Business Segments

12 Months Ended

Dec. 31, 2025

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 15. Business Segments

The application of segment reporting requires significant judgment in determining our operating segments. Operating segments are defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Company’s chief operating decision makers to evaluate performance, make operating decisions and determine how to allocate resources. The Company’s chief operating decision makers consist of the Chief Executive Officer and Chief Financial Officer. The Company’s chief operating decision makers evaluate the Company’s operating income 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.

The chief operating decision makers use operating income for each segment predominately in the annual budget and forecasting process. The chief operating decision makers consider budget-to-actual variances for profit measures on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment. The chief operating decisions maker also use segment operating income 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.

In accordance with ASC 280, Segment Reporting (“ASC 280”), we have identified each homebuilding division as an operating segment because each homebuilding division engages in business activities from which it earns revenue, primarily from the sale and construction of single-family attached and detached homes, acquisition and development of land, and the occasional sale of lots to third parties. Our financial services operations generate revenue primarily from the origination, sale and servicing of mortgage loans and title services primarily for purchasers of the Company’s homes and are included in our financial services reportable segment. Corporate is a non-operating segment that develops and implements strategic initiatives and supports our operating segments by centralizing key administrative functions such as accounting, finance, treasury, information technology, insurance and risk management, legal, marketing and human resources.

In accordance with the aggregation criteria defined in ASC 280, we have determined our reportable segments as follows: Northern homebuilding, Southern homebuilding, and financial services operations. The homebuilding operating segments included in each reportable segment have been aggregated because they share similar aggregation characteristics as 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. We may, however, be required to reclassify our reportable segments if markets that currently are being aggregated do not continue to share these aggregation characteristics.

The homebuilding operating segments that comprise each of our reportable segments are as follows:

Northern	Southern
Chicago, Illinois	Orlando, Florida
Cincinnati, Ohio	Sarasota, Florida
Columbus, Ohio	Tampa, Florida
Indianapolis, Indiana	Fort Myers/Naples, 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, operating income and interest (income) expense for 2025, 2024 and 2023, as well as the Company’s income before income taxes for such periods:

	Year Ended December 31,
(In thousands)	2025		2024		2023
Revenue:
Northern homebuilding	$	1,890,457	$	1,900,013	$	1,523,943
Southern homebuilding	2,401,861		2,488,451		2,415,730
Financial services (a)	125,463		116,206		93,829
Total revenue	$	4,417,781	$	4,504,670	$	4,033,502
Cost of Sales:
Northern homebuilding	$	1,475,438	$	1,480,326	$	1,228,949
Southern homebuilding	1,925,144		1,825,455		1,785,624
Financial services (a)	—		—		—
Total cost of sales (b)	$	3,400,582	$	3,305,781	$	3,014,573
General and administrative expense:
Northern homebuilding	$	41,103	$	42,908	$	36,827
Southern homebuilding	77,291		76,200		65,078
Financial services (a)	57,303		52,826		45,115
Segment general and administrative expense	$	175,697	$	171,934	$	147,020
Corporate and unallocated general and administrative expense	87,069		86,488		75,745
Total general and administrative expense	$	262,766	$	258,422	$	222,765
Selling expense:
Northern homebuilding	$	95,860	$	95,680	$	81,847
Southern homebuilding	149,457		136,198		124,860
Financial services (a)	—		—		—
Segment selling expense	$	245,317	$	231,878	$	206,707
Corporate and unallocated selling expense	2,563		2,495		2,235
Total selling expense:	$	247,880	$	234,373	$	208,942
Operating income (loss):
Northern homebuilding	$	278,056	$	281,099	$	176,320
Southern homebuilding	249,969		450,598		440,168
Financial services (a)	68,160		63,380		48,714
Segment operating income	$	596,185	$	795,077	$	665,202
Corporate selling, general and administrative expense	(89,632)		(88,983)		(77,980)
Total operating income (a) (b)	$	506,553	$	706,094	$	587,222
Interest (income) expense - net:
Northern homebuilding	$	(70)	$	(228)	$	(186)
Southern homebuilding	(3,076)		(2,554)		(1,703)
Financial services (a)	12,504		13,698		10,360
Segment Interest (income) expense - net	$	9,358	$	10,916	$	8,471
Corporate Interest (income) expense - net	(29,393)		(38,430)		(28,493)
Total interest (income) expense - net	$	(20,035)	$	(27,514)	$	(20,022)
Other income (c)	$	—	$	—	$	(33)
Income before income taxes	$	526,588	$	733,608	$	607,277

(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 year ended December 31, 2025, total cost of sales and operating income were reduced by $47.7 million in inventory impairment charges and write-offs of land deposits and pre-acquisition costs taken during the period. $6.7 million and $41.0 million of these charges and write-offs were attributable to the Northern homebuilding operating segment and the Southern homebuilding operating segment, respectively. Additionally, total cost of sales and operating income in the Southern homebuilding operating segment were reduced by $11.2 million for warranty charges in two of our Florida communities primarily relating to attic ventilation issues (See Note 8).

(c)Other income is comprised of the equity in (income) loss from joint venture arrangements.

The following table shows, by segment, depreciation and amortization expense for the years ended December 31, 2025, 2024 and 2023:

	Year Ended December 31,
(In thousands)	2025		2024		2023
Depreciation and amortization:
Northern homebuilding	$	3,723	$	3,787	$	3,673
Southern homebuilding	4,616		3,636		2,965
Financial services	1,177		1,130		810
Segment depreciation and amortization	$	9,516	$	8,553	$	7,448
Corporate	9,382		8,833		8,343
Total depreciation and amortization	$	18,898	$	17,386	$	15,791

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

	December 31, 2025
(In thousands)	Northern		Southern			Financial Services		Segment Total		Corporate and unallocated		Total
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 assets	35,087		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

	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.