# EDGAR Filing Document

**Accession Number:** 0001406587
**File Stem:** 0001406587-25-000071
**Filing Date:** 2025-7
**Character Count:** 23783
**Document Hash:** be93ee414b84ac0486b11f1ba268753d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001406587-25-000071.hdr.sgml**: 20250722

**ACCESSION NUMBER**: 0001406587-25-000071

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250722

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250722

**DATE AS OF CHANGE**: 20250722

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Forestar Group Inc.
- **CENTRAL INDEX KEY:** 0001406587
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE [6500]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 261336998
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33662
- **FILM NUMBER:** 251139386

**BUSINESS ADDRESS:**
- **STREET 1:** 2221 E. LAMAR BLVD.
- **STREET 2:** SUITE 790
- **CITY:** ARLINGTON
- **STATE:** TX
- **ZIP:** 76006
- **BUSINESS PHONE:** 817-769-1860

**MAIL ADDRESS:**
- **STREET 1:** 2221 E. LAMAR BLVD.
- **STREET 2:** SUITE 790
- **CITY:** ARLINGTON
- **STATE:** TX
- **ZIP:** 76006

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Forestar Real Estate Group Inc.
- **DATE OF NAME CHANGE:** 20071101

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Forestar Real Estate Group LLC
- **DATE OF NAME CHANGE:** 20070713

?xml version='1.0' encoding='ASCII'? for-20250722

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

______________________________

**FORM 8-K**

______________________________

**Current Report**

**Pursuant to Section 13 or 15(d)**

**of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): July 22, 2025** 

______________________________

**Forestar Group Inc.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-33662** | **26-1336998** |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

**2221 E. Lamar Blvd., Suite 790, Arlington, Texas 76006**

(Address of principal executive offices)

**(817) 769-1860**

(Registrant's telephone number, including area code)

______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

---

| | | |
|:---|:---|:---|
| Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: |
| **Title of Each Class** | **Trading Symbol** | **Name of Each Exchange on Which Registered** |
| Common Stock, par value $1.00 per share | FOR | New York Stock Exchange |
|  |  | NYSE Texas |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

------

**Item 2.02.**&nbsp;&nbsp;&nbsp;&nbsp;**Results of Operations and Financial Condition.**

On July 22, 2025, Forestar Group Inc. issued a press release announcing its results and related information for its third quarter ended June 30, 2025. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference in its entirety into this Item 2.02.

The information furnished in this Item 2.02 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

**Item 9.01.**&nbsp;&nbsp;&nbsp;&nbsp;**Financial Statements and Exhibits.**

---

| | | |
|:---|:---|:---|
| (d) | Exhibits | |
| | 99.1 | <u>[Press Release dated](a6302025exhibit991.htm)[July 22](a6302025exhibit991.htm)[, 2025 related to the Company's results and related information for the](a6302025exhibit991.htm)[third](a6302025exhibit991.htm)[quarter ended](a6302025exhibit991.htm)[June](a6302025exhibit991.htm)[3](a6302025exhibit991.htm)[0](a6302025exhibit991.htm)[, 2025.](a6302025exhibit991.htm)</u> |
| | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document contained in Exhibit 101). |

---

------

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | Forestar Group Inc. | Forestar Group Inc. |
| Date: | July 22, 2025 | By: | /S/ JAMES D. ALLEN |
|  |  |  | James D. Allen |
|  |  |  | Executive Vice President and |
|  |  |  | Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**FORESTAR REPORTS FISCAL 2025 THIRD QUARTER RESULTS**

ARLINGTON, Texas (Business Wire) - July 22, 2025 — Forestar Group Inc. ("Forestar") (NYSE: FOR), a leading national residential lot developer, today reported financial results for its third fiscal quarter ended June 30, 2025.

**Fiscal 2025 Third Quarter Highlights** 

*All comparisons to the prior year quarter*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income totaled $32.9 million or $0.65 per diluted share

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pre-tax income of $43.6 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consolidated revenues increased 23% to $390.5 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Residential lots sold increased 11% to 3,605 lots

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Owned and controlled 102,300 lots at June 30, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lots contracted for sale increased 26% to 25,700 lots at June 30, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Real estate of $2.8 billion at June 30, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Return on equity of 10.1% for the trailing twelve months ended June 30, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Book value per share increased 11% to $33.04

**Financial Results**

Net income for the third quarter of fiscal 2025 decreased 15% to $32.9 million, or $0.65 per diluted share, compared to $38.7 million, or $0.76 per diluted share, in the same quarter of fiscal 2024. Pre-tax income for the quarter decreased 16% to $43.6 million from $51.6 million in the same quarter of fiscal 2024 with the prior year quarter including a $5.0 million gain on sale of assets. Revenues for the third quarter increased 23% to $390.5 million from $318.4 million in the same quarter of fiscal 2024.

For the nine months ended June 30, 2025, net income decreased 33% to $81.0 million, or $1.59 per diluted share, compared to $121.8 million, or $2.40 per diluted share, in the same period of fiscal 2024. Pre-tax income for the nine months ended June 30, 2025 decreased 34% to $106.2 million from $161.6 million in the same period of fiscal 2024. Revenues for the first nine months of fiscal 2025 increased 4% to $991.9 million from $958.0 million in the same period of fiscal 2024.

The Company's return on equity was 10.1% for the trailing twelve months ended June 30, 2025. Return on equity is calculated as net income for the trailing twelve months divided by average stockholders' equity, where average stockholders' equity is the sum of ending stockholders' equity balances of the trailing five quarters divided by five.

**Operational Results**

Lots sold during the third quarter increased 11% to 3,605 lots compared to 3,255 lots in the same quarter of fiscal 2024. During the third quarter of fiscal 2025, Forestar sold 530 lots to customers other than D.R. Horton, Inc. ("D.R. Horton") compared to 352 lots in the prior year quarter. Lots sold to customers other than D.R. Horton in the current year quarter included 331 lots that were sold to a lot banker who expects to sell those lots to D.R. Horton at a future date.

Lots sold during the nine months ended June 30, 2025 decreased 4% to 9,349 lots compared to 9,694 lots in the same period of fiscal 2024. During the nine months ended June 30, 2025, 1,661 lots were sold to customers other than D.R. Horton compared to 852 lots in the same period of fiscal 2024. Lots sold to customers other than D.R. Horton in the current year nine-month period included 693 lots that were sold to a lot banker who expects to sell those lots to D.R. Horton at a future date compared to 124 lots in the prior year period.

The Company's lot position at June 30, 2025 was 102,300 lots, of which 68,300 were owned and 34,000 were controlled through land and lot purchase contracts. Lots owned at June 30, 2025 included 10,000 that were fully developed. Of the Company's owned lot position at June 30, 2025, 25,700 lots, or 38%, were under contract to be sold, representing approximately $2.3 billion of future revenue. Another 18,500 lots, or 27%, of the Company's owned lots were subject to a right of first offer to D.R. Horton based on executed purchase and sale agreements at June 30, 2025.

------

**Capital Structure, Leverage and Liquidity** 

Forestar ended the quarter with $189.2 million of unrestricted cash and $602.8 million of available borrowing capacity on its senior unsecured revolving credit facility for total liquidity of $792.0 million. Debt at June 30, 2025 totaled $872.8 million, with $70.4 million of senior note maturities in the next twelve months. The Company's net debt to total capital ratio at the end of the quarter was 28.9%. Net debt to total capital consists of debt net of unrestricted cash divided by stockholders' equity plus debt net of unrestricted cash.

**Outlook**

Donald J. Tomnitz, Chairman of the Board, said, "The Forestar team delivered increased lot deliveries and revenues compared to the prior year quarter and maintained strong liquidity through disciplined investment in inventory despite affordability constraints and weaker consumer confidence continuing to impact the pace of new home sales.

"Based on our fiscal year-to-date results and current market conditions, we are updating our lot delivery guidance for fiscal 2025. We now expect to deliver between 14,500 and 15,000 lots compared to our prior guidance of between 15,000 and 15,500 lots. We are maintaining our previous revenue guidance of $1.50 billion to $1.55 billion.

"Forestar is uniquely positioned to consistently supply finished lots that are essential to the homebuilding industry. Our strong balance sheet and liquidity give us the flexibility to operate effectively through changing market conditions. We expect to continue aggregating significant market share, supported by our substantial operating platform, strategic relationship with D.R. Horton and $2.3 billion of contracted future revenue. We will maintain our disciplined approach to capital allocation while positioning Forestar for growth and driving long-term value for our shareholders."

**Conference Call and Webcast Details**

The Company will host a conference call today (Tuesday, July 22) at 11:00 a.m. Eastern Time. The dial-in number is 888-506-0062, the entry code is 716713, and the call will also be webcast from the Company's website at investor.forestar.com.

**Fourth Quarter Conference Call**

The Company plans to release financial results for its fourth quarter ended September 30, 2025 on October 28, 2025 before the market opens. The Company will host a conference call that morning at 11:00 a.m. Eastern Time. Details on how to access the conference call will be available at a later date.

**About Forestar Group Inc.**

Forestar Group Inc. is a residential lot development company with operations in 64 markets and 23 states. Based in Arlington, Texas, the Company delivered more than 14,700 residential lots during the twelve-month period ended June 30, 2025. Forestar is a majority-owned subsidiary of D.R. Horton, the largest homebuilder by volume in the United States since 2002.

------

**Forward-Looking Statements**

Portions of this document may constitute "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 this release was issued. Forestar does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements in this release include we expect to deliver between 14,500 and 15,000 lots; we expect to generate between $1.50 and $1.55 billion of revenue; Forestar is uniquely positioned to consistently supply finished lots that are essential to the homebuilding industry; our strong balance sheet and liquidity give us the flexibility to operate effectively through changing market conditions; we expect to continue aggregating significant market share, supported by our substantial operating platform, strategic relationship with D.R. Horton and $2.3 billion of contracted future revenue; and we will maintain our disciplined approach to capital allocation while positioning Forestar for growth and driving long-term value for our shareholders.

Factors that may cause the actual results to be materially different from the future results expressed by the forward-looking statements include, but are not limited to: the effect of D.R. Horton's controlling level of ownership on us and the holders of our securities; our ability to realize the potential benefits of the strategic relationship with D.R. Horton; the effect of our strategic relationship with D.R. Horton on our ability to maintain relationships with our customers; the cyclical nature of the homebuilding and lot development industries and changes in economic, real estate and other conditions; the impact of significant inflation, higher interest rates or deflation; supply shortages and other risks of acquiring land, construction materials and skilled labor; the effects of public health issues such as a major epidemic or pandemic; the impacts of weather conditions and natural disasters; health and safety incidents relating to our operations; our ability to obtain or the availability of surety bonds to secure our performance related to construction and development activities and the pricing of bonds; the impact of governmental policies, laws or regulations and actions or restrictions of regulatory agencies; our ability to achieve our strategic initiatives; continuing liabilities related to assets that have been sold; the cost and availability of property suitable for residential lot development; general economic, market or business conditions where our real estate activities are concentrated; our dependence on relationships with national, regional and local homebuilders; competitive conditions in our industry; obtaining reimbursements and other payments from governmental districts and other agencies and timing of such payments; our ability to succeed in new markets; the conditions of the capital markets and our ability to raise capital to fund expected growth; our ability to manage and service our debt and comply with our debt covenants, restrictions and limitations; the volatility of the market price and trading volume of our common stock; our ability to hire and retain key personnel; and the strength of our information technology systems and the risk of cybersecurity breaches and our ability to satisfy privacy and data protection laws and regulations. Additional information about issues 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 or will be filed with the Securities and Exchange Commission.

**Contact**

Chris Hibbetts, 817-769-1860

Vice President of Finance & Investor Relations

InvestorRelations@forestar.com

------

**FORESTAR GROUP INC.**

**Consolidated Balance Sheets**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **September 30, 2024** |
| | **(In millions, except share data)** | **(In millions, except share data)** |
| **ASSETS** | | |
| Cash and cash equivalents | $**189.2** | $481.2 |
| Real estate | **2823.5** | 2266.2 |
| Investment in unconsolidated ventures | **—** | 0.3 |
| Property and equipment, net | **7.6** | 7.1 |
| Other assets | **100.1** | 85.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $**3120.4** | $2840.1 |
| **LIABILITIES** |  |  |
| Accounts payable | $**67.2** | $85.9 |
| Accrued development costs | **129.1** | 144.6 |
| Earnest money on sales contracts | **229.6** | 172.3 |
| Deferred tax liability, net | **77.9** | 67.5 |
| Accrued expenses and other liabilities | **63.5** | 68.3 |
| Debt | **872.8** | 706.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | **1440.1** | 1245.0 |
| **EQUITY** |  |  |
| Common stock, par value $1.00 per share, 200,000,000 authorized shares,<br>50,823,800 and 50,653,637 shares issued and outstanding at <br>June 30, 2025 and September 30, 2024, respectively | **50.8** | 50.7 |
| Additional paid-in capital | **669.3** | 665.2 |
| Retained earnings | **959.2** | 878.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders' equity | **1679.3** | 1594.1 |
| Noncontrolling interests | **1.0** | 1.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity | **1680.3** | 1595.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $**3120.4** | $2840.1 |

---

------

**FORESTAR GROUP INC.**

**Consolidated Statements of Operations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Nine Months Ended June 30,** | **Nine Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(In millions, except per share amounts)** | **(In millions, except per share amounts)** | **(In millions, except per share amounts)** | **(In millions, except per share amounts)** |
| Revenues | $**390.5** | $318.4 | $**991.9** | $958.0 |
| Cost of sales | **310.8** | 246.9 | **778.0** | 730.6 |
| Selling, general and administrative expense | **37.4** | 29.3 | **111.8** | 86.5 |
| Equity in earnings of unconsolidated ventures | **—** |  | **(0.6)** |  |
| Gain on sale of assets | **—** | (5.0) | **—** | (5.0) |
| Interest and other income | **(1.3)** | (4.4) | **(4.6)** | (15.7) |
| Loss on extinguishment of debt | **—** |  | **1.1** |  |
| Income before income taxes | **43.6** | 51.6 | **106.2** | 161.6 |
| &nbsp;&nbsp;&nbsp;Income tax expense | **10.7** | 12.9 | **25.2** | 39.8 |
| Net income | $**32.9** | $38.7 | $**81.0** | $121.8 |
| Basic net income per common share | $**0.65** | $0.76 | $**1.59** | $2.42 |
| Weighted average number of common shares | **50.9** | 50.8 | **50.8** | 50.3 |
| Diluted net income per common share | $**0.65** | $0.76 | $**1.59** | $2.40 |
| Adjusted weighted average number of common shares | **51.0** | 51.1 | **51.0** | 50.7 |

---

------

**FORESTAR GROUP INC.**

**Revenues, Residential Lots Sold and Lot Position**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **REVENUES** | **REVENUES** | **REVENUES** | **REVENUES** |
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Nine Months Ended June 30,** | **Nine Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Residential lot sales: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Development projects | $**373.4** | $295.7 | $**953.3** | $922.3 |
| &nbsp;&nbsp;&nbsp;Lot banking projects | **10.9** | 10.3 | **24.1** | 11.0 |
| &nbsp;&nbsp;&nbsp;(Increase) decrease in contract liabilities | **(1.3)** | (0.2) | **(0.1)** | 2.6 |
|  | **383.0** | 305.8 | **977.3** | 935.9 |
| Deferred development projects | **—** | 0.5 | **—** | 3.5 |
|  | **383.0** | 306.3 | **977.3** | 939.4 |
| Tract sales and other | **7.5** | 12.1 | **14.6** | 18.6 |
| Total revenues | $**390.5** | $318.4 | $**991.9** | $958.0 |
|  | **RESIDENTIAL LOTS SOLD** | **RESIDENTIAL LOTS SOLD** | **RESIDENTIAL LOTS SOLD** | **RESIDENTIAL LOTS SOLD** |
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Nine Months Ended June 30,** | **Nine Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Development projects | **3524** | 3163 | **9149** | 9593 |
| Lot banking projects | **81** | 92 | **200** | 101 |
|  | **3605** | 3255 | **9349** | 9694 |
| Average sales price per lot <sup>(1)</sup> | $**106600** | $94000 | $**104500** | $96300 |
|  |  |  | **LOT POSITION** | **LOT POSITION** |
|  |  |  | **June 30, 2025** | **September 30, 2024** |
| Lots owned | Lots owned | Lots owned | **68300** | 57800 |
| Lots controlled under land and lot purchase contracts | Lots controlled under land and lot purchase contracts | Lots controlled under land and lot purchase contracts | **34000** | 37300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total lots owned and controlled | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total lots owned and controlled | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total lots owned and controlled | **102300** | 95100 |
| Owned lots under contract to sell to D.R. Horton | Owned lots under contract to sell to D.R. Horton | Owned lots under contract to sell to D.R. Horton | **24200** | 20500 |
| Owned lots under contract to customers other than D.R. Horton | Owned lots under contract to customers other than D.R. Horton | Owned lots under contract to customers other than D.R. Horton | **1500** | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total owned lots under contract | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total owned lots under contract | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total owned lots under contract | **25700** | 21000 |
| Owned lots subject to right of first offer with D.R. Horton based on executed purchase and sale agreements | Owned lots subject to right of first offer with D.R. Horton based on executed purchase and sale agreements | Owned lots subject to right of first offer with D.R. Horton based on executed purchase and sale agreements | **18500** | 17200 |
| Owned lots fully developed | Owned lots fully developed | Owned lots fully developed | **10000** | 6300 |

---

_____________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup>Excludes any impact from change in contract liabilities.

<br>