for-20260331

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 March 31, 2026


☐			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 -- 51,008,733 shares as of April 17, 2026


			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


	March 31, 2026		September 30, 2025
	(In millions, except share data)
ASSETS
Cash and cash equivalents	$	362.2	$	379.2
Real estate	2,709.7		2,645.1

Property and equipment, net	7.7		8.1
Other assets	93.0		104.6
Total assets	$	3,172.6	$	3,137.0
LIABILITIES
Accounts payable	$	73.3	$	71.0
Accrued development costs	113.9		131.8
Earnest money on sales contracts	208.6		193.3
Deferred tax liability, net	84.3		86.2
Accrued expenses and other liabilities	79.1		83.1
Debt	793.5		802.7
Total liabilities	1,352.7		1,368.1
Commitments and contingencies (Note 11)
EQUITY
Common stock, par value $1.00 per share, 200,000,000 authorized shares, 51,008,733 and 50,833,171 shares issued and outstanding at March 31, 2026 and September 30, 2025, respectively	51.0		50.8
Additional paid-in capital	674.2		671.0
Retained earnings	1,093.6		1,046.1
Stockholders' equity	1,818.8		1,767.9
Noncontrolling interests	1.1		1.0
Total equity	1,819.9		1,768.9
Total liabilities and equity	$	3,172.6	$	3,137.0


	Three Months Ended March 31,				Six Months Ended March 31,
	2026		2025		2026		2025
	(In millions, except per share amounts)
Revenues	$	374.3	$	351.0	$	647.3	$	601.3
Cost of sales	294.1		271.8		512.1		467.2
Selling, general and administrative expense	37.9		38.4		74.3		74.3
Equity in earnings of unconsolidated ventures	—		—		—		(0.6)

Interest and other income	(1.6)		(1.0)		(3.9)		(3.3)
Loss on extinguishment of debt	—		1.1		—		1.1
Income before income taxes	43.9		40.7		64.8		62.6
Income tax expense	11.7		9.1		17.1		14.5
Net income	32.2		31.6		47.7		48.1
Net income attributable to noncontrolling interests	0.1		—		0.2		—
Net income attributable to Forestar Group Inc.	$	32.1	$	31.6	$	47.5	$	48.1

Basic net income per common share	$	0.63	$	0.62	$	0.93	$	0.95
Weighted average number of common shares	51.0		50.8		51.0		50.8

Diluted net income per common share	$	0.63	$	0.62	$	0.93	$	0.94
Adjusted weighted average number of common shares	51.2		51.0		51.2		51.1


	Common Stock		Additional Paid-in Capital		Retained Earnings		Non-controlling Interests		Total Equity
	(In millions, except share amounts)
Balances at September 30, 2025 (50,833,171 shares)	$	50.8	$	671.0	$	1,046.1	$	1.0	$	1,768.9
Net income	—		—		15.4		—		15.4
Stock issued under employee benefit plans (52,154 shares)	0.1		—		—		—		0.1
Cash paid for shares withheld for taxes	—		(0.5)		—		—		(0.5)
Stock-based compensation expense	—		3.1		—		—		3.1
Balances at December 31, 2025 (50,885,325 shares)	$	50.9	$	673.6	$	1,061.5	$	1.0	$	1,787.0
Net income	—		—		32.1		0.1		32.2

Stock issued under employee benefit plans (123,408 shares)	0.1		0.2		—		—		0.3
Cash paid for shares withheld for taxes	—		(1.5)		—		—		(1.5)
Stock-based compensation expense	—		1.9		—		—		1.9
Balances at March 31, 2026 (51,008,733 shares)	$	51.0	$	674.2	$	1,093.6	$	1.1	$	1,819.9


	March 31, 2026		September 30, 2025
	(In millions)
Developed and under development projects	$	2,552.7	$	2,465.1
Land held for future development	157.0		180.0
	$	2,709.7	$	2,645.1


	March 31, 2026		September 30, 2025
	(Dollars in millions)
Residential lots under contract to sell to D.R. Horton	22,900		22,800
Owned lots subject to right of first offer with D.R. Horton based on executed purchase and sale agreements	18,100		17,600
Earnest money deposits from D.R. Horton for lots under contract	$	200.0	$	179.7
Remaining sales price of lots under contract with D.R. Horton	$	2,089.0	$	2,000.0


			Fair Value at March 31, 2026
	Carrying Value		Level 1		Level 2		Level 3		Total
	(In millions)
Cash and cash equivalents (a)	$	362.2	$	362.2	$	—	$	—	$	362.2
Debt (b)	793.5		—		791.9		—		791.9


			Fair Value at September 30, 2025
	Carrying Value		Level 1		Level 2		Level 3		Total
	(In millions)
Cash and cash equivalents (a)	$	379.2	$	379.2	$	—	$	—	$	379.2
Debt (b) (c)	802.7		—		808.9		9.9		818.8


	March 31, 2026	September 30, 2025
Lots owned	63,500	65,100
Lots controlled through land and lot purchase contracts	30,900	34,700
Total lots owned and controlled	94,400	99,800

Owned lots under contract to sell to D.R. Horton	22,900	22,800
Owned lots under contract to customers other than D.R. Horton	1,200	1,000
Total owned lots under contract	24,100	23,800

Owned lots subject to right of first offer with D.R. Horton based on executed purchase and sale agreements	18,100	17,600
Owned lots fully developed	9,300	8,900


Exhibit Number						Exhibit
31.1*						Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*						Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*						Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*						Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH**						Inline XBRL Taxonomy Extension Schema Document.
101.CAL**						Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF**						Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB**						Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE**						Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104**						Cover Page Interactive Data File (embedded within the Inline XBRL document contained in Exhibit 101).
_____________________
*						Filed or furnished herewith.
**						Submitted electronically herewith.


	Three Months Ended March 31,				Six Months Ended March 31,
	2026		2025		2026		2025
	(In millions)
Capitalized interest, beginning of period	$	86.0	$	67.7	$	77.8	$	63.0
Interest incurred	12.5		10.6		25.0		18.8
Interest charged to cost of sales	(7.0)		(6.4)		(11.3)		(9.9)
Capitalized interest, end of period	$	91.5	$	71.9	$	91.5	$	71.9


	March 31, 2026		September 30, 2025
	(In millions)
Unsecured:
Revolving credit facility	$	—	$	—
5.0% senior notes due 2028 (1)	298.9		298.7
6.5% senior notes due 2033 (1)	494.6		494.1
Other note payable	—		9.9
	$	793.5	$	802.7


		Forestar Group Inc.

Date:	April 23, 2026	By:	/s/ James D. Allen
			James D. Allen, on behalf of Forestar Group Inc.
			as Executive Vice President and Chief Financial Officer
			(Principal Financial and Principal Accounting Officer)

SEC Form 10-Q filed by Forestar Group Inc