Total Revenue

1% decline ( " " )

Total Revenue declined marginally as the minor drop of about 1% from $4,448.17 million to $4,403.76 million was driven by lower performance in key segments—namely, Homebuilding (–4%), Land Sales & Other (–13%), and Financial Services (–9%)—despite regional strength in the Northeast; this mixed performance mirrors previous period trends where underperformance in some geographic markets offset gains in others. " " " "

Homebuilding Revenue

4% decline ( " " )

Homebuilding revenue dropped from $4,488.00 million to $4,302.60 million, reflecting a decline in closings in key markets such as Texas and Florida, which had experienced significant drops in prior periods (e.g., Texas down roughly 21% and Florida down nearly 14% in Q1 2025) despite modest gains in regions like Midwest and West. " "

Land Sales & Other Revenue

13% decline ( " " )

Land Sales & Other revenue fell from $39.80 million to $34.62 million; this sharp decrease is attributed to the timing of parcel sales and strategic decisions regarding non-core assets, underscoring the inherent volatility of this revenue stream which can differ significantly between periods. " "

Financial Services Revenue

9% decline ( " " )

Financial Services revenue dropped from $111.70 million to $101.16 million, primarily driven by lower insurance agency commissions and margin pressures, which is consistent with the smaller declines observed in previous periods despite other components remaining relatively flat. " "

Northeast Revenue

35% increase ( " " )

Northeast revenue surged from $257.15 million to $347.44 million, largely due to robust market dynamics such as higher closing volumes and a 5% increase in average selling prices, reflecting improved consumer sentiment and stronger performance in this region compared to prior periods. " "

Florida Revenue

20% decline ( " " )

Florida revenue dropped from $1,294.78 million to $1,037.35 million, driven by a significant decrease in closings and a slight fall in average selling price—continuing the underperformance seen in previous periods where market headwinds like affordability challenges and cost pressures weighed on sales. " "

Texas Revenue

20% decline ( " " )

Texas revenue decreased from $583.30 million to $465.92 million, mainly due to a 22% drop in closings that was only marginally offset by a 1% increase in average selling price, mirroring the significant declines in this region observed in the prior period. " "

Midwest Revenue

6% increase ( " " )

Midwest revenue posted a modest gain of about 6%, reflecting steady improvements in closings and stable pricing dynamics that are indicative of a healthier market environment in this region compared to the more volatile markets. " "

West Revenue

10% increase ( " " )

West revenue increased by approximately 10%, driven by a 13% rise in closings and a 12% uptick in average selling price, demonstrating strong regional momentum that builds on favorable performance trends seen in previous assessments. " "

Closings

Q3 2025

no prior guidance

21,000 to 21,600 homes "

no prior guidance

Average Sales Price

Q3 2025

no prior guidance

$559,000 "

no prior guidance

Gross Margins

Q3 2025

26.0% to 26.5% "

26% to 26.5% "

no change

Community Count

Q3 2025

no prior guidance

3% to 5% higher compared to prior year "

no prior guidance

Closings

FY 2025

no prior guidance

29,000 homes "

no prior guidance

SG&A Expense

FY 2025

no prior guidance

9.5% to 9.7% of home sale revenues "

no prior guidance

Land Investment

FY 2025

$5.5 billion "

$5 billion "

lowered

Cash Flow Guidance

FY 2025

$1.4 billion "

$1.4 billion "

no change

Spec Inventory

FY 2025

40% to 45% "

40% to 45% "

no change

Tax Rate

FY 2025

no prior guidance

24.5% "

no prior guidance

Consumer demand trends and volatility

In Q1 2025 there was detailed discussion of seasonal selling, heightened day‐to‐day volatility due to macro uncertainty and mortgage rate shifts " " " , while Q4 2024 and Q3 2024 emphasized rate‐driven demand fluctuations and affordability issues. " " "

Q2 2025 continued to describe volatile consumer demand—citing variable absorption paces, mixed regional performance, and consistent operational adjustments to balance pace and price. " " "

Recurring theme with consistent emphasis on volatility; slight adjustments in absorption rates suggest muted consumer activity while overall uncertainty persists.

Land pipeline development and option lot strategy

Q1 2025 noted a strong land pipeline with 244,000 lots and a progressive move toward 70% optionality. " " " In Q4 2024 the pipeline stood at 235,000 lots with option mix rising to 56–69%. " Q3 2024 reiterated disciplined investments and a multi‐year target for 70% optionality. " " "

In Q2 2025 the pipeline expanded to approximately 250,000 lots with 60% under option, with disciplined land spending of $1.3B this quarter and ongoing re‐trading of deals. " " " "

Steady progression toward higher optionality and disciplined land investment, indicating a consistent long‐term strategy with incremental increases in pipeline size.

Margin management and pricing pressures

Q1 2025 reported gross margins of 27.5% with elevated incentives (8%) and tariff impacts around $5,000 per unit. " " " Q4 2024 and Q3 2024 similarly focused on balancing margins with competitive incentives and geographic mix challenges. " "

Q2 2025 reported a gross margin of 27% with even higher incentives at 8.7% of sales and ongoing adjustments for tariff impacts, reflecting persistent pricing pressure challenges. "

Consistent pressure on margins with disciplined pricing; slight downward pressure is observed due to higher incentive levels and tariff adjustments across periods.

Capital allocation and financial strength

Q1 2025 highlighted strong share repurchases, a robust cash position, and a debt‐to‐capital ratio of about 11.7%. " " " Q4 2024 and Q3 2024 similarly detailed strong cash flow generation and disciplined capital allocation. " "

Q2 2025 reaffirmed robust financial strength with $1.3B cash, a debt-to-capital ratio of 11.4%, and significant shareholder returns through buybacks. " "

Consistently strong financial management and disciplined capital allocation, demonstrating resilient balance sheet strength over multiple periods.

Tariff and input cost headwinds

Q1 2025 discussed tariffs increasing costs by approximately 1% of ASP (about $5,000 per home) and highlighted robust mitigation strategies. " " " Q4 2024 mentioned manageable input cost increases with low single-digit rises. "

Q2 2025 indicated an expectation of lower tariff impact in Q4, with ongoing monitoring of Canadian lumber tariffs and stable input cost levels for sticks, bricks, and labor. " " "

Ongoing management of tariffs and input costs with refined expectations, showing a continued proactive approach to mitigate these headwinds over time.

Regional market performance with an emphasis on Florida

Q1 2025 noted Florida’s performance was down 5% YoY with higher resale inventory. " Q4 2024 highlighted Florida’s significance (about 25% of business) plus margin challenges, while Q3 2024 was bullish despite weather concerns. " "

Q2 2025 showed positive trends in Florida with a 2% YoY increase in net new orders, strong performance in move-up and active adult segments, and inventory improvements. " " "

Gradual improvement in Florida’s performance as markets recover, with turnaround in buyer segments and clearing of excess inventory evident in the current period.

Operational disruptions and weather‐related delays

Q3 2024 detailed significant weather impacts from hurricanes (shutdowns, delays for power restoration and inspections) " and Q4 2024 briefly noted weather events. "

No mention of operational disruptions or weather-related delays was present in Q2 2025.

Reduced focus on weather disruptions in the current period, suggesting that recent weather‐related issues may have been resolved or are less impacting operations.

Rising land costs

Q1 2025 mentioned rising land costs impacting gross margins and prompting land spend adjustments. " Q4 2024 anticipated a 10% increase, and Q3 2024 reported high single-digit increases. " "

Q2 2025 addressed rising land costs by emphasizing strategies like re-trading deals and increasing land optionality, aiming to mitigate the impact of higher costs. " "

Persistent concern that is being managed through strategic measures; rising land costs remain a challenge but with improved risk mitigation tactics across periods.

Long‐term growth strategy and return on invested capital

Q1 2025 reaffirmed a long-term growth target of 5–10%, supported by a robust land pipeline and high ROE, while Q4 2024 and Q3 2024 emphasized disciplined investments and strong community growth to boost returns. " " "

Q2 2025 maintained the 5–10% growth guidance and reported a 23% return on equity, highlighting high-quality land positions and disciplined capital deployment. " "

Consistent strategy over time with stable long-term growth guidance and robust returns, reflecting disciplined capital allocation and a focus on quality investments.