v3.26.1
Segment Disclosures
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Disclosures Segment Disclosures
We disclose four homebuilding operating and reportable segments that aggregate geographically our homebuilding divisions, and we present our mortgage banking operations 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 before tax 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 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:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Revenues:
Homebuilding Mid Atlantic$879,532 $1,128,874 $1,617,558 $2,211,109 
Homebuilding North East280,823 308,929 521,307 597,755 
Homebuilding Mid East453,439 449,953 763,891 862,362 
Homebuilding South East665,977 660,511 1,211,894 1,227,486 
Mortgage Banking46,585 50,547 92,769 103,134 
Total consolidated revenues$2,326,356 $2,598,814 $4,207,419 $5,001,846 
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Segment cost of sales
Homebuilding Mid Atlantic$(695,463)$(864,008)$(1,269,462)$(1,685,134)
Homebuilding North East(219,176)(228,054)(405,778)(440,602)
Homebuilding Mid East(361,034)(355,647)(607,560)(683,737)
Homebuilding South East(547,790)(537,049)(998,978)(992,323)

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Segment selling, general & administrative expense:
Homebuilding Mid Atlantic$(38,681)$(37,172)$(76,794)$(74,728)
Homebuilding North East(11,062)(11,833)(21,607)(22,534)
Homebuilding Mid East(20,907)(20,734)(39,665)(40,430)
Homebuilding South East(37,882)(40,943)(74,742)(78,928)
Mortgage Banking
(25,094)(25,216)(47,420)(48,723)

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Corporate capital allocation charge:
Homebuilding Mid Atlantic$(40,089)$(37,003)$(75,150)$(74,146)
Homebuilding North East(11,965)(11,290)(22,943)(21,892)
Homebuilding Mid East(12,703)(12,033)(23,359)(23,240)
Homebuilding South East(32,039)(31,572)(61,804)(60,247)

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Other segment items, net
Homebuilding Mid Atlantic$251 $699 $707 $1,122 
Homebuilding North East313 212 403 348 
Homebuilding Mid East86 190 240 383 
Homebuilding South East(167)571 374 1,260 
Mortgage Banking (1)
4,978 5,494 9,051 10,120 
(1) This item relates primarily to interest income received on mortgage loans closed and mortgage loans held for sale.
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Segment profit
Homebuilding Mid Atlantic$105,550 $191,390 $196,859 $378,223 
Homebuilding North East38,933 57,964 71,382 113,075 
Homebuilding Mid East58,881 61,729 93,547 115,338 
Homebuilding South East48,099 51,518 76,744 97,248 
Mortgage Banking26,469 30,825 54,400 64,531 
Total segment profit
277,932 393,426 492,932 768,415 
Reconciling items:
Contract land deposit allowance adjustment (2)
(21,664)(13,153)(30,481)(21,270)
Equity-based compensation expense (3)
(19,293)(17,813)(32,580)(36,339)
Corporate capital allocation (4)
96,796 91,898 183,256 179,525 
Unallocated corporate overhead(36,673)(34,364)(92,673)(90,333)
Consolidation adjustments and other (5)
17,016 13,538 34,834 17,470 
Corporate interest income
11,215 20,276 28,574 45,475 
Corporate interest expense
(6,688)(6,675)(13,527)(13,806)
Reconciling items sub-total40,709 53,707 77,403 80,722 
Consolidated profit before taxes
$318,641 $447,133 $570,335 $849,137 
(2) This item represents changes to the contract land deposit impairment allowance, which are not allocated to the reportable segments. See further discussion of lot deposit impairment charges in Note 2.
(3) This item represents compensation expense for all Option and RSU grants.
(4) This item represents the elimination of the corporate capital allocation charge included in the respective homebuilding reportable 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 period over period, 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.


June 30, 2026December 31, 2025
Assets:
Homebuilding Mid Atlantic$1,502,074 $1,185,864 
Homebuilding North East414,917 374,313 
Homebuilding Mid East472,769 359,826 
Homebuilding South East1,133,382 971,162 
Mortgage Banking554,360 760,020 
Total segment assets4,077,502 3,651,185 
Reconciling items (1):
Cash and cash equivalents1,093,736 1,883,844 
Deferred taxes151,303 143,666 
Intangible assets48,927 48,927 
Operating lease right-of-use assets110,893 110,535 
Finance lease right-of-use assets35,924 39,080 
Contract land deposit allowance
(134,928)(110,958)
Consolidation adjustments and other87,263 90,651 
Reconciling items sub-total1,393,118 2,205,745 
Consolidated assets$5,470,620 $5,856,930