D.R. Horton, Inc.

Good morning and welcome to the first quarter 2026 earnings conference call for Dior Horton, America's Builder. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the call over to Jessica Hansen, Senior Vice President of Communications for Dior Horton. Jessica, please go ahead.

Thank you. Sorry. It would help if I took myself off mute. Thank you, Paul, and good morning. Welcome to our call to discuss our financial results for the first quarter of fiscal 2026. Before we get started, today's call includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Although D.L. Wharton believes any such states are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to D.O. Horton on the date of this conference call, and D.O. Horton does not undertake any obligation to publicly update or revise any forward-looking statements. Additional information about factors that could lead to material changes in performance is contained in D.O. Horton's annual report on Form 10-K, which is filed with the Securities and Exchange Commission. This morning's earnings release and our supplemental data presentation can be found on our website at investor.deohorton.com, and we plan to file our 10-Q later this week. After this call, we will also post our updated investor presentation to our investor relations site on the presentation section under news and events for your reference. Now, I will turn the call over to Paul Romanowski, our president and CEO.

Thank you, Jessica, and good morning. I am pleased to also be joined on this call by Mike Murray, our chief operating officer, and Bill Wheat, our chief financial officer. The D.R. Horton team had a solid start to fiscal 2026 with consolidated pre-tax income of $798 million on $6.9 billion of revenues and a pre-tax profit margin of 11.6%. New home demand remains impacted by affordability constraints and cautious consumer sentiment However, our teams continue to respond to current market conditions with discipline. We exceeded the high end of our revenue and closings guidance, achieved a home sales gross margin within our expected range, and our net sales orders increased 3% compared to the prior year quarter, demonstrating our ability to balance pace, price, and incentives to drive incremental sales and maximize returns. We are focused on capital efficiency to generate strong operating cash flows and deliver compelling returns to our shareholders. Over the past 12 months, we have generated $3.6 billion of cash from operations, and we have returned $4.4 billion to shareholders through repurchases and dividends. For the trailing 12 months and to December 31st, our home building pre-tax return on inventory was 18.6%. while our consolidated returns on equity and assets were 13.7% and 9.4%. Our return on assets ranks in the top 20% of all S&P 500 companies for the past 3, 5, and 10-year periods, demonstrating that our disciplined, returns-focused operating model produces sustainable results and positions us well for continued value creation. We increased our sales incentives during the first quarter, and we expect incentives to remain elevated in fiscal 2026 with a level dependent on demand, changes in mortgage interest rates, and overall market conditions. We work every day to use our industry-leading platform, unmatched scale, efficient operations, and experienced employees to bring home ownership opportunities at affordable price points to more Americans. 64% of our mortgage companies' closings this quarter were to first-time homebuyers. 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?