for-20250630

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From To

Commission File Number: 001-33662

FORESTAR GROUP INC.

(Exact Name of Registrant as Specified in Its Charter)


Delaware						26-1336998
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)

2221 E. Lamar Blvd., Suite 790

Arlington, Texas 76006

(Address of Principal Executive Offices, including Zip Code)

(817) 769-1860

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Common Stock, par value $1.00 per share

FOR

New York Stock Exchange

NYSE Texas

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes x No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock, $1.00 par value -- 50,833,171 shares as of July 18, 2025


			Page
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets			3
Consolidated Statements of Operations			4
Consolidated Statements of Total Equity			5
Consolidated Statements of Cash Flows			6
Notes to Consolidated Financial Statements			7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			17
Item 3. Quantitative and Qualitative Disclosures About Market Risk			27
Item 4. Controls and Procedures			27
PART II — OTHER INFORMATION
Item 1. Legal Proceedings			28
Item 5. Other Information			28
Item 6. Exhibits			29
SIGNATURE			30


	June 30, 2025		September 30, 2024
	(In millions, except share data)
ASSETS
Cash and cash equivalents	$	189.2	$	481.2
Real estate	2,823.5		2,266.2
Investment in unconsolidated ventures	—		0.3
Property and equipment, net	7.6		7.1
Other assets	100.1		85.3
Total assets	$	3,120.4	$	2,840.1
LIABILITIES
Accounts payable	$	67.2	$	85.9
Accrued development costs	129.1		144.6
Earnest money on sales contracts	229.6		172.3
Deferred tax liability, net	77.9		67.5
Accrued expenses and other liabilities	63.5		68.3
Debt	872.8		706.4
Total liabilities	1,440.1		1,245.0
Commitments and contingencies (Note 11)
EQUITY
Common stock, par value $1.00 per share, 200,000,000 authorized shares, 50,823,800 and 50,653,637 shares issued and outstanding at June 30, 2025 and September 30, 2024, respectively	50.8		50.7
Additional paid-in capital	669.3		665.2
Retained earnings	959.2		878.2
Stockholders' equity	1,679.3		1,594.1
Noncontrolling interests	1.0		1.0
Total equity	1,680.3		1,595.1
Total liabilities and equity	$	3,120.4	$	2,840.1


	Three Months Ended June 30,				Nine Months Ended June 30,
	2025		2024		2025		2024
	(In millions, except per share amounts)
Revenues	$	390.5	$	318.4	$	991.9	$	958.0
Cost of sales	310.8		246.9		778.0		730.6
Selling, general and administrative expense	37.4		29.3		111.8		86.5
Equity in earnings of unconsolidated ventures	—		—		(0.6)		—
Gain on sale of assets	—		(5.0)		—		(5.0)
Interest and other income	(1.3)		(4.4)		(4.6)		(15.7)
Loss on extinguishment of debt	—		—		1.1		—
Income before income taxes	43.6		51.6		106.2		161.6
Income tax expense	10.7		12.9		25.2		39.8
Net income	$	32.9	$	38.7	$	81.0	$	121.8

Basic net income per common share	$	0.65	$	0.76	$	1.59	$	2.42
Weighted average number of common shares	50.9		50.8		50.8		50.3

Diluted net income per common share	$	0.65	$	0.76	$	1.59	$	2.40
Adjusted weighted average number of common shares	51.0		51.1		51.0		50.7


	Common Stock		Additional Paid-in Capital		Retained Earnings		Non-controlling Interests		Total Equity
	(In millions, except share amounts)
Balances at September 30, 2024 (50,653,637 shares)	$	50.7	$	665.2	$	878.2	$	1.0	$	1,595.1
Net income	—		—		16.5		—		16.5
Stock issued under employee benefit plans (16,309 shares)	—		—		—		—		—
Cash paid for shares withheld for taxes	—		(0.1)		—		—		(0.1)
Stock-based compensation expense	—		2.6		—		—		2.6
Balances at December 31, 2024 (50,669,946 shares)	$	50.7	$	667.7	$	894.7	$	1.0	$	1,614.1
Net income	—		—		31.6		—		31.6
Stock issued under employee benefit plans (153,854 shares)	0.1		—		—		—		0.1
Cash paid for shares withheld for taxes	—		(1.6)		—		—		(1.6)
Stock-based compensation expense	—		1.7		—		—		1.7
Balances at March 31, 2025 (50,823,800 shares)	$	50.8	$	667.8	$	926.3	$	1.0	$	1,645.9
Net income	—		—		32.9		—		32.9


Stock-based compensation expense	—		1.5		—		—		1.5
Balances at June 30, 2025 (50,823,800 shares)	$	50.8	$	669.3	$	959.2	$	1.0	$	1,680.3


	June 30, 2025		September 30, 2024
	(In millions)
Developed and under development projects	$	2,574.6	$	2,126.1
Land held for future development	248.9		140.1
	$	2,823.5	$	2,266.2


	June 30, 2025		September 30, 2024
	(Dollars in millions)
Residential lots under contract to sell to D.R. Horton	24,200		20,500
Owned lots subject to right of first offer with D.R. Horton based on executed purchase and sale agreements	18,500		17,200
Earnest money deposits from D.R. Horton for lots under contract	$	225.2	$	168.4
Remaining sales price of lots under contract with D.R. Horton	$	2,172.5	$	1,840.5


			Fair Value at June 30, 2025
	Carrying Value		Level 1		Level 2		Level 3		Total
	(In millions)
Cash and cash equivalents (a)	$	189.2	$	189.2	$	—	$	—	$	189.2
Debt (b) (c)	872.8		—		870.4		9.9		880.3


			Fair Value at September 30, 2024
	Carrying Value		Level 1		Level 2		Level 3		Total
	(In millions)
Cash and cash equivalents (a)	$	481.2	$	481.2	$	—	$	—	$	481.2
Debt (b) (c)	706.4		—		683.6		9.9		693.5


	June 30, 2025	September 30, 2024
Lots owned	68,300	57,800
Lots controlled through land and lot purchase contracts	34,000	37,300
Total lots owned and controlled	102,300	95,100

Owned lots under contract to sell to D.R. Horton	24,200	20,500
Owned lots under contract to customers other than D.R. Horton	1,500	500
Total owned lots under contract	25,700	21,000

Owned lots subject to right of first offer with D.R. Horton based on executed purchase and sale agreements	18,500	17,200
Owned lots fully developed	10,000	6,300


	Three Months Ended June 30,				Nine Months Ended June 30,
	2025		2024		2025		2024
	(In millions)
Capitalized interest, beginning of period	$	71.9	$	62.1	$	63.0	$	58.4
Interest incurred	13.4		8.2		32.3		24.5
Interest charged to cost of sales	(7.0)		(5.8)		(17.0)		(18.4)
Capitalized interest, end of period	$	78.3	$	64.5	$	78.3	$	64.5


	June 30, 2025		September 30, 2024
	(In millions)
Unsecured:
Revolving credit facility	$	—	$	—
3.85% senior notes due 2026 (1)	70.4		398.4
5.0% senior notes due 2028 (1)	298.5		298.1
6.5% senior notes due 2033 (1)	494.0		—
Other note payable	9.9		9.9
	$	872.8	$	706.4

SEC Form 10-Q filed by Forestar Group Inc