Annual report [Section 13 and 15(d), not S-K Item 405]

OPERATING AND REPORTING SEGMENTS

v3.25.4
OPERATING AND REPORTING SEGMENTS
 12 Months Ended
Dec. 31, 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:      Texas and Tennessee
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, “Business and Summary of Significant Accounting Policies.” 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):
  Year Ended December 31, 2025
  West Central East Total
Home closing revenue $ 1,829,432 $ 1,835,691  $ 2,098,474  $ 5,763,597 
Land closing revenue 7,962  22,656  30,220  60,838 
Total closing revenue 1,837,394  1,858,347  2,128,694  5,824,435 
Cost of home closings 1,461,313  1,451,785  1,714,307  4,627,405 
Cost of land closings 7,534  23,945  27,547  59,026 
Total cost of closings 1,468,847  1,475,730  1,741,854  4,686,431 
Home closing gross profit 368,119  383,906  384,167  1,136,192 
Land closing gross profit/(loss) 428  (1,289) 2,673  1,812 
Total closing gross profit 368,547  382,617  386,840  1,138,004 
Home closing gross margin 20.1% 20.9% 18.3% 19.7%
Commissions and other sales costs 110,408  140,114  153,883  404,405 
General and administrative expenses 50,944  49,924  70,713  171,581 
Homebuilding segment operating income 207,195  192,579  162,244  562,018 
Financial services segment profit 18,618 
Corporate and unallocated costs (1) (40,181)
Interest expense — 
Other income, net 44,145 
Net earnings before income taxes $ 584,600 
(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.
Year Ended December 31, 2024
West Central East Total
Home closing revenue $ 2,223,876  $ 2,015,621  $ 2,102,049  $ 6,341,546 
Land closing revenue —  6,017  16,309  $ 22,326 
Total closing revenue 2,223,876  2,021,638  2,118,358  6,363,872 
Cost of home closings 1,715,856  1,492,243  1,553,604  4,761,703 
Cost of land closings —  4,149  14,160  18,309 
Total cost of closings 1,715,856  1,496,392  1,567,764  4,780,012 
Home closing gross profit 508,020  523,378  548,445  1,579,843 
Land closing gross profit/(loss) —  1,868  2,149  4,017 
Total closing gross profit 508,020  525,246  550,594  1,583,860 
Home closing gross margin 22.8% 26.0% 26.1% 24.9%
Commissions and other sales costs 123,393  142,485  143,191  409,069 
General and administrative expenses 52,837  50,309  61,047  164,193 
Homebuilding segment operating income 331,790  332,452  346,356  1,010,598 
Financial services segment profit 14,410 
Corporate and unallocated costs (1) (66,663)
Interest expense — 
Other income, net 45,156 
Loss on early extinguishment of debt (631)
Net earnings before income taxes $ 1,002,870 

(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.
Year Ended December 31, 2023
West Central East Total
Home closing revenue $ 2,107,095  $ 2,006,333  $ 1,943,356  $ 6,056,784 
Land closing revenue 35,324  6,694  14,211  $ 56,229 
Total closing revenue 2,142,419  2,013,027  1,957,567  $ 6,113,013 
Cost of home closings 1,671,330  1,463,694  1,419,647  $ 4,554,671 
Cost of land closings 31,963  5,363  14,460  $ 51,786 
Total cost of closings 1,703,293  1,469,057  1,434,107  $ 4,606,457 
Home closing gross profit 435,765  542,639  523,709  1,502,113 
Land closing gross profit/(loss) 3,361  1,331  (249) 4,443 
Total closing gross profit 439,126  543,970  523,460  1,506,556 
Home closing gross margin 20.7% 27.0% 26.9% 24.8%
Commissions and other sales costs 115,020  143,985  125,906  384,911 
General and administrative expenses 58,627  50,021  57,842  166,490 
Homebuilding segment operating income 265,479  349,964  339,712  955,155 
Financial services segment profit 12,466 
Corporate and unallocated costs (1) (65,232)
Interest expense — 
Other income, net 47,948 
Loss on early extinguishment of debt (907)
Net earnings before income taxes $ 949,430 

(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 December 31, 2025
  West Central East Financial Services Corporate and
Unallocated		 Total
Deposits on real estate under option or contract $ 26,155  $ 61,686  $ 86,329  $ —  $ —  $ 174,170 
Real estate 1,782,502  1,685,355  2,519,263  —  —  5,987,120 
Investments in unconsolidated entities 28,631  27,734  —  —  903  57,268 
Other assets 37,118  (1) 309,583  (2) 78,724  (3) 2,342  975,962  (4) 1,403,729 
Total assets $ 1,874,406  $ 2,084,358  $ 2,684,316  $ 2,342  $ 976,865  $ 7,622,287 
 
(1)Balance consists primarily of property and equipment, net, prepaid expenses and other assets, and development receivables.
(2)Balance consists primarily of development reimbursements from local municipalities, property and equipment, net, goodwill (See Note 10), and prepaid expenses and other assets.
(3)Balance consists primarily of prepaid expenses and other assets, goodwill (see Note 10), and property and equipment, net.
(4)Balance consists primarily of cash and cash equivalents, prepaid expenses and other assets, and deferred tax 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, net, prepaid expenses and other assets, and development receivables.
(2)Balance consists primarily of development reimbursements from local municipalities, property and equipment, net, goodwill (see Note 10), and prepaid expenses and other assets.
(3)Balance consists primarily of cash and cash equivalents, goodwill (see Note 10), and prepaid expenses and other assets.
(4)Balance consists primarily of cash and cash equivalents, deferred tax assets, net, and prepaid expenses and other assets.