Business Segments

6 Months Ended

Jun. 30, 2025

Segment Reporting [Abstract]

Segment Reporting Disclosure [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:

Northern	Southern
Chicago, Illinois	Ft. Myers/Naples, Florida
Cincinnati, Ohio	Orlando, Florida
Columbus, Ohio	Sarasota, Florida
Indianapolis, Indiana	Tampa, Florida
Minneapolis/St. Paul, Minnesota	Austin, Texas
Detroit, Michigan	Dallas/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 six months ended June 30, 2025 and 2024:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2025		2024		2025		2024
Revenue:
Northern homebuilding	$	488,250	$	464,781	$	898,627	$	873,301
Southern homebuilding	642,892		614,238		1,177,088		1,225,459
Financial services (a)	31,450		30,762		62,970		57,724
Total revenue	$	1,162,592	$	1,109,781	$	2,138,685	$	2,156,484
Cost of Sales:
Northern homebuilding	$	376,979	$	357,830	$	696,438	$	677,541
Southern homebuilding	498,994		442,671		902,845		886,320
Financial services (a)	—		—		—		—
Total cost of sales	$	875,973	$	800,501	$	1,599,283	$	1,563,861
General and administrative expense:
Northern homebuilding	$	10,823	$	10,124	$	19,959	$	19,565
Southern homebuilding	21,004		18,061		39,812		35,631
Financial services (a)	13,908		12,879		26,661		24,654
Segment general and administrative expense	$	45,735	$	41,064	$	86,432	$	79,850
Corporate and unallocated general and administrative expense	21,512		22,930		39,888		40,228
Total general and administrative expense	$	67,247	$	63,994	$	126,320	$	120,078
Selling expense:
Northern homebuilding	$	24,434	$	24,006	$	45,624	$	45,313
Southern homebuilding	38,594		33,756		69,700		65,915
Financial services (a)	—		—		—		—
Segment selling expense	$	63,028	$	57,762	$	115,324	$	111,228
Corporate and unallocated selling expense	627		733		1,117		1,207
Total selling expense	$	63,655	$	58,495	$	116,441	$	112,435
Operating income:
Northern homebuilding	$	76,014	$	72,821	$	136,606	$	130,882
Southern homebuilding	84,300		119,750		164,731		237,593
Financial services (a)	17,542		17,883		36,309		33,070
Segment operating income	$	177,856	$	210,454	337,646		$	401,545
Corporate selling, general and administrative expense	(22,139)		(23,663)		(41,005)		(41,435)
Total operating income	$	155,717	$	186,791	$	296,641	$	360,110
Interest (income) expense - net:
Northern homebuilding	$	(24)	$	(56)	$	(46)	$	(136)
Southern homebuilding	(1)		—		(3)		(398)
Financial services (a)	3,066		3,483		5,727		6,358
Segment Interest (income) expense - net	$	3,041	$	3,427	5,678		$	5,824
Corporate Interest (income) expense - net	(7,418)		(10,775)		(15,252)		(20,092)
Total interest income, net of interest expense	$	(4,377)	$	(7,348)	$	(9,574)	$	(14,268)
Income before income taxes	$	160,094	$	194,139	$	306,215	$	374,378

(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.

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The following tables show total assets by segment at June 30, 2025 and December 31, 2024:

	June 30, 2025
(In thousands)	Northern		Southern			Financial Services		Segment Total		Corporate and Unallocated		Total
Deposits on real estate under option or contract	$	14,023	$	62,748		$	—	$	76,771	$	—	$	76,771
Inventory (a)	1,085,181		2,124,654			—		3,209,835		—		3,209,835
Investments in joint venture arrangements	—		67,466			—		67,466		—		67,466
Other assets	46,032		151,613		(b)	377,271		574,916		811,051		1,385,967
Total assets	$	1,145,236	$	2,406,481		$	377,271	$	3,928,988	$	811,051	$	4,740,039

	December 31, 2024
(In thousands)	Northern		Southern			Financial Services		Segment Total		Corporate and Unallocated		Total
Deposits on real estate under option or contract	$	12,209	$	57,274		$	—	$	69,483	$	—	$	69,483
Inventory (a)	1,041,713		1,980,666			—		3,022,379		—		3,022,379
Investments in joint venture arrangements	—		65,334			—		65,334		—		65,334
Other assets	37,721		132,316		(b)	370,558		540,595		852,005		1,392,600
Total assets	$	1,091,643	$	2,235,590		$	370,558	$	3,697,791	$	852,005	$	4,549,796

(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.