v3.25.4
Segment Information, Nature of Operations, and Certain Concentrations
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information, Nature of Operations, and Certain Concentrations
2.    Segment Information, Nature of Operations, and Certain Concentrations
Our homebuilding operations primarily construct and sell single-family detached homes, townhomes and condominiums under three trade names: Ryan Homes, NVHomes and Heartland Homes. The Ryan Homes product is marketed primarily to first-time and first-time move-up buyers. Ryan Homes operates in thirty-seven metropolitan areas located in Maryland, Virginia, Washington, D.C., Delaware, West Virginia, Pennsylvania, Ohio, New York, New Jersey, Indiana, Illinois, North Carolina, South Carolina, Georgia, Florida, Tennessee and Kentucky. The NVHomes and Heartland Homes products are marketed primarily to move-up and luxury buyers. NVHomes operates in Delaware, New Jersey, and the Washington, D.C., Baltimore, MD and Philadelphia, PA metropolitan areas. Heartland Homes operates in the Pittsburgh, PA metropolitan area.
Our mortgage banking operations primarily operate in the markets where we have homebuilding operations, as substantially all of our loan closing activity is for our homebuilding customers. Our mortgage banking business generates revenues primarily from origination fees, gains on sales of loans, and title fees.
The following disclosure includes four homebuilding operating and reportable segments that aggregate geographically our homebuilding divisions, and the mortgage banking operations presented as a single reportable segment. The homebuilding reportable segments are comprised of divisions in the following geographic areas:
Mid Atlantic: Maryland, Virginia, West Virginia, Delaware and Washington, D.C.
North East: New Jersey and Eastern Pennsylvania
Mid East: New York, Ohio, Western Pennsylvania, Indiana and Illinois
South East: North Carolina, South Carolina, Tennessee, Florida, Georgia and Kentucky
The Company's Chief Operating Decision Maker ("CODM"), identified as the Chief Executive Officer, utilizes segment profit to evaluate the performance of the Company's homebuilding and mortgage banking operating segments against the annual plan to make resource allocation decisions.
Homebuilding segment profit includes all revenues and income generated from the sale of homes, less the cost of homes sold, selling, general and administrative expenses, and a corporate capital allocation charge. The corporate capital allocation charge is eliminated in consolidation and is based on the segment’s average net assets employed. The corporate capital allocation charged to the operating segment allows the CODM to determine whether the operating segment’s results are providing the desired rate of return after covering our cost of capital.
Assets not allocated to the operating segments are not included in either the operating segment's corporate capital allocation charge or the CODM's evaluation of the operating segment's performance. We record charges on contract land deposits when it is determined that it is probable that recovery of the deposit is impaired. For segment reporting purposes, impairments on contract land deposits are charged to the operating segment upon the termination of an LPA with the developer, or the restructuring of an LPA resulting in the forfeiture of the deposit.
Mortgage banking segment profit consists of revenues generated from mortgage financing, title insurance and closing services, less the costs of such services and general and administrative costs, including certain corporate overhead functions. Mortgage banking operations are not charged a corporate capital allocation charge.
In addition to the corporate capital allocation and contract land deposit impairments discussed above, the other reconciling items between segment profit and consolidated profit before taxes include unallocated corporate overhead (including all management incentive compensation), equity-based compensation expense, consolidation adjustments and external corporate interest income and expense. Our overhead functions, such as accounting, treasury and human resources are centrally performed and the costs are not allocated to our homebuilding operating segments. Consolidation adjustments consist of such items necessary to convert the reportable segments’ results, which are predominantly maintained on a cash basis, to a full accrual basis for external financial statement presentation purposes, and are not allocated to our operating segments. External corporate interest expense primarily consists of interest charges on our 3.00% Senior Notes due 2030 (the “Senior Notes”), which are not charged to the operating segments because the charges are included in the corporate capital allocation discussed above.

The following tables present certain segment financial data, with reconciliations to the amounts reported for the consolidated company, where applicable:
 Year Ended December 31,
 202520242023
Revenues:   
Homebuilding Mid Atlantic$4,372,010 $4,423,768 $4,189,957 
Homebuilding North East1,202,411 1,165,873 948,289 
Homebuilding Mid East1,875,046 1,861,735 1,723,514 
Homebuilding South East2,644,802 2,841,049 2,452,845 
Mortgage Banking229,690 232,054 203,597 
Consolidated revenues$10,323,959 $10,524,479 $9,518,202 

 Year Ended December 31,
 202520242023
Segment cost of sales:   
Homebuilding Mid Atlantic$(3,352,548)$(3,318,299)$(3,165,964)
Homebuilding North East(895,669)(862,223)(704,654)
Homebuilding Mid East(1,479,047)(1,447,286)(1,350,843)
Homebuilding South East(2,160,303)(2,206,202)(1,823,002)

 Year Ended December 31,
 202520242023
Segment selling, general & administrative expense:   
Homebuilding Mid Atlantic$(148,955)$(151,470)$(144,641)
Homebuilding North East(47,627)(46,132)(41,651)
Homebuilding Mid East(81,941)(80,254)(76,241)
Homebuilding South East(160,145)(142,865)(111,432)
Mortgage Banking(95,347)(96,630)(85,555)
 Year Ended December 31,
 202520242023
Corporate capital allocation charge:   
Homebuilding Mid Atlantic$(149,923)$(139,780)$(135,618)
Homebuilding North East(46,106)(40,614)(33,269)
Homebuilding Mid East(47,708)(43,989)(39,005)
Homebuilding South East(124,961)(106,514)(80,913)


 Year Ended December 31,
 202520242023
Other segment items, net:   
Homebuilding Mid Atlantic$2,015 $2,036 $1,589 
Homebuilding North East537 321 297 
Homebuilding Mid East640 628 440 
Homebuilding South East2,618 2,690 3,040 
Mortgage Banking (1)21,818 23,777 20,271 

(1)This item relates primarily to interest income received on mortgage loans closed and mortgage loans held for sale.
 Year Ended December 31,
 202520242023
Segment profit:   
Homebuilding Mid Atlantic$722,599 $816,255 $745,323 
Homebuilding North East213,546 217,225 169,012 
Homebuilding Mid East266,990 290,834 257,865 
Homebuilding South East202,011 388,158 440,538 
Mortgage Banking156,161 159,201 138,313 
Total segment profit1,561,307 1,871,673 1,751,051 
Reconciling items:   
Contract land deposit allowance adjustment (2)(72,276)6,228 3,279 
Equity-based compensation expense (3)(69,213)(73,925)(99,507)
Corporate capital allocation (4)368,698 330,897 288,805 
Unallocated corporate overhead(146,123)(156,470)(175,208)
Consolidation adjustments and other (5)62,872 26,424 44,619 
Corporate interest income84,158 137,530 142,083 
Corporate interest expense(27,491)(26,851)(26,749)
Reconciling items sub-total200,625 243,833 177,322 
Consolidated profit before taxes$1,761,932 $2,115,506 $1,928,373 


(2)    This item represents changes to the contract land deposit impairment allowance, which are not allocated to our reportable segments. See further discussion of contract land deposit impairment charges in Note 3.
(3)    This item represents compensation expense for all Option and RSU grants. See Note 10 for additional discussion of equity-based compensation.
(4)    This item represents the elimination of the corporate capital allocation charge included in the respective homebuilding segments. The corporate capital allocation charge is based on the segment's monthly average asset balance.
(5)    The consolidation adjustments and other in each period are primarily attributable to changes in units under construction year over year, and any significant changes in material costs, primarily lumber. Our reportable segments' results include the intercompany profits of our production facilities for home packages delivered to our homebuilding divisions. Costs related to homes not yet settled are reversed through the consolidation adjustment and recorded in inventory. These costs are subsequently recorded through the consolidation adjustment when the respective homes are settled.

 As of December 31,
 20252024
Assets:  
Homebuilding Mid Atlantic$1,185,864 $1,337,659 
Homebuilding North East374,313 368,300 
Homebuilding Mid East359,826 396,854 
Homebuilding South East971,162 914,318 
Mortgage Banking760,020 485,409 
Total segment assets3,651,185 3,502,540 
Reconciling items:  
Cash and cash equivalents1,883,844 2,561,339 
Deferred taxes143,666 142,192 
Intangible assets and goodwill48,927 49,368 
Operating lease right-of-use assets110,535 78,340 
Finance lease right-of-use assets39,080 37,638 
Contract land deposit allowance(110,958)(58,597)
Consolidation adjustments and other90,651 68,168 
Reconciling items sub-total2,205,745 2,878,448 
Consolidated assets$5,856,930 $6,380,988