v3.26.3
Business Segments
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting [Text Block]
The Company’s chief operating decision makers evaluate the Company’s performance in various ways, including: (1) the results of our individual homebuilding operating segments and the results of our financial services operations; (2) the results of our homebuilding reportable segments; and (3) our consolidated financial results.
In accordance with ASC 280, Segment Reporting (“ASC 280”), we have identified each homebuilding division as an operating segment and have elected to aggregate our operating segments into separate reportable segments as they share similar aggregation characteristics prescribed in ASC 280 in the following regards: (1) long-term economic characteristics; (2) historical and expected future long-term gross margin percentages; (3) housing products, production processes and methods of distribution; and (4) geographical proximity.
The homebuilding operating segments that comprise each of our reportable segments are as follows:
NorthernSouthern
Chicago, IllinoisFt. Myers/Naples, Florida
Cincinnati, OhioOrlando, Florida
Columbus, OhioSarasota, Florida
Indianapolis, IndianaTampa, Florida
Minneapolis/St. Paul, MinnesotaAustin, Texas
Detroit, MichiganDallas/Fort Worth, Texas
Houston, Texas
San Antonio, Texas
Charlotte, North Carolina
Raleigh, North Carolina
Nashville, Tennessee
The following table shows, by segment: revenue; cost of sales; selling, general and administrative expense; operating income; interest (income) expense; and income before income taxes for the three and nine months ended September 30, 2026 and 2025:
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2026202520262025
Revenue:
Northern homebuilding$483,302 $487,931 $1,312,848 $1,386,558 
Southern homebuilding560,023 609,211 1,650,875 1,786,299 
Financial services (a)
32,744 34,649 96,311 97,619 
Total revenue$1,076,069 $1,131,791 $3,060,034 $3,270,476 
Cost of Sales:
Northern homebuilding$386,153 $375,573 $1,046,500 $1,072,011 
Southern homebuilding465,439 486,132 1,350,967 1,388,977 
Financial services (a)
— — — — 
Total cost of sales (b)
$851,592 $861,705 $2,397,467 $2,460,988 
General and administrative expense:
Northern homebuilding$12,009 $10,579 $33,410 $30,538 
Southern homebuilding21,567 21,160 59,960 60,972 
Financial services (a)
16,715 14,681 46,532 41,342 
Segment general and administrative expense$50,291 $46,420 $139,902 $132,852 
Corporate and unallocated general and administrative expense26,277 24,346 68,050 64,234 
Total general and administrative expense$76,568 $70,766 $207,952 $197,086 
Selling expense:
Northern homebuilding$26,945 $24,411 $73,665 $70,035 
Southern homebuilding36,895 39,030 108,023 108,730 
Financial services (a)
— — — — 
Segment selling expense$63,840 $63,441 $181,688 $178,765 
Corporate and unallocated selling expense771 6082,286 1,725 
Total selling expense$64,611 $64,049 $183,974 $180,490 
Operating income:
Northern homebuilding$58,195 $77,368 $159,273 $213,974 
Southern homebuilding36,122 62,889 131,925 227,620 
Financial services (a)
16,029 19,968 49,779 56,277 
Segment operating income$110,346 $160,225 $340,977 $497,871 
 Corporate selling, general and administrative expense(27,048)(24,954)(70,336)(65,959)
Total operating income (a)(b)
$83,298 $135,271 $270,641 $431,912 
Interest (income) expense - net:
Northern homebuilding$(103)$(22)$(113)$(69)
Southern homebuilding(692)(192)(1,231)(194)
Financial services (a)
2,597 3,370 7,827 9,097 
Segment Interest (income) expense - net$1,802 $3,156 $6,483 $8,834 
Corporate Interest (income) expense - net(5,380)(7,704)(16,452)(22,956)
Total interest income, net of interest expense
$(3,578)$(4,548)$(9,969)$(14,122)
Income before income taxes$86,876 $139,819 $280,610 $446,034 
(a)Our financial services operational results should be viewed in connection with our homebuilding business as its operations originate loans and provide title services primarily for our homebuying customers, with the exception of an immaterial amount of mortgage refinancing.
(b)For the three and nine months ended September 30, 2026, total cost of sales and operating income were impacted by $4.7 million and $8.9 million in inventory charges taken during the period, respectively. $0.6 million and $1.0 million of these charges were attributable to the Northern homebuilding operating segment and $4.1 million and $7.9 million were attributable to the Southern homebuilding operating segment, respectively. This compares to $7.6 million in inventory charges taken during the quarter ended September 30, 2025. $1.3 million and $6.3 million of those charges were attributed to the Northern homebuilding operating segment and the Southern homebuilding operating segment, respectively. Additionally, for the three and nine months ended September 30, 2026, total cost of sales and operating income in the Southern homebuilding operating segment were impacted by $1.7 million and $7.2 million, respectively, for warranty charges in two of our Florida communities primarily relating to attic ventilation issues (See Note 6).
The following tables show total assets by segment at September 30, 2026 and December 31, 2025:
September 30, 2026
(In thousands)NorthernSouthernFinancial Services Segment
Total		Corporate and UnallocatedTotal
Deposits on real estate under option or contract$21,264 $57,180 $— $78,444 $— $78,444 
Inventory (a)
1,257,647 2,264,556 — 3,522,203 — 3,522,203 
Investments in joint venture arrangements— 87,167 — 87,167 — 87,167 
Other assets40,623 145,072 
(b)
366,416 552,111 620,240 1,172,351 
Total assets$1,319,534 $2,553,975 $366,416 $4,239,925 $620,240 $4,860,165 

December 31, 2025
(In thousands)NorthernSouthernFinancial Services Segment
Total		Corporate and UnallocatedTotal
Deposits on real estate under option or contract$14,319 $60,226 $— $74,545 $— $74,545 
Inventory (a)
1,164,647 2,144,748 — 3,309,395 — 3,309,395 
Investments in joint venture arrangements— 106,299 — 106,299 — 106,299 
Other assets35,087 122,223 
(b)
375,682 532,992 753,894 1,286,886 
Total assets$1,214,053 $2,433,496 $375,682 $4,023,231 $753,894 $4,777,125 
(a)Inventory includes single-family lots, land and land development costs; land held for sale; homes under construction; model homes and furnishings; community development district infrastructure; and consolidated inventory not owned.
(b)Includes development reimbursements from local municipalities