DR Horton Inc shares jumped 5% in premarket trading Tuesday after the home construction company reported better-than-expected results for the fiscal Q1 2025.

The company posted Q1 earnings per share (EPS) of $2.61, beating analyst expectations of $2.38.

Revenue fell 1% year-over-year to $7.61 billion, but still topped consensus estimates of $7.12 billion

D.R. Horton’s net sales orders totaled $6.65 billion for the quarter, a 2% year-over-year decline, falling short of the $6.97 billion estimate.

The number of homes closed came in at 19,059, down 1.5% from the previous year but above the expected 17,802.

The backlog dropped 21% year-over-year to $4.30 billion, below the $5.03 billion consensus.

“Although the level of new and existing home inventories has increased from historically low levels, the supply of homes at affordable price points is generally still limited, and demographics supporting housing demand remain favorable,” said David Auld, Executive Chairman of D.R. Horton.

“Despite continued affordability challenges and competitive market conditions, incentives such as mortgage rate buydowns have helped to address affordability and spur demand. Additionally, given our focus on affordable product offerings, we have continued to start and sell more of our homes with smaller floor plans to meet homebuyer demand.”

For fiscal 2025, D.R. Horton projects revenue between $36 billion and $37.5 billion, compared with the consensus projection of $37.087 billion.

The company also expects to close 90,000 to 92,000 homes through its homebuilding operations, achieve higher consolidated cash flow from operations compared to fiscal 2024, and pay approximately $500 million in dividends.