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Item 2. Management’s Discussion and Analysis

2026-04-09 compared with 2025-10-03 · 189 added, 333 removed, 273 unchanged (66% of the section changed)

1 unchanged sentence

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and accompanying notes included under Item 1 of this Quarterly Report on Form 10-Q and our audited consolidated financial statements and accompanying notes included in our 2025 Form 10-K.

Our third quarter results reflect the continued softening of market conditions and affordability challenges against the backdrop of what might be the beginnings of an improving economic landscape for the housing market.

While our deliveries were just below our goal and we sold more homes than expected during the quarter, it was at the expense of margin deterioration.

Sales volume was difficult to maintain and required additional incentives in order to achieve our expected pace and avoid a buildup of excess inventory.

Accordingly, we remained focused on volume and even flow production, although at a slightly slower pace.

We will maintain responsible volume to maintain an affordable cost structure and relieve pressure on sales and deliveries which will establish a floor on margin as the overall housing market continues to remain short on supply.

The macroeconomic landscape remains challenging, and diminished consumer confidence is being affected by a wide range of uncertainties, both domestic and global.

We have begun to see interest rates drift downwards and we’re just beginning to see consumers return to the market.

Against that backdrop, supply remains constrained in most markets driven by years of underproduction.

New construction has slowed as builders have pulled back on production due to slow sales and affordability concerns therefore exacerbating the chronic supply shortage.

Demand is still high as people want and need homes, but affordability and waning confidence around buying now have been constraining that demand.

We are optimistic that if mortgage rates approach the 6% level, or even lower, we will soon see some firming in the market, and we will benefit from stronger affordability and therefore demand.

Operationally, we will continue to drive growth, production and volume to fill the housing shortage that we know persists across our markets.

We remain focused on leveraging advanced technology throughout our homebuilding operations.

We look to position ourselves as the leading technology-enabled, low-cost homebuilding manufacturer.

We are now situated with a lower cost structure, efficient product offerings, and strong market positions to accommodate pent-up demand as rates moderate and confidence ultimately returns.

Financially, we are focused on driving an efficient, land-light balance sheet to effectively have land banks and third parties hold and develop our land assets while we build cash flow.

Looking ahead to the fourth quarter of 2025, we anticipate selling between 20,000 to 21,000 homes and delivering between 22,000 and 23,000 homes.

Our average sales price is expected to be between $380,000 and $390,000, as we continue to see pricing pressure on homes sold during the quarter.

We are focused on driving sales and closings and maintaining strong current cash flow even at reduced profitability.

We expect our margin to come in at approximately 17.5%, depending on market conditions.

While the short-term road ahead may seem choppy, we are optimistic about our future.

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

Our strong balance sheet and land banking relationships, along with our technology-enabled solutions, will afford us flexibility and advantaged opportunities for strategic growth.

Lennar's first quarter 2026 results reflect what remains a stubbornly challenging housing market.

While margins continue to reflect the affordability-driven realities facing today's homebuyers, our underlying demand remains strong and supply continues to fall short of need.

Throughout this period of market difficulty, we have remained focused on our clear and consistent strategy.

We drove consistent volume and we matched production and sales pace.

We used margin as a circuit breaker, and we continued to refine and improve our asset-light, land-light manufacturing platform.

We have maintained volume and focused on building improved business programs to bring costs down so that we can remain profitable and still provide the much-needed housing supply America demands.

We entered the first quarter with cautious optimism following signs of moderating interest rates late in 2025, however, consumer confidence continued to be tested by a range of domestic and global uncertainties.

Mortgage rates remained stubbornly above 6%, hovering between approximately 6.2% and 6.4% throughout the quarter;

concerns about job security have grown increasingly prominent as rapid advancements in artificial intelligence raise important questions about the future of employment;

and ongoing conflict in the Middle East presents potential upside risks to energy prices, inflation, and interest rates.

At the same time, institutional purchasers have been sidelined by political pressures that suggest that they are part of the housing problem.

They generally purchased between 5% and 7% of new homes for rental purposes, primarily to people who cannot afford to purchase but still want single-family lifestyles.

While traffic across our communities remained reasonably consistent, the urgency to transact remained measured.

On a more positive note, the federal government's engagement with the national housing crisis continues to deepen.

Federal officials have been actively engaged with builders and industry associations to explore practical solutions to the affordability challenge.

What programs will be adopted remains to be seen, but the attention being paid at the federal level to the housing shortage is unprecedented, and we believe meaningful, long-term policy support is more likely now than at any time in recent history.

Congress is working on housing legislation, but we believe that it will not meaningfully impact housing or affordability in the short term.

We remain focused on three core operating tenets:

driving consistent volume to maximize efficiency;

refining our asset-light, land-light balance sheet to generate strong and growing returns and cash flow;

and engaging new technologies to advance operational progress and enhance the customer experience.

Our technology initiatives - including improvements to our marketing and sales platform, land bank administration, and the ongoing buildout of our internal engineering and technology capabilities - are beginning to yield real and measurable results and are positioning us to operate with a leaner, more competitive cost structure going forward.

We know that margins will remain under pressure in the second quarter of 2026 as affordability headwinds persist and macroeconomic uncertainty continues.

However, our cost structure is materially more efficient than it was two years ago, and we are seeing continuous improvement across construction costs, cycle times, and overhead.

While our margins are down, this is due to incentives required to stimulate sales, which sit at 14% today, compared to our historical average between 4% to 6%.

That gap represents significant margin recovery opportunity as mortgage rates moderate and pent-up demand is activated.

We continue to believe we are approaching an inflection point.

Our sales incentive levels showed early signs of stabilizing during the first quarter, as new order incentive rates trended below delivery incentive rates, which we believe reflects modestly improving demand dynamics.

For the second quarter of 2026, we expect new orders to be in the range of 21,000 to 22,000 homes, with continued focus on matching starts and sales pace.

We anticipate second quarter deliveries to be in the range of 20,000 to 21,000 homes as we maintain even-flow production and convert inventory to cash.

Our average sales price on those deliveries is expected to be between $370,000 and $375,000.

We expect gross margins to be in the range of 15.5% to 16%, and we believe our first quarter gross margin of 15.2% represents the low point for the fiscal year.

Our SG&A percentage is expected to be in the range of 8.9% to 9.1%.

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

Our balance sheet is strong, our land banking relationships are deep and productive, and our technology initiatives are positioning Lennar to be a materially different and better company in the years ahead.

We remain committed to delivering affordable, high-quality homes to families across America, and we are confident that the steps we are taking today are building a stronger and more resilient Lennar for the future.

(1) Results of Operations

We historically have experienced, and expect to continue to experience, variability in quarterly results.

Our results of operations for the three and nine months ended August 31, 2025 are not necessarily indicative of the results to be expected for the full year.

Our results of operations for the first quarter of 2026 are not necessarily indicative of the results to be expected for the full year.

Our homebuilding business is seasonal in nature and generally reflects higher levels of new home order activity in our second and third fiscal quarters and increased deliveries in the second half of our fiscal year.

However, a variety of factors can alter seasonal patterns.

Our net earnings attributable to Lennar were $591.0 million, or $2.29 per diluted share, in the third quarter of 2025, compared to our third quarter net earnings attributable to Lennar in 2024 of $1.2 billion, or $4.26 per diluted share.

Excluding mark-to-market gains of $99.2 million on technology investments, third quarter net earnings attributable to Lennar in 2025 were $516.0 million, or $2.00 per diluted share.

Excluding mark-to-market gains of $39.1 million on technology investments and one-time items of $89.0 million in our Multifamily segment, third quarter net earnings attributable to Lennar in 2024 were $1.1 billion or $3.90 per diluted share.

Our first quarter net earnings attributable to Lennar in 2026 were $229.4 million, or $0.93 per diluted share, compared to our first quarter net earnings attributable to Lennar in 2025 of $519.5 million, or $1.96 per diluted share.

Excluding pretax mark-to-market gains of $14.8 million on technology investments, first quarter net earnings attributable to Lennar in 2026 were $218.0 million, or $0.88 per diluted share.

Excluding pretax mark-to-market losses of $62.5 million on technology investments, first quarter net earnings attributable to Lennar in 2025 were $566.7 million or $2.14 per diluted share.

Financial information relating to our operations was as follows:

Three Months Ended August 31, 2025

First Quarter 2026

(In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total

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Equity in earnings (losses) from unconsolidated entities 38,181 — 25,481 (394) — 63,268

Other income (expense), net and other gains (losses), net (6,961) — 645 (12,640) — (18,956)

Lennar Other realized and unrealized gains from technology investments — — — 99,223 — 99,223

Other income, net and other gains, net 6,704 — 307 1,135 — 8,146

Lennar Other gains from technology investments — — — 14,838 — 14,838

Operating earnings (loss) $ 373,028 91,313 17,859 (5,246) — 476,954

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Earnings (loss) before income taxes $ 373,028 91,313 17,859 (5,246) (174,501) 302,453

Three Months Ended August 31, 2024

(In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total

Sales of homes $ 9,017,627 — — — — 9,017,627

Sales of land 19,466 — — — — 19,466

Other revenues 8,599 273,270 93,443 3,637 — 378,949

Total revenues 9,045,692 273,270 93,443 3,637 — 9,416,042

Costs and expenses:

Costs of homes sold 6,989,603 — — — — 6,989,603

Costs of land sold 22,720 — — — — 22,720

Selling, general and administrative expenses 600,719 — — — — 600,719

Other costs and expenses — 128,870 184,708 17,176 — 330,754

Total costs and expenses 7,613,042 128,870 184,708 17,176 — 7,943,796

Equity in earnings (losses) from unconsolidated entities 25,220 — 170,266 (8,865) — 186,621

Other income (expense), net and other gains (losses), net 20,048 — (93) 3,376 — 23,331

Lennar Other unrealized gains from technology investments — — — 39,123 — 39,123

Operating earnings $ 1,477,918 144,400 78,908 20,095 — 1,721,321

Corporate general and administrative expenses — — — — 164,672 164,672

Charitable foundation contribution — — — — 21,516 21,516

Earnings (loss) before income taxes $ 1,477,918 144,400 78,908 20,095 (186,188) 1,535,133

Nine Months Ended August 31, 2025

First Quarter 2025

(In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total

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Other income (expense), net and other gains (losses), net 30,359 — 9,430 (8,121) — 31,668

Lennar Other realized and unrealized gains from technology investments — — — 7,280 — 7,280

Operating earnings (loss) $ 2,297,292 478,635 (31,248) (79,680) — 2,664,999

Corporate general and administrative expenses — — — — 474,628 474,628

Charitable foundation contribution — — — — 59,549 59,549

Earnings (loss) before income taxes $ 2,297,292 478,635 (31,248) (79,680) (534,177) 2,130,822

Nine Months Ended August 31, 2024

(In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total

Sales of homes $ 24,277,158 — — — — 24,277,158

Sales of land 53,816 — — — — 53,816

Other revenues 26,768 804,713 322,620 9,489 — 1,163,590

Total revenues 24,357,742 804,713 322,620 9,489 — 25,494,564

Homebuilding costs and expenses:

Costs of homes sold 18,855,087 — — — — 18,855,087

Costs of land sold 43,640 — — — — 43,640

Selling, general and administrative expenses 1,798,306 — — — — 1,798,306

Other costs and expenses — 382,005 419,580 53,105 854,690

Total costs and expenses 20,697,033 382,005 419,580 53,105 — 21,551,723

Equity in earnings (losses) from unconsolidated entities 54,038 — 140,103 (42,374) — 151,767

Other income (expense), net and other gains (losses), net 132,122 — (348) 25,101 — 156,875

Lennar Other unrealized gains from technology investments — — — 12,472 — 12,472

Lennar Other losses from technology investments — — — (62,503) — (62,503)

Operating earnings (loss) $ 809,273 143,483 (23) (89,283) — 863,450

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Earnings (loss) before income taxes $ 809,273 143,483 (23) (89,283) (165,212) 698,238

On February 10, 2025, we completed our acquisition of Rausch Coleman Homes ("Rausch").

Prior year information includes only stand-alone data for Lennar Corporation for the three and nine months ended August 31, 2024.

Three Months Ended August 31, 2025 versus Three Months Ended August 31, 2024

Revenues from home sales decreased 9% in the third quarter of 2025 to $8.2 billion from $9.0 billion in the third quarter of 2024.

Revenues were lower primarily due to a 9% decrease in the average sales price of homes delivered.

New home deliveries were 21,584 homes in the third quarter of 2025, compared to 21,516 homes in the third quarter of 2024.

The average sales price of homes delivered was $383,000 in the third quarter of 2025, compared to $422,000 in the third quarter of 2024.

The decrease in average sales price of homes delivered in the third quarter of 2025 compared to the same period last year was primarily due to continued weakness in the market.

Gross margins on home sales were $1.4 billion, or 17.5%, in the third quarter of 2025, compared to $2.0 billion, or 22.5%, in the third quarter of 2024.

During the third quarter of 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 $676.5 million in the third quarter of 2025, compared to $600.7 million in the third quarter of 2024.

As a percentage of revenues from home sales, selling, general and administrative expenses increased to 8.2% in the third quarter of 2025, from 6.7% in the third quarter of 2024, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses.

During the three months ended August 31, 2025, our homebuilding operating earnings included $8.7 million of interest income, compared to $33.8 million of interest income in the three months ended August 31, 2024.

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

Operating earnings for the Financial Services segment were $177.4 million in the third quarter of 2025, compared to $143.6 million in the third quarter of 2024.

The increase in operating earnings was primarily due to higher profit per locked loan in the mortgage business as a result of higher margins.

Operating loss for the Multifamily segment was $16.4 million in the third quarter of 2025, compared to operating earnings of $79.0 million in the third quarter of 2024, which were positively impacted by 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 non-core assets.

Operating earnings for the Lennar Other segment were $62.5 million in the third quarter of 2025, compared to operating earnings of $20.1 million in the third quarter of 2024.

The Lennar Other operating earnings for both the third quarter of 2025 and 2024 were primarily related to $99.2 million and $39.1 million mark-to-market gains on our technology investments, respectively.

In the third quarter of 2025 and 2024, we had tax provisions of $190.9 million and $347.9 million, which resulted in an overall effective income tax rate of 24.4% and 23.0%, 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 our effective tax rate for the third quarter of 2025 compared to the prior period was primarily due to a decrease in tax credits.

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

federal tax law.

We do not expect the Act to have a material impact on our consolidated financial statements for the fiscal year ending November 30, 2025 and are currently evaluating the potential impact of the Act on our future periods.

Nine Months Ended August 31, 2025 versus Nine Months Ended August 31, 2024

Revenues from home sales were $23.2 billion and $24.3 billion in the nine months ended August 31, 2025 and 2024, respectively.

Revenues decreased primarily due to a 7% decrease in the average sales price of homes delivered, partially offset by a 3% increase in the number of homes delivered.

New home deliveries increased to 59,549 homes in the nine months ended August 31, 2025 from 58,004 homes in the nine months ended August 31, 2024.

The average sales price of homes delivered was $393,000 in the nine months ended August 31, 2025, compared to $421,000 in the nine months ended August 31, 2024.

The decrease in average sales price of homes delivered in the nine months ended August 31, 2025 compared to the same period last year was primarily due to continued weakness in the market.

Gross margins on home sales were $4.2 billion, or 18.0%, in the nine months ended August 31, 2025, compared to $5.4 billion, or 22.3%, in the nine months ended August 31, 2024.

During the nine months ended August 31, 2025, gross margins decreased primarily due to 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 $2.0 billion in the nine months ended August 31, 2025, compared to $1.8 billion in the nine months ended August 31, 2024.

As a percentage of revenues from home sales, selling, general and

administrative expenses increased to 8.5% in the nine months ended August 31, 2025, from 7.4% in the nine months ended August 31, 2024, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses.

During the nine months ended August 31, 2025, our homebuilding operating earnings included $45.7 million of interest income, compared to $134.6 million of interest income in the nine months ended August 31, 2024.

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

Operating earnings for the Financial Services segment were $476.9 million in the nine months ended August 31, 2025, compared to $420.5 million in the nine months ended August 31, 2024.

The increase in operating earnings was primarily due to higher profit per locked loan in the mortgage business as a result of higher margins.

Operating loss for the Multifamily segment was $30.9 million in the nine months ended August 31, 2025, compared to operating earnings of $43.1 million in the nine months ended August 31, 2024, which was positively impacted by 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 non-core assets.

Operating loss for the Lennar Other segment was $79.7 million in the nine months ended August 31, 2025, compared to operating loss of $47.3 million in the nine months ended August 31, 2024.

The Lennar Other operating loss for nine months ended August 31, 2025 was primarily due to losses from certain strategic investments, partially offset by mark-to-market gains on our technology investments.

The Lennar Other operating loss for the nine months ended August 31, 2024 was primarily related to operating losses from certain strategic investments, which was partially offset by $12.5 million of mark-to-market gains on our technology investments and a $46.5 million one-time gain on the sale of a technology investment.

For the nine months ended August 31, 2025 and 2024, we had tax provisions of $520.5 million and $859.2 million, respectively, which resulted in overall effective income tax rates of 24.7% and 23.2%, respectively.

First Quarter 2026 versus First Quarter 2025

Revenues from home sales decreased 13% in the first quarter of 2026 to $6.3 billion from $7.2 billion in the first quarter of 2025.

Revenues were lower primarily due to an 8% decrease in the average sales price of homes delivered and a 5% decrease in the number of home deliveries.

New home deliveries were 16,863 homes in the first quarter of 2026, compared to 17,834 homes in the first quarter of 2025.

The average sales price of homes delivered was $374,000 in the first quarter of 2026, compared to $408,000 in the first quarter of 2025.

The decrease in average sales price of homes delivered in the first quarter of 2026 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 $951.3 million, or 15.2%, in the first quarter of 2026, compared to $1.4 billion, or 18.7%, in the first quarter of 2025.

During the first quarter of 2026, gross margins decreased primarily due to 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 $617.5 million in the first quarter of 2026, compared to $615.7 million in the first quarter of 2025.

As a percentage of revenues from home sales, selling, general and administrative expenses increased to 9.8% in the first quarter of 2026, from 8.5% in the first quarter of 2025, primarily due to less leverage as a result of lower revenues.

During the first quarter of 2026, our homebuilding operating earnings included $19.9 million of interest income, compared to $23.2 million of interest income in the first quarter of 2025.

Operating earnings for the Financial Services segment were $90.6 million in the first quarter of 2026, compared to $142.9 million in the first quarter of 2025.

The decrease in operating earnings was primarily due to lower lock volume and lower profit per locked loan.

Operating earnings for the Multifamily segment were $18.0 million in the first quarter of 2026, compared to a breakeven result in the first quarter of 2025.

Operating loss for the Lennar Other segment was $5.2 million in the first quarter of 2026, compared to operating loss of $89.3 million in the first quarter of 2025.

The Lennar Other operating loss for the first quarter of 2026 was primarily due to operating losses, which was partially offset by mark-to-market gains of $14.8 million on our technology investments.

The Lennar Other operating loss for the first quarter of 2025 was primarily due to mark-to-market losses of $62.5 million on our technology investments.

In the first quarter of 2026 and 2025, we had tax provisions of $69.1 million and $169.5 million, which resulted in an overall effective income tax rate of 23.1% and 24.6%, 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 nine months ended August 31, 2025 from the prior year was primarily due to a decrease in tax credits and a decrease in excess tax benefits from share-based compensation.

The decrease in the effective tax rate for the first quarter of 2026 compared to the prior period was primarily due to a charitable contribution of appreciated stock.

Homebuilding Segments

At August 31, 2025, our reportable Homebuilding segments and Homebuilding Other are outlined in Note 3 of the Notes to Condensed Consolidated Financial Statements.

At February 28, 2026, our reportable Homebuilding segments and Homebuilding Other are outlined in Note 2 of the Notes to Condensed Consolidated Financial Statements.

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

Selected Financial and Operational Data

Three Months Ended August 31, 2025

Gross Margins Operating Earnings

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

East $ 1,679,796 1,362,858 18.9 % 163,716 1,282 3,521 14,338 (1,209) 181,648

Central 2,072,731 1,693,876 18.3 % 188,696 (1,788) 1,030 40 1,480 189,458

South Central 1,507,314 1,247,502 17.2 % 134,693 (2,305) 610 (5) (2,864) 130,129

West 2,950,118 2,470,021 16.3 % 278,893 (7,733) 1,877 563 (3,277) 270,323

Other (2) 3,621 5,306 (46.5) % (8,472) — 2,536 (4,746) (1,091) (11,773)

$ 8,213,580 6,779,563 17.5 % 757,526 (10,544) 9,574 10,190 (6,961) 759,785

Three Months Ended August 31, 2024

Gross Margins Operating Earnings

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

East $ 2,058,158 1,511,468 26.6 % 388,707 1,810 2,802 8,186 403 401,908

Central 2,202,207 1,705,333 22.6 % 339,956 (3,545) 708 946 5,425 343,490

South Central 1,283,781 993,685 22.6 % 195,938 (132) 594 — 1,367 197,767

West 3,470,255 2,773,873 20.1 % 507,569 (1,387) 1,337 1,624 5,305 514,448

Other (2) 3,226 5,244 (62.6) % (4,865) — 3,158 14,464 7,548 20,305

$ 9,017,627 6,989,603 22.5 % 1,427,305 (3,254) 8,599 25,220 20,048 1,477,918

Nine Months Ended August 31, 2025

First Quarter 2026

Gross Margins Operating Earnings

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$ 6,272,922 5,321,614 15.2 % 333,813 (16,153) 10,483 38,181 6,704 373,028

Nine Months Ended August 31, 2024

First Quarter 2025

Gross Margins Operating Earnings

($ in thousands) Sales of Homes Revenue Costs of Sales of Homes Gross Margin (Loss) % Net Margins (Losses) on Sales of Homes (1) Gross Margins (Losses) on

Sales of Land Other Revenues Equity in Earnings (Losses) from Unconsolidated Entities Other Income, net Operating Earnings

East $ 1,655,259 1,303,019 21.3 % 190,054 (389) 2,736 6,638 25,315 224,354

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Summary of Homebuilding Data

Three Months Ended August 31,

2025 2024 2025 2024 2025 2024

Homes Dollar Value (In thousands)

Average Sales Price

East 4,770 5,270 $ 1,744,875 2,108,031 $ 366,000 400,000

Central 5,469 5,510 2,072,731 2,202,207 379,000 400,000

South Central 6,413 5,067 1,507,314 1,283,781 235,000 253,000

West 4,926 5,663 2,950,118 3,470,255 599,000 613,000

Other 6 6 3,622 3,225 604,000 538,000

Total 21,584 21,516 $ 8,278,660 9,067,499 $ 383,000 422,000

Of the total homes delivered listed above, 146 homes with a dollar value of $65.1 million and an average sales price of $446,000 represent homes from unconsolidated entities for the three months ended August 31, 2025, compared to 124 homes with a dollar value of $49.9 million and an average sales price of $402,000 for the three months ended August 31, 2024.

Nine Months Ended August 31,

First Quarter

2026 2025 2026 2025 2026 2025

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Total 16,863 17,834 $ 6,344,795 7,281,529 $ 374,000 408,000

Of the total homes delivered listed above, 339 homes with a dollar value of $157.1 million and an average sales price of $463,000 represent homes from unconsolidated entities for the nine months ended August 31, 2025, compared to 271 homes with a dollar value of $128.0 million and an average sales price of $472,000 for the nine months ended August 31, 2024.

Of the total homes delivered listed above, 84 homes with a dollar value of $71.9 million and an average sales price of $856,000 represent homes from unconsolidated entities for the first quarter of 2026, compared to 80 homes with a dollar value of $41.0 million and an average sales price of $512,000 for the first quarter of 2025.

Sales Incentives (1):

Three Months Ended August 31, Nine Months Ended August 31,

First Quarter

2026 2025 2026 2025

1 unchanged sentence

Home Delivered Sales Incentives

as a % of Revenue Average Sales Incentives Per

Home Delivered Sales Incentives

as a % of Revenue

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New Orders (2):

At August 31, Three Months Ended August 31,

First Quarter

2026 2025 2026 2025 2026 2025 2026 2025

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Total 1,678 1,584 18,515 18,355 $ 7,139,386 7,430,732 $ 386,000 405,000

Of the total new orders listed above, 104 homes with a dollar value of $56.7 million and an average sales price of $546,000 represent homes in nine active communities from unconsolidated entities for the three months ended August 31, 2025, compared to 114 homes with a dollar value of $69.1 million and an average sales price of $606,000 in 10 active communities for the three months ended August 31, 2024.

Nine Months Ended August 31,

2025 2024 2025 2024 2025 2024

Homes Dollar Value (In thousands) Average Sales Price

East 15,141 13,782 $ 5,498,162 5,701,708 $ 363,000 414,000

Central 15,562 15,396 5,869,567 6,089,912 377,000 396,000

South Central 18,602 14,861 4,362,932 3,760,078 235,000 253,000

West 14,634 15,979 8,701,073 9,929,956 595,000 621,000

Other 21 38 13,993 17,663 666,000 465,000

Total 63,960 60,056 $ 24,445,727 $ 25,499,317 $ 382,000 425,000

Of the total new orders listed above, 346 homes with a dollar value of $186.4 million and an average sales price of $539,000 represent homes from unconsolidated entities for the nine months ended August 31, 2025, compared to 234 homes with a dollar value of $134.3 million and an average sales price of $574,000 for the nine months ended August 31, 2024.

(2) Homes represent the number of new sales contracts executed with homebuyers, net of cancellations, during the three and nine months ended August 31, 2025 and 2024.

Of the total new orders listed above, 71 homes with a dollar value of $31.2 million and an average sales price of $440,000 represent homes in seven active communities from unconsolidated entities for the first quarter of 2026, compared to 101 homes with a dollar value of $59.9 million and an average sales price of $593,000 in 11 active communities for the first quarter of 2025.

(2) Homes represent the number of new sales contracts executed with homebuyers, net of cancellations, during the first quarter of 2026 and 2025.

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

Three Months Ended Nine Months Ended

August 31, August 31,

2025 2024 2025 2024

First Quarter

East 14 % 16 %

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Total 13 % 14 %

At August 31,

First Quarter

2026 2025 2026 2025 2026 2025

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Total 15,588 13,145 $ 6,040,767 5,766,084 $ 388,000 439,000

Of the total homes in backlog listed above, 86 homes with a backlog dollar value of $93.1 million and an average sales price of $1.1 million represent the backlog from unconsolidated entities at August 31, 2025, compared to 110 homes with a backlog dollar value of $80.7 million and an average sales price of $734,000 at August 31, 2024.

(3) During the nine months ended August 31, 2025, backlog includes 909 acquired homes of which 181, 717 and 11 homes were in the Central, South Central and West homebuilding segments, respectively.

Of the total homes in backlog listed above, 66 homes with a backlog dollar value of $45.4 million and an average sales price of $687,000 represent the backlog from unconsolidated entities at February 28, 2026, compared to 100 homes with a backlog dollar value of $82.7 million and an average sales price of $827,000 at February 28, 2025.

Backlog represents the number of homes under sales contracts.

Homes are sold using sales contracts, which are generally accompanied by sales deposits.

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

In some instances, purchasers are permitted to cancel sales contracts 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.

Three Months Ended August 31, 2025 versus Three Months Ended August 31, 2024

Homebuilding East:

Revenues from home sales decreased in the third quarter of 2025 compared to the third quarter of 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 incentives and product mix.

In the third quarter of 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 decreased in the third quarter of 2025 compared to the third quarter of 2024, primarily due to decreases in the number of homes delivered in all states of the segment except in Alabama, Illinois, North Carolina and South Carolina and in the average sales price of homes delivered in Alabama, Illinois, Maryland, North Carolina and Virginia.

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 incentives and product mix.

Homebuilding South Central:

Revenues from home sales increased in the third quarter of 2025 compared to the third quarter of 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.

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 incentives and product mix.

Homebuilding West:

Revenues from home sales decreased in the third quarter of 2025 compared to the third quarter of 2024, primarily due to decreases in the number of homes delivered in all the 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 Colorado, Idaho and Washington.

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 incentives.

Nine Months Ended August 31, 2025 versus Nine Months Ended August 31, 2024

First Quarter 2026 versus First Quarter 2025

Homebuilding East:

Revenues from home sales decreased in the nine months ended August 31, 2025 compared to the nine months ended August 31, 2024, primarily due to decreases in the number of homes delivered and the average sales price of homes delivered in all the states in 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 incentives and product mix.

In the nine months ended August 31, 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.

Revenues from home sales decreased in the first quarter of 2026 compared to the first quarter of 2025, primarily due to decreases in the number of homes delivered and the average sales price of homes delivered in all 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 deliveries per active community as a result of the timing of homes delivered, despite an increase in the number of active communities year over year.

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.

During the first quarter of 2026, gross margin percentage on homes delivered decreased, primarily 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 were flat in the nine months ended August 31, 2025 compared to the nine months ended August 31, 2024, primarily due to an increase in the number of homes delivered in Alabama, Illinois, North Carolina, South Carolina and Virginia, which was offset by a decrease in the average sales price of homes delivered in Alabama, Illinois, Maryland, North Carolina, South Carolina and Virginia.

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

Revenues from home sales decreased in the first quarter of 2026 compared to the first quarter of 2025, primarily due to decreases in the average sales price of homes delivered in Alabama, Illinois, Indiana, Maryland/Virginia, Minnesota, North Carolina, South Carolina, and Tennessee, partially offset by an increase in the number of homes delivered in Alabama, Illinois, Maryland/Virginia, and South Carolina.

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

Homebuilding South Central:

Revenues from home sales increased in the nine months ended August 31, 2025, compared to the nine months ended August 31, 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.

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 incentives and product mix.

Revenues from home sales were essentially flat in the first quarter of 2026 compared to the first quarter of 2025, as an increase in the number of homes delivered in Arkansas, Kansas, and Oklahoma was offset by a decrease in the number of homes delivered in Texas and a decrease in the average sales price of homes delivered in Texas and Kansas.

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

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.

During the first quarter of 2026, gross margin percentage on homes delivered decreased, primarily due to lower revenue per square foot, partially offset by decreases in both construction costs and land costs year over year.

Homebuilding West:

Revenues from home sales decreased in the nine months ended August 31, 2025 compared to the nine months ended August 31, 2024, primarily due to decreases in the number of homes delivered in all the states in the segment except in Idaho and Utah and the average sales price of homes delivered in all states in the segment except in California and Idaho.

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 incentives.

Revenues from home sales decreased in the first quarter of 2026 compared to the first quarter of 2025, primarily due to decreases in the number of homes delivered in all states in the segment except in Oregon, partially offset by an increase in the average sales price of homes delivered in Colorado, Idaho, Nevada, and Oregon.

The overall decrease in the number of homes delivered was primarily due to a decrease in the number of deliveries per active community as a result of 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:

Three Months Ended Nine Months Ended

August 31, August 31,

First Quarter

(Dollars in thousands) 2026 2025

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Number of title and closing service transactions 18,700 18,200

At August 31, 2025 and November 30, 2024, the carrying value of Financial Services' commercial mortgage-backed securities was $133.6 million and $135.6 million, respectively.

At February 28, 2026 and November 30, 2025, the carrying value of Financial Services' commercial mortgage-backed securities was $131.0 million and $132.9 million, respectively.

Details of these securities and related debt are disclosed in Note 2 of the Notes to Condensed Consolidated Financial Statements.

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Balance Sheets At

(In thousands) August 31, 2025 November 30, 2024

(In thousands) February 28, 2026 November 30, 2025

Multifamily investments in unconsolidated entities $ 474,767 506,573

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During the year ended November 30, 2025, 35 LMV I rental operation projects were sold to various third-party buyers.

During the nine months ended August 31, 2025, two additional LMV I rental operation projects were sold to third-party buyers.

During the first quarter of 2026, one additional LMV I rental operation project was sold to third-party buyers.

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.

At August 31, 2025 and November 30, 2024, we had $844.6 million and $894.9 million, respectively, of assets in our Lennar Other segment, which included investments in unconsolidated entities of $372.3 million and $379.4 million, respectively.

We have/had 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 value of our shareholdings in those entities on the last day of each quarter.

All of 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.

Details of these investments are included within Note 3 of the Notes to Condensed Consolidated Financial Statements.

The following is a detail of Lennar Other realized and unrealized gains from sales of shares and mark-to-market adjustments on our publicly traded technology investments:

Three Months Ended Nine Months Ended

August 31, August 31,

(In thousands) 2025 2024 2025 2024

Blend Labs (BLND) $ — 2,270 (3,737) 5,921

Hippo (HIPO) 27,754 6,609 (598) 33,795

Opendoor (OPEN) 71,345 (564) 39,638 (16,156)

SmartRent (SMRT) — (5,634) (4,483) (12,206)

Sonder (SOND) — 71 (19) 82

Sunnova (NOVA) 124 36,371 (23,521) 1,036

Lennar Other realized and unrealized gains from technology investments (1) $ 99,223 39,123 7,280 12,472

(1) During the nine months ended August 31, 2025, we generated $44.7 million of cash and realized a loss of $25.9 million on the sale of our shares in Blend Labs, Hippo, SmartRent, Sonder and Sunnova.

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.

At February 28, 2026 and November 30, 2025, we had $829.7 million and $897.6 million, respectively, of assets in our Lennar Other segment, which included investments in unconsolidated entities of $361.1 million and $368.0 million, respectively.

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.

In the first quarter of 2026 and 2025, we recorded mark-to-market gains of $14.8 million and losses of $62.5 million, respectively, on our publicly traded technology investments.

(2) Financial Condition and Capital Resources

At August 31, 2025, we had cash and cash equivalents and restricted cash related to our homebuilding, financial services, multifamily and other operations of $1.8 billion, compared to $5.0 billion at November 30, 2024 and $4.3 billion at August 31, 2024.

At February 28, 2026, we had cash and cash equivalents and restricted cash related to our homebuilding, financial services, multifamily and other operations of $2.4 billion, compared to $3.8 billion at November 30, 2025 and $2.6 billion at February 28, 2025.

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 cash borrowed under our warehouse lines of credit and our unsecured revolving credit facility (the “Credit Facility”).

At August 31, 2025, we had $1.4 billion of homebuilding cash and cash equivalents and ended the third quarter of 2025 with total liquidity of $5.1 billion.

At February 28, 2026, we had $2.1 billion of homebuilding cash and cash equivalents and ended the first quarter of 2026 with total liquidity of $5.2 billion.

Operating Cash Flow Activities

During the nine months ended August 31, 2025 and 2024, cash (used in) provided by operating activities totaled ($1.5) billion and $1.4 billion, respectively.

During the nine months ended August 31, 2025, cash used in operating activities was impacted by (1) an increase in inventories due to land purchases and construction costs of $1.3 billion;

(2) an increase in deposits and pre-acquisition costs on real estate of $1.2 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 $210 million;

and (4) a decrease in accounts payable and other liabilities of $978 million.

This was partially offset by our net earnings and a decrease in loans held-for-sale of $240 million primarily related to the sale of loans originated by our Financial Services segment.

During the nine months ended August 31, 2024, cash provided by operating activities was impacted primarily by our net earnings, a decrease in loans held-for-sale of $245 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 strategic land purchases, land development and construction costs of $708 million;

(2) an increase in deposits and pre-acquisition costs on real estate of $985 million as we increased the percentage of controlled homesites;

During the three months ended February 28, 2026 and 2025, cash used in operating activities totaled $434 million and $289 million, respectively.

During the three months ended February 28, 2026, cash used in operating activities was impacted by (1) an increase in inventories due to land purchases and construction costs of $652 million;

(2) an increase in deposits and pre-acquisition costs on real estate of $354 million as we increased the percentage of controlled homesites primarily as a result of option contracts with land banks;

and (3) a decrease in accounts payable and other liabilities of $404 million.

This was partially offset by (1) our net earnings;

(2) a decrease in loans held-for-sale of $398 million primarily related to the sale of loans originated by our Financial Services segment;

and (3) a decrease in receivables of $296 million.

During the three months ended February 28, 2025, cash used in operating activities was impacted by an increase in inventories due to strategic land purchases, land development and construction costs of $513 million, an increase in deposits and pre-acquisition costs on real estate of $758 million as we increased the percentage of controlled homesites primarily as a result of option contracts with Millrose Properties, Inc.

("Millrose"), and a decrease in accounts payable and other liabilities of $215 million.

This was offset by our net earnings and a decrease in loans held-for-sale of $445 million primarily related to the sale of loans originated by our Financial Services segment.

Investing Cash Flow Activities

During the nine months ended August 31, 2025 and 2024, cash provided by (used in) investing activities totaled $176 million and ($177) million, respectively.

During the nine months ended August 31, 2025, our cash provided by investing activities was primarily due to (1) $233 million received from the sale of an investment in a joint venture, $87 million proceeds from the sale of investments and distributions of capital from unconsolidated entities of $236 million, which primarily included

(1) $86 million from Homebuilding unconsolidated entities, (2) $129 million from Multifamily entities and (3) $21 million from our Lennar Other unconsolidated entities and $115 million proceeds from the sale of notes receivables.

This was partially offset by the $254 million acquisition of Rausch, net of cash acquired.

During the three months ended February 28, 2026 and 2025, cash provided by investing activities totaled $93 million and $21 million, respectively.

During the three months ended February 28, 2026, our cash provided by investing activities was primarily due to $28 million proceeds from the sale of investments and distributions of capital from unconsolidated entities of

$105 million, which primarily included (1) $84 million from Multifamily entities, (2) $17 million from Homebuilding unconsolidated entities, and (3) $4 million from our Lennar Other unconsolidated entities.

In addition, we had cash contributions of $32 million to unconsolidated entities, which included (1) $15 million to Homebuilding unconsolidated entities, (2) $1 million to Lennar Other unconsolidated entities and (3) $16 million to Multifamily unconsolidated entities and $30 million of net additions of operating properties and equipment.

During the nine months ended August 31, 2024, our cash used in investing activities was primarily due to cash contributions of $312 million to unconsolidated entities, which included (1) $164 million to Homebuilding unconsolidated entities, (2) $131 million to Lennar Other unconsolidated entities, and (3) $17 million to Multifamily unconsolidated entities and $130 million of net additions of operating properties and equipment.

This was partially offset by distributions of capital from unconsolidated entities of $237 million, which primarily included (1) $53 million from Homebuilding unconsolidated entities, (2) $18 million from our Lennar Other unconsolidated entities, and (3) $166 million from Multifamily entities.

During the three months ended February 28, 2025, our cash provided by investing activities was primarily due to $233 million received from the sale of an investment in a joint venture, $72 million proceeds from the sale of investments and distributions of capital from unconsolidated entities of $35 million, which primarily included (1) $15 million from Homebuilding unconsolidated entities, (2) $17 million from Multifamily entities and (3) $4 million from our Lennar Other unconsolidated entities.

This was partially offset by the $231 million acquisition of Rausch Coleman Homes, net of cash acquired.

In addition, we had cash contributions of $79 million to unconsolidated entities, which included (1) $67 million to Homebuilding unconsolidated entities, (2) $4 million to Lennar Other unconsolidated entities and (3) $8 million to Multifamily unconsolidated entities and $56 million of net additions of operating properties and equipment.

Financing Cash Flow Activities

During the nine months ended August 31, 2025 and 2024, cash used in financing activities totaled $1.9 billion and $3.5 billion, respectively.

During the nine months ended August 31, 2025, cash used in financing activities was primarily due to (1) $1.8 billion of repurchases of our common stock, which included $1.7 billion of repurchases under our repurchase program and $66 million of repurchases related to our equity compensation plan;

(2) $394 million of dividend payments;

(3) $479 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks;

(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) $67 million of net repayments under our Financial Services' warehouse facilities.

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 $1.1 billion of net borrowings under our unsecured revolving Credit Facility.

During the nine months ended August 31, 2024, cash used in financing activities was primarily due to (1) $1.7 billion of repurchases of our common stock, which included $1.6 billion of repurchases under our repurchase program and $86 million of repurchases related to our equity compensation plan;

During the three months ended February 28, 2026 and 2025, cash used in financing activities totaled $1.1 billion and $2.1 billion, respectively.

During the three months ended February 28, 2026, cash used in financing activities was primarily due to (1) $599 million of net repayments under our Financial Services' warehouse facilities;

(2) $270 million of repurchases of our common stock, which included $239 million of repurchases under our repurchase program and $30 million of repurchases related to our equity compensation plan;

(3) $123 million of dividend payments;

(3) $618 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;

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

and (4) $80 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks.

During the three months ended February 28, 2025, cash used in financing activities was primarily due to (1) $534 million of net repayments under our Financial Services' warehouse facilities;

(2) $416 million net cash in connection with the Millrose spin-off;

(3) $256 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks;

(4) $775 million of repurchases of our common stock, which included $710 million of repurchases under our repurchase program and $65 million of repurchases related to our equity compensation plan;

and (5) $132 million of dividend payments.

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.

Homebuilding debt to total capital and net Homebuilding debt to total capital are calculated as follows:

(Dollars in thousands) August 31, 2025 November 30, 2024 August 31, 2024

(Dollars in thousands) February 28, 2026 November 30, 2025 February 28, 2025

Homebuilding debt $ 4,065,459 4,084,686 2,211,272

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

At August 31, 2025, Homebuilding debt to total capital was higher compared to November 30, 2024 and August 31, 2024, primarily as a result of a decrease in stockholders' equity due to the spin-off of Millrose and share repurchases, an increase in Homebuilding debt due to issuance of senior notes and outstanding borrowings under our Credit Facility, and net earnings.

At February 28, 2026, Homebuilding debt to total capital was consistent with November 30, 2025.

At February 28, 2026, Homebuilding debt to total capital was higher compared to February 28, 2025, primarily as a result of a decrease in stockholders' equity due to the non-cash exchange of Millrose Class A common stock and stock repurchases, partially offset by net earnings and 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 debt paydowns.

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.

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

On February 7, 2025, we successfully completed the taxable spin-off of Millrose from Lennar through a distribution of approximately 80% of Millrose's stock to our stockholders.

We temporarily retain, but do not vote, the remaining 20% of the total outstanding shares of Millrose common stock, which we expect to dispose of through a split-off, a stock sale or another transaction.

In connection with the spin-off, we contributed to Millrose $5.6 billion in land assets and cash of $1.0 billion, which included $584 million of cash deposits related to option contracts.

The spin-off transaction accelerates our longstanding strategy of becoming a pure-play, asset-light, new home manufacturing company.

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 debt payable as well as letters of credit and surety bonds are summarized within Note 8 of the Notes to Condensed Consolidated Financial Statements.

Our Homebuilding senior notes and other debts payable as well as letters of credit and surety bonds are summarized within Note 7 of the Notes to Condensed Consolidated Financial Statements.

Our Homebuilding average debt outstanding and the average rates of interest was as follows:

Nine Months Ended August 31,

Three Months Ended February 28,

(Dollars in thousands) 2026 2025

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Interest incurred $ 54,575 31,489

In May 2025, we issued $700 million in aggregate principal amount of 5.20% senior notes due 2030 (the "5.20% senior notes") at a price of 99.969% of the principal amount.

Proceeds from the offering, after payment of expenses, totaled $695.6 million.

The 5.20% Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of our 100% owned homebuilding subsidiaries.

Interest on the 5.20% Senior Notes is due semi-annually beginning January 30, 2026.

We utilized the net proceeds from the sale of the 5.20% senior notes primarily to pay off $500 million aggregate principal amount of our 4.75% senior notes due May 2025.

The redemption price, which was paid in cash, was 100% of the principal amount outstanding.

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 August 31, 2025, there were no borrowings under the credit agreement governing the new unsecured Delayed Draw Term Loan Facility.

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 February 28, 2026, we had outstanding borrowings of approximately $1.7 billion under the credit agreement governing our new unsecured Delayed Draw Term Loan Facility.

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

(In thousands) At August 31, 2025

(In thousands) At February 28, 2026

Commitments - maturing in May 2027 $ 225,000

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The proceeds available under the Credit Facility, which are subject to specified conditions for borrowing, may be used for working capital and general corporate purposes.

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 Credit Facility also provides that up to $477.5 million in commitments may be used for letters of credit.

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

We believe we were in compliance with our debt covenants as of August 31, 2025.

The following summarizes our debt covenant requirements 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 August 31, 2025:

(Dollars in thousands) Covenant Level Level Achieved

We believe we were in compliance with our debt covenants as of February 28, 2026.

(Dollars in thousands) Covenant Level Level Achieved as of February 28, 2026

Minimum net worth test $ 10,000,000 16,103,853

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The repurchase authorization has no expiration date.

At August 31, 2025, we have a remaining authorization to repurchase $1.7 billion in value of our Class A or Class B common stock.

The details of our Class A and Class B common stock repurchases under the authorized repurchase program for the nine months ended August 31, 2025 and August 31, 2024 are included in Note 5 of the Notes to Condensed Consolidated Financial Statements.

During the nine months ended August 31, 2025, treasury shares increased by 14.8 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.

During the nine months ended August 31, 2024, treasury shares increased by 11.2 million shares primarily due to our repurchase of $10.6 million shares of Class A and Class B common stock through our stock repurchase program.

On February 7, 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.

On September 26, 2025, our Board of Directors declared a quarterly cash dividend of $0.50 per share on both our Class A and Class B common stock, payable on October 27, 2025 to holders of record at the close of business on October 10, 2025.

On July 18, 2025, we paid a quarterly cash dividend of 0.50 per share for both our Class A and Class B common stock to holders of record at the close of business day July 3, 2025.

At February 28, 2026, we have a remaining authorization to repurchase $1.5 billion in value of our Class A or Class B common stock.

The details of our Class A and Class B common stock repurchases under the authorized repurchase program for the three months ended February 28, 2026 and 2025 are included in Note 4 of the Notes to Condensed Consolidated Financial Statements.

During the three months ended February 28, 2026, treasury shares increased by 2.3 million shares primarily due to our repurchase of 2.0 million shares of Class A and Class B common stock through our stock repurchase program.

During the three months ended February 28, 2025, treasury shares increased by 5.8 million shares primarily due to our repurchase of 5.2 million shares of Class A and Class B common stock through our stock repurchase program.

On April 8, 2026, our Board of Directors declared a quarterly cash dividend of $0.50 per share on both our Class A and Class B common stock, payable on May 6, 2026 to holders of record at the close of business on April 22, 2026.

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

We approved and paid cash dividends of $0.50 per share for each of the four quarters of 2025 for both our Class A and Class B common stock.

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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, its Credit Facility and Delayed Draw Term Loan Facility, which are disclosed in Note 8 of the Notes to Condensed Consolidated Financial Statements.

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 7 of the Notes to Condensed 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 August 31, 2025 is included in the following tables.

Supplemental information for the Obligors, which excludes non-guarantor subsidiaries and intercompany transactions, at February 28, 2026 is included in the following tables.

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:

(In thousands) At August 31, 2025 At November 30, 2024

(In thousands) At February 28, 2026 At November 30, 2025

Due from non-guarantor subsidiaries $ 14,802,244 14,709,366

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Total liabilities 8,827,902 9,243,409

Nine Months Ended

(In thousands) August 31, 2025

Three Months Ended

(In thousands) February 28, 2026

Total revenues $ 5,917,999

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Off-Balance Sheet Arrangements

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

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 the debt covenants, we evaluate and assess possible impairment of our investments.

We believe that substantially all of the joint ventures were in compliance with applicable debt covenants at August 31, 2025.

We believe that substantially all of the joint ventures were in compliance with their debt covenants at February 28, 2026.

Homebuilding:

Investments in Unconsolidated Entities

As of August 31, 2025, we had equity investments in 53 active Homebuilding and land unconsolidated entities (of which 4 had recourse debt, 15 had non-recourse debt and 34 had no debt) compared to 51 active Homebuilding and land unconsolidated entities at November 30, 2024.

As of February 28, 2026, we had equity investments in 48 active Homebuilding and land unconsolidated entities (of which 3 had recourse debt, 11 had non-recourse debt and 34 had no debt) compared to 50 active Homebuilding and land unconsolidated entities at November 30, 2025.

Historically, we have invested in unconsolidated entities that acquired and developed land (1) for our homebuilding operations or for sale to third parties or (2) for the construction of homes for sale to third-party homebuyers.

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

Joint ventures with strategic partners have allowed us to combine our homebuilding expertise with the specific expertise (e.g.

commercial or infill experience) of our partners.

Each joint venture is governed by an executive committee consisting of members from each partner.

Joint ventures with strategic partners have allowed us to combine our homebuilding expertise with the specific expertise (e.g., commercial or infill experience) of our partner.

Each joint venture is governed by an executive committee consisting of members from the partners.

Details regarding these investments, balances and debt are included in Note 3 of the Notes to Condensed Consolidated Financial Statements.

The following table summarizes the principal maturities of our Homebuilding unconsolidated entities (“JVs”) debt as per current debt arrangements as of August 31, 2025.

The following table summarizes the principal maturities of our Homebuilding unconsolidated entities (“JVs”) debt as per current debt arrangements as of February 28, 2026.

It does not represent estimates of future cash payments that will be made to reduce debt balances.

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Bank debt without recourse to Lennar $ 1,159,743 152,612 457,462 62,633 487,036 —

Land seller and other debt without recourse to Lennar 45,505 — — — 45,505 —

Maximum recourse debt exposure to Lennar 8,232 8,232 — — — —

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We own an approximately 40% interest in FivePoint Holdings, LLC., a NYSE listed company, and companies it manages, which own three large multi-use properties in California.

We temporarily hold an approximately 20% investment in the total outstanding shares of Millrose common stock, which we expect to dispose of through a split-off, a stock sale or another transaction.

Investments in Unconsolidated Entities

At August 31, 2025, Multifamily had equity investments in 25 active unconsolidated entities that are engaged in multifamily residential developments (of which 18 had non-recourse debt and 7 had no debt) compared to 23 active unconsolidated entities at November 30, 2024.

At February 28, 2026, Multifamily had equity investments in 26 active unconsolidated entities that are engaged in multifamily residential developments (of which 17 had non-recourse debt and 9 had no debt) compared to 25 active unconsolidated entities at November 30, 2025.

We invest in unconsolidated entities that acquire and develop land to construct multifamily rental properties.

Through these entities, we are focusing on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S.

Initially, we participated in building multifamily developments and selling them soon after they were completed.

Participants in these joint ventures have been financial partners.

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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 includes LMV I, LMV II, the CPPIB Fund and the Institutional JV, which are long-term multifamily development investment vehicles involved in the development and construction of class-A multifamily assets.

Details of each fund as of and during the nine months ended August 31, 2025 are included in Note 4 of the Notes to Condensed Consolidated Financial Statements.

The following table summarizes the principal maturities of our Multifamily unconsolidated entities debt as per current debt arrangements as of August 31, 2025.

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.

The Multifamily segment expects the CPPIB Fund to have almost $1.0 billion in equity and Lennar's ownership percentage in the CPPIB Fund is 4%.

The Multifamily segment expects the Institutional JV to acquire certain portfolio assets and invest

additional capital to support pipeline opportunities.

Details of each fund as of and during the three months ended February 28, 2026 are included in Note 3 of the Notes to Condensed Consolidated Financial Statements.

In addition, in December 2025, we sold a majority interest in Quarterra Group, Inc.

("Quarterra"), a subsidiary of the Multifamily segment, to TPG Real Estate (“TPG”), thus retaining a non-controlling 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.

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

We also monitor the performance of Multifamily 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 the debt covenants, we evaluate and assess possible impairment of our investment.

We believe all of the joint ventures were in compliance with their debt covenants at February 28, 2026.

The following table summarizes the principal maturities of our Multifamily unconsolidated entities debt as per current debt arrangements as of February 28, 2026.

It does not represent estimates of future cash payments that will be made to reduce debt balances.

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We periodically receive advance distributions related to the carried interests in order to cover income tax obligations resulting from allocations of taxable income to the carried interests.

These distributions are not subject to clawbacks but reduce future carried interest payments to which we become entitled from the applicable funds and are recorded as equity in earnings (losses) in the condensed consolidated statement of operations.

Our investment in the Rialto funds totaled $134.3 million and $140.1 million as of August 31, 2025 and November 30, 2024, respectively.

As of August 31, 2025 and November 30, 2024, we had strategic technology investments in unconsolidated entities of $238.0 million and $239.3 million, respectively, accounted for under the equity method of accounting.

Our strategic technology investments through our LEN X business help to enhance the homebuying and homeownership experience, and are an important part of our focus on using technology to reduce costs.

These distributions are not subject to clawbacks but reduce future carried interest payments to which we become entitled from the applicable funds and were recorded as equity in earnings (losses) in the consolidated statement of operations.

Our investment in the Rialto funds totaled $128.6 million and $133.0 million as of February 28, 2026 and November 30, 2025, respectively.

As of February 28, 2026 and November 30, 2025, we had strategic technology investments in unconsolidated entities of $232.5 million and $235.0 million, respectively, accounted for under the equity method of accounting.

Our strategic technology investments through our LEN X business help to enhance the homebuying and home ownership experience, and help us stay at the forefront of homebuilding innovation.

Details regarding these investments are included in Note 3 of the Notes to Condensed Consolidated Financial Statements.

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We often obtain access to land through option contracts, which generally enable us to control portions of properties owned by third parties (including land banks) and unconsolidated entities until we have determined whether to exercise the options.

Since fiscal year 2020, we have been increasing the percentage of our total homesites that we control through option contracts rather than own.

Since fiscal year 2020, we have been increasing the percentage of our total homesites that we control through options rather than own.

As part of our focus on strategic relationships to further enhance our land-lighter strategy, at the end of fiscal year 2020 we entered into an arrangement with various land bank investor groups.

Under the arrangement, in most instances when we want to acquire a property for use in our for-sale single-family home business, we will offer the investor group the opportunity to acquire the property and give us an option to purchase all or a portion of it back in the future, if it is mutually beneficial to both parties.

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 table below indicates the number of homesites to which we had access through option contracts with third parties and unconsolidated JVs (i.e., controlled homesites) and homesites owned (excluding homes in inventory):

August 31, 2025 Controlled Homesites Owned Homesites Total Homesites Supply Owned (1)

February 28, 2026 Controlled Homesites Owned Homesites Total Homesites Supply Owned (1)

East 113,874 1,741 115,615

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% of total homesites 98% 2%

August 31, 2024 Controlled Homesites Owned Homesites Total Homesites Supply Owned (1)

February 28, 2025 Controlled Homesites Owned Homesites Total Homesites Supply Owned (1)

East 121,809 1,650 123,459

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% of total homesites 98% 2%

(1) Based on trailing twelve months of homes delivered.

Details on option contracts, transactions with land banks and Millrose and related consolidated inventory not owned and exposure are included in Note 10 of the Notes to Condensed Consolidated Financial Statements.

(1) Based on trailing twelve months of home deliveries.

Details on option contracts, transactions with land banks and related consolidated inventory not owned and exposure are included in Note 9 of the Notes to Condensed Consolidated Financial Statements.

Contractual Obligations and Commercial Commitments

Our contractual obligations and commercial commitments have not changed materially from those reported in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2024 Form 10-K, except for a decrease of $1.0 billion in land purchase contract obligations and an increase of $1.3 billion in Homebuilding senior notes and other debts payable, net.

Our contractual obligations and commercial commitments have not changed materially from those reported in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2025 Form 10-K, except for a decrease of $599 million in borrowings under the Financial Services' warehouse repurchase facilities.

(3) Recently Adopted Accounting Pronouncements

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(4) Critical Accounting Policies

There have been no significant changes to our critical accounting policies during the nine months ended August 31, 2025 as compared to those we disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2024 Form 10-K.

There have been no significant changes to our critical accounting policies during the three months ended February 28, 2026 as compared to those we disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2025 Form 10-K.

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-Q

Item 2. Management’s Discussion and Analysis