In the second quarter ended March 31, 2026, Forestar Group reported a 15% decline in total residential lots sold, juxtaposed with a 12% increase in average lot prices, resulting in a net 5% drop in lot sales revenue. Consolidated revenues rose 8%, driven by growth in tract sales and other segments. This financial performance underscores evolving market conditions characterized by affordability challenges and cautious consumer sentiment. Forestar’s geographically diversified lot development model, coupled with its strategic alliance with majority shareholder D.R. Horton, provides operational stability and resilience. Despite volume softness, the company maintains solid liquidity and a moderate leverage ratio, positioning it to navigate ongoing cyclical pressures in the U.S. single-family housing market.