Quarterly report [Sections 13 or 15(d)]

OPERATING AND REPORTING SEGMENTS

v3.26.1
OPERATING AND REPORTING SEGMENTS
 3 Months Ended
Mar. 31, 2026
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 Chief Operating Decision Maker ("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 closing 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.
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 March 31, 2026
West Central East Total
Home closing revenue $ 336,183  $ 376,300  $ 395,339  $ 1,107,822 
Land closing revenue —  2,726  6,635  9,361 
Total closing revenue 336,183  379,026  401,974  1,117,183 
Cost of home closings 274,703  307,695  331,626  914,024 
Cost of land closings —  2,670  6,960  9,630 
Total cost of closings 274,703  310,365  338,586  923,654 
Home closing gross profit 61,480  68,605  63,713  193,798 
Land closing gross (loss)/profit —  56  (325) (269)
Total closing gross profit 61,480  68,661  63,388  193,529 
Home closing gross margin 18.3% 18.2% 16.1% 17.5%
Commissions and other sales costs 21,371  28,477  29,624  79,472 
General and administrative expenses 10,851  11,172  16,093  38,116 
Homebuilding segment operating income 29,258  29,012  17,671  75,941 
Financial services segment profit 3,493 
Corporate and unallocated costs (1) (13,286)
Interest expense (587)
Other income, net 6,963 
Earnings before income taxes $ 72,524 

(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 March 31, 2025
West Central East Total
Home closing revenue $ 479,636  $ 412,537  $ 449,931  $ 1,342,104 
Land closing revenue 691  930  13,800  15,421 
Total closing revenue 480,327  413,467  463,731  1,357,525 
Cost of home closings $ 374,665  $ 321,808  $ 349,981  $ 1,046,454 
Cost of land closings 142  335  11,779  12,256 
Total cost of closings 374,807  322,143  361,760  1,058,710 
Home closing gross profit 104,971  90,729  99,950  295,650 
Land closing gross profit 549  595  2,021  3,165 
Total closing gross profit 105,520  91,324  101,971  298,815 
Home closing gross margin 21.9% 22.0% 22.2% 22.0%
Commissions and other sales costs 27,402  32,657  34,661  94,720 
General and administrative expenses 13,453  12,839  18,092  44,384 
Homebuilding segment operating income 64,665  45,828  49,218  159,711 
Financial services segment profit 3,563 
Corporate and unallocated costs (1) (12,613)
Interest expense — 
Other income, net 9,498 
Earnings before income taxes $ 160,159 

(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 March 31, 2026
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 26,558  $ 60,853  $ 78,825  $ —  $ —  $ 166,236 
Real estate 1,762,412  1,648,341  2,551,322  —  —  5,962,075 
Investments in unconsolidated entities 30,690  29,183  —  —  889  60,762 
Other assets 45,058  (1) 312,229  (2) 89,553  (3) 2,888  915,810  (4) 1,365,538 
Total assets $ 1,864,718  $ 2,050,606  $ 2,719,700  $ 2,888  $ 916,699  $ 7,554,611 

(1)Balance consists primarily of prepaid expenses and other assets and property and equipment, net.
(2)Balance consists primarily of development reimbursements from local municipalities, prepaid expenses and other assets, and cash and cash equivalents.
(3)Balance consists primarily of cash and cash equivalents, goodwill (see Note 9), and prepaid expenses and other assets.
(4)Balance consists primarily of cash and cash equivalents, prepaids and other assets, and deferred tax assets.
  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 9), and prepaid expenses and other assets.
(3)Balance consists primarily of prepaid expenses and other assets, goodwill (see Note 9), and property and equipment, net.
(4)Balance consists primarily of cash and cash equivalents, prepaids and other assets, and deferred tax assets.