D.R. Horton, Inc.

five, and 10-year periods, demonstrating that our disciplined, returns-focused operating model produces sustainable results and positions us well for continued value creation. We remain focused on capital efficiency to generate strong operating cash flows and deliver compelling returns to our shareholders. In fiscal 2025, we generated $3.4 billion of cash from operations after making home building investments in lots, land and development totaling $8.5 billion. We leveraged our strong cash flow and financial position to return $4.8 billion to shareholders through repurchases and dividends. Over the past five years, we've generated $11 billion of operating cash flow and returned all of it to shareholders. Over the same timeframe, we grew consolidated revenues at an 11% compound annual rate, reflecting consistent efficient execution, and disciplined, balanced capital allocation. We strive to offer our customers an attractive value proposition by providing quality homes at affordable price points. We will continue to tailor our product offerings, sales incentives, and number of homes and inventory based on demand in each of our markets to maximize returns.

Mike? Net income for the quarter was $905.3 million, or $3.04 per diluted share, on consolidated revenues of $9.7 billion. For the year, net income was $3.6 billion, or $11.57 per diluted share on revenues of $34.3 billion. Our fourth quarter home sales revenues were $8.5 billion on 23,368 homes closed. Our average closing sales price for the quarter of $365,600 is down 1% sequentially down 3% year over year, and is down 9% from our peak sales price of more than $400,000 in 2022. Our average sales price is lower than the average sales price of new homes in the United States by $140,000, or almost 30%. Additionally, the median sales price of our homes is $65,000 lower than the median price of an existing home. Bill?

Our net sales orders in the fourth quarter increased 5% from the prior year quarter to to 20,078 homes and order value increased 3% to $7.3 billion. Our cancellation rate for the quarter was 20%, up from 17% sequentially and down from 21% in the prior year quarter. Our cancellation rate is in line with our historical average. Our average number of active selling communities was up 1% sequentially and up 13% from the prior year. The average price of net sales orders in the fourth quarter was $364,900, which was flat sequentially and down 3% from the prior year quarter. Jessica?