. So they've entered some new markets. We've entered six or seven new markets for the year. We are growing market share in the markets where we are in, but it's just a matter of us catching up with them in those additional markets. We have the land. We have the team in place. So we are positioned if the market is there. We could increase those units, but it's really going to depend on the spring selling season to see what the year gives us. Okay. Makes sense. That's helpful. And then you talked about employee count being up 24% in Fiscal 2025. You built out your team ahead of some anticipated growth here over the next couple of years. With that in mind, how should we think about your headcount moving forward and then your leverage on SG&A in Fiscal 2026? Thanks. Our headcount has remained basically flat since the first quarter of Fiscal 2025. Most of that increase in headcount actually occurred in Fiscal 2024, but only partially recognized in Fiscal 2024. I would expect our headcount to continue to remain flat or maybe even drift down slightly as we move into Fiscal 2026. Thank you for all the color and good luck moving forward. Thank you, Trevor. Thank you. Just as a reminder, ladies and gentlemen, that's 1 if you have any questions or comments. Our next question is coming from Anthony Pettinari with Citigroup. Your line is live. Hi, this is Asher Sohnen, and I'm for Anthony. Thanks for taking my question. I just wanted to ask, I think last week we saw a builder talking about how they were getting some cost concessions and extended takedown schedules on their lots. I was just wondering with Horton or your third-party customers, are you seeing any pushback on lot prices or maybe extended takedown schedules or anything like that? Yeah. From a land acquisition perspective, we've been successful renegotiating time and terms, but not so much land value. Throughout the years, our teams and we have developed proven underwriting due diligence and market research strategy that helps us ensure that we're purchasing land at current market rates. In terms of lot pricing, we haven't seen a whole lot of pushback on our lot pricing today. Again, we manage that project by project to maximize returns. Okay. Thanks. That's helpful. And I just wanted to drill down a little bit. I think you guys have a big presence in Texas and Florida. I was just wondering if you could talk geographically around those regions, specifically what kind of trends you're seeing there? Yeah. We are seeing some pressure in some markets in Texas. It's choppy. Probably see a little bit more pressure in Florida, parts of Florida. But those are really large markets, and particularly at the affordable price point where we tend to concentrate our business, we're still seeing good absorptions. Great. That's helpful, and if you won't mind me sneaking in one more, just on modeling question? In terms of the cadence of deliveries in 2026 in your guide, I think 2025 was pretty back half-weighted. I'm just wondering if there's any thinking around 2026. Yeah. I mean, I think we're projecting 2026 to be similar cadence to 2025. Certainly, our deliveries will be larger in the second half of the year, similar to this year. Okay. Thank you very much. I'll turn it over. Thank you. Once again, ladies and gentlemen, if there will be any final questions or comments, please indicate so now by pressing *1 on your telephone keypad. Okay. As we have no further questions on the lines at this time, I'd like to turn the call back over to Mr. Andy Oxley for any closing remarks. Thank you, Ali. And thank you to everyone on the Forestar team for your focus and hard work. As we enter Fiscal 2026, continue to stay disciplined, flexible, and opportunistic while focusing on consolidating market share. We appreciate everyone's time on the call today and look forward to speaking with you again in January to share our first quarter results. Thank you. Ladies and gentlemen, this does conclude today's call. You may disconnect your lines at this time, and we thank you for your participation.

Speaker 2: Good morning, and welcome to Forestar's Fourth Quarter and Fiscal 2025 Earnings Conference Call. At this time, all participants are on a listen-only mode, and the question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. And please note, this conference is being recorded. I will now turn the call over to Mr. Chris Hibbetts, Vice President of Finance and Investor Relations for Forestar. Sir, the floor is yours. Good morning, and welcome to Forestar's Fourth Quarter and Fiscal 2025 Earnings Conference Call. good morning and welcome to forestar's fourth quarter and fiscal 2025 earnings conference call At this time, all participants are on a listen-only mode, and the question-and-answer session will follow the formal presentation. at this time all participants are on a listen-only mode and the question-and-answer session will follow the formal presentation If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. if anyone should require operator assistance during the conference please press star zero on your telephone keypad And please note, this conference is being recorded. and please note this conference is being recorded I will now turn the call over to Mr. Chris Hibbetts, Vice President of Finance and Investor Relations for Forestar. i will now turn the call over to mr chris hibbetts vice president of finance and investor relations for forestar Sir, the floor is yours. sir the floor is yours

Speaker 4: Thank you, Ali. Good morning, and welcome to the call to discuss Forestar's Fourth Quarter and Fiscal Year results. Thank you for joining us. Before we get started, today's call includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Although Forestar believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to Forestar on the date of this conference call, and we do not undertake any obligation to update or revise any forward-looking statements publicly. Additional information about factors that could lead to material changes in performance is contained in Forestar's annual report on Form 10-K and its most recent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission. Thank you, Ali. thank you ali Good morning, and welcome to the call to discuss Forestar's Fourth Quarter and Fiscal Year results. good morning and welcome to the call to discuss forestar's fourth quarter and fiscal year results Thank you for joining us. thank you for joining us Before we get started, today's call includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. before we get started today's call includes forward-looking statements as defined by the private securities litigation reform act of 1995 Although Forestar believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. although forestar believes any such statements are based on reasonable assumptions there is no assurance that actual outcomes will not be materially different All forward-looking statements are based upon information available to Forestar on the date of this conference call, and we do not undertake any obligation to update or revise any forward-looking statements publicly. all forward-looking statements are based upon information available to forestar on the date of this conference call and we do not undertake any obligation to update or revise any forward-looking statements publicly Additional information about factors that could lead to material changes in performance is contained in Forestar's annual report on Form 10-K and its most recent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission. additional information about factors that could lead to material changes in performance is contained in forestar's annual report on form 10-k and its most recent quarterly report on form 10-q both of which are filed with the securities and exchange commission Our earnings release is available on our website at investor.forestar.com, and we plan to file our 10-K in the next few weeks. After this call, we will post an updated investor presentation to our investor relations site under Events and Presentations for your reference. Now, I will turn the call over to Andy Oxley, our President and CEO. Our earnings release is available on our website at investor.forestar.com, and we plan to file our 10-K in the next few weeks. our earnings release is available on our website at investor.forestar.com and we plan to file our 10-k in the next few weeks After this call, we will post an updated investor presentation to our investor relations site under Events and Presentations for your reference. after this call we will post an updated investor presentation to our investor relations site under events and presentations for your reference Now, I will turn the call over to Andy Oxley, our President and CEO. now i will turn the call over to andy oxley our president and ceo

Speaker 6: Thanks, Chris. Good morning, everyone. I'm also joined on the call today by Jim Allen, our Chief Financial Officer, and Mark Walker, our Chief Operating Officer. As always, we appreciate your interest in Forestar and taking the time to discuss our Fourth Quarter and Fiscal Year results. The Forestar team finished the year strong, generating over $670 million of revenue in the fourth quarter and $1.7 billion of revenue for the full year, which was above a high end of our most recent guidance range. Despite the challenges for new home demand due to ongoing affordability constraints and cautious consumer sentiment this year, we grew annual revenues by 10% and increased our book value per share to $34.78, up 11% from a year ago. We achieved these results all while maintaining a strong balance sheet and ending the year with $968 million of liquidity. Thanks, Chris. thanks chris Good morning, everyone. good morning everyone I'm also joined on the call today by Jim Allen, our Chief Financial Officer, and Mark Walker, our Chief Operating Officer. i'm also joined on the call today by jim allen our chief financial officer and mark walker our chief operating officer As always, we appreciate your interest in Forestar and taking the time to discuss our Fourth Quarter and Fiscal Year results. as always we appreciate your interest in forestar and taking the time to discuss our fourth quarter and fiscal year results The Forestar team finished the year strong, generating over $670 million of revenue in the fourth quarter and $1.7 billion of revenue for the full year, which was above a high end of our most recent guidance range. the forestar team finished the year strong generating over $670 million of revenue in the fourth quarter and $1.7 billion of revenue for the full year which was above a high end of our most recent guidance range Despite the challenges for new home demand due to ongoing affordability constraints and cautious consumer sentiment this year, we grew annual revenues by 10% and increased our book value per share to $34.78, up 11% from a year ago. despite the challenges for new home demand due to ongoing affordability constraints and cautious consumer sentiment this year we grew annual revenues by 10% and increased our book value per share to $34.78 up 11% from a year ago We achieved these results all while maintaining a strong balance sheet and ending the year with $968 million of liquidity. we achieved these results all while maintaining a strong balance sheet and ending the year with $968 million of liquidity Over the last five years, Forestar invested more than $7.3 billion in land acquisition and development and delivered more than 75,000 finished lots to approximately 60 local, regional, and national home builders. During the same period, our book value per share has increased 92%. These results reflect the strength of our business model and our market-leading teams we have built out across our national footprint. Thank you to all the Forestar team members for your efforts this year. In Fiscal 2026, we will continue to execute our strategic plan by investing for future growth, turning our inventory, maximizing returns, and consolidating market share in the highly fragmented lot development industry. Our unique combination of financial strength, operating expertise, and diverse national footprint enables us to provide essential finished lots to home builders and effectively navigate current market conditions. Over the last five years, Forestar invested more than $7.3 billion in land acquisition and development and delivered more than 75,000 finished lots to approximately 60 local, regional, and national home builders. over the last five years forestar invested more than $7.3 billion in land acquisition and development and delivered more than 75,000 finished lots to approximately 60 local regional and national home builders During the same period, our book value per share has increased 92%. during the same period our book value per share has increased 92% These results reflect the strength of our business model and our market-leading teams we have built out across our national footprint. these results reflect the strength of our business model and our market-leading teams we have built out across our national footprint Thank you to all the Forestar team members for your efforts this year. thank you to all the forestar team members for your efforts this year In Fiscal 2026, we will continue to execute our strategic plan by investing for future growth, turning our inventory, maximizing returns, and consolidating market share in the highly fragmented lot development industry. in fiscal 2026 we will continue to execute our strategic plan by investing for future growth turning our inventory maximizing returns and consolidating market share in the highly fragmented lot development industry Our unique combination of financial strength, operating expertise, and diverse national footprint enables us to provide essential finished lots to home builders and effectively navigate current market conditions. our unique combination of financial strength operating expertise and diverse national footprint enables us to provide essential finished lots to home builders and effectively navigate current market conditions Jim will now discuss our Fourth Quarter and Fiscal Year 2025 financial results in more detail. Jim will now discuss our Fourth Quarter and Fiscal Year 2025 financial results in more detail. jim will now discuss our fourth quarter and fiscal year 2025 financial results in more detail

Speaker 1: Thank you, Andy. In the fourth quarter, net income increased 7% to $87 million or $1.70 per diluted share. For the year, net income totaled $167.9 million or $3.29 per diluted share. Revenues for the fourth quarter increased 22% to $670.5 million. The current quarter includes $103.4 million in tract sales and other revenue, which was primarily for sales of residential tracts and, to a lesser extent, our first sale of a multifamily site. Revenue increased 10% to $1.7 billion in Fiscal 2025, which includes $118.1 million of tract sales and other revenue. In the fourth quarter, we sold 4,891 lots with an average lot sales price of $115,700, and for the year, we sold 14,240 lots with an average lot sales price of $108,400. We expect continued quarterly fluctuations in our average sales price based on the geographic location and lot size mix of our deliveries. Thank you, Andy. thank you andy In the fourth quarter, net income increased 7% to $87 million or $1.70 per diluted share. in the fourth quarter net income increased 7% to $87 million or $1.70 per diluted share For the year, net income totaled $167.9 million or $3.29 per diluted share. for the year net income totaled $167.9 million or $3.29 per diluted share Revenues for the fourth quarter increased 22% to $670.5 million. revenues for the fourth quarter increased 22% to $670.5 million The current quarter includes $103.4 million in tract sales and other revenue, which was primarily for sales of residential tracts and, to a lesser extent, our first sale of a multifamily site. the current quarter includes $103.4 million in tract sales and other revenue which was primarily for sales of residential tracts and to a lesser extent our first sale of a multifamily site Revenue increased 10% to $1.7 billion in Fiscal 2025, which includes $118.1 million of tract sales and other revenue. revenue increased 10% to $1.7 billion in fiscal 2025 which includes $118.1 million of tract sales and other revenue In the fourth quarter, we sold 4,891 lots with an average lot sales price of $115,700, and for the year, we sold 14,240 lots with an average lot sales price of $108,400. in the fourth quarter we sold 4,891 lots with an average lot sales price of $115,700 and for the year we sold 14,240 lots with an average lot sales price of $108,400 We expect continued quarterly fluctuations in our average sales price based on the geographic location and lot size mix of our deliveries. we expect continued quarterly fluctuations in our average sales price based on the geographic location and lot size mix of our deliveries Our gross profit margin this quarter was 22.3%, down 160 basis points from a year ago. Our gross profit margin in the prior year fourth quarter was positively impacted by lot sales from an unusually high margin project. Our fourth quarter pre-tax income increased 4% to $113.1 million, and our pre-tax profit margin was 16.9%. Pre-tax income for the year totaled $219.3 million, and our pre-tax profit margin this year was 13.2%. Our pre-tax income and profit margin for the quarter and the year were positively impacted by a gain on sale of assets of $4.5 million. Chris. Our gross profit margin this quarter was 22.3%, down 160 basis points from a year ago. our gross profit margin this quarter was 22.3% down 160 basis points from a year ago Our gross profit margin in the prior year fourth quarter was positively impacted by lot sales from an unusually high margin project. our gross profit margin in the prior year fourth quarter was positively impacted by lot sales from an unusually high margin project Our fourth quarter pre-tax income increased 4% to $113.1 million, and our pre-tax profit margin was 16.9%. our fourth quarter pre-tax income increased 4% to $113.1 million and our pre-tax profit margin was 16.9% Pre-tax income for the year totaled $219.3 million, and our pre-tax profit margin this year was 13.2%. pre-tax income for the year totaled $219.3 million and our pre-tax profit margin this year was 13.2% Our pre-tax income and profit margin for the quarter and the year were positively impacted by a gain on sale of assets of $4.5 million. our pre-tax income and profit margin for the quarter and the year were positively impacted by a gain on sale of assets of $4.5 million Chris. chris SG&A expense for the fourth quarter was $42.7 million or 6.4% as a percentage of revenues. For the year, SG&A expense was $154.4 million or 9.3%. Our average employee count for Fiscal Year 2025 increased 24% compared to the prior year, which has supported the continued expansion of our platform, including entering new markets and increasing community count. Roughly 90% of new hires in Fiscal 2025 were in our local market operations. We are pleased with the progress we have made building our team and our ability to attract high-quality talent. We remain focused on efficiently managing our SG&A while investing in our teams to support our continued growth. Mark? SG&A expense for the fourth quarter was $42.7 million or 6.4% as a percentage of revenues. sg&a expense for the fourth quarter was $42.7 million or 6.4% as a percentage of revenues For the year, SG&A expense was $154.4 million or 9.3%. for the year sg&a expense was $154.4 million or 9.3% Our average employee count for Fiscal Year 2025 increased 24% compared to the prior year, which has supported the continued expansion of our platform, including entering new markets and increasing community count. our average employee count for fiscal year 2025 increased 24% compared to the prior year which has supported the continued expansion of our platform including entering new markets and increasing community count Roughly 90% of new hires in Fiscal 2025 were in our local market operations. roughly 90% of new hires in fiscal 2025 were in our local market operations We are pleased with the progress we have made building our team and our ability to attract high-quality talent. we are pleased with the progress we have made building our team and our ability to attract high-quality talent We remain focused on efficiently managing our SG&A while investing in our teams to support our continued growth. we remain focused on efficiently managing our sg&a while investing in our teams to support our continued growth Mark? mark New home sales have been slower than last year as continued affordability constraints and cautious consumer sentiment continue to weigh on demand. However, mortgage rate buy-down incentives offered by builders are helping to bridge the affordability gap. Transfer demand for new homes, mainly at more affordable price points. Our primary focus remains developing lots for new homes at prices for entry-level and first-time buyers, which is the largest segment of the new home market. The availability of contractors and necessary materials remains solid, and land development costs have been stable. We have also seen improvement in cycle times despite continued governmental delays. Our teams utilize best management practices and work closely with our trade partners to develop lots to drive operational efficiency. Jim? New home sales have been slower than last year as continued affordability constraints and cautious consumer sentiment continue to weigh on demand. new home sales have been slower than last year as continued affordability constraints and cautious consumer sentiment continue to weigh on demand However, mortgage rate buy-down incentives offered by builders are helping to bridge the affordability gap. however mortgage rate buy-down incentives offered by builders are helping to bridge the affordability gap Transfer demand for new homes, mainly at more affordable price points. transfer demand for new homes mainly at more affordable price points Our primary focus remains developing lots for new homes at prices for entry-level and first-time buyers, which is the largest segment of the new home market. our primary focus remains developing lots for new homes at prices for entry-level and first-time buyers which is the largest segment of the new home market The availability of contractors and necessary materials remains solid, and land development costs have been stable. the availability of contractors and necessary materials remains solid and land development costs have been stable We have also seen improvement in cycle times despite continued governmental delays. we have also seen improvement in cycle times despite continued governmental delays Our teams utilize best management practices and work closely with our trade partners to develop lots to drive operational efficiency. our teams utilize best management practices and work closely with our trade partners to develop lots to drive operational efficiency Jim? jim D.R. Horton is our largest and most important customer. 15% of the homes D.R. Horton started this year were on a Forestar-developed lot. With a mutually stated goal of one out of every three homes D.R. Horton sells to be on a lot developed by Forestar, we have a significant opportunity to grow our market share within D.R. Horton. We also continue to work on expanding our relationships with other home builders. 17% of our Fiscal 2025 deliveries for 2,489 lots were sold to other customers, which includes 927 lots that were sold to a lot banker who expects to sell those lots to D.R. Horton at a future date. We also sold lots to more than 20 different home builders this year, including six new customers. Chris? D.R. d.r Horton is our largest and most important customer. 15% of the homes D.R. horton is our largest and most important customer 15% of the homes d.r Horton started this year were on a Forestar-developed lot. horton started this year were on a forestar-developed lot With a mutually stated goal of one out of every three homes D.R. with a mutually stated goal of one out of every three homes d.r Horton sells to be on a lot developed by Forestar, we have a significant opportunity to grow our market share within D.R. horton sells to be on a lot developed by forestar we have a significant opportunity to grow our market share within d.r Horton. horton We also continue to work on expanding our relationships with other home builders. 17% of our Fiscal 2025 deliveries for 2,489 lots were sold to other customers, which includes 927 lots that were sold to a lot banker who expects to sell those lots to D.R. we also continue to work on expanding our relationships with other home builders 17% of our fiscal 2025 deliveries for 2,489 lots were sold to other customers which includes 927 lots that were sold to a lot banker who expects to sell those lots to d.r Horton at a future date. horton at a future date We also sold lots to more than 20 different home builders this year, including six new customers. we also sold lots to more than 20 different home builders this year including six new customers Chris? chris

Speaker 4: Forestar's underwriting criteria for new development projects remains unchanged at a minimum 15% pre-tax return on average inventory and a return of our initial cash investment within 36 months. During the fourth quarter, we invested $347 million in land and land development, of which approximately 80% was for land development and 20% was for land. For the full year, we invested approximately $1.7 billion in land and land development, of which two-thirds was for land development and one-third was for land. In Fiscal 2026, we currently expect to invest approximately $1.4 billion in land acquisition and development. Mark? Forestar's underwriting criteria for new development projects remains unchanged at a minimum 15% pre-tax return on average inventory and a return of our initial cash investment within 36 months. forestar's underwriting criteria for new development projects remains unchanged at a minimum 15% pre-tax return on average inventory and a return of our initial cash investment within 36 months During the fourth quarter, we invested $347 million in land and land development, of which approximately 80% was for land development and 20% was for land. during the fourth quarter we invested $347 million in land and land development of which approximately 80% was for land development and 20% was for land For the full year, we invested approximately $1.7 billion in land and land development, of which two-thirds was for land development and one-third was for land. for the full year we invested approximately $1.7 billion in land and land development of which two-thirds was for land development and one-third was for land In Fiscal 2026, we currently expect to invest approximately $1.4 billion in land acquisition and development. in fiscal 2026 we currently expect to invest approximately $1.4 billion in land acquisition and development Mark? mark

Speaker 6: The lot position on September 30th was 99,800 lots, of which 65,100 were 65% our own and 34,700 were 35% our control through purchase contracts. 8,900 of our owned lots are finished, which is down 11% from the third quarter. The majority of our finished lots are under contract to be sold. Consistent with our focus on capital efficiency, we target owning a three- to four-year supply of land and lots and manage our development in phases to deliver finished lots at a pace that matches market demand. Owned lots under contract to sell increased 13% compared to a year ago. 23,800 lots were 37% of our owned lot supply. $193 million of our earnest money deposits secure these contracts, which are expected to generate approximately $2.1 billion of future revenue. The lot position on September 30th was 99,800 lots, of which 65,100 were 65% our own and 34,700 were 35% our control through purchase contracts. 8,900 of our owned lots are finished, which is down 11% from the third quarter. the lot position on september 30th was 99,800 lots of which 65,100 were 65% our own and 34,700 were 35% our control through purchase contracts 8,900 of our owned lots are finished which is down 11% from the third quarter The majority of our finished lots are under contract to be sold. the majority of our finished lots are under contract to be sold Consistent with our focus on capital efficiency, we target owning a three- to four-year supply of land and lots and manage our development in phases to deliver finished lots at a pace that matches market demand. consistent with our focus on capital efficiency we target owning a three- to four-year supply of land and lots and manage our development in phases to deliver finished lots at a pace that matches market demand Owned lots under contract to sell increased 13% compared to a year ago. 23,800 lots were 37% of our owned lot supply. $193 million of our earnest money deposits secure these contracts, which are expected to generate approximately $2.1 billion of future revenue. owned lots under contract to sell increased 13% compared to a year ago 23,800 lots were 37% of our owned lot supply $193 million of our earnest money deposits secure these contracts which are expected to generate approximately $2.1 billion of future revenue Another 27% of our owned lots are subject to a right of first offer to D.R. Horton based on executed purchase and sale agreements. Jim? Another 27% of our owned lots are subject to a right of first offer to D.R. another 27% of our owned lots are subject to a right of first offer to d.r Horton based on executed purchase and sale agreements. horton based on executed purchase and sale agreements Jim? jim

Speaker 1: We have significant liquidity and are using modest leverage to keep our balance sheet strong. We ended the quarter with $968 million of liquidity, including an unrestricted cash balance of $379 million and $589 million of available capacity on our undrawn revolving credit facility. During September, we redeemed the remaining $70.6 million of 3.85% senior unsecured notes that were due in 2026. Total debt at September 30th was $803 million, with no senior note maturities until Fiscal 2028, and our net debt to capital ratio was 19.3%. We ended the quarter with $1.8 billion of stockholders' equity, and our book value per share increased 11% from a year ago to $34.78. Forestar's capital structure is one of our biggest competitive advantages, and it sets us apart from other land developers. We have significant liquidity and are using modest leverage to keep our balance sheet strong. we have significant liquidity and are using modest leverage to keep our balance sheet strong We ended the quarter with $968 million of liquidity, including an unrestricted cash balance of $379 million and $589 million of available capacity on our undrawn revolving credit facility. we ended the quarter with $968 million of liquidity including an unrestricted cash balance of $379 million and $589 million of available capacity on our undrawn revolving credit facility During September, we redeemed the remaining $70.6 million of 3.85% senior unsecured notes that were due in 2026. during september we redeemed the remaining $70.6 million of 3.85% senior unsecured notes that were due in 2026 Total debt at September 30th was $803 million, with no senior note maturities until Fiscal 2028, and our net debt to capital ratio was 19.3%. total debt at september 30th was $803 million with no senior note maturities until fiscal 2028 and our net debt to capital ratio was 19.3% We ended the quarter with $1.8 billion of stockholders' equity, and our book value per share increased 11% from a year ago to $34.78. we ended the quarter with $1.8 billion of stockholders' equity and our book value per share increased 11% from a year ago to $34.78 Forestar's capital structure is one of our biggest competitive advantages, and it sets us apart from other land developers. forestar's capital structure is one of our biggest competitive advantages and it sets us apart from other land developers Project-level land acquisition and development loans are less available today and have continued to be more expensive, which impacts the majority of our competitors. Other developers generally use project-level development loans, which are typically more restrictive, have floating rates, and create administrative complexity, particularly in an elevated interest rate environment. Our capital structure provides us with operational flexibility, while our strong liquidity positions us to take advantage of attractive opportunities when they arise. Andy, I'll now turn it back over to you for closing remarks. Project-level land acquisition and development loans are less available today and have continued to be more expensive, which impacts the majority of our competitors. project-level land acquisition and development loans are less available today and have continued to be more expensive which impacts the majority of our competitors Other developers generally use project-level development loans, which are typically more restrictive, have floating rates, and create administrative complexity, particularly in an elevated interest rate environment. other developers generally use project-level development loans which are typically more restrictive have floating rates and create administrative complexity particularly in an elevated interest rate environment Our capital structure provides us with operational flexibility, while our strong liquidity positions us to take advantage of attractive opportunities when they arise. our capital structure provides us with operational flexibility while our strong liquidity positions us to take advantage of attractive opportunities when they arise Andy, I'll now turn it back over to you for closing remarks. andy i'll now turn it back over to you for closing remarks

Speaker 6: Thanks, Jim. Fiscal 2025 was another successful year for Forestar. We delivered revenue growth of 10% and increased our book value per share by 11%. We continue to execute our strategy to expand the business through significant investments in land and land development and growth of our team. These investments helped us enter seven new markets and increased our community count by over 10%. We further strengthened our balance sheet through extending near-term debt maturities and increasing our liquidity. As we look forward to Fiscal 2026, based on current market conditions, we expect to deliver between 14,000 and 15,000 lots and to generate $1.6-$1.7 billion of revenue. We currently expect our first quarter will be our lowest delivery quarter of the year, and we expect our revenues in the second half of Fiscal 2026 to be higher than the first half. Thanks, Jim. thanks jim Fiscal 2025 was another successful year for Forestar. fiscal 2025 was another successful year for forestar We delivered revenue growth of 10% and increased our book value per share by 11%. we delivered revenue growth of 10% and increased our book value per share by 11% We continue to execute our strategy to expand the business through significant investments in land and land development and growth of our team. we continue to execute our strategy to expand the business through significant investments in land and land development and growth of our team These investments helped us enter seven new markets and increased our community count by over 10%. these investments helped us enter seven new markets and increased our community count by over 10% We further strengthened our balance sheet through extending near-term debt maturities and increasing our liquidity. we further strengthened our balance sheet through extending near-term debt maturities and increasing our liquidity As we look forward to Fiscal 2026, based on current market conditions, we expect to deliver between 14,000 and 15,000 lots and to generate $1.6-$1.7 billion of revenue. as we look forward to fiscal 2026 based on current market conditions we expect to deliver between 14,000 and 15,000 lots and to generate $1.6-$1.7 billion of revenue We currently expect our first quarter will be our lowest delivery quarter of the year, and we expect our revenues in the second half of Fiscal 2026 to be higher than the first half. we currently expect our first quarter will be our lowest delivery quarter of the year and we expect our revenues in the second half of fiscal 2026 to be higher than the first half We are closely monitoring each market as we strive to balance pace and price to maximize returns for each project. While we expect home affordability constraints and cautious home buyers to continue to be near-term headwinds for new home demand, we are confident in the long-term demand for finished lots and our ability to gain market share in the highly fragmented lot development industry. We are well-positioned to continue success with our lot portfolio across our diverse national footprint, operating expertise, and strong balance sheet. Ali, at this time, we'll open the line for questions. We are closely monitoring each market as we strive to balance pace and price to maximize returns for each project. we are closely monitoring each market as we strive to balance pace and price to maximize returns for each project While we expect home affordability constraints and cautious home buyers to continue to be near-term headwinds for new home demand, we are confident in the long-term demand for finished lots and our ability to gain market share in the highly fragmented lot development industry. while we expect home affordability constraints and cautious home buyers to continue to be near-term headwinds for new home demand we are confident in the long-term demand for finished lots and our ability to gain market share in the highly fragmented lot development industry We are well-positioned to continue success with our lot portfolio across our diverse national footprint, operating expertise, and strong balance sheet. we are well-positioned to continue success with our lot portfolio across our diverse national footprint operating expertise and strong balance sheet Ali, at this time, we'll open the line for questions. ali at this time we'll open the line for questions

Speaker 2: Thank you, sir. Ladies and gentlemen, at this time, we will be conducting our question-and-answer session. If you would like to ask a question, please press 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press 2 if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the * keys. One moment, please, while we poll for questions. Thank you. Our first question today is coming from Trevor Allinson with Wolfe Research. Your line is live. Thank you, sir. thank you sir Ladies and gentlemen, at this time, we will be conducting our question-and-answer session. ladies and gentlemen at this time we will be conducting our question-and-answer session If you would like to ask a question, please press 1 on your telephone keypad. if you would like to ask a question please press 1 on your telephone keypad A confirmation tone will indicate your line is in the question queue. a confirmation tone will indicate your line is in the question queue You may press 2 if you would like to remove your question from the queue. you may press 2 if you would like to remove your question from the queue And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the * keys. and for participants using speaker equipment it may be necessary to pick up your handset before pressing the * keys One moment, please, while we poll for questions. one moment please while we poll for questions Thank you. thank you Our first question today is coming from Trevor Allinson with Wolfe Research. our first question today is coming from trevor allinson with wolfe research Your line is live. your line is live

Speaker 3: Hi, good morning. Thank you for taking my question. Looking at your 2026 guidance, it looks like you're expecting deliveries to be up low single digits. That's roughly the same growth as your largest customer. As we think about you deepening your penetration with Horton, why would you not grow faster as we look into next year? Is it an expectation that sales to other builders come down, or is it just some conservatism? What's driving kind of the inline growth with Horton? Hi, good morning. hi good morning Thank you for taking my question. thank you for taking my question Looking at your 2026 guidance, it looks like you're expecting deliveries to be up low single digits. looking at your 2026 guidance it looks like you're expecting deliveries to be up low single digits That's roughly the same growth as your largest customer. that's roughly the same growth as your largest customer As we think about you deepening your penetration with Horton, why would you not grow faster as we look into next year? as we think about you deepening your penetration with horton why would you not grow faster as we look into next year Is it an expectation that sales to other builders come down, or is it just some conservatism? is it an expectation that sales to other builders come down or is it just some conservatism What's driving kind of the inline growth with Horton? what's driving kind of the inline growth with horton

Speaker 6: Thanks, Trevor. You know, it's just their size. If they grow at low single digits, we need to grow at mid-single digits just to maintain pace with them. So they've entered some new markets. We've entered six or seven new markets for the year. We are growing market share in the markets where we are in, but it's just a matter of us catching up with them in those additional markets. We have the land. We have the team in place. So we are positioned if the market is there. We could increase those units, but it's really going to depend on the spring selling season to see what the year gives us. Thanks, Trevor. thanks trevor You know, it's just their size. you know it's just their size If they grow at low single digits, we need to grow at mid-single digits just to maintain pace with them. if they grow at low single digits we need to grow at mid-single digits just to maintain pace with them So they've entered some new markets. so they've entered some new markets We've entered six or seven new markets for the year. we've entered six or seven new markets for the year We are growing market share in the markets where we are in, but it's just a matter of us catching up with them in those additional markets. we are growing market share in the markets where we are in but it's just a matter of us catching up with them in those additional markets We have the land. we have the land We have the team in place. we have the team in place So we are positioned if the market is there. so we are positioned if the market is there We could increase those units, but it's really going to depend on the spring selling season to see what the year gives us. we could increase those units but it's really going to depend on the spring selling season to see what the year gives us

Speaker 3: Okay. Makes sense. That's helpful. And then you talked about employee count being up 24% in Fiscal 2025. You built out your team ahead of some anticipated growth here over the next couple of years. With that in mind, how should we think about your headcount moving forward and then your leverage on SG&A in Fiscal 2026? Thanks. Okay. okay Makes sense. makes sense That's helpful. that's helpful And then you talked about employee count being up 24% in Fiscal 2025. and then you talked about employee count being up 24% in fiscal 2025 You built out your team ahead of some anticipated growth here over the next couple of years. you built out your team ahead of some anticipated growth here over the next couple of years With that in mind, how should we think about your headcount moving forward and then your leverage on SG&A in Fiscal 2026? with that in mind how should we think about your headcount moving forward and then your leverage on sg&a in fiscal 2026 Thanks. thanks

Speaker 1: Our headcount has remained basically flat since the first quarter of Fiscal 2025. Most of that increase in headcount actually occurred in Fiscal 2024, but only partially recognized in Fiscal 2024. I would expect our headcount to continue to remain flat or maybe even drift down slightly as we move into Fiscal 2026. Our headcount has remained basically flat since the first quarter of Fiscal 2025. our headcount has remained basically flat since the first quarter of fiscal 2025 Most of that increase in headcount actually occurred in Fiscal 2024, but only partially recognized in Fiscal 2024. most of that increase in headcount actually occurred in fiscal 2024 but only partially recognized in fiscal 2024 I would expect our headcount to continue to remain flat or maybe even drift down slightly as we move into Fiscal 2026. i would expect our headcount to continue to remain flat or maybe even drift down slightly as we move into fiscal 2026

Speaker 3: Thank you for all the color and good luck moving forward. Thank you for all the color and good luck moving forward. thank you for all the color and good luck moving forward

Speaker 6: Thank you, Trevor. Thank you, Trevor. thank you trevor

Speaker 2: Thank you. Just as a reminder, ladies and gentlemen, that's 1 if you have any questions or comments. Our next question is coming from Anthony Pettinari with Citigroup. Your line is live. Thank you. thank you Just as a reminder, ladies and gentlemen, that's 1 if you have any questions or comments. just as a reminder ladies and gentlemen that's 1 if you have any questions or comments Our next question is coming from Anthony Pettinari with Citigroup. our next question is coming from anthony pettinari with citigroup Your line is live. your line is live

Speaker 5: Hi, this is Asher Sohnen, and I'm for Anthony. Thanks for taking my question. I just wanted to ask, I think last week we saw a builder talking about how they were getting some cost concessions and extended takedown schedules on their lots. I was just wondering with Horton or your third-party customers, are you seeing any pushback on lot prices or maybe extended takedown schedules or anything like that? Hi, this is Asher Sohnen, and I'm for Anthony. hi this is asher sohnen and i'm for anthony Thanks for taking my question. thanks for taking my question I just wanted to ask, I think last week we saw a builder talking about how they were getting some cost concessions and extended takedown schedules on their lots. i just wanted to ask i think last week we saw a builder talking about how they were getting some cost concessions and extended takedown schedules on their lots I was just wondering with Horton or your third-party customers, are you seeing any pushback on lot prices or maybe extended takedown schedules or anything like that? i was just wondering with horton or your third-party customers are you seeing any pushback on lot prices or maybe extended takedown schedules or anything like that

Speaker 6: Yeah. From a land acquisition perspective, we've been successful renegotiating time and terms, but not so much land value. Throughout the years, our teams and we have developed proven underwriting due diligence and market research strategy that helps us ensure that we're purchasing land at current market rates. In terms of lot pricing, we haven't seen a whole lot of pushback on our lot pricing today. Again, we manage that project by project to maximize returns. Yeah. yeah From a land acquisition perspective, we've been successful renegotiating time and terms, but not so much land value. from a land acquisition perspective we've been successful renegotiating time and terms but not so much land value Throughout the years, our teams and we have developed proven underwriting due diligence and market research strategy that helps us ensure that we're purchasing land at current market rates. throughout the years our teams and we have developed proven underwriting due diligence and market research strategy that helps us ensure that we're purchasing land at current market rates In terms of lot pricing, we haven't seen a whole lot of pushback on our lot pricing today. in terms of lot pricing we haven't seen a whole lot of pushback on our lot pricing today Again, we manage that project by project to maximize returns. again we manage that project by project to maximize returns

Speaker 3: Okay. Thanks. That's helpful. And I just wanted to drill down a little bit. I think you guys have a big presence in Texas and Florida. I was just wondering if you could talk geographically around those regions, specifically what kind of trends you're seeing there? Okay. okay Thanks. thanks That's helpful. that's helpful And I just wanted to drill down a little bit. and i just wanted to drill down a little bit I think you guys have a big presence in Texas and Florida. i think you guys have a big presence in texas and florida I was just wondering if you could talk geographically around those regions, specifically what kind of trends you're seeing there? i was just wondering if you could talk geographically around those regions specifically what kind of trends you're seeing there

Speaker 6: Yeah. We are seeing some pressure in some markets in Texas. It's choppy. Probably see a little bit more pressure in Florida, parts of Florida. But those are really large markets, and particularly at the affordable price point where we tend to concentrate our business, we're still seeing good absorptions. Yeah. yeah We are seeing some pressure in some markets in Texas. we are seeing some pressure in some markets in texas It's choppy. it's choppy Probably see a little bit more pressure in Florida, parts of Florida. probably see a little bit more pressure in florida parts of florida But those are really large markets, and particularly at the affordable price point where we tend to concentrate our business, we're still seeing good absorptions. but those are really large markets and particularly at the affordable price point where we tend to concentrate our business we're still seeing good absorptions

Speaker 3: Great. That's helpful, and if you won't mind me sneaking in one more, just on modeling question? In terms of the cadence of deliveries in 2026 in your guide, I think 2025 was pretty back half-weighted. I'm just wondering if there's any thinking around 2026. Great. great That's helpful, and if you won't mind me sneaking in one more, just on modeling question? that's helpful and if you won't mind me sneaking in one more just on modeling question In terms of the cadence of deliveries in 2026 in your guide, I think 2025 was pretty back half-weighted. in terms of the cadence of deliveries in 2026 in your guide i think 2025 was pretty back half-weighted I'm just wondering if there's any thinking around 2026. i'm just wondering if there's any thinking around 2026

Speaker 6: Yeah. I mean, I think we're projecting 2026 to be similar cadence to 2025. Certainly, our deliveries will be larger in the second half of the year, similar to this year. Yeah. yeah I mean, I think we're projecting 2026 to be similar cadence to 2025. i mean i think we're projecting 2026 to be similar cadence to 2025 Certainly, our deliveries will be larger in the second half of the year, similar to this year. certainly our deliveries will be larger in the second half of the year similar to this year

Speaker 3: Okay. Thank you very much. I'll turn it over. Okay. okay Thank you very much. thank you very much I'll turn it over. i'll turn it over

Speaker 2: Thank you. Once again, ladies and gentlemen, if there will be any final questions or comments, please indicate so now by pressing 1 on your telephone keypad. Okay. As we have no further questions on the lines at this time, I'd like to turn the call back over to Mr. Andy Oxley for any closing remarks. Thank you. thank you Once again, ladies and gentlemen, if there will be any final questions or comments, please indicate so now by pressing 1 on your telephone keypad. once again ladies and gentlemen if there will be any final questions or comments please indicate so now by pressing *1 on your telephone keypad Okay. okay As we have no further questions on the lines at this time, I'd like to turn the call back over to Mr. Andy Oxley for any closing remarks. as we have no further questions on the lines at this time i'd like to turn the call back over to mr andy oxley for any closing remarks

Speaker 6: Thank you, Ali. And thank you to everyone on the Forestar team for your focus and hard work. As we enter Fiscal 2026, continue to stay disciplined, flexible, and opportunistic while focusing on consolidating market share. We appreciate everyone's time on the call today and look forward to speaking with you again in January to share our first quarter results. Thank you, Ali. thank you ali And thank you to everyone on the Forestar team for your focus and hard work. and thank you to everyone on the forestar team for your focus and hard work As we enter Fiscal 2026, continue to stay disciplined, flexible, and opportunistic while focusing on consolidating market share. as we enter fiscal 2026 continue to stay disciplined flexible and opportunistic while focusing on consolidating market share We appreciate everyone's time on the call today and look forward to speaking with you again in January to share our first quarter results. we appreciate everyone's time on the call today and look forward to speaking with you again in january to share our first quarter results

Speaker 2: Thank you. Ladies and gentlemen, this does conclude today's call. You may disconnect your lines at this time, and we thank you for your participation. Thank you. thank you Ladies and gentlemen, this does conclude today's call. ladies and gentlemen this does conclude today's call You may disconnect your lines at this time, and we thank you for your participation. you may disconnect your lines at this time and we thank you for your participation