Quarterly report [Sections 13 or 15(d)]

OPERATING AND REPORTING SEGMENTS

v3.26.3
OPERATING AND REPORTING SEGMENTS
 9 Months Ended
Sep. 30, 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 September 30, 2026
West Central East Total
Home closing revenue $ 341,836  $ 383,964  $ 436,552  $ 1,162,352 
Land closing revenue —  2,461  3,620  6,081 
Total closing revenue 341,836  386,425  440,172  1,168,433 
Cost of home closings 280,425  316,193  363,128  959,746 
Cost of land closings —  2,421  3,536  5,957 
Total cost of closings 280,425  318,614  366,664  965,703 
Home closing gross profit 61,411  67,771  73,424  202,606 
Land closing gross profit —  40  84  124 
Total closing gross profit 61,411  67,811  73,508  202,730 
Home closing gross margin 18.0% 17.7% 16.8% 17.4%
Commissions and other sales costs 20,970  29,651  31,820  82,441 
General and administrative expenses 10,451  11,320  15,987  37,758 
Homebuilding segment operating income 29,990  26,840  25,701  82,531 
Financial services segment profit 4,759 
Corporate and unallocated costs (1) (7,412)
Interest expense (1,352)
Other income, net 6,289 
Earnings before income taxes $ 84,815 

(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, 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 profit/(loss) —  (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.
Nine Months Ended September 30, 2026
West Central East Total
Home closing revenue $ 1,078,774  $ 1,206,990  $ 1,372,321  $ 3,658,085 
Land closing revenue 4,598  10,699  12,865  28,162 
Total closing revenue 1,083,372  1,217,689  1,385,186  3,686,247 
Cost of home closings 877,523  985,269  1,145,276  3,008,068 
Cost of land closings 4,256  10,570  12,957  27,783 
Total cost of closings 881,779  995,839  1,158,233  3,035,851 
Home closing gross profit 201,251  221,721  227,045  650,017 
Land closing gross profit/(loss) 342  129  (92) 379 
Total closing gross profit 201,593  221,850  226,953  650,396 
Home closing gross margin 18.7% 18.4% 16.5% 17.8%
Commissions and other sales costs 66,195  90,158  97,365  253,718 
General and administrative expenses 32,419  34,323  48,556  115,298 
Homebuilding segment operating income 102,979  97,369  81,032  281,380 
Financial services segment profit 13,579 
Corporate and unallocated costs (1) (33,654)
Interest expense (4,126)
Other income, net 20,724 
Earnings before income taxes $ 277,903 
(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.

At September 30, 2026
West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 23,174  $ 57,968  $ 89,635  $ —  $ —  $ 170,777 
Real estate 1,774,495  1,632,102  2,607,914  —  —  6,014,511 
Investments in unconsolidated entities 36,586  27,007  —  —  632  64,225 
Other assets 39,948  (1) 344,890  (2) 76,613  (3) 2,019  876,661  (4) 1,340,131 
Total assets $ 1,874,203  $ 2,061,967  $ 2,774,162  $ 2,019  $ 877,293  $ 7,589,644 

(1)Balance consists primarily of development receivables, property and equipment, net, and prepaid expenses and other assets.
(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 goodwill (see Note 9), prepaid expenses and other assets, and property and equipment, net.
(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.