Forestar Group Inc. (NYSE:FOR) Q2 2024 Earnings Conference Call April 18, 2024 5:00 PM ET
Company Participants
Katie Smith - Director of Finance and Investor Relations
Andy Oxley - President and Chief Executive Officer
Jim Allen - Chief Financial Officer
Mark Walker - Chief Operating Officer
Conference Call Participants
Carl Reichardt - BTIG
Anthony Pettinari - Citi
Mike Rehaut - JPMorgan
Operator
Good afternoon, and welcome to Forestar's Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded.
I will now turn the call over to Katie Smith, Director of Finance and Investor Relations for Forestar.
Katie Smith
Thank you, John. Good afternoon, and welcome to the call to discuss Forestar's second quarter results. Thank you for joining us.
Before we get started, today's call includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Although, Forestar 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 Forestar 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 in performance is contained in Forestar's annual report on Form 10-K and its most recent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission. Our earnings release is on our website at investor.forestar.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.
Andy Oxley
Thanks, Katie. Good afternoon, everyone. I'm also joined on the call today by Jim Allen, our Chief Financial Officer, and Mark Walker, our Chief Operating Officer.
The Forestar team delivered a solid second quarter with net income increasing 67% to $45 million or $0.89 per diluted share. Our pre-tax income increased 64% to $58.9 million and our pre-tax profit margin improved 570 basis points to 17.6%. Consolidated revenues increased 11% to $333.8 million, while lots sold increased 10% to 3,289 lots. Forestar achieved a 14.9% return on equity for the trailing 12 months ending March 31, 2024. There is strong demand for developed lots and supply is still constrained in most markets. Forestar's unique blend of financial strength, operating expertise, and geographic reach positions us as a leading supplier of finished lots.