Income Taxes

3 Months Ended

Mar. 31, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company is included in the Sekisui House US Holdings, LLC. (parent of SH Residential Holdings, LLC) consolidated tax group for U.S. federal income tax purposes. Although the Company’s results are included in the Sekisui House consolidated return, our income tax provision is calculated primarily as though we were a separate taxpayer. However, under certain circumstances, transactions between the Company and Sekisui House are assessed using consolidated tax return rules and any difference in liability between the separate company method is planned to be addressed in a future tax sharing arrangement.

Our overall effective income tax rates were 2.5% for the three months ended March 31, 2026 and 18.1% for the three months ended March 31, 2025. The rates for the three months ended March 31, 2026 and 2025 resulted in an income tax benefit (expense) of $0.2 million and $(16.9) million, respectively. The year-over-year decrease in our effective tax rate for the three months ended March 31, 2026 was primarily due to the impact the interest for uncertain tax positions and the change in the state rate are having on the relatively small tax benefit compared to the larger tax provision during the same period in the prior year.