Quarterly report [Sections 13 or 15(d)]

OPERATING AND REPORTING SEGMENTS

v3.25.3
OPERATING AND REPORTING SEGMENTS
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
OPERATING AND REPORTING SEGMENTS OPERATING AND REPORTING SEGMENTS
We operate with two principal business segments: homebuilding and financial services. As defined in ASC 280-10, Segment Reporting, we have twelve homebuilding operating segments. The homebuilding segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes and providing warranty and customer
services. We aggregate our homebuilding operating segments into reporting segments based on similar long-term economic characteristics and geographical proximity. Our three reportable homebuilding segments are as follows:
West:
Arizona, California, Colorado and Utah
Central:
Tennessee and Texas
East:
Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina
We define our segments based on the way in which internally reported financial information is regularly provided and reviewed by the CODM to analyze financial performance, make decisions, and allocate resources. Our CODM is the chief executive officer. The CODM’s evaluation of the homebuilding segment performance is based on segment home closing revenue, home closing gross profit and gross margin, total gross profit, commissions and other sales costs, general and administrative expenses incurred by or allocated to each segment, including impairments, and operating income. The CODM uses these performance metrics predominantly in the annual budget and forecasting process and considers budget-to-actual variances on a quarterly basis for these measures when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses these data points to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees. The CODM also reviews financial services profits and losses to evaluate the performance of the financial services segment and make decisions about allocation of resources and financial services related product offerings.
Effective January 1, 2025, we realigned our internal organizational structure and resources following continued growth and recent entry into new markets. As a result of the change in our organizational structure, the Tennessee homebuilding operating segment was reclassified from the East reporting segment to the Central reporting segment for the purpose of making operational and resource decisions and assessing financial performance. Prior period balances have been retroactively adjusted to reflect this reclassification.
Each reportable segment follows the same accounting policies described in Note 1, “Organization and Basis of Presentation.” Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity for the periods presented.
The following tables provide financial information about our reportable segments and Corporate and other categories (in thousands):
Three Months Ended September 30, 2025
West Central East Total
Home closing revenue $ 420,658  $ 443,086  $ 535,591  $ 1,399,335 
Land closing revenue —  1,841  14,227  16,068 
Total closing revenue 420,658  444,927  549,818  1,415,403 
Cost of home closings 338,211  348,270  445,897  1,132,378 
Cost of land closings —  2,411  13,465  15,876 
Total cost of closings 338,211  350,681  459,362  1,148,254 
Home closing gross profit 82,447  94,816  89,694  266,957 
Land closing gross (loss)/profit —  (570) 762  192 
Total closing gross profit 82,447  94,246  90,456  267,149 
Home closing gross margin 19.6% 21.4% 16.7% 19.1%
Commissions and other sales costs 26,387  34,189  39,146  99,722 
General and administrative expenses 13,314  11,854  16,536  41,704 
Homebuilding segment operating income 42,746  48,203  34,774  125,723 
Financial services segment profit 4,480 
Corporate and unallocated costs (1) (10,083)
Interest expense — 
Other income, net 8,128 
Earnings before income taxes $ 128,248 

(1)Balance consists primarily of corporate costs and shared service functions such as finance and treasury that are not allocated to the homebuilding or financial services reporting segments.
Three Months Ended September 30, 2024
West Central East Total
Home closing revenue $ 594,509  $ 484,739  $ 506,536  $ 1,585,784 
Land closing revenue —  2,125  540  2,665 
Total closing revenue 594,509  486,864  507,076  1,588,449 
Cost of home closings $ 456,171  $ 360,413  $ 376,635  $ 1,193,219 
Cost of land closings —  1,480  505  1,985 
Total cost of closings 456,171  361,893  377,140  1,195,204 
Home closing gross profit 138,338  124,326  129,901  392,565 
Land closing gross profit —  645  35  680 
Total closing gross profit 138,338  124,971  129,936  393,245 
Home closing gross margin 23.3% 25.6% 25.6% 24.8%
Commissions and other sales costs 31,235  33,664  32,999  97,898 
General and administrative expenses 13,212  12,658  15,261  41,131 
Homebuilding segment operating income 93,891  78,649  81,676  254,216 
Financial services segment profit 3,101 
Corporate and unallocated costs (1) (18,067)
Interest expense — 
Other income, net 10,682 
Earnings before income taxes $ 249,932 

(1)Balance consists primarily of corporate costs and shared service functions such as finance and treasury that are not allocated to the homebuilding or financial services reporting segments.
Nine Months Ended September 30, 2025
West Central East Total
Home closing revenue $ 1,449,499  $ 1,336,048  $ 1,571,601  $ 4,357,148 
Land closing revenue 691  9,740  29,335  39,766 
Total closing revenue 1,450,190  1,345,788  1,600,936  4,396,914 
Cost of home closings 1,147,619  1,043,916  1,261,678  3,453,213 
Cost of land closings 142  10,439  26,547  37,128 
Total cost of closings 1,147,761  1,054,355  1,288,225  3,490,341 
Home closing gross profit 301,880  292,132  309,923  903,935 
Land closing gross profit/(loss) 549  (699) 2,788  2,638 
Total closing gross profit 302,429  291,433  312,711  906,573 
Home closing gross margin 20.8% 21.9% 19.7% 20.7%
Commissions and other sales costs 85,973  102,500  114,799  303,272 
General and administrative expenses 39,951  37,236  53,817  131,004 
Homebuilding segment operating income 176,505  151,697  144,095  472,297 
Financial services segment profit 13,654 
Corporate and unallocated costs (1) (32,963)
Interest expense — 
Other income, net 28,479 
Earnings before income taxes $ 481,467 
(1)Balance consists primarily of corporate costs and shared service functions such as finance and treasury that are not allocated to the homebuilding or financial services reporting segments.
Nine Months Ended September 30, 2024
West Central East Total
Home closing revenue $ 1,732,978  $ 1,496,889  $ 1,515,751  $ 4,745,618 
Land closing revenue —  2,125  2,845  4,970 
Total closing revenue 1,732,978  1,499,014  1,518,596  4,750,588 
Cost of home closings 1,331,248  1,096,051  1,108,290  3,535,589 
Cost of land closings —  1,480  2,803  4,283 
Total cost of closings 1,331,248  1,097,531  1,111,093  3,539,872 
Home closing gross profit 401,730  400,838  407,461  1,210,029 
Land closing gross profit —  645  42  687 
Total closing gross profit 401,730  401,483  407,503  1,210,716 
Home closing gross margin 23.2% 26.8% 26.9% 25.5%
Commissions and other sales costs 96,054  105,956  102,103  304,113 
General and administrative expenses 39,742  36,292  44,108  120,142 
Homebuilding segment operating income 265,934  259,235  261,292  786,461 
Financial services segment profit 7,248 
Corporate and unallocated costs (1) (42,972)
Interest expense — 
Other income, net 31,202 
Loss on early extinguishment of debt (631)
Earnings before income taxes $ 781,308 

(1)Balance consists primarily of corporate costs and shared service functions such as finance and treasury that are not allocated to the homebuilding or financial services reporting segments.

  At September 30, 2025
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 26,818  $ 61,919  $ 109,421  $ —  $ —  $ 198,158 
Real estate 1,830,250  1,775,866  2,534,571  —  —  6,140,687 
Investments in unconsolidated entities 20,358  24,562  —  —  794  45,714 
Other assets 53,659  (1) 336,898  (2) 85,949  (3) 2,547  894,898  (4) 1,373,951 
Total assets $ 1,931,085  $ 2,199,245  $ 2,729,941  $ 2,547  $ 895,692  $ 7,758,510 

(1)Balance consists primarily of cash and cash equivalents, prepaids and other assets, and property and equipment, net.
(2)Balance consists primarily of cash and cash equivalents, development reimbursements from local municipalities, prepaids and other assets, and goodwill (see Note 9).
(3)Balance consists primarily of cash and cash equivalents, goodwill (see Note 9), and prepaids and other assets.
(4)Balance consists primarily of cash and cash equivalents, deferred tax assets, net and prepaids and other assets.
  At December 31, 2024
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 30,179  $ 32,200  $ 130,026  $ —  $ —  $ 192,405 
Real estate 1,862,792  1,613,735  2,252,248  —  —  5,728,775 
Investments in unconsolidated entities 9,062  18,816  —  —  857  28,735 
Other assets 28,251  (1) 270,203  (2) 91,082  (3) 3,049  820,154  (4) 1,212,739 
Total assets $ 1,930,284  $ 1,934,954  $ 2,473,356  $ 3,049  $ 821,011  $ 7,162,654 
(1)Balance consists primarily of property and equipment, prepaid expenses and other assets, and development receivables.
(2)Balance consists primarily of development reimbursements from local municipalities, property and equipment, goodwill (see Note 9), and prepaid expenses and other assets.
(3)Balance consists primarily of cash and cash equivalents, goodwill (see Note 9), and prepaids and other assets.
(4)Balance consists primarily of cash and cash equivalents, deferred tax assets, net and prepaids and other assets.