v3.26.1
OPERATING AND REPORTING SEGMENTS
 6 Months Ended
Jun. 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 June 30, 2026
WestCentralEastTotal
Home closing revenue$400,755 $446,726 $540,430 $1,387,911 
Land closing revenue4,598 5,512 2,610 12,720 
Total closing revenue405,353 452,238 543,040 1,400,631 
Cost of home closings322,395 361,381 450,522 1,134,298 
Cost of land closings4,256 5,479 2,461 12,196 
Total cost of closings326,651 366,860 452,983 1,146,494 
Home closing gross profit78,360 85,345 89,908 253,613 
Land closing gross profit342 33 149 524 
Total closing gross profit78,702 85,378 90,057 254,137 
Home closing gross margin19.6%19.1%16.6%18.3%
Commissions and other sales costs23,854 32,030 35,921 91,805 
General and administrative expenses11,117 11,831 16,476 39,424 
Homebuilding segment operating income43,731 41,517 37,660 122,908 
Financial services segment profit5,327 
Corporate and unallocated costs (1)(12,956)
Interest expense(2,187)
Other income, net7,472 
Earnings before income taxes$120,564 

(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 June 30, 2025
WestCentralEastTotal
Home closing revenue$549,205 $480,425 $586,079 $1,615,709 
Land closing revenue— 6,969 1,308 8,277 
Total closing revenue549,205 487,394 587,387 1,623,986 
Cost of home closings434,743 373,838 465,800 1,274,381 
Cost of land closings— 7,693 1,303 8,996 
Total cost of closings434,743 381,531 467,103 1,283,377 
Home closing gross profit114,462 106,587 120,279 341,328 
Land closing gross profit/(loss)— (724)5 (719)
Total closing gross profit114,462 105,863 120,284 340,609 
Home closing gross margin20.8%22.2%20.5%21.1%
Commissions and other sales costs32,184 35,654 40,992 108,830 
General and administrative expenses13,184 12,543 19,189 44,916 
Homebuilding segment operating income69,094 57,666 60,103 186,863 
Financial services segment profit5,611 
Corporate and unallocated costs (1)(10,267)
Interest expense— 
Other income, net10,853 
Earnings before income taxes$193,060 

(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.
Six Months Ended June 30, 2026
WestCentralEastTotal
Home closing revenue$736,938 $823,026 $935,769 $2,495,733 
Land closing revenue4,598 8,238 9,245 22,081 
Total closing revenue741,536 831,264 945,014 2,517,814 
Cost of home closings597,098 669,076 782,148 2,048,322 
Cost of land closings4,256 8,149 9,421 21,826 
Total cost of closings601,354 677,225 791,569 2,070,148 
Home closing gross profit139,840 153,950 153,621 447,411 
Land closing gross profit/(loss)342 89 (176)255 
Total closing gross profit140,182 154,039 153,445 447,666 
Home closing gross margin19.0%18.7%16.4%17.9%
Commissions and other sales costs45,225 60,507 65,545 171,277 
General and administrative expenses21,968 23,003 32,569 77,540 
Homebuilding segment operating income72,989 70,529 55,331 198,849 
Financial services segment profit8,820 
Corporate and unallocated costs (1)(26,242)
Interest expense(2,774)
Other income, net14,435 
Earnings before income taxes$193,088 
(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.
Six Months Ended June 30, 2025
WestCentralEastTotal
Home closing revenue$1,028,841 $892,962 $1,036,010 $2,957,813 
Land closing revenue691 7,899 15,108 23,698 
Total closing revenue1,029,532 900,861 1,051,118 2,981,511 
Cost of home closings809,408 695,646 815,781 2,320,835 
Cost of land closings142 8,028 13,082 21,252 
Total cost of closings809,550 703,674 828,863 2,342,087 
Home closing gross profit219,433 197,316 220,229 636,978 
Land closing gross profit/(loss)549 (129)2,026 2,446 
Total closing gross profit219,982 197,187 222,255 639,424 
Home closing gross margin21.3%22.1%21.3%21.5%
Commissions and other sales costs59,586 68,311 75,653 203,550 
General and administrative expenses26,637 25,382 37,281 89,300 
Homebuilding segment operating income133,759 103,494 109,321 346,574 
Financial services segment profit9,174 
Corporate and unallocated costs (1)(22,880)
Interest expense— 
Other income, net20,351 
Earnings before income taxes$353,219 
(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 June 30, 2026
WestCentralEastFinancial ServicesCorporate  and
Unallocated		Total
Deposits on real estate under option or contract$25,789 $57,550 $85,638 $— $— $168,977 
Real estate1,722,360 1,609,963 2,559,655 — — 5,891,978 
Investments in unconsolidated entities34,333 24,117 — — 973 59,423 
Other assets48,607 (1)318,738 (2)82,763 (3)2,444 982,003 (4)1,434,555 
Total assets$1,831,089 $2,010,368 $2,728,056 $2,444 $982,976 $7,554,933 

(1)Balance consists primarily of cash and cash equivalents, prepaid expenses and other assets, and development receivables.
(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 cash and cash equivalents.
(4)Balance consists primarily of cash and cash equivalents, prepaids and other assets, and deferred tax assets.
At December 31, 2025
WestCentralEastFinancial ServicesCorporate  and
Unallocated		Total
Deposits on real estate under option or contract$26,155 $61,686 $86,329 $— $— $174,170 
Real estate1,782,502 1,685,355 2,519,263 — — 5,987,120 
Investments in unconsolidated entities28,631 27,734 — — 903 57,268 
Other assets37,118 (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.