Income Taxes

9 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company’s income tax expense for the three and nine months ended June 30, 2025 was $325.0 million and $831.0 million, respectively, compared to $432.2 million and $1.1 billion in the prior year periods. The effective tax rate was 23.9% and 23.5% for the three and nine months ended June 30, 2025, respectively, compared to 24.0% and 23.4% in the prior year periods. The effective tax rates for all periods include an expense for state income taxes and tax benefits related to stock-based compensation and federal energy efficient home tax credits.

The Company’s deferred tax assets, net of deferred tax liabilities, were $81.3 million at June 30, 2025 compared to $182.4 million at September 30, 2024. The Company has a valuation allowance of $14.8 million and $14.9 million at June 30, 2025 and September 30, 2024, respectively, related to deferred tax assets for state net operating loss (NOL) and tax credit carryforwards that are expected to expire before being realized. The Company will continue to evaluate both the positive and negative evidence in determining the need for a valuation allowance with respect to the remaining state NOL and tax credit carryforwards. Any reversal of the valuation allowance in future periods will impact the Company’s effective tax rate.

On July 4, 2025, the One Big Beautiful Bill Act was signed into law (the new law). The new law terminates the energy efficient home tax credit for homes closing after June 30, 2026 and enacts certain other tax provisions that will impact the Company’s financial statements. The termination of the energy efficient home tax credit will result in a reduced tax benefit beginning in fiscal 2026. The Company recognized a tax benefit related to the energy efficient home tax credit of $70.4 million in fiscal 2024 and $30.8 million in the nine months ended June 30, 2025. The Company is evaluating the impact of other tax provisions within the new law; however, none of the other tax provisions are expected to have a significant impact on the Company’s financial statements.