D.R. Horton (DHI) Barclays 42nd Annual Industrial Select Conference summary

Audience sentiment and market outlook

• Investor sentiment was leaning negative to neutral, with most expecting D.R. Horton's EPS growth to outperform peers through the cycle.

• Share repurchases were the preferred use of excess cash among the audience.

• Margin performance and core growth were identified as the most significant share price headwinds.

Spring selling season and demand drivers

• Entering the spring selling season with solid demand expectations, though uncertainty remains due to interest rate volatility.

• Affordability remains a challenge, addressed primarily through 30-year fixed rate buydowns of 1–1.5 points below market.

• Rate stability is seen as key to unlocking buyer activity, especially for entry-level buyers.

Inventory, incentives, and product strategy

• Inventory levels are up but not at concerning levels; most excess is fresh and well-timed for the spring season.

• Aged inventory is managed through targeted quarterly sales events to protect margins.

• Home sizes have gradually decreased, with an average of 1,950 sq ft and increased attached product share.

• New smaller products, such as cottages and townhomes, are being selectively introduced.