Here are 1-3 brief analogies for Forestar:

• Forestar is like TSMC for residential lots, developing raw land into ready-to-build sites for homebuilders.
• Forestar is like Sysco for residential lot development, supplying large homebuilders with finished, ready-to-build lots.

• Developed Residential Lots: Forestar acquires raw land, designs and develops the necessary infrastructure, and delivers finished residential lots primarily to national and regional homebuilders.

Forestar Group Inc. (symbol: FOR) primarily sells developed residential lots to other companies, specifically homebuilders.

Its major customer is:

• D.R. Horton, Inc. (Symbol: DHI)

Forestar's financial filings indicate that D.R. Horton, Inc. accounts for substantially all of its revenues and lot sales, making it Forestar's overwhelmingly dominant customer.

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Anthony W. Oxley President and Chief Executive Officer

Anthony W. Oxley has served as President and Chief Executive Officer of Forestar since January 2024. Before joining Forestar, he was D.R. Horton's Senior Vice President – Business Development, where he oversaw all mergers and acquisitions activity and new market opportunities for start-up divisions. During his 25-year tenure with D.R. Horton, he was involved in land acquisition, land banking, development, homebuilding, and day-to-day division operations. Prior to D.R. Horton, he was a partner at the Atlanta-based law firm Hyatt & Stubblefield, P.C.

James D. Allen Executive Vice President, Chief Financial Officer and Treasurer

James D. Allen has been Executive Vice President, Chief Financial Officer, and Treasurer of Forestar since March 2020. He joined Forestar with over 35 years of operating and financial experience. Most recently, he was a Senior Operating Partner at Palm Beach Capital, where he was responsible for operational oversight and executive and financial support for the firm's portfolio companies. Prior to Palm Beach Capital, Mr. Allen served as CFO of Hollander Sleep Products and held various executive roles at both private and public companies, including Operating Vice President and Group CFO at Sun Capital Partners, Chief Administrative Officer at Mattress Firm Inc., and several C-Suite roles at Tandycrafts Inc. He began his career at PricewaterhouseCoopers, where he spent 10 years. Mr. Allen has a pattern of managing companies backed by private equity firms, having served as a Senior Operating Partner at Palm Beach Capital and an Operating Vice President and Group CFO at Sun Capital Partners, a global private equity firm.

Mark S. Walker Executive Vice President and Chief Operating Officer

Mark S. Walker has been Executive Vice President and Chief Operating Officer of Forestar since October 2022, having joined the company in February 2019. Before joining Forestar, he served as a Vice President in land acquisition and development at D.R. Horton, Inc. from January 2012 to January 2019. He has over 20 years of residential real estate experience, including various operational roles at both public and private homebuilders.

Donald J. Tomnitz Executive Chairman of the Board

Donald J. Tomnitz has served as Executive Chairman of the Board of Forestar since October 2017. Prior to Forestar, he was the Vice Chairman and Chief Executive Officer of D.R. Horton, Inc. from November 1998 to September 2014. He held various Vice President and President positions within D.R. Horton from 1983 until 1998. Before his time at D.R. Horton, Mr. Tomnitz was a captain in the U.S. Army, a Vice President of RepublicBank of Dallas, N.A., and a Vice President of Crow Development Company.

The key risks to Forestar's business operations are primarily centered around its relationship with its majority owner, the cyclical nature of its industry, and the fundamental challenge of acquiring suitable land for development.

1. Dependence on D.R. Horton: Forestar is a majority-owned subsidiary of D.R. Horton, which beneficially owns approximately 62-63% of its common stock. This significant control limits the ability of other stockholders to influence matters requiring stockholder approval. Furthermore, Forestar relies heavily on its strategic relationship with D.R. Horton, which is also its primary customer. This dependence means D.R. Horton's interests may conflict with those of other Forestar stakeholders, and any changes in this relationship or D.R. Horton's business could materially impact Forestar's operations and financial results.
2. Cyclical Nature of the Homebuilding and Lot Development Industries and General Economic Conditions: Forestar's revenues and earnings are highly sensitive to the overall level of economic activity in the markets it serves. The company's business is directly affected by the cyclical nature of the homebuilding and lot development industries, as well as broader financial, political, and economic conditions. This includes the impact of significant inflation, higher interest rates, or deflation, which can influence consumer demand for homes and the cost of development.
3. Cost and Availability of Property Suitable for Residential Lot Development: As a residential lot developer, Forestar's business model hinges on its ability to acquire and develop land. Therefore, the cost and availability of suitable property for residential lot development represent a critical risk. This also encompasses risks related to supply shortages of construction materials and the availability of skilled labor, which are essential for developing these properties into finished lots.

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Forestar (symbol: FOR) primarily operates as a residential lot development company, focusing on the acquisition, entitlement, and development of land into finished single-family residential lots for sale to homebuilders.

The addressable market for Forestar's main products and services, within the United States, can be identified as the residential land planning and development market. This market is valued at approximately USD 176.4 billion in 2025 for the U.S. region. Forestar's operations are concentrated in the U.S., with a presence in many states, particularly in the Sun Belt.

Forestar (FOR) is anticipated to drive future revenue growth over the next 2-3 years through several key strategies and market dynamics:

1. Increased Average Lot Prices: Forestar has demonstrated the ability to increase its average sales price per lot, which significantly contributed to revenue growth in Q4 2025, despite a decrease in the number of lots sold. The company expects continued quarterly fluctuations in average sales price based on the geographic location and lot size mix of its deliveries.
2. Growth in Lot Deliveries and Volume: The company has provided guidance for fiscal year 2026, expecting to deliver between 14,000 and 15,000 lots, which should generate revenues ranging from $1.6 billion to $1.7 billion. Furthermore, Forestar's substantial pipeline of contracted lots—23,800 lots under contract for sale at September 30, 2025, representing approximately $2.1 billion of future revenue—provides strong visibility and a foundation for sustained sales volume.
3. Expansion into New Markets: Forestar is actively expanding its national platform and consolidating market share in the fragmented U.S. lot development industry. In Q4 2025, the company expanded into seven new markets and increased its community count by over 10%, supported by investments in local teams. This geographic diversification is a strategic initiative to capture new opportunities and drive growth.
4. Strategic Partnership with D.R. Horton: As a majority-owned subsidiary of D.R. Horton, the largest homebuilder in the United States, Forestar benefits from a strong and reliable demand channel for its developed lots. The company aims for one out of every three D.R. Horton homes to be built on a Forestar-developed lot, indicating a stable and significant customer relationship that underpins future revenue.
5. Focus on Entry-Level and First-Time Homebuyers: Forestar's continued focus on developing lots for entry-level and first-time homebuyers is expected to be a consistent driver of demand. This segment represents an ongoing need in the housing market, providing a resilient customer base even amid broader affordability constraints.

Share Repurchases

• Effective April 30, 2020, the Board of Directors authorized the repurchase of up to $30 million of the Company's debt securities, with this entire authorization remaining as of September 30, 2024.

Share Issuance

• During fiscal year 2024, Forestar issued 546,174 shares of common stock under its at-the-market equity offering program, generating net proceeds of $19.7 million.
• As of June 30, 2020, $394.3 million remained available for issuance under a shelf registration statement for $500 million of equity securities, which was filed in September 2018.

Inbound Investments

• D.R. Horton maintains a significant strategic investment in Forestar, owning approximately 62% of the company's outstanding common stock.
• The strategic relationship with D.R. Horton provides D.R. Horton with the right of first offer to purchase up to 100% of lots from D.R. Horton sourced projects and up to 50% of lots in Forestar-sourced projects.
• D.R. Horton's consent is required for certain Forestar transactions, including the issuance of new equity, incurring debt that increases total leverage above 40%, and making certain acquisitions or investments exceeding $20 million.

Outbound Investments

• No significant outbound investments in other companies were identified.

Capital Expenditures

• For the full fiscal year 2024, Forestar invested approximately $1.7 billion in land and land development, with about two-thirds allocated to land development and one-third to land acquisition. Over the last five years, total investment in land acquisition and development was approximately $6.7 billion.
• For fiscal year 2025, the company expects to invest approximately $1.4 billion in land acquisition and development.
• The primary focus of capital expenditures is on land acquisition and development for residential lots, predominantly for the affordably-priced single-family home market. Underwriting criteria for new projects require a minimum 15% pretax return on average inventory and a return of the initial cash investment within 36 months.