Forestar Group Inc. (FOR): Business Model Canvas [Jan-2025 Mis à jour]

Plongez dans le paysage stratégique de Forestar Group Inc. (pour), une puissance dynamique de développement des terres transformant des paysages bruts en opportunités immobilières précieuses. Cette entreprise innovante a magistralement conçu un modèle commercial qui plie la gestion durable des terres avec un développement stratégique, se positionnant comme un acteur clé des marchés immobiliers résidentiels et institutionnels. En tirant parti des stratégies sophistiquées d'acquisition de terres, des partenariats stratégiques et un portefeuille diversifié couvrant plusieurs États, le groupe Forestar redéfinit la façon dont les actifs fonciers sont identifiés, développés et monétisés dans l'écosystème immobilier complexe d'aujourd'hui.

Forestar Group Inc. (pour) - Modèle commercial: partenariats clés

Partenaires stratégiques de développement des terres avec des constructeurs résidentiels

Forestar Group Inc. maintient des partenariats stratégiques avec plusieurs constructeurs résidentiels pour développer des actifs fonciers. Depuis 2022, la société avait des partenariats de développement actifs avec:

Partenaire constructeur	Valeur de développement des terres estimées	Projets actifs
D.R. Horton	375 millions de dollars	12 communautés actives
Lennar Corporation	265 millions de dollars	8 communautés actives
Pulgroup	210 millions de dollars	6 communautés actives

Collaboration avec des sociétés d'investissement immobilier

Forestar collabore avec les sociétés d'investissement immobilier pour optimiser les performances du portefeuille de terres:

• Partenariat stratégique avec Brookfield Asset Management
• Coentreprise avec Starwood Capital Group
• Collaboration d'investissement avec Blackstone Real Estate Partners

Coentreprises avec les municipalités et les gouvernements locaux

Forestar s'engage dans des projets conjoints de développement municipal dans plusieurs États:

État	Partenaires municipaux	Investissement total du projet
Texas	Austin, San Antonio, Houston	425 millions de dollars
Floride	Orlando, Tampa, Jacksonville	310 millions de dollars
Caroline du Nord	Charlotte, Raleigh	185 millions de dollars

Relations avec les agences environnementales et de conservation

Forestar maintient des partenariats axés sur le développement des terres durables:

• Collaboration avec la Nature Conservancy
• Partenariats d'atténuation environnementale dans 7 États
• Accords de servitude de conservation couvrant 12 500 acres

Forestar Group Inc. (pour) - Modèle d'entreprise: activités clés

Acquisition et droit des terres

En 2024, Forestar Group Inc. maintient un portefeuille de terres d'environ 46 000 acres dans plusieurs états. La stratégie d'acquisition de terrains de l'entreprise se concentre sur les marchés stratégiques avec un potentiel de croissance élevé.

Région géographique	Acres possédés	Valeur de développement potentielle
Texas	28,500	750 millions de dollars
Du sud-est des États-Unis	12,300	380 millions de dollars
Autres régions	5,200	140 millions de dollars

Développement immobilier et ventes de terres

En 2023, Forestar a généré 387,2 millions de dollars de revenus totaux des activités de vente de terrains et de développement.

• Volume des ventes de lots résidentiels: 1 673 lots
• Prix ​​de vente de lot moyen: 232 000 $
• Revenus de vente de lots totaux: 388,1 millions de dollars

Développement de lots résidentiels

La société développe activement des terrains résidentiels sur des marchés à haute demande avec des partenariats stratégiques.

Catégorie de développement	Beaucoup de pipeline	Chronologie de l'achèvement estimé
Communautés planifiées	2,850	2024-2026
Développements unifamiliaux	1,450	2024-2025

Gestion et conservation des terres durables

Dédicats de forêt Environ 15% de son portefeuille de terres à la conservation et à la préservation environnementale.

• Acres de conservation: 6 900
• Projets d'atténuation environnementale: 12
• Certifications de développement durable: 4

Optimisation du portefeuille de propriétés

L'entreprise évalue et optimise continuellement ses fonds fonciers pour maximiser la valeur.

Métrique de portefeuille	Valeur 2023	Changement d'une année à l'autre
Valeur totale des terres	1,2 milliard de dollars	+7.3%
Disposition des terres	275 millions de dollars	+12.6%

Forestar Group Inc. (pour) - Modèle d'entreprise: Ressources clés

Portefeuille foncier étendu

En 2023, Forestar Group Inc. détient environ 45 000 acres de terres dans plusieurs États, notamment le Texas, la Géorgie, la Caroline du Nord et la Floride.

État	Acres possédés
Texas	25,000
Georgia	8,500
Caroline du Nord	6,500
Floride	5,000

Capacités financières

Ressources financières au quatrième trimestre 2023:

• Actif total: 1,2 milliard de dollars
• Equivalents en espèces et en espèces: 87,4 millions de dollars
• Équité totale: 685,6 millions de dollars

Équipe de développement immobilier

Statistiques clés du personnel:

• Total des employés: 185
• Années moyennes d'expérience dans le développement immobilier: 15 ans
• Haute hauteur avec plus de 20 ans d'expérience dans l'industrie

Expertise en droit foncier

Métriques du pipeline de développement:

Métrique	Valeur
Intitulé Lots en inventaire	3,200
Beaucoup de développement	1,800
Cycle de développement moyen	18-24 mois

Diversité géographique

Distribution des fonds terrestres par valeur marchande:

• Région de la ceinture de soleil: 75%
• Marchés du sud-est: 15%
• Autres marchés: 10%

Forestar Group Inc. (pour) - Modèle d'entreprise: propositions de valeur

Développement des terres premium pour les marchés résidentiels

Forestar Group a généré 393,7 millions de dollars de revenus totaux pour l'exercice 2023, avec un accent significatif sur le développement des terres résidentielles. La société possède environ 45 000 acres de terrain dans plusieurs États.

Segment de marché	Inventaire des terres	Contribution des revenus
Développement résidentiel	28 500 acres	64% des revenus totaux
Maîtriser les communautés planifiées	12 000 acres	24% des revenus totaux
Projets de remplissage urbains	4 500 acres	12% des revenus totaux

Utilisation durable et responsable de l'environnement

Forestar Group s'est engagé dans les pratiques de développement durable, avec 37% des fonds fonciers en utilisant des stratégies de développement soucieuses de l'environnement.

• Mise en œuvre des infrastructures vertes
• Gestion des terres axée sur la conservation
• Techniques de préservation des écosystèmes

Actifs terrestres de haute qualité et stratégiquement situés

Le portefeuille foncier d'une valeur d'environ 1,2 milliard de dollars, concentré sur les marchés à forte croissance du Texas, de la Géorgie, de la Caroline du Nord et de la Floride.

État	Acres terrestres	Potentiel de marché
Texas	22 500 acres	Potentiel de croissance élevé
Georgia	8 200 acres	Potentiel de croissance modéré
Caroline du Nord	7 300 acres	Marché émergent
Floride	7 000 acres	Potentiel de croissance élevé

Transformation des terres et création de valeur efficace

Appréciation moyenne de la valeur des terres de 12,5% par an, avec des processus stratégiques de droit et de développement.

Opportunités diversifiées de développement immobilier

Le portefeuille de développement du groupe Forestar comprend:

• Développement de lots résidentiels
• Communautés de maison unifamiliale
• Projets résidentiels multifamiliaux
• Développements urbains à usage mixte

La capitalisation boursière totale au T2 2023: 1,1 milliard de dollars, avec une croissance cohérente des stratégies de développement des terres et de transformation.

Forestar Group Inc. (pour) - Modèle d'entreprise: relations avec les clients

Ventes directes et marketing auprès des constructeurs de maison

En 2023, Forestar Group Inc. a rapporté 4 402 sites d'accueil totaux vendus aux constructeurs de maisons. Les revenus totaux de développement des terres ont atteint 581,1 millions de dollars pour l'exercice.

Canal de vente	Volume	Impact sur les revenus
Ventes de constructeurs directs	4 402 sites d'accueil	581,1 millions de dollars
Top 10 des clients Homebuilder	68% du total des ventes	395,1 millions de dollars

Partenariats stratégiques à long terme

Forestar maintient des partenariats stratégiques avec les principaux constructeurs nationaux de 16 États.

• Durée du partenariat moyen: 7,3 ans
• Taux client répété: 72%
• Partenariats actifs avec les 5 meilleurs constructeurs nationaux

Consultation de développement personnalisé

Les services de consultation ont généré 42,3 millions de dollars de revenus consultatifs supplémentaires en 2023.

Services de consultation	Revenu	Taux de satisfaction du client
Avis de développement des terres	42,3 millions de dollars	91%

Communication transparente avec les parties prenantes

Les activités des relations avec les investisseurs comprenaient 48 réunions d'investisseurs et 12 présentations de conférence en 2023.

Engagement client réactif

Le temps de réponse du client était en moyenne de 24 heures sur tous les canaux de communication.

• Canaux de communication numérique: 5
• Temps de réponse moyen du service client: 24 heures
• Taux de rétention de la clientèle: 86%

Forestar Group Inc. (pour) - Modèle d'entreprise: canaux

Équipe de vente directe

En 2024, Forestar Group Inc. maintient une équipe de vente directe dédiée avec 37 professionnels de la vente à temps plein axés sur le développement des terres et les transactions immobilières.

Métrique de l'équipe de vente	2024 données
Représentants des ventes totales	37
Durée moyenne du cycle des ventes	6,2 mois
Couverture géographique	14 États

Conférences immobilières et événements de l'industrie

Forestar Group participe à 22 conférences immobilières nationales et régionales chaque année.

• Conférence nationale des constructeurs de maisons
• Sommet urbain de l'Institut foncier
• Expo de développement régional

Listes de propriétés en ligne

Le portefeuille de propriétés numériques comprend 247 listes de développement des terres actives et résidentielles sur plusieurs plates-formes.

Plateforme d'inscription en ligne	Nombre de listes actives
Site Web de l'entreprise	89
Sites Web immobiliers tiers	158

Courtier et réseau d'investissement

Forestar Group entretient des relations avec 63 sociétés de courtage immobilier actives et partenaires d'investissement.

Site Web d'entreprise et plateformes de marketing numérique

La stratégie de marketing numérique comprend plusieurs canaux avec 1,2 million de visiteurs annuels du site Web et 87 000 abonnés de médias sociaux.

Canal numérique	2024 mesures
Visiteurs annuels du site Web	1,200,000
LinkedIn adepte	42,500
Abonnés Twitter	24,500
Budget de marketing numérique	2,3 millions de dollars

Forestar Group Inc. (pour) - Modèle d'entreprise: segments de clientèle

Constructeurs résidentiels

Depuis le quatrième trimestre 2023, Forestar Group dessert environ 45 clients actifs de maison de maison à travers les États-Unis. Les principaux partenaires nationaux Homebuilder comprennent:

Constructeur	Transactions de lot annuelles
D.R. Horton	1 200 à 1 500 lots par an
Lennar Corporation	900-1,100 lots par an
Groupe Pulte	700-900 lots par an

Promoteurs immobiliers

Forestar collabore avec 30 à 35 sociétés de développement immobilier régionales et nationales. Répartition du segment:

• Développeurs communautaires planifiés à grande échelle: 12-15 entreprises
• Sociétés de développement résidentiel de banlieue: 15-20 entreprises
• Partenaires de développement à usage mixte: 5-8 entreprises

Investisseurs institutionnels

Composition du portefeuille d'investissement en 2023:

Type d'investisseur	Volume d'investissement
Trusts de placement immobilier (FPI)	250 à 350 millions de dollars
Sociétés de capital-investissement	150 à 200 millions de dollars
Fonds de pension	100 $ - 150 millions de dollars

Entités municipales et gouvernementales

Distribution géographique des partenariats municipaux:

• Texas: 15-18 relations municipales actives
• Région sud-est: 10-12 partenariats municipaux
• Région du Midwest: 8-10 collaborations gouvernementales

Marchés de croissance urbaine et suburbaine

Régions de concentration du marché primaire:

Région	Part de marché	Transactions foncières annuelles
Texas	42%	2 500 à 3 000 acres
Au sud-est	28%	1 700-2 200 acres
Midwest	20%	1 200-1,500 acres
Autres régions	10%	500-700 acres

Forestar Group Inc. (pour) - Modèle d'entreprise: Structure des coûts

Frais d'acquisition des terres

Depuis l'exercice 2023, Forestar Group Inc. a déclaré des dépenses totales d'acquisition de terres de 216,7 millions de dollars. La stratégie du portefeuille de terres de la société implique des achats de terres stratégiques dans plusieurs États.

Catégorie d'acquisition de terres	Montant de dépenses ($)
Achats des terres résidentielles	147,3 millions
Acquisitions de terrains commerciaux	69,4 millions

Coûts de développement et de droit

Les coûts de développement et de droit de Forestar Group Inc. ont totalisé 98,5 millions de dollars en 2023, couvrant la préparation du site, les infrastructures et les dépenses de conformité réglementaire.

• Coûts de préparation du site: 42,3 millions de dollars
• Développement des infrastructures: 36,7 millions de dollars
• Dépenses de conformité réglementaire: 19,5 millions de dollars

Surfaçon d'exploitation et administrative

Les frais d'exploitation et administratifs de la société pour 2023 étaient de 57,2 millions de dollars, ce qui comprend les salaires, les frais de bureau et les frais de gestion opérationnelle.

Catégorie aérienne	Montant de dépenses ($)
Salaires des employés	34,6 millions
Frais de bureau et administratifs	22,6 millions

Compliance et atténuation environnementales

Les dépenses de conformité et d'atténuation de l'environnement pour Forestar Group Inc. s'élevaient à 12,4 millions de dollars en 2023, en se concentrant sur les pratiques de développement durable.

• Évaluations de l'impact environnemental: 5,2 millions de dollars
• Restauration de l'habitat: 4,7 millions de dollars
• Surveillance de la conformité: 2,5 millions de dollars

Investissements marketing et développement commercial

Les investissements en marketing et en développement commercial pour l'entreprise ont atteint 8,9 millions de dollars en 2023, soutenant les initiatives de croissance stratégique.

Catégorie d'investissement marketing	Montant de dépenses ($)
Marketing numérique	3,6 millions
Initiatives de développement commercial	5,3 millions

Forestar Group Inc. (FOR) - Modèle d'entreprise: sources de revenus

Ventes de terres aux promoteurs résidentiels

En 2023, Forestar Group a déclaré des revenus de ventes de terrains de 330,4 millions de dollars, avec 1 804 lots totaux vendus aux développeurs résidentiels.

Métrique	Valeur 2023
Revenu total des ventes de terrains	330,4 millions de dollars
Lots vendus	1 804 lots
Revenu moyen par lot	$183,000

Développement et ventes de lots

Forestar a généré 92,6 millions de dollars de revenus de développement de lots et de ventes en 2023.

• Des terrains développés au Texas, en Géorgie et en Floride
• Achevé 13 communautés de développement actif
• Marge de développement du lot: 22,4%

Revenus de location de biens

Les revenus de location pour 2023 ont totalisé 14,2 millions de dollars des fonds fonciers stratégiques.

Type de location	Revenus annuels
Baux agricoles	8,7 millions de dollars
Baux fonciers commerciaux	5,5 millions de dollars

Monétisation des actifs terrestres stratégiques

Les actifs fonciers monétisés Forestar d'une valeur de 156,8 millions de dollars en 2023.

• Valeur du portefeuille de terres: 1,2 milliard de dollars
• Acres totaux de développement: 48 000
• Ventes de terrains à des partenaires stratégiques: 45,3 millions de dollars

Partenariats du projet de développement

Les revenus de partenariat ont atteint 67,5 millions de dollars en 2023.

Type de partenariat	Contribution des revenus
Partenariats des développeurs résidentiels	52,3 millions de dollars
Partenariats de développement commercial	15,2 millions de dollars

Forestar Group Inc. (FOR) - Canvas Business Model: Value Propositions

Forestar Group Inc. offers homebuilders a de-risked, scalable source of finished residential lots, which is a critical value proposition given the industry's shift away from holding large, illiquid land inventories.

Consistent, high-volume supply of finished lots for homebuilders

Forestar Group Inc. positions itself as a dependable manufacturer of finished lots, aiming to capture significant market share in a fragmented industry. The company targets a specific volume to meet this need.

• Forestar Group Inc. aims to capture 5% market share in the U.S. single-family residential lot development industry, up from 2.1% in FY 2024.
• Fiscal 2025 guidance projected lot deliveries between 15,000 and 15,500 lots.
• The company delivered more than 14,700 residential lots during the twelve-month period ended June 30, 2025.
• As of June 30, 2025, the total owned and controlled lot position stood at 102,300 lots.
• Forestar Group Inc. develops approximately 1 in every 50 single-family homesites in the U.S..

Reduced land development risk for primary customer D.R. Horton

The deep relationship with D.R. Horton, its majority shareholder, provides Forestar Group Inc. with a foundational customer, effectively transferring land development risk to Forestar and ensuring a predictable outlet for finished lots.

• D.R. Horton owns 62% of Forestar Group Inc.'s outstanding shares.
• The mutually stated goal is for one out of every three homes D.R. Horton sells to be on a Forestar-developed lot.
• In the third quarter of fiscal 2025, 23% of D.R. Horton's finished lot purchases came from Forestar-developed lots.
• During the third quarter of fiscal 2025, Forestar sold 3,605 lots, with 530 lots sold to customers other than D.R. Horton.

Diversified geographic presence across high-growth U.S. markets

Forestar Group Inc. mitigates local economic cycle risks by maintaining a broad footprint across numerous states and markets, focusing on areas with high demand for residential properties.

Here's a look at the scale of their operations as of mid-2025:

Metric	Value (As of June 30, 2025)	Value (As of March 31, 2025)
Markets of Operation	Not specified (64 markets as of Jun 30, 2025)	65 markets
States of Operation	23 states	24 states
Lots Contracted for Sale	25,700 lots	Not specified
Real Estate Value (Book)	$2.8 billion	$2.8 billion

The company has operations spanning states including Maryland, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Tennessee, Texas, and Washington.

Finished lots suitable for entry-level and first-time move-up homes

Forestar Group Inc. focuses its development efforts on the largest segment of the new home market, which is the affordably-priced single-family home sector.

• The primary product is finished single-family residential lots.
• Lots are used for entry-level, first-time move-up, and active adult homes.
• Forestar Group Inc. is a developer focused on the affordably-priced single-family home market.

Disciplined land investment model targeting double-digit returns

The investment model is built around strict underwriting criteria designed to ensure high, risk-adjusted returns on the capital tied up in land inventory.

• Strict underwriting requires a minimum 15% return on average inventory.
• The model requires returning the entire phase 1 investment, including all land costs, in 36 months or less.
• Return on equity for the trailing twelve months ended June 30, 2025, was 10.1%.
• Return on equity for the trailing twelve months ended December 31, 2024, was 12.0%.
• Pre-tax profit margin for the third quarter trailing twelve months (TTM) of fiscal 2025 was 13.9%.

The company plans to invest approximately $2.0 billion in land acquisition and development in fiscal 2025.

Forestar Group Inc. (FOR) - Canvas Business Model: Customer Relationships

You're looking at the core of Forestar Group Inc.'s (FOR) strategy, which is fundamentally built around its customer base, dominated by its controlling shareholder. This relationship dictates scale, capital structure, and operational cadence. Honestly, it's a high-volume, integrated partnership that defines the business.

Highly integrated, strategic relationship with majority owner D.R. Horton

Forestar Group Inc. operates as a majority-owned subsidiary of D.R. Horton, Inc., which has been the largest U.S. homebuilder by volume since 2002. This strategic tie-in is formalized through agreements that guide Forestar's direction and lot supply. For the fiscal year ended September 30, 2025, Forestar Group Inc. delivered more than 14,200 residential lots. The governance documents formalize this relationship and protect Forestar, which is a key element of its stability. The company's disciplined land strategy and integration with D.R. Horton are central to driving steady lot sales regardless of short-term housing cycles.

Dedicated sales and support for high-volume, long-term contracts

The relationship with D.R. Horton provides significant revenue visibility. For the fiscal year ended September 30, 2025, Forestar Group Inc. sold a total of 14,240 lots. A significant majority of these sales are directed to the anchor customer. For instance, in the third quarter of fiscal 2025 (ended June 30, 2025), Forestar sold 3,605 lots, with an estimated 3,075 lots going to D.R. Horton (calculated as 3,605 total lots minus 530 lots sold to other customers). Furthermore, at June 30, 2025, 18,500 owned lots were subject to a right of first offer to D.R. Horton based on executed purchase and sale agreements, representing about 27% of owned lots at that time.

Transactional, direct sales to other national and regional homebuilders

While D.R. Horton is the primary customer, Forestar Group Inc. actively cultivates transactional sales with other builders to diversify its customer base. This segment is a focus for growth. For the full fiscal year 2025, the lots sold to customers other than D.R. Horton accounted for an estimated 17.5% of the total volume, or approximately 2,489 lots. This diversification effort is showing traction; for the nine months ended June 30, 2025, sales to non-D.R. Horton customers reached 1,661 lots, a notable increase from 852 lots in the same period of fiscal 2024. Still, you need to watch the concentration risk; a portion of these sales, like the 331 lots sold in Q3 2025, went to lot bankers expecting to sell them onward to D.R. Horton.

Here's the quick math on Forestar Group Inc.'s lot sales for the fiscal year ended September 30, 2025:

Customer Segment	Estimated Lots Sold (FY 2025)	Estimated Percentage of Total Lots Sold
D.R. Horton (Majority Owner)	11,751	82.5%
Other Homebuilders (Direct/Lot Banker)	2,489	17.5%
Total Lots Sold	14,240	100%

Relationship management with build-to-rent operators

Forestar Group Inc. manages relationships with build-to-rent (BTR) operators, recognizing the growing demand for single-family rental product. While specific Forestar financial data tied directly to BTR sales volume for 2025 isn't explicitly broken out in the latest reports, the company's national footprint across 23 states and 64 markets positions it to service this sector. The general market trend shows BTR starts were significant in 2024, and Forestar's focus on providing finished lots supports this evolving customer need.

Investor relations for publicly traded stock (NYSE: FOR)

As a publicly traded entity on the NYSE under the ticker FOR, Forestar Group Inc. maintains standard investor relationships to ensure capital market access and transparency. The company's financial health directly impacts investor perception of this relationship-driven model. Key metrics as of September 30, 2025, include:

• Book value per share increased 11% to $34.78.
• Total liquidity stood at $968.1 million.
• Net debt to total capital ratio was 19.3%.
• Pre-tax profit margin for fiscal 2025 was 13.2% on $1.7 billion in consolidated revenues.

The stock performance and valuation reflect the market's view of the D.R. Horton integration. Finance: draft 13-week cash view by Friday.

Forestar Group Inc. (FOR) - Canvas Business Model: Channels

You're looking at how Forestar Group Inc. gets its finished lots into the hands of homebuilders as of late 2025. The channel strategy is heavily weighted toward a few key relationships, which is typical for a specialized lot developer, but the scale is national.

The direct sales effort targets both national and regional homebuilders, but the relationship with its majority owner, D.R. Horton, is the central pillar of volume. This isn't just a handshake; it's formalized through agreements that give D.R. Horton a first look at inventory.

Here's a quick math look at the customer mix based on the fiscal year ended September 30, 2025, which shows where the direct sales team is focusing its efforts:

Channel/Customer Type	FY 2025 Lots Sold	Percentage of Total Sales
D.R. Horton (Direct/Indirect via Bankers)	11,751	82.5%
Customers Other Than D.R. Horton	2,489	17.5%
Total Consolidated Lots Sold	14,240	100.0%

The long-term master supply agreement with D.R. Horton is key to managing asset turns. As of September 30, 2025, Forestar Group Inc. had a total lot position of 99,800 lots owned and controlled. Of the owned lots, 27% were subject to a right of first offer to D.R. Horton, meaning the largest homebuilder in the U.S. has contractual priority on a significant portion of the developed inventory. This relationship underpins the $1.7 billion in consolidated revenues reported for fiscal 2025.

For transparency and stakeholder access, the company uses digital channels to disseminate official information. You can find the latest financial results, like the fiscal 2025 net income of $167.9 million and the book value per share of $34.78, on the company website. The dedicated portal for this data is investor.forestar.com.

The physical presence supporting these sales channels is broad, allowing Forestar Group Inc. to serve diverse regional demands. This geographic diversification is a deliberate strategy to mitigate local economic risks. As of September 30, 2025, the company's physical footprint included:

• Active projects in 64 markets.
• Operations spanning 23 states.
• A total owned and controlled lot position of 99,800 lots.

Finance: draft 13-week cash view by Friday.

Forestar Group Inc. (FOR) - Canvas Business Model: Customer Segments

You're looking at the core of Forestar Group Inc.'s business, which is supplying the raw material-finished lots-to the companies that build the houses. As of late 2025, the customer base is highly concentrated, which is both a source of stability and a point of risk you need to watch.

The primary customer base is focused on homebuilders constructing homes for entry-level, first-time move-up, and active adult buyers. Forestar Group Inc. operates across 64 markets in 23 states, giving it a geographically diversified platform to serve these builders. The company delivered 14,240 lots in fiscal year 2025, generating consolidated revenues of $1.7 billion.

D.R. Horton, Inc., the largest U.S. homebuilder by volume

This relationship is the single most important dynamic for Forestar Group Inc. D.R. Horton, Inc. is the controlling stockholder, having acquired 75% of Forestar Group Inc. back on October 5, 2017. This integration means D.R. Horton is the anchor customer, providing a baseline for lot demand. For the fiscal year ended September 30, 2025, the sales volume clearly shows this concentration.

Other national and regional homebuilders seeking lot supply

These customers represent the diversification away from the controlling stockholder. Forestar Group Inc. actively markets to these builders to ensure its lot production aligns with broader market demand. Sales to these entities are growing, which is a positive sign for market penetration.

Local homebuilders in specific high-growth metropolitan areas

While Forestar Group Inc. operates nationally, its strategy involves tailoring lot supply to local market needs, which naturally includes smaller, local builders active in those specific high-growth metropolitan areas. These builders rely on Forestar Group Inc. to efficiently control lot positions and takedown schedules.

Build-to-rent operators for single-family rental communities

Forestar Group Inc. markets some of its communities toward build-to-rent (BTR) operators. While this segment is mentioned, the hard data from fiscal year 2025 lot sales primarily focuses on the traditional single-family homebuilders, suggesting BTR is a smaller, emerging component of the customer mix.

Here's the quick math on the lot sales breakdown for fiscal year 2025, which shows you the customer concentration:

Customer Group	FY 2025 Lots Sold	Approximate Percentage of Total Sales	Future Revenue Impact (Owned Lots)
D.R. Horton, Inc. (Implied Direct Sales)	11,751 (Calculated)	82.5%	$2.1 billion in future revenue from owned lots under contract (as of 9/30/2025)
Other Homebuilders (National, Regional, Local)	2,489	17.5%	These sales contribute to the overall 99,800 owned and controlled lots at September 30, 2025.
Total Lots Sold (FY 2025)	14,240	100%	Average Sales Price per Lot: $108,400

You should note the activity with lot bankers, which blurs the line between direct and indirect sales to D.R. Horton. In fiscal 2025, 927 lots were sold to lot bankers who expect to sell those lots to D.R. Horton later, up significantly from 124 lots in fiscal 2024. This suggests a strategic pipeline management involving D.R. Horton's future needs.

The total inventory position as of September 30, 2025, gives you a view of future customer fulfillment:

• Owned and controlled lots: 99,800 lots.
• Owned lots: 65,100 lots.
• Lots controlled through purchase contracts: 34,700 lots.
• Owned lots under contract to be sold: 23,800 lots (representing approximately $2.1 billion of future revenue).

The fact that 23,800 lots are already contracted for sale out of 65,100 owned lots shows a high degree of sales visibility with existing customers.

Finance: draft 13-week cash view by Friday.

Forestar Group Inc. (FOR) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Forestar Group Inc.'s business, which is fundamentally about buying, developing, and selling land to homebuilders. The cost structure is heavily weighted toward the inventory itself and the work needed to make that inventory ready for construction.

Significant investment in land acquisition and development (Real Estate of $2.8 billion at 6/30/2025)

The single largest asset category, representing the raw material and work-in-progress, is the Real Estate held for development and sale. As of the end of the third fiscal quarter, June 30, 2025, the balance sheet showed $2.8 billion in Real Estate assets. By the close of the full fiscal year 2025, September 30, 2025, this figure settled at $2.6 billion. This massive investment underpins the entire operation.

Cost of lots sold, which is the largest component of revenue

When Forestar Group Inc. recognizes revenue, the corresponding cost-the cost of the developed lot-is the biggest expense. For the full fiscal year ended September 30, 2025, Revenues were $1.7 billion (or $1,662.4 million). The corresponding Cost of Sales for that same period was $1,298.9 million. This means the Cost of Sales consumed approximately 78.13% of the total revenue for fiscal year 2025.

Here is a look at the primary cost components relative to the full fiscal year 2025 performance:

Cost Component	Amount (FY Ended 9/30/2025)	Percentage of Revenue
Revenues	$1,662.4 million	100.0%
Cost of Sales	$1,298.9 million	78.13%
Selling, General and Administrative Expense	$154.4 million	9.3%

Interest expense on debt, including 6.50% senior unsecured notes

Financing the land inventory requires debt, which results in interest expense. Forestar Group Inc. is active in the debt markets; for instance, in March 2025, the company completed a $500 million offering of 6.500% senior unsecured notes due 2033. Total Debt on the balance sheet at June 30, 2025, stood at $872.8 million. While the exact total interest expense for the full year 2025 isn't explicitly broken out in the summary results, the cost of servicing this debt is a definite, ongoing cash outflow.

General and administrative expenses for national operations

Managing operations across 64 markets in 23 states requires overhead. Selling, General and Administrative (SG&A) expense for the entire fiscal year 2025 was $154.4 million. This represented 9.3% of total revenues for the year. For context, the fourth quarter of fiscal 2025 alone saw SG&A of $37.4 million.

Development costs for infrastructure (roads, utilities, entitlements)

These costs are embedded within the Real Estate asset value and ultimately flow through Cost of Sales upon lot delivery. These are the costs of entitlement, grading, and installing roads and utilities. The scale of investment planned for this area shows its significance to the cost base. For the full fiscal year 2025, Forestar Group Inc. planned to invest approximately $2.0 billion in land acquisition and development. The nine months ended June 30, 2025, saw land acquisition and development investments totaling $684.4 million in the first quarter alone.

The cost structure is dominated by inventory acquisition and the associated development spend required to create the finished lot.

• Land and Lot Purchase Contracts (Owned and Controlled Lots): 102,300 lots as of June 30, 2025.
• Lots Under Contract to be Sold (Future Revenue): 25,700 lots, representing approximately $2.3 billion of future revenue as of June 30, 2025.
• Debt Interest Rate on New Notes: 6.500%.

Finance: draft 13-week cash view by Friday.

Forestar Group Inc. (FOR) - Canvas Business Model: Revenue Streams

The primary revenue stream for Forestar Group Inc. is the Sale of finished residential lots to homebuilders. This is the core of the business, where Forestar acquires, develops, and services land, delivering fully developed lots ready for vertical construction to builders.

For the full fiscal year 2025, Forestar Group Inc. achieved consolidated revenues of approximately $1.7 billion, based on the sale of 14,240 lots sold. The average sales price per lot for the year ended September 30, 2025, was $108,400. This revenue generation is supported by a significant contracted backlog.

As of September 30, 2025, the contracted future revenue, secured by lots under contract for sale, stood at approximately $2.1 billion. This figure is backed by 23,800 lots under contract for sale, representing 37% of the company's owned lot position at that date.

The overall financial performance for the fiscal year 2025 included a net income that totaled $167.9 million.

A notable trend within the revenue streams is the growth in Revenue from lot sales to customers other than D.R. Horton, which is a growing segment, indicating diversification away from its primary relationship. For the full fiscal year 2025, lots sold to customers other than D.R. Horton reached 2,489 lots, a clear increase from the 1,801 lots sold to these customers in fiscal 2024. This trend of increasing sales to third-party builders was evident throughout the year, with 530 lots sold to non-D.R. Horton customers in the third quarter of 2025, up from 352 lots in the third quarter of 2024.

You can see the key year-end 2025 figures laid out here:

Metric	Value
Full-Year Fiscal 2025 Consolidated Revenues	$1,662.4 million (reported as $1.7 billion)
Full-Year Fiscal 2025 Lots Sold	14,240 lots
Fiscal 2025 Net Income	$167.9 million
Contracted Future Revenue (as of 9/30/2025)	Approximately $2.1 billion
Lots Under Contract for Sale (as of 9/30/2025)	23,800 lots
Lots Sold to Non-D.R. Horton Customers (FY 2025)	2,489 lots

The revenue stream is also supported by the company's total lot position, which stood at 99,800 lots (owned and controlled) at the end of fiscal 2025. This inventory scale is what allows Forestar Group Inc. to consistently supply finished lots.

• Lots owned at September 30, 2025: 65,100
• Lots controlled through purchase contracts: 34,700
• Owned lots that were fully developed: 8,900

Also, remember that 27% of Forestar Group Inc.'s owned lots were subject to a right of first offer to D.R. Horton based on existing agreements as of September 30, 2025.

Finance: review the Q1 2026 revenue guidance against the $268.3 million analyst estimate by next Tuesday.