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

Risks Related to our Business and our Industry

1. 01Our 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
2. 02Adverse 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. 03The risks associated with our land, lot and rental inventory could adversely affect our business and financial results
4. 04We 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
5. 05Our business and financial results could be adversely affected by significant inflation, higher interest rates or deflation
6. 06Supply shortages and other risks related to acquiring land, building materials and skilled labor and obtaining regulatory approvals could increase our costs and delay deliveries29% rewritten
7. 07Public health issues such as a major epidemic or pandemic could adversely affect our business and financial results
8. 08Our business and financial results could be adversely affected by weather conditions and natural disasters
9. 09Our business is subject to home warranty and construction defect claims and other litigation that can be significant
10. 10A health and safety incident relating to our operations could be costly in terms of potential liability and reputational damage
11. 11We are required to obtain performance bonds, the unavailability of which could adversely affect our results of operations and cash flows
12. 12Increases in the costs of owning a home could prevent potential customers from buying our homes and adversely affect our business and financial results
13. 13In addition, increases in property tax rates by local governmental authorities, as experienced in some areas in response to reduced federal and state funding, could adversely affect the amount of financing our potential customers could obtain or their desire to purchase new homes84% rewritten
14. 14Information technology failures, cybersecurity incidents, and the failure to satisfy privacy and data protection laws and regulations could harm our business22% rewritten
15. 15Governmental 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 results25% rewritten
16. 16We are subject to income taxes at the federal, state and local levels, and any changes in tax legislation could adversely affect our future effective tax rates and the value of our deferred tax assetsNew
17. 17Governmental regulation of our financial services operations could adversely affect our business and financial results
18. 18We operate in competitive industries, and competitive conditions could adversely affect our business and financial results

Risks Related to our Indebtedness

1. 19We 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. 20Servicing 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. 21Our access to capital and our ability to obtain additional financing could be affected by any downgrade of our debt ratings
4. 22The instruments governing our indebtedness contain change of control provisions which could affect the timing of repayment25% rewritten
5. 23Damage to our corporate reputation or brands from negative publicity could adversely affect our business, financial results and/or stock price
6. 24Our business could be adversely affected by the loss of key personnel
7. 25Our business could be negatively impacted as a result of actions by activist stockholders or others