What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-01-28 compared with 2025-01-23 · 224 added, 235 removed, 499 unchanged (48% of the section changed)

2 unchanged sentences

It also should be read in conjunction with the disclosure under “Special Note Regarding Forward-Looking Statements” in Part I of this Form 10-K.

As the fourth quarter of fiscal 2024 began, we expected affordability to ease with the reduction in interest rates by the Fed, and we priced accordingly, however, mortgage rates climbed approximately 100 basis points instead of falling.

We saw sales stall at then-existing price and incentive levels, which required us to increase incentives, provide interest rate buy-downs and adjust prices to stimulate sales and avoid inventory build-up.

As a result, we have moderated our expectations for margins and sales in the first quarter of fiscal 2025, as the market adjusts and stabilizes.

A combination of wavering consumer confidence and elevated acquisition costs dampened customers’ desire and ability to transact.

In addition, inflation and interest rates have hindered the ability of the average family to accumulate a down payment or qualify for a mortgage.

Higher interest rates have curtailed the normal move up homebuyer as families expand and need more space.

However, strong employment often goes hand-in-hand with a strong housing market, and we expect broad-based demand to resume as rates stabilize or even moderate, releasing pent-up demand against short supply.

Tariffs and immigration have recently been added to the list of concerns confronting the homebuilding industry.

Our early evaluation suggests that steps we took in the past several years to move supply into the United States will reduce our exposure to the effect of increased tariffs.

The likely effects of reduced immigration and possible widespread deportations are more difficult to predict.

We feel confident that similar to the supply chain disruptions during the pandemic, we will be able to work with our local trades and national manufacturers to find the most effective solutions due to our Builder of Choice position with consistent high volume and a focus on production efficiencies.

We continue to believe in the two core parts of our operating strategy:

The first is our focus on matching production with sales pace.

Even though our execution in the fourth quarter was challenged by the unexpected change in the direction of interest rates, we were able to adjust incentives and pricing sufficiently to prevent our inventory of finished homes from significantly spiking.

We are currently focused on accelerating sales volume in order to correct the sales miss that we had in the fourth quarter.

Of course, the catch-up in sales pace comes at a cost, and that cost is impacting our results of operations and placing additional pressure on margin in the first quarter of 2025.

We have been able to solve the community count shortfalls of the past and ended the year with 1,447 communities, which was 15% higher than the prior year.

Our community count positions us to drive the volume we expect at lower absorption rates as we enter 2025.

We expect lower absorption rates to put less stress on our margin over time.

The other core part of our operating strategy is our migration from a company with a large inventory of undeveloped and partially developed land to a land-light model where we purchase land on a just-in-time basis.

In the fourth quarter of 2024, we had land purchases of $2.1 billion, but 80% of these were finished homesites on which vertical construction can soon begin.

This lowers our asset base and our risk profile and will continue to be an intense focus for us.

The last major step to complete our land-light strategy will be the spin-off of Millrose Properties, Inc., to which we expect to transfer approximately $5 billion to $6 billion of undeveloped and partially developed land, subject to option agreements to repurchase the land as it is developed into finished homesites, and approximately $1 billion in cash.

Because Millrose, unlike investor-financed land banking funds, is designed to be able to reinvest proceeds of homesite purchases in new land acquisition and development arrangements, we expect it to be a long-term, reliable source of land acquisition and development financing for Lennar and other homebuilders.

As previously disclosed in Millrose’s registration statement on Form S-11, in connection with the Millrose Spin-Off, we are coordinating a post-spin off transaction with Millrose, which has already been approved by the current Millrose Board of Directors and which we expect will be ratified by the independent Millrose Board of Directors that will be appointed immediately prior to the distribution, in connection with our pending acquisition of Rausch Coleman Homes, a residential homebuilder based in Fayetteville, Arkansas (“Rausch Coleman”).

The acquisition of Rausch Coleman will result in our expanding into new and desirable markets in Arkansas, Kansas, and Missouri, while growing our existing operations in Texas, Alabama, Oklahoma, and Florida.

In this pending acquisition, Lennar will acquire the work-in-process inventory and the operations of Rausch Coleman.

We intend to assign the purchase of most of Rausch Coleman’s land assets (the “Rausch Land Assets”) to Millrose.

Similar to the other land assets Lennar expects to contribute to Millrose in connection with the Millrose Spin-Off, Lennar expects to enter into options to purchase the developed Rausch Land Assets homesites in accordance with pre-set takedown schedules.

We are expecting the acquisition to be completed shortly following the distribution date of the Millrose Spin-Off.

We believe that the ongoing relationship with Millrose can facilitate other transactions in an asset-light manner as well.

Looking ahead, we will continue to drive production to meet the housing shortage we know persists across our markets.

We believe volume will continue to help reduce cost pressure and as interest rates normalize, pent-up demand will be released, and margins will recover.

We are well prepared with a strong and growing national footprint, an increasing community count and higher volume.

Our strong balance sheet and even stronger land banking relationships afford us flexibility and opportunity to execute thoughtful growth for our future.

We will focus on our manufacturing model and use our strategic land relationships to achieve higher returns on capital and equity.

We will continue to pursue our pure-play business model and reduce exposure to non-core assets.

We will be laser focused on our just-in-time homesite deliveries and the resulting asset-light balance sheet.

As we complete our asset light

transformation, we expect to continue to generate strong cash flow and to return capital to our stockholders through dividends and stock buybacks.

Against the backdrop, we anticipate 17,000 to 17,500 closings in the first quarter of fiscal 2025, with gross margins of 19% to 19.25%, and we expect to deliver between 86,000 and 88,000 homes in 2025, including the impact of the Rausch Coleman acquisition.

Lennar’s fourth quarter and year-end 2025 results reflect what is and continues to be a difficult housing market.

However, while our margin has been under pressure as we focus on bringing affordable housing to an affordability-constrained consumer base, the underlying demand is still strong, while supply is short.

During the past three years of difficult market conditions, we have maintained volume, grown our market share and re-engineered our operating platform for a better and more efficient future when the market normalizes.

We began the quarter with the expectation that declining interest rates were the start of a market recovery.

While mortgage rates drifted marginally lower in the fourth quarter, the customer response remained tepid, suggesting a combination of poor affordability and diminished consumer confidence continued to limit demand.

The threat of a government shutdown and ultimate actual shutdown in October and November further eroded already weak consumer confidence.

While traffic was consistent, customers were both hesitant and limited by what they could afford to purchase.

Clearly, inflation-driven affordability concerns rose to the center of the national conversation, shaping headlines and policy debates across the country.

Cost inflation has clearly had a significant impact on the lifestyle of the average American family.

At the same time, concerns about job security have become increasingly prominent as advancements in modern technology and artificial intelligence raise important questions about the future of employment for the American workforce.

On a positive note, the federal government has intensified its focus on the national housing crisis, with a strong likelihood of taking decisive action to enhance affordability.

Although the specifics of potential programs remain to be seen, it is clear that significant attention is being devoted to developing impactful initiatives, while avoiding unintended negative consequences.

This is the first time in decades that the federal government is actively recognizing the vital role that housing plays, not only in the broader national economy, but also in the well-being of American families.

We know that margins will remain under pressure in the first quarter of 2026 and sales and closings will be seasonally light.

However, we have a lower cost structure, efficient product offerings and a strong market position that we expect to accommodate pent-up demand as rates moderate and confidence ultimately returns.

Our strategy has positioned us for strong cash flow, higher returns on equity and capital, and stronger bottom line growth in the future.

Meanwhile, we will remain focused on volume and even-flow production.

Margins are usually lowest during the first quarter of a fiscal year, and we expect our margins in the first quarter of 2026 will be between 15% and 16%, depending on market conditions.

We expect that in the first quarter of fiscal 2026, we will sell between 18,000 and 19,000 homes and deliver between 17,000 and 18,000 homes at an average sales price of between $365,000 and $375,000.

We expect to deliver approximately 85,000 homes in the full 2026 fiscal year.

As we have driven growth, production and volume, we have created efficiencies and technology that will make us a better company in the future.

We have materially reduced our inventory, our construction costs, and our cycle times, and we have increased, and will continue to increase, our inventory turn.

We are determined to build more with less capital deployed so that as margins begin to grow, returns on capital and equity will grow faster.

We are also very enthusiastic about our technology initiatives.

They have made us, and are continuing to make us, faster and better in the way that we engage with our customers.

We are trying to be the best manufacturing model that we can be.

The programs that we have in place are helping us absorb the price reductions we are required to give to maintain desired volume levels.

They offer us the likelihood of substantially increasing profit levels when market conditions return to normal.

Results of Operations

Our net earnings attributable to Lennar were $3.9 billion, or $14.31 per diluted and basic share in 2024 and $3.9 billion, or $13.73 per diluted and basic share in 2023.

Excluding mark-to-market gains of $25.2 million on technology investments, one-time items of $90.0 million in our Multifamily segment and a $46.5 million one-time gain on the sale of a technology investment, net earnings attributable to Lennar in 2024 were $3.8 billion, or $13.86 per diluted share.

Excluding mark-to-market losses of $50.2 million on technology investments, a $65.0 million write-off of one of our non-public technology investments and other one-time items, net earnings attributable to Lennar in 2023 were $4.1 billion or $14.25 per diluted share.

Our net earnings attributable to Lennar were $2.1 billion, or $7.98 per diluted and basic share for the year ended November 30, 2025 and $3.9 billion, or $14.31 per diluted and basic share for the year ended November 30, 2024.

Excluding mark-to-market gains on technology investments of $130.2 million and one-time loss of $156.1 million on the Millrose Properties, Inc.

exchange offer ("Millrose Exchange Offer"), net earnings attributable to Lennar for the year ended November 30, 2025 were $2.1 billion, or $8.06 per diluted share.

Excluding mark-to-market gains of $25.2 million on technology investments, one-time items of $90.0 million in our Multifamily segment and a $46.5 million one-time gain on the sale of a technology investment, net earnings attributable to Lennar for the year ended November 30, 2024 were $3.8 billion, or $13.86 per diluted share.

Financial information relating to our operations was as follows:

Year ended November 30, 2024

For the Year Ended November 30, 2025

(In thousands) Homebuilding Financial

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Equity in earnings (losses) from unconsolidated entities 83,652 — (18,754) 13,327 — 78,225

Other income, net and other gains 178,842 — 1,800 45,224 — 225,866

Lennar Other unrealized gains from technology investments — — — 25,180 — 25,180

Other income (expense), net and other gains (losses), net (1) (50,458) — 12,683 (24,577) — (62,352)

Lennar Other gains from technology investments — — — 130,166 — 130,166

Operating earnings (loss) 3,015,252 612,466 (75,455) (19,099) — 3,533,164

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Earnings (loss) before income taxes $ 3,015,252 612,466 (75,455) (19,099) (719,301) 2,813,863

Year ended November 30, 2023

(1) Homebuilding other income (expense), net and other gains (losses), net included a one-time loss of $156.1 million on the Millrose Exchange Offer for the year ended November 30, 2025.

For the Year Ended November 30, 2024

(In thousands) Homebuilding Financial

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Total costs and expenses 28,809,464 532,079 521,455 79,495 — 29,942,493

Equity in losses from unconsolidated entities (3,886) — (52,073) (88,651) — (144,610)

Other income (expense), net and other gains (losses) 94,251 — 1,595 (65,329) — 30,517

Lennar Other unrealized losses from technology investments — — — (50,162) — (50,162)

Equity in earnings (losses) from unconsolidated entities 66,448 — 150,753 (53,102) — 164,099

Other income, net and other gains, net 178,842 — 1,800 45,224 — 225,866

Lennar Other gains from technology investments — — — 25,180 — 25,180

Operating earnings (loss) 5,342,252 577,184 42,635 (47,967) — 5,914,104

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Earnings (loss) before income taxes $ 5,342,252 577,184 42,635 (47,967) (729,196) 5,184,908

As previously announced, Lennar Corporation completed our acquisition of Rausch Coleman Homes ("Rausch") in February 2025.

Prior year information includes only stand-alone data for Lennar Corporation for the year ended November 30, 2024.

2025 versus 2024

Revenues from home sales increased 4% in the year ended November 30, 2024 to $33.8 billion from $32.5 billion in the year ended November 30, 2023.

Revenues were higher primarily due to a 10% increase in the number of home deliveries, partially offset by a 5% decrease in the average sales price of homes delivered.

Revenues from home sales decreased 5% in the year ended November 30, 2025 to $32.1 billion from $33.8 billion in the year ended November 30, 2024.

Revenues were lower primarily due to a 8% decrease in the average sales price of homes delivered, partially offset by a 3% increase in the number of home deliveries.

New home deliveries increased to 82,583 homes in the year ended November 30, 2025 from 80,210 homes in the year ended November 30, 2024.

The average sales price of homes delivered was $391,000 in the year ended November 30, 2025, compared to $423,000 in the year ended November 30, 2024.

The decrease in average sales price of homes delivered in the year ended November 30, 2024 compared to the same period last year was primarily due to pricing to market through an increased use of incentives and product mix.

The decrease in average sales price of homes delivered in the year ended November 30, 2025 compared to the same period last year was primarily due to continued weakness in the market and an increased use of sales incentives offered to homebuyers.

Gross margins on home sales were $5.7 billion, or 17.7%, in the year ended November 30, 2025, compared to $7.5 billion, or 22.3%, in the year ended November 30, 2024.

During the year ended November 30, 2024, gross margins decreased primarily because revenue per square foot decreased while land costs increased year over year, which was partially offset by a decrease in costs per square foot due to lower costs of materials as we continued to focus on construction cost savings.

During the year ended November 30, 2025, gross margins decreased primarily due to a lower revenue per square foot and higher land costs year over year, which were partially offset by a decrease in construction costs, reflecting our continued focus on cost-saving initiatives.

Selling, general and administrative expenses were $2.7 billion in the year ended November 30, 2025, compared to $2.5 billion in the year ended November 30, 2024.

As a percentage of revenues from home sales, selling, general and administrative expenses increased to 7.3% in the year ended November 30, 2024, from 6.9% in the year ended November 30, 2023, primarily due to an increase in professional expenses, insurance costs and digital marketing and advertising costs to generate more direct sales.

During the years ended November 30, 2024 and 2023, our homebuilding operating earnings included $164.8 million and $141.2 million of interest income, respectively, due to an increase in cash balances and higher interest rates.

During the year ended November 30, 2023, this was partially offset by an impairment of $36.8 million of an investment in a joint venture.

Operating earnings for our Financial Services segment were $574.2 million in the year ended November 30, 2024, compared to operating earnings of $507.1 million in the year ended November 30, 2023.The increase in operating earnings was primarily due to higher lock volume because of an increase in capture rate and deliveries.

There was also an increase in profitability from our title business due to higher volume and productivity as a result of continued implementation of technology initiatives.

Operating earnings for the Multifamily segment were $43.0 million in the year ended November 30, 2024, compared to operating loss of $50.6 million in the year ended November 30, 2023.

The increase in operating earnings was due to a $179.0 million one-time net gain from the sale of assets in our LMV Fund I, partially offset by a one-time $90.0 million write-down of

noncore assets as we focus on monetizing these assets.

As a percentage of revenues from home sales, selling, general and administrative expenses increased to 8.3% in the year ended November 30, 2025, from 7.3% in the year ended November 30, 2024, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses.

During the years ended November 30, 2025 and 2024, our homebuilding operating earnings included $54.2 million and $164.8 million of interest income, respectively.

The decrease in interest income was primarily due to lower cash balances year over year.

Operating earnings for our Financial Services segment were $609.9 million in the year ended November 30, 2025, compared to operating earnings of $574.2 million in the year ended November 30, 2024.

The increase in operating earnings was primarily due to higher profit per locked loan in the mortgage business.

Operating loss for the Multifamily segment was $75.0 million in the year ended November 30, 2025, compared to operating earnings of $43.0 million in the year ended November 30, 2024.

The operating earnings for the year ended November 30, 2024, included a $179.0 million one-time net gain from the sale of assets in our LMV Fund I, partially offset by a one-time $90.0 million write-down of noncore assets as we focus on monetizing these assets.

Operating loss for the Lennar Other segment was $19.1 million in the year ended November 30, 2025, compared to an operating loss of $46.9 million in the year ended November 30, 2024.

The Lennar Other operating loss for the year ended November 30, 2024 was primarily related to operating losses from certain strategic investments, which were partially offset by $25.2 million of mark-to-market gains on our publicly traded technology investments and a $46.5 million one-time gain on the sale of a technology investment.

Lennar Other operating loss for the year ended November 30, 2023 was primarily due to negative mark-to-market adjustments of $50.2 million on our publicly traded technology investments and a $65.0 million write-off of one of our non-public technology investments.

For the years ended November 30, 2024 and 2023, we had a tax provision of $1.2 billion in each period, which resulted in an overall effective income tax rate of 23.6% and 24.0%, respectively.

Our overall effective income tax rate was slightly lower than last year, primarily due to additional tax credits recognized during 2024.

The Lennar Other operating loss for the year ended November 30, 2025 was primarily related to operating losses from certain strategic investments, partially offset by mark-to-market gains of $130.2 million on our technology investments.

The Lennar Other operating loss for the year ended November 30, 2024 was primarily related to operating losses from certain strategic investments, partially offset by $25.2 million of mark-to-market gains on our technology companies and a $46.5 million one-time gain on the sale of a technology investment.

In November, we completed the Millrose Exchange Offer in a non-cash transaction, accepting 8,049,594 shares of Lennar Class A common stock in exchange for 33,298,754 shares of Millrose Class A common stock, which represented approximately 20% of Millrose's outstanding shares.

The exchange resulted in a $1.1 billion reduction in investments in unconsolidated entities and stockholders' equity as of November 30, 2025 and a one-time loss of $156.1 million in Homebuilding other income (expense), net, in our consolidated statements of operations and comprehensive income.

For the years ended November 30, 2025 and 2024, we had a tax provision of $705.6 million and $1.2 billion, which resulted in an overall effective income tax rate of 25.3% and 23.6%, respectively.

For both periods, our effective income tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits.

The increase in the effective tax rate for the year ended November 30, 2025 compared to the prior period was primarily due to the loss related to the Millrose Exchange Offer not being recognized for tax purposes.

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was enacted, introducing various changes to U.S.

federal tax law.

The Act did not have a material impact on our consolidated financial statements for the fiscal year ended November 30, 2025, and we are still evaluating the potential impact of the Act on future periods.

Homebuilding Segments

At November 30, 2025, our Homebuilding operating segments and Homebuilding Other consisted of homebuilding divisions located in:

Alabama, Florida, New Jersey and Pennsylvania

Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, South Carolina, Tennessee and Virginia

Florida, New Jersey and Pennsylvania

Alabama, Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, South Carolina, Tennessee

South Central:

Arkansas, Kansas, Missouri, Oklahoma and Texas

Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington

Urban divisions and other homebuilding related investments primarily in California, including FivePoint

Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC ("FivePoint").

The following tables set forth selected financial and operational information related to our homebuilding operations for the years indicated:

Selected Financial and Operational Data

Year Ended November 30, 2024

For the Year Ended November 30, 2025

Gross Margins Operating Earnings (Loss)

(Dollars in thousands) Sales of Homes

Revenues Costs of Sales

of Homes Gross Margin % Net Margins (Loss) on Sales of Homes (1) Gross Margins (Loss) on Sales of Land (2) Other Revenues Equity in Earnings (Losses) from Unconsolidated Entities Other Income (Expense), net Operating Earnings

Revenue Costs of Sales

of Homes Gross Margin (Loss) % Net Margins (Losses) on Sales of Homes (1) Gross Margins (Losses) on Sales of Land (2) Other Revenues Equity in Earnings (Losses) from Unconsolidated Entities Other Income (Expense), net Operating Earnings

East $ 6,896,901 5,532,524 19.8 % $ 712,973 (3,309) 12,840 33,974 (52,647) 703,831

Central 7,747,913 6,375,231 17.7 % 668,738 (12,047) 5,289 176 5,899 668,055

Texas 4,763,692 3,661,661 23.1 % 731,095 10,626 2,355 (17) 9,663 753,722

South Central 5,579,035 4,611,244 17.3 % 505,901 (9,361) 2,854 (17) (6,263) 493,114

West 11,857,853 9,884,102 16.6 % 1,142,752 (27,731) 6,938 2,004 (7,706) 1,116,257

Other (3) 15,543 20,504 (31.9) % (35,061) — 11,282 47,515 10,259 33,995

Totals $ 33,778,149 26,255,353 22.3 % $ 5,042,487 19,582 34,893 66,448 178,842 5,342,252

Year Ended November 30, 2023

Total $ 32,097,245 26,423,605 17.7 % $ 2,995,303 (52,448) 39,203 83,652 (50,458) 3,015,252

For the Year Ended November 30, 2024

Gross Margins Operating Earnings (Loss)

(Dollars in thousands) Sales of Homes

Revenues Costs of Sales

Revenue Costs of Sales

of Homes Gross Margin (Loss)% Net Margins (Losses) on Sales of Homes (1) Gross Margins (Losses) on Sales of Land (2) Other Revenues Equity in Earnings (Losses) from Unconsolidated Entities Other Income, net Operating Earnings

East $ 8,199,004 6,031,924 26.4 % $ 1,476,950 10,824 11,264 31,039 69,843 1,599,920

Central 7,855,609 6,173,676 21.4 % 1,043,486 3,012 3,636 1,727 31,007 1,082,868

Texas 4,692,906 3,593,759 23.4 % 770,817 474 6,823 (5) 10,518 788,627

South Central 4,763,692 3,661,661 23.1 % 731,064 10,626 2,355 (17) 9,663 753,691

West 12,938,104 10,358,652 19.9 % 1,817,049 (4,880) 5,958 5,362 34,381 1,857,870

Other (3) 21,740 29,440 (35.4) % (26,062) — 11,680 28,337 33,948 47,903

$ 32,459,129 24,900,470 23.3 % $ 5,327,626 17,821 91,895 (3,886) 94,251 5,527,707

(1) Net margins (loss) on sales of homes include selling, general and administrative expenses.

(2) For the years ended November 30, 2024 and 2023, gross margins (loss) on sales of land included $5.1 million and $19.9 million of deposit write-offs as we walked away from 6,300 and 10,600 controlled homesites, respectively.

(3) Negative gross and net margins were due to period costs and/or impairments in Urban divisions that impact costs of homes sold without sufficient sales of homes revenue to offset those costs.

Total $ 33,778,149 26,255,353 22.3 % $ 5,042,487 19,582 34,893 66,448 178,842 5,342,252

(1) Net margins (losses) on sales of homes include selling, general and administrative expenses.

(2) For the years ended November 30, 2025 and 2024, gross margins (losses) on sales of land included $23.1 million and $5.1 million of deposit write-offs as we walked away from 15,500 and 6,300 controlled homesites, respectively.

(3) Negative gross and net margins were due to period costs in Urban divisions that impact costs of homes sold without sufficient sales of homes revenue to offset those costs.

Summary of Homebuilding Data

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Central 20,492 19,856 7,747,913 7,855,609 378,000 396,000

Texas 18,844 16,591 4,763,692 4,692,906 253,000 283,000

South Central 23,416 18,844 5,579,035 4,763,692 238,000 253,000

West 19,713 20,914 11,857,853 12,938,104 602,000 619,000

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Total 82,583 80,210 $ 32,307,991 33,964,575 $ 391,000 423,000

Of the total homes delivered listed above, 383 homes with a dollar value of $186.4 million and an average sales price of $487,000 represent home deliveries from unconsolidated entities for the year ended November 30, 2024, compared to 340 home deliveries with a dollar value of $156.2 million and an average sales price of $459,000 for the year ended November 30, 2023.

Of the total homes delivered listed above, 442 homes with a dollar value of $210.7 million and an average sales price of $477,000 represent homes from unconsolidated entities for the year ended November 30, 2025, compared to 383 homes with a dollar value of $186.4 million and an average sales price of $487,000 for the year ended November 30, 2024.

Sales Incentives (1):

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as a % of Revenues

Years Ended November 30,

For the Years Ended November 30,

2025 2024 2025 2024

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Central 51,200 42,000 11.9 % 9.6 %

Texas 52,900 56,000 17.3 % 16.5 %

South Central 58,600 52,900 19.7 % 17.3 %

West 67,600 47,600 10.1 % 7.1 %

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Total $ 62,700 48,800 13.8 % 10.3 %

(1) Sales incentives relate to home deliveries during the period, excluding deliveries by unconsolidated entities.

(1) Sales incentives relate to homes delivered during the years ended November 30, 2025 and 2024, excluding homes delivered by unconsolidated entities.

New Orders (2):

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Central 469 430 20,601 19,844 7,637,454 7,813,702 371,000 394,000

Texas 285 246 19,019 15,789 4,804,674 4,331,763 253,000 274,000

South Central 417 285 23,675 19,019 5,531,658 4,804,674 234,000 253,000

West 441 409 19,294 20,668 11,382,566 12,874,054 590,000 623,000

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Total 1,708 1,447 83,978 76,951 $ 31,950,821 32,678,481 $ 380,000 425,000

Of the total new orders listed above, 315 homes with a dollar value of $175.7 million and an average sales price of $558,000 represent new orders from unconsolidated entities for the year ended November 30, 2024, compared to 321 new orders with a dollar value of $152.9 million and an average sales price of $476,000 for the year ended November 30, 2023.

Of the total new orders listed above, 442 homes with a dollar value of $233.0 million and an average sales price of $527,000 represent homes from unconsolidated entities for the year ended November 30, 2025, compared to 315 homes with a dollar value of $175.7 million and an average sales price of $558,000 for the year ended November 30, 2024.

(2) New orders represent the number of new sales contracts executed with homebuyers, net of cancellations, during the years ended November 30, 2025 and 2024.

We experienced cancellation rates in our Homebuilding segments and Homebuilding other as follows:

Years Ended November 30,

For the Years Ended November 30,

East 14 % 17 %

Central 12 % 11 %

Texas 17 % 20 %

South Central 16 % 17 %

West 13 % 12 %

6 unchanged sentences

Central 3,511 3,221 1,288,455 1,355,845 367,000 421,000

Texas 2,070 1,895 525,299 475,941 254,000 251,000

South Central 3,045 2,070 655,388 525,299 215,000 254,000

West 2,597 3,005 1,547,444 2,016,669 596,000 671,000

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Of the total homes in backlog listed above, 79 homes with a backlog dollar value of $86.0 million and an average sales price of $1,089,000 represent the backlog from unconsolidated entities at November 30, 2025, compared to 79 homes with a backlog dollar value of $63.8 million and an average sales price of $807,000 at November 30, 2024.

(3) During the year ended November 30, 2025, backlog includes 908 acquired homes of which 181,716 and 11 homes were in the Central,

South Central and West homebuilding segments, respectively.

Backlog represents the number of homes under sales contracts.

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In some instances, purchasers are permitted to cancel sales if they fail to qualify for financing or under certain other circumstances.

Various state and federal laws and regulations may sometimes give purchasers a right to cancel contracts homes in backlog.

We do not recognize revenue on homes under sales contracts until the sales are closed and title passes to the new homeowners.

Homebuilding East:

Revenues from home sales decreased in 2024 compared to 2023, primarily due to a decrease in the average sales price of homes delivered in all the states in the segment except in New Jersey, which was partially offset by an increase in the number of home deliveries in all the states in the segment.

The decrease in the average sales price of homes delivered in Alabama, Florida and Pennsylvania was primarily due to pricing to market and product mix.

The increase in the average sales price of homes delivered in New Jersey was primarily due to product mix.

The increase in the number of home deliveries in Alabama, Florida, New Jersey and Pennsylvania was primarily due to an increase in the number of active communities.

For the year ended November 30, 2024, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot.

In addition, land costs increased year over year.

Overall, this resulted in a decrease in gross margin percentage of home deliveries.

Revenues from home sales decreased in 2025 compared to 2024, primarily due to decreases in the number of homes delivered and the average sales price of homes delivered in all the states of the segment except in New Jersey.

The overall decrease in the number of homes delivered was primarily due to a decrease in the number of homes delivered per active community due to the timing of homes delivered.

The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of sales incentives.

For the year ended November 30, 2025, gross margin percentage of homes delivered decreased due to lower revenue per square foot and higher land costs year over year, partially offset by a decrease in construction costs.

Homebuilding Central:

Revenues from home sales increased in 2024 compared to 2023, primarily due to an increase in the number of home deliveries in all the states in the segment, which was partially offset by a decrease in the average sales price of homes delivered in all the states in the segment except in Illinois and Maryland.

The increase in the number of home deliveries in Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, South Carolina, Tennessee and Virginia was primarily due to an increase in the number of active communities.

The decrease in the average sales price of homes delivered in Georgia, Indiana, Minnesota, North Carolina, South Carolina, Tennessee and Virginia was primarily due to pricing to market and product mix.

The increase in the average sales price of homes delivered in Illinois and Maryland was primarily due to product mix.

For the year ended November 30, 2024, a decrease in revenues per square foot was more than offset by a decrease in costs per square foot.

In addition, land costs increased year over year.

Overall, this resulted in a decrease in gross margin percentage of home deliveries.

Homebuilding Texas:

Revenues from home sales increased in 2024 compared to 2023, primarily due to an increase in the number of home deliveries, which was partially offset by a decrease in the average sales price of homes delivered.

The increase in the number of home deliveries was primarily due to an increase in the number of active communities.

The decrease in the average sales price of homes delivered was primarily due to pricing to market.

For the year ended November 30, 2024, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot.

In addition, land costs increased year over year.

Overall, the gross margin percentage of home deliveries decreased year over year.

Revenues from home sales decreased in 2025 compared to 2024, primarily due to a decrease in the average sales price of homes delivered in Alabama, Illinois, Maryland, North Carolina and Virginia, partially offset by an increase in the number of homes delivered in Alabama, Illinois, South Carolina and Virginia.

The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of sales incentives.

The overall increase in the number of homes delivered was primarily due to an increase in the number of active communities.

Homebuilding South Central:

Revenues from home sales increased in 2025 compared to 2024, primarily due to the Rausch acquisition which resulted in an increase in the number of homes delivered in all states in the segment, partially offset by a decrease in the average sales price of homes delivered in Texas.

The overall increase in the number of homes delivered was primarily due to an increase in the number of active communities including communities acquired from Rausch.

The decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of sales incentives.

Homebuilding West:

Revenues from home sales increased in 2024 compared to 2023, primarily due to an increase in the number of home deliveries in all the states in the segment except in Colorado, which was partially offset by a decrease in the average sales price of homes delivered in Arizona, Colorado and Washington.

The increase in the number of home deliveries in Arizona, California, Idaho, Nevada, Oregon, Utah and Washington was primarily due to an increase in the number

of active communities.

The decrease in the number of home deliveries in Colorado was primarily due to a decrease in the number of active communities due to the timing of opening and closing of communities.

The decrease in the average sales price of homes delivered in Arizona, Colorado and Washington was primarily due to pricing to market through an increased use of incentives and product mix.

The increase in the average sales price of homes delivered in California, Idaho, Nevada, Oregon and Utah was primarily due to product mix.

For the year ended November 30, 2024, an increase in revenues per square foot and a decrease in costs per square foot resulted in an increase in gross margin percentage of home deliveries.

In addition, land costs increased year over year.

Revenues from home sales decreased in 2025 compared to 2024, primarily due to decreases in the number of homes delivered in all states in the segment except in Idaho and Utah and the average sales price of homes delivered in all the states in the segment except in Idaho.

The overall decrease in the number of homes delivered was primarily

due to a decrease in the number of deliveries per active community due to the timing of homes delivered.

The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of sales incentives.

Financial Services Segment

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The following table sets forth selected financial and operational information related to the residential mortgage and title activities of our Financial Services segment:

Years Ended November 30,

For the Years Ended November 30,

(Dollars in thousands) 2025 2024

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LMF Commercial originated commercial loans as follows:

Years Ended November 30,

For the Years Ended November 30,

(Dollars in thousands) 2025 2024

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Multifamily Segment

We have been actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties.

We have been actively involved, primarily through unconsolidated entities, in the development and construction of multifamily rental properties.

Our Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S.

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Lennar's net investment in Multifamily $ 781,902 1,116,295

Number of operating properties/investments sold through joint ventures 34 —

Number of operating properties/investments sold through joint ventures/wholly-owned 11 34

Lennar's share of gains on the sale of operating properties/investments $ 8,130 219,148

The Multifamily segment manages and has investments in Multifamily Venture Fund I (the "LMV I") and Multifamily Venture Fund II LP (the "LMV II"), which are long-term multifamily development investment vehicles involved in the

development, construction and ownership of class-A multifamily rental properties.

Details of each as of and during the year ended November 30, 2024 are included below:

November 30, 2024

Details of LMV I and LMV II and the Institutional JV are included below:

At November 30, 2025

(In thousands) LMV I LMV II

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Lennar's remaining commitments (1) 3,635 9,508

Distributions to Lennar 199,519 12,820

Distributions to Lennar during the year ended November 30, 2025 19,690 770

(1) While there are remaining commitments with LMV I and LMV II, there are no plans for additional capital calls.

As of November 30, 2023, there were 38 rental operation projects in LMV I.

During the second half of fiscal year 2024, the LMV I partners decided to liquidate and sell all of the individual rental operation projects of LMV I as the fund has come to the end of its contractual life.

In the second half of 2024, 33 LMV I rental operation projects were sold to various third party buyers.

We recognized a net gain of $211.5 million on the sale of these rental operation projects which was recorded as equity in earnings (losses) in the condensed consolidated statement of operations.

As a result, we received net cash distributions of $199.5 million.

During the second half of fiscal 2024, the LMV I partners decided to liquidate and sell all of its 38 rental operation projects of LMV I as the fund has come to the end of its contractual life.

During the year ended November 30, 2024, 33 LMV I rental operation projects were sold to various third-party buyers.

During the year ended November 30, 2025, two additional LMV I rental operation projects were sold to third-party buyers.

In December 2025, we sold a majority interest in Quarterra Group, Inc ("Quarterra"), a subsidiary of our Multifamily segment, to TPG Real Estate (“TPG”), thus retaining a minority interest.

TPG’s acquisition of Quarterra and its $1.0 billion strategic commitment, combined with Lennar’s insights, will accelerate Quarterra’s development pipeline and strengthen its platform for delivering thoughtfully designed rental communities in high-growth markets.

The sale of Quarterra to TPG did not have a material impact on our consolidated financial statements.

Our Multifamily segment had equity investments in unconsolidated entities.

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Lennar Other Segment

Our Lennar Other segment includes fund investments we retained subsequent to our sale of the Rialto investment and asset management platform as well as strategic investments in technology companies that are looking to improve the homebuilding and financial services industries to better serve homebuyers and homeowners and increase efficiencies.

Our Lennar Other segment includes fund investments we retained subsequent to our sale of the Rialto investment and asset management platform as well as strategic investments in various types of technology and other companies that are looking to improve the homebuilding and financial services industries to better serve homebuyers and homeowners and increase efficiencies.

As of November 30, 2025 and 2024, our balance sheet had $897.6 million and $894.9 million, respectively, of assets in the Lennar Other segment, which included investments in unconsolidated entities of $368.0 million and $379.4 million, respectively.

We have investments in Blend Labs, Inc.

("Blend Labs"), Hippo Holdings, Inc.

("Hippo"), Opendoor Technologies, Inc.

("Opendoor"), SmartRent, Inc.

("SmartRent"), Sonder Holdings, Inc.

("Sonder") and Sunnova Energy International, Inc.

("Sunnova"), which are held at market and the carrying value of which will therefore change depending on the fair value of our shareholdings in those entities on the last day of each quarter.

We have investments in several publicly traded technology companies, which are held at market and the carrying value of which will therefore change depending on the value of our shareholdings in those entities on the last day of each quarter.

All the investments are accounted for as investments in equity securities which are held at fair value and the changes in fair values are recognized through earnings.

The following is a detail of Lennar Other unrealized gains (losses) from mark-to-market adjustments on our technology investments:

Years Ended November 30,

(In thousands) 2024 2023

Blend Labs (BLND) $ 9,474 (130)

Hippo (HIPO) 73,243 (19,210)

Opendoor (OPEN) (12,587) 21,762

SmartRent (SMRT) (11,609) 5,914

Sonder (SOND) 15 (700)

Sunnova (NOVA) (33,356) (57,798)

Lennar Other unrealized gains (losses) from technology investments $ 25,180 (50,162)

During the year ended November 30, 2025 and 2024, we recorded mark-to-market gains of $130.2 million and $25.2 million on our publicly traded technology investments and other assets, respectively.

At November 30, 2025 and 2024, Lennar Other owned CMBS with carrying values of $39.1 million and $40.6 million, respectively.

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At November 30, 2025, we had cash and cash equivalents and restricted cash related to our homebuilding, financial services, multifamily and other operations of $3.8 billion, compared to $5.0 billion at November 30, 2024.

We finance all of our activities including homebuilding, financial services, multifamily, other and general operating needs primarily with cash generated from our operations, debt issuances and investor funds as well as cash borrowed under our warehouse lines of credit and our unsecured revolving credit facility (the "Credit Facility").

At November 30, 2024, we had $4.7 billion of Homebuilding cash and cash equivalents and no outstanding borrowings under our $2.9 billion Credit Facility, thereby approximately $7.6 billion of available capacity.

We finance all of our activities including homebuilding, financial services, multifamily, other and general operating needs primarily with cash generated from our operations, debt issuances and investor funds as well as cash borrowed under our warehouse lines of credit, Credit Facility and Delayed Draw Term Loan Facility (both defined below).

At November 30, 2025, we had $3.4 billion of Homebuilding cash and cash equivalents and ended the year of 2025 with total liquidity of $6.6 billion.

Operating Cash Flow Activities

During 2024 and 2023, cash provided by operating activities totaled $2.4 billion and $5.2 billion, respectively.

During 2025 and 2024, cash provided by operating activities totaled $217 million and $2.4 billion, respectively.

During 2025, cash provided by operating activities was positively impacted by our net earnings and a decrease in loans held-for-sale of $124 million primarily related to the sale of loans originated by our Financial Services segment.

This was offset by (1) an increase in inventories due to our growth strategy, strategic land purchases and construction costs of $151 million;

(2) an increase in deposits and pre-acquisition costs on real estate of $1.5 billion as we increased the percentage of controlled homesites primarily as a result of option contracts with Millrose;

(3) an increase in other assets of $186 million;

and (4) a decrease in accounts payable and other liabilities of $691 million.

During 2024, cash provided by operating activities was positively impacted by our net earnings and an increase in accounts payable and other liabilities of $380 million.

This was offset by an increase in inventories due to our growth strategy, strategic land purchases, land development and construction costs of $285 million, an increase in deposits and pre-acquisition costs on real estate of $1.6 billion as we increased the percentage of controlled homesites, and an increase in loans held-for-sale of $218 million primarily related to the sale of loans originated by our Financial Services segment.

During 2023, cash provided by operating activities was positively impacted by our net earnings and $2.3 billion decrease in inventories due to our strategy of controlling more homesites and acquiring finished homesites, thus reducing the amount of spend related to inventory.

This was partially offset by a decrease in accounts payable and other liabilities $626 million, primarily due to the payment of income taxes, an increase in receivables of $329 million, an increase in deposits and preacquisition costs on real estate of $296 million as we increased the percentage of controlled homesites, and an increase in loan held-for-sale of $367 million primarily related to the sale of loans originated by our Financial Services segment.

This was offset by (1) an increase in inventories due to our growth strategy, strategy land purchases, land development and construction costs of $285 million;

(2) an increase in deposits and pre-acquisition costs on real estate of $1.6 billion as we increased the percentage of controlled homesites;

and (3) an increase in loans held-for-sale of $218 million primarily related to the sale of loans by our Financial Services segment.

Investing Cash Flow Activities

During 2024 and 2023, cash used in investing activities totaled $303 million and $177 million, respectively.

During 2024, our cash used in investing activities was primarily due to cash contributions of $426 million to unconsolidated entities, which primarily included (1) $222 million to Homebuilding unconsolidated entities, (2) $182 million to Lennar Other

unconsolidated entities, and (3) $21 million to Multifamily unconsolidated entities.

This was partially offset by distributions of capital from unconsolidated entities of $231 million, which primarily included (1) $117 million from Multifamily unconsolidated entities, (2) $61 million from Homebuilding unconsolidated entities, and (3) $54 million from our Lennar Other unconsolidated entities.

During 2025 and 2024, cash provided by (used in) investing activities totaled $222 million and ($303) million, respectively.

During 2025, our cash provided by investing activities was primarily due to $259 million received from the sale of investments in two joint ventures, $100 million proceeds from the sale of investments, $115 million proceeds from the sale of notes receivable, and distributions of capital from unconsolidated entities of $282 million, which primarily included (1) $130 million from Multifamily unconsolidated entities, (2) $130 million from Homebuilding unconsolidated entities, and (3) $22 million from our Lennar Other unconsolidated entities.

This was partially offset by the $254 million acquisition of Rausch, net of cash acquired and $189 million net additions of operating properties and equipment.

In addition, we had cash contributions of $254 million to unconsolidated entities, which primarily included (1) $208 million to Homebuilding unconsolidated entities, (2) $13 million to Lennar Other unconsolidated entities, and (3) $32 million to Multifamily unconsolidated entities.

This was partially offset by distributions of capital from unconsolidated entities of $100 million, which primarily included (1) $70 million from Homebuilding unconsolidated entities, and (2) $29 million from our Lennar Other unconsolidated entities.

This was partially offset by distributions of capital from unconsolidated entities of $231 million, which primarily included (1) $117 million from Multifamily unconsolidated entities (2) $61 million from Homebuilding unconsolidated entities, and (3) $54 million from our Lennar Other unconsolidated entities.

Financing Cash Flow Activities

During 2025 and 2024, our cash used in financing activities totaled $1.6 billion and $3.7 billion, respectively.

During 2025, our cash used in financing activities was primarily due to the (1) $1.8 billion of repurchases of our common stock, which included $1.7 billion of repurchases under our share repurchase program and $66 million of repurchases related to our equity compensation plan;

(2) $521 million of dividend payments;

(3) $141 million of net repayments under our Financial Services' warehouse facilities;

(4) $416 million net cash in connection with the Millrose spin-off;

(5) redemption of $500 million aggregate principal amount of our 4.75% senior notes due May 2025;

and (6) $564 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks.

The cash used in financing activities was partially offset by the receipt of proceeds of the sale of $700 million aggregate principal amount of our 5.20% senior notes due 2030 and $1.7 billion of net borrowings under our Delayed Draw Term Loan Facility (defined below).

During 2024, our cash used in financing activities was primarily due to the (1) $2.3 billion of repurchases of our common stock, which included $2.2 billion of repurchases under our repurchase program and $87 million of repurchases related to our equity compensation plan;

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(3) $233 million of net repayments under our Financial Services' warehouse facilities;

(4) redemption of $454 million aggregate principal amount of our 4.50% senior notes due April 2024;

(4) redemptions of $454 million aggregate principal amount of our 4.50% senior notes due April 2024;

(5) $100 million of partial repurchase of our 4.75% senior notes due 2027;

and (6) $14 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks.

During 2023, our cash used in financing activities was primarily due to the (1) redemption of $378 million aggregate principal amount of our 4.875% senior notes due December 2023, (2) redemption of $425 million aggregate principal amount of our 5.875% senior notes due November 2024, (3) $296 million combined of partial repurchase of our 4.500% senior notes due 2024 and 4.75% senior notes due 2027, (4) $105 million principal payment on notes payable and other borrowings, (5) repurchase of our common stock for $1.2 billion, which included $1.1 billion of repurchase of our stock under our repurchase program and $73 million of repurchases related to our equity compensation plan, (6) $431 million of dividend payments, and (7) $381 million of net payments from liabilities related to consolidated inventory not owned due to land sales to land banks.

These were partially offset by (1) $29 million of net borrowings under our Financial Services warehouse facilities, and (2) receipts related to noncontrolling interest of $21 million.

Debt to total capital ratios are financial measures commonly used in the homebuilding industry and are presented to assist in understanding the leverage of our Homebuilding operations.

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Rather, this non-GAAP financial measure should be used to supplement our GAAP results.

At November 30, 2024, Homebuilding debt to total capital was lower compared to November 30, 2023, primarily as a result of an increase in stockholders' equity due to net earnings and a decrease in Homebuilding debt due to debt paydowns and debt repurchases, partially offset by share repurchases.

At November 30, 2025, Homebuilding debt to total capital was higher compared to November 30, 2024, primarily as a result of a decrease in stockholders' equity due to the spin-off of Millrose, share repurchases, an increase in Homebuilding debt due to issuance of senior notes and outstanding borrowings under our Delayed Draw Term Loan Facility (defined below), partially offset by net earnings.

We are continually exploring various types of transactions to manage our leverage and liquidity positions, take advantage of market opportunities and increase our revenues and earnings.

These transactions may include the issuance of additional indebtedness, the repurchase of our outstanding indebtedness, the repurchase of our common stock, the acquisition of homebuilders and other companies, the purchase or sale of assets or lines of business, the issuance of common stock or securities convertible into shares of common stock, and/or the pursuit of other financing alternatives.

In connection with some

of our non-homebuilding businesses, we are also considering other types of transactions such as sales, restructurings, joint ventures, spin-offs or initial public offerings as we continue to move back towards being a pure play homebuilding company.

We have announced an intention to spin off, subject to market conditions, our multifamily and single-family rental asset management businesses and some of our investment assets.

We are currently preparing to spin off (the “Millrose Spin-Off”) a wholly owned subsidiary for Lennar, Millrose Properties Inc.

(“Millrose”) into an independent, publicly traded company that will be listed on the New York Stock Exchange.

In connection with the Millrose Spin-Off, we plan to contribute to Millrose, in exchange for all outstanding shares of its common stock, a significant portion of our undeveloped, partially developed, and some of our fully developed, land, with an expected total aggregate value between $5.0 billion and $6.0 billion, as well as approximately $1.0 billion of cash.

To consummate the Millrose Spin-Off, our Board declared a stock dividend on January 10, 2025, pursuant to which we will distribute to Lennar’s stockholders of record as of January 21, 2025 approximately 80% of the total outstanding number of shares of Millrose common stock on February 7, 2025.

The goal of the Millrose Spin-off is to generally complete our migration to an asset-light operating model by spinning off a significant portion of our land assets from our balance sheet.

We expect Millrose to qualify as a real estate investment trust that will acquire and develop land and will deliver fully developed homesites under a land option contract on a just in time basis for Lennar and potentially other homebuilders.

Millrose is expected to maintain a business model with a self-sustaining, recycling source of land acquisition and development capital.

Millrose is expected to be responsible for paying to develop the undeveloped and partially developed land into homesites up to a certain pre-negotiated budget, with Lennar performing the actual construction work.

Lennar will have options to purchase the homesites in accordance with pre-set takedown schedules when Lennar expects to be ready to build homes on them.

Millrose is expected to use option exercise proceeds to purchase additional land designated by Lennar or other homebuilders in the future, usually giving Lennar or the other homebuilders options to purchase the land when it is developed.

During the fourth quarter of 2024, we entered into a definitive agreement to purchase Rausch Coleman Homes, a residential homebuilder based in Fayetteville, Arkansas.

With this acquisition, we will expand our footprint into new markets in Arkansas, Oklahoma, Alabama, Kansas and Missouri while adding to our existing footprint in Texas, Oklahoma, Alabama and Florida.

As previously disclosed in Millrose’s registration statement on Form S-11, in connection with furthering our land light strategy, we intend to assign the purchase of Rausch Coleman's land assets (the “Rausch Land Assets”) to Millrose.

Similar to the other land assets, Lennar expects to contribute to Millrose in connection with the Millrose Spin-Off, Lennar expects to enter into options to purchase the developed Rausch Land Assets in accordance with pre-set takedown schedules.

We are expecting the acquisition to be completed in the first quarter of 2025.

In connection with some of our non-homebuilding businesses, we are also considering other types of transactions such as sales, restructurings, joint ventures, spin-offs or initial public offerings as we continue to move back towards being a pure play homebuilding company.

In February 2025, we completed the taxable spin-off of Millrose through a distribution of approximately 80% of Millrose's total outstanding stock to our stockholders (the “Millrose Spin-Off”).

We temporarily retained the remaining approximately 20% of the total outstanding shares of Millrose common stock, exclusively in the form of Millrose Class A common stock.

In connection with the Spin-Off, certain Lennar employees received shares of Millrose Class A common stock or Millrose Class B common stock (at their election) on their unvested Lennar restricted stock awards.

From time to time, following the Millrose Spin-Off, Lennar has received and may continue to receive additional shares of Millrose Class A common stock and Millrose Class B common stock that are forfeited back to Lennar from employees in connection with their forfeiture of the underlying unvested Lennar restricted stock awards (the “Forfeitures”).

We do not exercise our voting rights with respect to any Millrose common stock we hold.

As described further below, on November 26, 2025, we subsequently disposed of approximately 20% of Millrose’s total outstanding stock, all in the form of Class A common stock, through a non-cash exchange offer for Lennar Class A common stock.

Lennar retains an immaterial amount of Millrose Class A common stock and Millrose Class B common stock from the Forfeitures and may dispose of such shares, along with any additional Millrose common stock shares received from future Forfeitures, through one or more future dispositions.

In connection with the Millrose Spin-off, we contributed to Millrose $5.6 billion in land assets, representing approximately 87,000 homesites, and cash of $1.0 billion, which included $584.0 million of cash deposits related to option contracts.

The Millrose Spin-Off accelerated Lennar's longstanding strategy of becoming a pure-play, asset-light, new home manufacturing company.

In connection with the Millrose Exchange Offer, we accepted 8,049,594 shares of Lennar Class A common stock in exchange for 33,298,754 shares of Millrose Class A common stock.

The Millrose Exchange Offer reduced investments in unconsolidated entities and stockholders' equity by $1.1 billion as of November 30, 2025 and resulted in a one-time loss of $156.1 million recorded in Other income (expense), net and other gains (losses), net, in our consolidated statements of operations and comprehensive income (loss).

On February 10, 2025, we acquired Rausch, a residential homebuilder based in Fayetteville, Arkansas.

We acquired Rausch’s homebuilding operations while Millrose acquired Rausch's land assets and we have options on the land.

With this acquisition, we have expanded our footprint into new markets in Arkansas (Bentonville/Fayetteville, Little Rock and Jonesboro), Oklahoma (Tulsa and Stillwater), Alabama (Birmingham and Tuscaloosa), and Kansas/Missouri (Kansas City), while adding to our existing footprint in Texas (Houston and San Antonio), Oklahoma (Oklahoma City), Alabama (Huntsville) and Florida (Gulf Coast).

Our Homebuilding senior notes and other debts payable are summarized within Note 5 of the Notes to Consolidated Financial Statements.

In November 30, 2024, we amended and restated the credit agreement governing our Credit Facility.

The maximum available borrowings on our Credit Facility were as follows:

In May 2025, we entered into a new unsecured delayed draw term loan facility with an initial committed borrowing availability of approximately $1.6 billion (the “Delayed Draw Term Loan Facility”), which can be increased by an additional $500 million via an accordion feature.

In July 2025, the total commitment under the Delayed Draw Term Loan Facility was increased by $100 million, thereby increasing the borrowing available capacity to $1.7 billion.

The credit agreement governing our new unsecured Delayed Draw Term Loan Facility permits us to draw up to six times in the first 180 days after the effective date of the credit agreement.

Once drawn, we may at any time prepay the loan, in whole or in part, without premium or penalty.

The term loan’s maturity date is three years from the initial effectiveness date of the credit agreement or May 2028, and at our discretion, it can be extended for an additional year until May 2029, subject to the satisfaction of certain conditions.

Under the Delayed Draw Term Loan Facility, interest rates are equal to the adjusted term SOFR determined for the interest period plus the applicable margin.

As of November 30, 2025, we had outstanding borrowings of approximately $1.7 billion under the credit agreement governing our new unsecured Delayed Draw Term Loan Facility.

In November 30, 2025, we amended and restated the credit agreement governing our unsecured revolving credit facility (the "Credit Facility").

In the first quarter of 2025, we received an additional $150 million in commitments.

In the third quarter of 2025, we secured an additional $100 million in commitments.

The maximum available borrowings on the Credit Facility were as follows:

(In thousands) At November 30, 2025

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Interest incurred $ 184,589 129,310

Under the Credit Facility agreement (the "Credit Agreement"), we are required to maintain a minimum consolidated tangible net worth, a maximum leverage ratio and either a liquidity or an interest coverage ratio.

These ratios are calculated per the Credit Facility agreement, which involves adjustments to GAAP financial measures.

Under the Credit Facility agreement (the "Credit Facility Agreement") and Delayed Draw Term Loan Facility, we are required to maintain a minimum consolidated tangible net worth, a maximum leverage ratio and either a liquidity or an interest

coverage ratio.

These ratios are calculated per the Credit Facility and Delayed Draw Term Loan Facility agreements, which involve adjustments to GAAP financial measures.

As of the end of each fiscal quarter, we are required to maintain minimum consolidated tangible net worth of $10.0 billion.

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As of the end of each fiscal quarter, we are also required to maintain either (1) liquidity in an amount equal to or greater than 1.00x consolidated interest incurred for the last twelve months then ended or (2) an interest coverage ratio equal to or greater than 1.50:1.00 for the last twelve months then ended.

We believe that we were in compliance with our debt covenants at November 30, 2024.

The following summarizes our required debt covenants and our actual levels or ratios with respect to those covenants as calculated per the Credit Agreement as of November 30, 2024:

We were in compliance with our debt covenants at November 30, 2025.

The following summarizes our required debt covenants and our actual levels or ratios with respect to those covenants as calculated per the Credit Facility and Delayed Draw Term Loan Facility agreements as of November 30, 2025:

(Dollars in thousands) Covenant Level Level Achieved as of November 30, 2025

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Residential facilities maturing:

April 2025 $ 250,000 250,000 500,000

June 2025 1,400,000 — 1,400,000

August 2025 325,000 325,000 650,000

October 2025 100,000 100,000 200,000

March 2026 $ 250,000 250,000 500,000

May 2026 250,000 450,000 700,000

July 2026 100,000 100,000 200,000

September 2026 500,000 500,000 1,000,000

November 2026 100,000 400,000 500,000

December 2026 — 375,000 375,000

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(1) Subsequent to November 30, 2025, the maturity date was extended to December 2027.

The Financial Services segment uses residential mortgage loan warehouse facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected.

Our Financial Services segment uses residential mortgage loan warehouse facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected.

The facilities are non-recourse to us and are expected to be renewed or replaced with other facilities when they mature.

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The repurchase authorization has no expiration date.

This authorization was in addition to what was remaining of our March 2022 stock repurchase program.

At November 30, 2025, we have a remaining authorization to repurchase $1.7 billion in value of our Class A or B common stock.

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The following table provides information about our repurchases of Class A and Class B common stock:

Years Ended November 30,

For the Years Ended November 30,

(Dollars in thousands, except price per share) Class A Class B Class A Class B

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Average price per share $ 123.02 $ 119.55 $ 159.60 $ 151.23

During the year ended November 30, 2024, treasury stock increased by 14.2 million shares primarily due to our repurchase of 13.6 million shares of Class A and Class B common stock through our stock repurchase program.

(1) Shares repurchased do not include 8,049,594 shares of Lennar Class A common stock accepted through a non-cash exchange for shares of Millrose Class A common stock, which was completed in November 2025.

During the year ended November 30, 2025, treasury stock increased by 22.8 million shares primarily due to our repurchase of 14.1 million shares of Class A and Class B common stock through our stock repurchase program and a non-cash Millrose Exchange Offer , accepting 8.0 million shares of Lennar Class A common stock in exchange for 33.3 million shares of Millrose Class A common stock, which represented 20% of Millrose's outstanding shares .

In February 2025, we distributed a stock dividend consisting of 120,980,401 shares of Millrose Class A common stock and 11,819,811 shares of Millrose Class B common stock (representing approximately 80% of the total outstanding shares of Millrose common stock) to the holders of Lennar Class A or Class B common stock as of the close of business on January 21, 2025, the record date of the Millrose Spin-Off.

During the years ended November 30, 2025 and 2024 , our Class A and Class B common stockholders received an aggregate per share annual dividend of $2.00 and $2.00, respectively.

On January 14, 2025, our Board declared a quarterly cash dividend of $0.50 per share on both our Class A and Class B common stock, payable on February 12, 2025 to holders of record at the close of business on January 29, 2025.

On January 21, 2026, our Board declared a quarterly cash dividend of $0.50 per share on both our Class A and Class B common stock, payable on February 19, 2026 to holders of record at the close of business on February 4, 2026.

Based on our current financial condition and credit relationships, we believe that our operations and borrowing resources will provide for our current and long-term capital requirements at our anticipated levels of activity.

Supplemental Financial Information

Currently, certain of our 100% owned subsidiaries, which are primarily our homebuilding subsidiaries, are guaranteeing all our senior notes.

The guarantees are full and unconditional.

The indentures governing our senior notes require that, if any of our 100% owned subsidiaries, other than our finance company subsidiaries and foreign subsidiaries, directly or indirectly guarantee at least $75 million principal amount of debt of Lennar Corporation (other than senior notes), those subsidiaries must also guarantee Lennar Corporation’s obligations with regard to its senior notes.

Included in the following tables as part of “Obligors” together with Lennar Corporation are subsidiary entities that are not finance company subsidiaries or foreign subsidiaries and were guaranteeing the senior notes because at November 30, 2024 they were guaranteeing Lennar Corporation's letter of credit facilities and its Credit Facility, disclosed in Note 4 of the Notes to Consolidated Financial Statements.

The guarantees are full, unconditional and joint and several and the guarantor subsidiaries are 100% directly or indirectly owned by Lennar Corporation.

A subsidiary's guarantee of Lennar senior notes will be suspended at any time when it is not directly or indirectly guaranteeing at least $75 million principal amount of debt of Lennar Corporation (other than senior notes), and a subsidiary will be released from its guarantee and any other obligations it may have regarding the senior notes if all or substantially all its assets, or all of its capital stock, are sold or otherwise disposed.

Our outstanding senior notes are guaranteed by certain of our wholly-owned subsidiaries, which are primarily homebuilding subsidiaries.

These guarantees are full and unconditional.

The guarantors of our senior notes are currently those subsidiaries that also guarantee Lennar Corporation's letter of credit facilities, Credit Facility and Delayed Draw Term Loan Facility, which are disclosed in Note 5 of the Notes to Consolidated Financial Statements.

Under the indentures governing our senior notes, guarantees may be suspended or released under certain circumstances.

Supplemental information for the Obligors, which excludes non-guarantor subsidiaries and intercompany transactions, at November 30, 2025 is included in the following tables.

Intercompany balances and transactions within the Obligors have been eliminated and amounts attributable to the Obligor’s investment in consolidated subsidiaries that have not issued or guaranteed the senior notes have been excluded.

Amounts due from and transactions with non-guarantor subsidiaries and related parties are separately disclosed:

Intercompany balances and transactions within the Obligors have been eliminated and amounts attributable to the Obligors' investment in consolidated subsidiaries that have not issued or guaranteed the senior notes have been excluded.

Amounts due from and transactions with nonobligor subsidiaries and related parties are separately disclosed:

At November 30,

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Total liabilities 9,243,409 10,067,424

(In thousands) Year Ended November 30, 2024

(In thousands) For the Year Ended November 30, 2025

Total revenues $ 30,196,629

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Homebuilding - Investments in Unconsolidated Entities

We regularly monitor the results of our Homebuilding, Multifamily, and Lennar Other unconsolidated joint ventures and any trends that may affect their future liquidity or results of operations.

We regularly monitor the results of our Homebuilding unconsolidated joint ventures and any trends that may affect their future liquidity or results of operations.

We also monitor the performance of Homebuilding joint ventures in which we have investments on a regular basis to assess compliance with debt covenants.

For those joint ventures not in compliance with their debt covenants, we evaluate and assess possible impairment of our investments.

We believe that substantially all of the joint ventures were in compliance with their debt covenants at November 30, 2024, except for the other-than-temporary impairment which is included in Note 1 of the Notes to Consolidated Financial Statements.

We believe that substantially all of the joint ventures were in compliance with their debt covenants at November 30, 2025.

At November 30, 2025, we had equity investments in 50 active Homebuilding and land unconsolidated entities (of which 4 had recourse debt, 14 had non-recourse debt and 32 had no debt), compared to 51 active Homebuilding and land unconsolidated entities at November 30, 2024.

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Joint ventures with financial partners have allowed us to combine our development and construction expertise with access to our partners’ capital.

Each joint venture is governed by an operating agreement that provides significant substantive participating voting rights on major decisions to our partners.

The Multifamily segment manages and has investments in LMV I, LMV II and Canada Pension Plan Investments Fund, which are long-term multifamily development investment vehicles involved in the development, construction and ownership of class-A multifamily assets.

During the year ended November 30, 2024, the LMV I fund sold some of its individual rental operation projects which resulted in a net gain of $211.5 million and received net cash distributions of $199.5 million.

The remaining LMV I rental operation projects are expected to be monetized in the near term.

Each joint venture is governed by an operating agreement that provides significant substantive

participating voting rights on major decisions to our partners.

The Multifamily segment manages and has investments in LMV I, LMV II and Canada Pension Plan Investments (the "CPPIB Fund") and a new joint venture with an institutional investor (the "Institutional JV"), which are long-term multifamily development investment vehicles involved in the development, construction and ownership of class-A multifamily assets.

Details of each as of and during the year ended November 30, 2025 are included in Note 4 of the Notes to Consolidated Financial Statements.

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To the extent the investor group does not elect to purchase properties we identify, we can utilize our other investor relationships to have other investor groups purchase the land or we can purchase it directly.

The arrangement with the investor group, together with existing and other strategic partnerships we are discussing, are significant steps in our strategy to migrate

to a higher percentage of our homesites which we control but do not own, which we expect will result in greater cash flow and higher returns on assets and equity.

The arrangement with the investor group, together with existing and other strategic partnerships we are discussing, are significant steps in our strategy to migrate to a higher percentage of our homesites which we control but do not own, which we expect will result in greater cash flow and higher returns on assets and equity.

The table below indicates the number of homesites to which we had access through option contracts with third parties or unconsolidated JVs (i.e., controlled homesites) and homesites owned at November 30, 2025 and 2024:

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Central 134,550 2,157 136,707

Texas 117,749 15,357 133,106

South Central 155,328 1,977 157,305

West 91,208 2,954 94,162

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Central 92,672 30,916 123,588

Texas 90,961 21,790 112,751

South Central 117,749 15,357 133,106

West 82,878 21,254 104,132

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Operating lease obligations 301,326 86,899 95,638 53,980 64,809

Other contractual obligations (4) 20,374 20,374 — — —

Total contractual obligations $ 6,984,322 2,578,959 3,374,909 830,757 199,697

(1) The amounts presented in the table above exclude debt issuance costs and any discounts/premiums and purchase accounting adjustments.

(2) Amount includes purchase commitments due to land banks upon maturity of the contracts.

(2) Amount represents purchase commitments due to land banks upon maturity of the contracts.

Our intention is to have a land bank close on the land purchase commitments and we will option land from the land bank.

(3) Interest commitments on variable interest-bearing debt are determined based on the interest rate as of November 30, 2025.

(4) Amounts include $20.4 million of remaining equity investment commitment to Upward America.

We are subject to the usual obligations associated with entering into contracts (including option contracts) for the purchase, development and sale of real estate in the routine conduct of our business.

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A significant portion of these commitments had a remaining period of 60 days or less.

Since a portion of these commitments is expected to expire without being exercised by the borrowers or borrowers may not meet certain criteria at the time of closing, the total commitments do not necessarily represent future cash requirements.

Since a portion of

these commitments is expected to expire without being exercised by the borrowers or borrowers may not meet certain criteria at the time of closing, the total commitments do not necessarily represent future cash requirements.

Our Financial Services segment uses mandatory mortgage-backed securities ("MBS") forward commitments, option contracts, futures contracts and investor commitments to hedge our mortgage-related interest rate exposure.

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Our risk, in the event of default by the purchaser, is the difference between the contract price and fair value of the MBS forward commitments and the option contracts.

At November 30, 2024, we had open commitments amounting to $3.8 billion to sell forward contracts, which include MBS and interest rate swaps, with varying settlement dates through February 2025 and open future contracts in the amount of $2.3 million with the varying settlement dates through March 2025.

At November 30, 2025, we had open commitments amounting to $3.0 billion to sell forward contracts, which include MBS and interest rate swaps, with varying settlement dates through February 2026 and open future contracts in the amount of $1.4 million with the varying settlement dates through May 2026.

The following sections discuss market and financing risk, seasonality and interest rates and changing prices that may have an impact on our business:

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New Accounting Pronouncements

See Note 1 of the notes to our consolidated financial statements for a comprehensive list of new accounting pronouncements.

See Note 1 of the Notes to Consolidated Financial Statements for a comprehensive list of new accounting pronouncements.

Critical Accounting Policies and Estimates

Our accounting policies are more fully described in Note 1 of the notes to our consolidated financial statements included in Item 8 of this document.

Our accounting policies are more fully described in Note 1 of the Notes to Consolidated Financial Statements included in Item 8 of this document.

As discussed in Note 1, the preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and accompanying notes.

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Therefore, the determination of estimates requires the exercise of judgment.

Actual results could differ from those estimates, and such differences may be material to our

consolidated financial statements.

Actual results could differ from those estimates, and such differences may be material to our consolidated financial statements.

Listed below are those policies and estimates that we believe are critical and require the use of significant judgment in their application.

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We record goodwill associated with acquisitions of businesses when the purchase price of the business exceeds the fair value of the net tangible and identifiable assets acquired.

In accordance with ASC Topic 350, Intangibles-Goodwill and Other , we evaluate goodwill for potential impairment on at least an annual basis.

In accordance with ASC Topic 350, Intangibles-Goodwill and Other , we evaluate

goodwill for potential impairment on at least an annual basis.

We have the option to perform a qualitative or quantitative assessment to determine whether the fair value of a reporting unit exceeds its carrying value.

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Multifamily Revenue Recognition

Our Multifamily segment provides management services with respect to the development, construction and property management of rental projects in joint ventures in which we have investments.

Our Multifamily segment provides management services with respect to the development and construction of rental projects in joint ventures in which we have investments.

As a result, our Multifamily segment earns and receives fees, which are generally based upon a stated percentage of development and construction costs and a percentage of gross rental collections.

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Factors considered in determining whether we have significant influence, or we have control include risk and reward sharing, experience and financial condition of the other partners, voting rights, involvement in day-to-day capital and operating decisions and continuing involvement.

The accounting policy relating to the use of the equity method of accounting is a critical accounting policy due to the judgment required in determining whether the entity is a variable interest entity ("VIE") or a voting interest entity and then whether we are the primary beneficiary or have

control or significant influence.

We believe that the equity method of accounting is appropriate for our investments in unconsolidated entities where we are not the primary beneficiary and we do not have a controlling interest, but rather share control with our partners.

We evaluate the long-lived assets in unconsolidated entities for indicators of impairment during each reporting period.

A series of operating losses of an investee or other factors may indicate that a decrease in the fair value of our investment in the unconsolidated entity below its carrying amount has occurred which is other-than-temporary.

A series of operating losses of an investee or other factors may indicate that a decrease in the fair value of our investment in the

unconsolidated entity below its carrying amount has occurred which is other-than-temporary.

The amount of impairment recognized is the excess of the investment’s carrying amount over its estimated fair value.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis