Forestar Group Inc.

Good morning and welcome to Four Star's second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode and the floor will be open for questions following the presentation. If anyone should require operator assistance during the conference, please press star zero on your phone keypad. Please note this conference is being recorded. I will now turn the call over to Chris Hibberts, Vice President of Finance and Investor Relations for Four Star.

Thank you, Jenny. Good morning, and welcome to our call to discuss Four Star's second quarter results. Before we get started, I want to remind everyone that today's call includes forward-looking statements as defined by the Private Security Litigation Form Act of 1995. Although Four Star believes any such statements 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 Four Star on the date of this conference call, and we do not undertake any obligation to update or revise any forward-looking statements publicly. Additional information about factors that could lead to material changes and performance is contained in Four Star's annual report on Form 10-K and its most recent quarterly report on Form 10-Q, both of which are followed with the Securities and Exchange Commission. Our earnings release is on our website at investor.fourstar.com, and we plan to file our 10-Q early next week. After this call, we will post an updated investor presentation to our investor relations site under events and presentations for your reference. Now, I will turn the call over to Andy Oxley, our president and CEO.

Thanks, Chris. Good morning, everyone. I'm also joined on the call today by Jim Allen, our chief financial officer, and Mark Walker. our chief operating officer. The four-star team delivered a solid second quarter generating $31.6 million of net income or 62 cents per diluted share on revenues of $351 million. Lots sold increased 4% from a year ago and 46% sequentially to 3,411 lots. Additionally, lots under contract to sell increased 41% from a year ago to 25,400 lots, which is 37% of our own lot position, the highest contracted backlog we've had during the last four years. Our current backlog represents $2.3 billion of future revenue. We further strengthened our balance sheet during the quarter by increasing our liquidity position to approximately $800 million, while extending our debt maturity profile through refinancing transaction completed in March. We also continue to expand and diversify our operations alongside Daryl Horton's footprint, entering 10 new markets in the last year and increasing our community count by 21%. The home building industry continues to face headwinds from home affordability constraints and declining consumer confidence, resulting in a slower than expected start to the spring selling season. We are well positioned to navigate current market conditions and our experienced operators are responding by adjusting the pace of development where appropriate, and we are moderating our pace of land acquisition. 79% of our investments this quarter were on land development. We remain focused on turning our inventory, maximizing returns, and consolidating market share in the highly fragmented lot development industry. We are able to consistently provide essential finished lots to home builders with our unique blend of financial strength, operating expertise, and a diverse national footprint. We will now discuss our second quarter financial results in more detail. Jim?