Forestar Group Inc.

increased 10% to $1.7 billion in fiscal 2025, which includes $118.1 million of track sales and other revenue. In the fourth quarter, we sold 4,891 lots with an average lot sales price of $115,700. And for the year, we sold 14,240 lots with an average lot sales price of $108,400. We expect continued quarterly fluctuations in our average sales price based on the geographic location and lot size mix of our deliveries. Our gross profit margin this quarter was 22.3%, down 160 basis points from a year ago. Our gross profit margin in the prior year fourth quarter was positively impacted by lot sales from an unusually high margin project. Our fourth quarter pre-tax income increased 4% to $113.1 million, and our pre-tax profit margin was 16.9%. Pre-tax income for the year totaled $219.3 million, and our pre-tax profit margin this year was 13.2%. Our pre-tax income and profit margin for the quarter and the year were positively impacted by a gain on sale of assets of $4.5 million. Chris?

SG&A expense for the fourth quarter was $42.7 million, or 6.4% as a percentage of revenues. For the year, SG&A expense was $154.4 million, or 9.3%. Our average employee count for fiscal year 2025 increased 24% compared to the prior year, which has supported the continued expansion of our platform, including entering new markets and increasing community count. Roughly 90% of new hires in fiscal 2025 were in our local market operations. We are pleased with the progress we have made building our team and our ability to attract high-quality talent. We remain focused on efficiently managing our SG&A while investing in our teams to support our continued growth. Mark?

New home sales have been slower than last year as continued affordability constraints and cautious consumer sentiment continue to weigh on demand. However, mortgage rate buy-down incentives offered by builders are helping to bridge the affordability gap and spur demand for new homes, mainly at more affordable price points. Our primary focus remains developing lots for new homes at prices for entry-level and first-time buyers, which is the largest segment of the new home market. The availability of contractors and necessary materials remains solid, and land development costs have been stable. We have also seen improvement in cycle times, fight continued governmental delays. Our teams utilize best management practices and work closely with our trade partners to develop lots to drive operational efficiency. Jim?