D.R. Horton (DHI) risk factors: FY2025 10-K

1. Our homebuilding, rental and land development operations are cyclical and significantly affected by changes in economic, real estate or other conditions that could adversely affect our business and financial results.reworded
2. Adverse developments affecting the capital markets and financial institutions could limit our ability to access capital, increase our cost of capital and impact our liquidity and capital resources.
3. Reductions in the availability of mortgage financing provided by government agencies, changes in government financing programs, a decrease in our ability to sell mortgage loans on attractive terms or an increase in mortgage interest rates could decrease our buyers’ ability to obtain financing and adversely affect our business and financial results.Interest rates
4. The risks associated with our land, lot and rental inventory could adversely affect our business and financial results.
5. We cannot make any assurances that our growth strategies, acquisitions, investments or other strategic initiatives will be successful or will not expose us to additional risks or other negative consequences.
6. Our business and financial results could be adversely affected by significant inflation, higher interest rates or deflation.Interest rates
7. Supply shortages and other risks related to acquiring land, building materials and skilled labor and obtaining regulatory approvals could increase our costs and delay deliveries.
8. Public health issues such as a major epidemic or pandemic could adversely affect our business and financial results.
9. Our business and financial results could be adversely affected by weather conditions and natural disasters.
10. Our business is subject to home warranty and construction defect claims and other litigation that can be significant.reworded
11. A health and safety incident relating to our operations could be costly in terms of potential liability and reputational damage.
12. We are required to obtain performance bonds, the unavailability of which could adversely affect our results of operations and cash flows.
13. Increases in the costs of owning a home could prevent potential customers from buying our homes and adversely affect our business and financial results.
14. Information technology failures, cybersecurity incidents, and the failure to satisfy privacy and data protection laws and regulations could harm our business.rewordedCybersecurity
15. Governmental regulations and environmental matters could increase the cost and limit the availability of our land development and housing projects and adversely affect our business and financial results.
16. Changes in income tax and securities laws could adversely affect our business and financial results.new
17. Governmental regulation of our financial services operations could adversely affect our business and financial results.
18. We operate in competitive industries, and competitive conditions could adversely affect our business and financial results.

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1. We have significant amounts of debt and may incur additional debt, which could affect our financial health and our ability to raise additional capital to fund our operations or potential acquisitions.
2. Servicing our debt requires a significant amount of cash, and we or our subsidiaries may not have sufficient cash flow from our respective businesses to pay our substantial debt.
3. The instruments governing our and our subsidiaries’ indebtedness impose certain restrictions on our and our subsidiaries’ business, and the ability of us and our subsidiaries to comply with related covenants, restrictions or limitations could adversely affect our and our subsidiaries’ financial condition or operating flexibility.
4. Homebuilding revolving credit facility.
5. Rental and Forestar revolving credit facilities.
6. Mortgage repurchase facilities and other restrictions.
7. Our access to capital and our ability to obtain additional financing could be affected by any downgrade of our debt ratings.
8. The instruments governing our indebtedness contain change of control provisions which could affect the timing of repayment.
9. Change of control purchase options under our homebuilding senior notes and change of control default under our homebuilding revolving credit facility.
10. Change of control purchase option under Forestar’s notes and change of control default under the Forestar revolving credit facility.

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1. Damage to our corporate reputation or brands from negative publicity could adversely affect our business, financial results and/or stock price.
2. Our business could be adversely affected by the loss of key personnel.
3. Our business could be negatively impacted as a result of actions by activist stockholders or others.

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