AMREP Corporation (NYSE:AXR) reported fiscal third‑quarter 2026 results that ended January 31, 2026, with net income of $3.147 million and earnings per diluted share of $0.58. Revenue for the quarter rose to $14.573 million, a 94% increase from the $7.520 million earned in Q3 2025, reflecting a strong rebound in home‑building activity after a period of lower sales in the prior year.
The revenue surge was driven by a sharp uptick in home sales, which offset the decline in land‑sale revenue that the company has been experiencing. AMREP’s shift toward homebuilding has paid off, with higher average selling prices and improved operating leverage contributing to the nearly doubled top line. The company’s land‑development segment, while still generating significant cash, reported a decline in gross margin to 50% for the quarter, underscoring the strategic pivot to higher‑margin home construction.
EPS of $0.58 beat the consensus estimate of $0.45 by $0.13, a 29% upside. The beat was largely attributable to disciplined cost management and the favorable mix of higher‑margin home sales, which helped offset the lower land‑sale revenue. Operating income increased to $2.345 million from $1.987 million in the same quarter a year earlier, driven by the stronger home‑building mix and tighter cost controls.
For the first nine months of 2026, AMREP posted net income of $9.039 million and EPS of $1.68, up from $8.823 million and $1.64 in the prior year. Revenue for the nine‑month period reached $41.823 million, a 12% increase over the $36.944 million earned in 2025, largely due to the Q3 home‑building rebound. Management reiterated its guidance for the fiscal year, maintaining revenue and earnings forecasts while noting that land‑sale revenue is expected to decline in 2026 and 2027 as the company reduces new land‑development projects.
Management highlighted that the company’s strategic focus on homebuilding and active inventory management has been a key driver of the Q3 performance. It also cautioned that elevated construction costs, higher mortgage rates, and affordability pressures could temper future demand. The company expects land‑sale revenue from developed residential land to decline in fiscal 2026 and 2027 compared with 2025, but it remains confident that its strong balance sheet and cash reserves will support continued investment in homebuilding.
Investors reacted to the earnings release with a mixed outlook: the EPS beat was welcomed, but the revenue miss relative to the consensus estimate of $14.97 million tempered enthusiasm. Management’s cautious commentary on headwinds and the expected decline in land‑sale revenue contributed to a balanced market response.
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