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Item 2. Management’s Discussion and Analysis

2026-06-29 compared with 2026-04-09 · 272 added, 160 removed, 302 unchanged (59% 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.

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.

Lennar's second quarter 2026 results represent strong operational execution against a macro backdrop that has grown more complicated throughout the quarter.

While our margin remains under pressure as we continue to focus on bringing affordable housing to an affordability-constrained consumer base, underlying demand is real and growing and supply remains structurally short.

Mortgage interest rates remained stubbornly elevated in the mid-to-upper 6% range throughout the quarter, keeping affordability challenged for the majority of our buyers.

Complicating the picture further, headline inflation rose to 4.2% year-over-year in May, the highest reading since early 2023, driven primarily by energy prices tied to supply disruptions from the Iran conflict.

While core inflation decelerated on a monthly basis, higher energy costs impact every part of the American household budget and weigh on consumer confidence and the urgency to make major financial commitments.

The Federal Reserve remains on hold, and near-term rate relief appears unlikely.

Consumer psychology continues to be tested by concerns about long-term job security amid rapid advances in artificial intelligence.

Traffic across our communities has been inconsistent;

intent is high but urgency to close remains measured and deliberate rather than confident.

On an encouraging note, after three years of incentive levels that have been generally increasing, we saw a meaningful decline in our sales incentives on deliveries this quarter.

While the overall market remains choppy and it is too early to declare a sustained trend, this may be a leading indicator of margin recovery.

The federal government's engagement with the national housing crisis also continues to deepen, with housing affordability remaining a genuine focal point of both the administration and the legislature.

Our operating strategy has not changed.

We remain focused on two strategic priorities:

driving consistent, even-flow production and volume, and continuously refining our asset-light, land-light balance sheet model to generate strong and growing cash flow and returns.

Using incentives, we price to market in order to maintain sales at a consistent level as the market adjusts.

This has given us a competitive edge, and has enabled us to drive down construction costs per square foot and to reduce cycle time to a record low.

Our land-light model enables us to be a significantly more efficient land buyer, land developer and land administrator at a meaningfully lower cost of capital.

We are not waiting for conditions to normalize, we are building and executing in the market as it exists today, and we are currently expecting sequential margin improvement to continue as the year progresses.

For the third 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 third quarter deliveries to be in the range of 20,500 to 21,500 homes as we maintain even-flow production and convert inventory to cash.

Our average sales price on those deliveries is expected to be between $375,000 and $380,000.

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.

We expect gross margins to be approximately 16%, and our SG&A percentage should be in the range of 8.8% to 9.0%.

For the full year, we are adjusting our annual delivery guidance to 82,000 to 83,000 homes, reflecting current pressures on interest rates and continued macro uncertainty.

After over three years of navigating a rather difficult and complicated housing market, we believe that we are well-positioned for market conditions as they unfold.

In the current market, incentives are declining, margins are starting to improve, and our sales and marketing machines are generating stronger leads, faster engagement, and better conversion.

Our position is strong in the vast majority of our markets, which gives us the scale and operational discipline to position ourselves for improvements in the market rather than waiting for conditions to improve on their own.

We are building towards that with clarity, discipline, and confidence.

(1) Results of Operations

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

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 results of operations for the three and six months ended May 31, 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 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.

Our second quarter net earnings attributable to Lennar in 2026 were $304.8 million, or $1.24 per diluted share, compared to our second quarter net earnings attributable to Lennar in 2025 of $477.4 million, or $1.81 per diluted share.

Excluding pretax mark-to-market losses of $23.3 million and $29.4 million on technology investments, respectively, our second quarter net earnings attributable to Lennar in 2026 were $322.1 million, or $1.31 per diluted share, compared to $499.5 million or $1.90 per diluted share in the second quarter of 2025.

Financial information relating to our operations was as follows:

First Quarter 2026

Three Months Ended May 31, 2026

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

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Total costs and expenses 7,132,558 135,836 72,788 43,726 — 7,384,908

Equity in earnings from unconsolidated entities 2,670 — 27,233 4,184 — 34,087

Other income, net and other gains, net 2,945 — 316 795 — 4,056

Lennar Other losses from technology investments — — — (23,252) — (23,252)

Operating earnings (loss) $ 489,371 101,103 18,325 (38,944) — 569,855

Corporate general and administrative expenses — — — — 136,149 136,149

Charitable foundation contribution — — — — 20,519 20,519

Earnings (loss) before income taxes $ 489,371 101,103 18,325 (38,944) (156,668) 413,187

Three Months Ended May 31, 2025

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

Sales of homes $ 7,788,275 — — — — 7,788,275

Sales of land 43,195 — — — — 43,195

Other revenues 12,392 298,098 230,305 5,237 — 546,032

Total revenues 7,843,862 298,098 230,305 5,237 — 8,377,502

Costs and expenses:

Costs of homes sold 6,402,532 — — — — 6,402,532

Costs of land sold 56,173 — — — — 56,173

Selling, general and administrative expenses 688,847 — — — — 688,847

Other costs and expenses — 140,818 254,677 30,025 — 425,520

Total costs and expenses 7,147,552 140,818 254,677 30,025 — 7,573,072

Equity in earnings (losses) from unconsolidated entities 17,716 — (5,269) (331) — 12,116

Other income, net and other gains, net 14,208 — 14,887 1,664 — 30,759

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

Lennar Other losses from technology investments — — — (29,440) — (29,440)

Operating earnings (loss) $ 728,234 157,280 (14,754) (52,895) — 817,865

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Earnings (loss) before income taxes $ 728,234 157,280 (14,754) (52,895) (175,984) 641,881

First Quarter 2025

Six Months Ended May 31, 2026

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

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Total costs and expenses 13,102,978 260,078 163,216 87,410 — 13,613,682

Equity in earnings from unconsolidated entities 40,851 — 52,714 3,790 — 97,355

Other income, net and other gains, net 9,649 — 623 1,930 — 12,202

Lennar Other losses from technology investments — — — (8,414) — (8,414)

Operating earnings (loss) $ 862,399 192,416 36,184 (44,190) — 1,046,809

Corporate general and administrative expenses — — — — 293,787 293,787

Charitable foundation contribution — — — — 37,382 37,382

Earnings (loss) before income taxes $ 862,399 192,416 36,184 (44,190) (331,169) 715,640

Six Months Ended May 31, 2025

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

Sales of homes $ 15,028,821 — — — — 15,028,821

Sales of land 78,521 — — — — 78,521

Other revenues 20,390 575,175 293,501 12,639 — 901,705

Total revenues 15,127,732 575,175 293,501 12,639 — 16,009,047

Homebuilding costs and expenses:

Costs of homes sold 12,290,676 — — — — 12,290,676

Costs of land sold 92,250 — — — — 92,250

Selling, general and administrative 1,304,586 — — — — 1,304,586

Other costs and expenses — 274,412 328,053 53,589 656,054

Total costs and expenses 13,687,512 274,412 328,053 53,589 — 14,343,566

Equity in earnings (losses) from unconsolidated entities 52,720 — (4,542) (2,827) — 45,351

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Lennar Other losses from technology investments — — — (91,943) — (91,943)

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

Operating earnings 1,537,507 300,763 (14,777) (142,178) — 1,681,315

Corporate general and administrative expenses — — — — 303,231 303,231

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Earnings (loss) before income taxes $ 1,537,507 300,763 (14,777) (142,178) (341,196) 1,340,119

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.

Three Months Ended May 31, 2026 versus Three Months Ended May 31, 2025

Revenues from home sales decreased 2% in the second quarter of 2026 to $7.6 billion from $7.8 billion in the second quarter of 2025.

Revenues were lower primarily due to a 5% decrease in the average sales price of homes delivered, partially offset by a 2% increase in the number of home deliveries.

New home deliveries were 20,519 homes in the second quarter of 2026, compared to 20,131 homes in the second quarter of 2025.

The average sales price of homes delivered was $371,000 in the second quarter of 2026, compared to $389,000 in the second quarter of 2025.

The decrease in average sales price of homes delivered in the second quarter of 2026 compared to the same period last year was primarily due to continued weakness in the market.

Gross margins on home sales were $1.2 billion, or 15.6%, in the second quarter of 2026, compared to $1.4 billion, or 17.8%, in the second quarter of 2025.

During the second 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 $698.4 million in the second quarter of 2026, compared to $688.8 million in the second quarter of 2025.

As a percentage of revenues from home sales, selling, general and administrative expenses increased to 9.2% in the second quarter of 2026, from 8.8% in the second quarter of 2025, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses.

During the second quarter of 2026, our homebuilding operating earnings included $9.4 million of interest income, compared to $13.8 million of interest income in the second quarter of 2025.

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

Operating earnings for the Financial Services segment were $100.2 million in the second quarter of 2026, compared to $156.6 million in the second quarter of 2025, both amounts are net of noncontrolling interest.

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

Operating earnings for the Multifamily segment were $18.3 million in the second quarter of 2026, compared to an operating loss of $14.8 million in the second quarter of 2025.

Operating loss for the Lennar Other segment was $38.9 million in the second quarter of 2026, compared to an operating loss of $52.9 million in the second quarter of 2025.

The Lennar Other

operating loss for both second quarters of 2026 and 2025 was primarily driven by mark-to-market losses of $23.3 million and $29.4 million, respectively, on our technology investments.

In the second quarter of 2026 and 2025, we had tax provisions of $105.1 million and $160.1 million, which resulted in an overall effective income tax rate of 25.6% and 25.1%, 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 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.

Six Months Ended May 31, 2026 versus Six Months Ended May 31, 2025

Revenues from home sales decreased 8% in the six months ended May 31, 2026 to $13.9 billion from $15.0 billion in the six months ended May 31, 2025.

Revenues were lower primarily due to a 6% decrease in the average sales price of homes delivered and a 2% decrease in the number of home deliveries.

New home deliveries were 37,382 homes in the six months ended May 31, 2026, compared to 37,965 homes in the six months ended May 31, 2025.

The average sales price of homes delivered was $373,000 in the six months ended May 31, 2026, compared to $398,000 in the six months ended May 31, 2025.

The decrease in average sales price of homes delivered in the six months ended May 31, 2026 compared to the same period last year was primarily due to continued weakness in the market.

Gross margins on home sales were $2.1 billion, or 15.4%, in the six months ended May 31, 2026, compared to $2.7 billion, or 18.2%, in the six months ended May 31, 2025.

During the six months ended May 31, 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 $1.3 billion in the six months ended May 31, 2026, consistent with $1.3 billion in the six months ended May 31, 2025.

As a percentage of revenues from home sales, selling, general and administrative expenses increased to 9.5% in the six months ended May 31, 2026, from 8.7% in the six months ended May 31, 2025, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses.

During the six months ended May 31, 2026, our homebuilding operating earnings included $29.3 million of interest income, compared to $37.0 million of interest income in the six months ended May 31, 2025.

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

Operating earnings for the Financial Services segment were $190.8 million in the six months ended May 31, 2026, compared to $299.5 million in the six months ended May 31, 2025, both amounts are net of noncontrolling interest.

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

Operating earnings for the Multifamily segment were $36.2 million in the six months ended May 31, 2026, compared to an operating loss of $14.5 million in the six months ended May 31, 2025.

Operating loss for the Lennar Other segment was $44.2 million in the six months ended May 31, 2026, compared to an operating loss of $142.2 million in the six months ended May 31, 2025.

The Lennar Other operating loss for the six months ended May 31, 2026 was due to operating losses and mark-to-market losses of $8.4 million on our technology investments.

The Lennar Other operating loss for the six months ended May 31, 2025 was primarily due to mark-to-market losses of $91.9 million on our technology investments.

In the six months ended May 31, 2026 and 2025, we had tax provisions of $174.2 million and $329.6 million, which resulted in an overall effective income tax rate of 24.6% and 24.8%, respectively.

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

Homebuilding Segments

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

At May 31, 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

First Quarter 2026

Three Months Ended May 31, 2026

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 (Losses)

East $ 1,709,254 1,382,260 19.1 % 157,939 (4,178) 3,705 4,978 1,942 164,386

Central 1,662,594 1,407,144 15.4 % 76,968 (2,130) 1,076 (18) 2,276 78,172

South Central 1,463,140 1,210,579 17.3 % 117,472 (973) 560 (10) (2,712) 114,337

West 2,758,154 2,409,274 12.6 % 138,458 (1,862) 1,160 676 1,603 140,035

Other (2) 1,897 3,362 (77.2) % (6,812) — 2,373 (2,956) (164) (7,559)

$ 7,595,039 6,412,619 15.6 % 484,025 (9,143) 8,874 2,670 2,945 489,371

Three Months Ended May 31, 2025

Gross Margins Operating Earnings

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$ 7,788,275 6,402,532 17.8 % 696,896 (12,978) 12,392 17,716 14,208 728,234

First Quarter 2025

Six Months Ended May 31, 2026

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

East $ 3,221,332 2,621,112 18.6 % 268,391 (11,406) 8,574 15,661 (1,879) 279,341

Central 3,007,627 2,559,859 14.9 % 121,081 (4,993) 2,229 41 4,159 122,517

South Central 2,623,320 2,166,947 17.4 % 213,650 (3,318) 1,220 (25) (4,381) 207,146

West 5,009,901 4,376,796 12.6 % 231,513 (5,579) 2,362 1,588 (429) 229,455

Other (2) 5,781 9,519 (64.7) % (16,797) — 4,972 23,586 12,179 23,940

$ 13,867,961 11,734,233 15.4 % 817,838 (25,296) 19,357 40,851 9,649 862,399

Six Months Ended May 31, 2025

Gross Margins Operating Earnings

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Summary of Homebuilding Data

First Quarter

Three Months Ended May 31,

2026 2025 2026 2025 2026 2025

7 unchanged sentences

Total 20,519 20,131 $ 7,642,903 7,839,327 $ 371,000 389,000

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.

Of the total homes delivered listed above, 73 homes with a dollar value of $47.9 million and an average sales price of $656,000 represent homes from unconsolidated entities for the three months ended May 31, 2026, compared to 113 homes with a dollar value of $51.1 million and an average sales price of $452,000 for the three months ended May 31, 2025.

Six Months Ended May 31,

2026 2025 2026 2025 2026 2025

Homes Dollar Value (In thousands)

Average Sales Price

East 8,911 9,126 $ 3,341,069 3,462,701 $ 375,000 379,000

Central 8,407 8,494 3,007,627 3,273,497 358,000 385,000

South Central 11,325 10,904 2,623,320 2,666,273 232,000 245,000

West 8,731 9,425 5,009,901 5,707,665 574,000 606,000

Other 8 16 5,780 10,720 723,000 670,000

Total 37,382 37,965 $ 13,987,697 15,120,856 $ 374,000 398,000

Of the total homes delivered listed above, 157 homes with a dollar value of $119.7 million and an average sales price of $763,000 represent homes from unconsolidated entities for the six months ended May 31, 2026, compared to 193 homes with a dollar value of $92.0 million and an average sales price of $477,000 for the six months ended May 31, 2025.

Sales Incentives (1):

First Quarter

Three Months Ended May 31, Six Months Ended May 31,

2026 2025 2026 2025 2026 2025 2026 2025

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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):

First Quarter

As of May 31, Three Months Ended May 31,

2026 2025 2026 2025 2026 2025 2026 2025

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Total 1,683 1,617 21,749 22,601 $ 8,208,409 8,575,263 $ 377,000 379,000

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.

Of the total new orders listed above, 57 homes with a dollar value of $30.9 million and an average sales price of $542,000 represent homes in five active communities from unconsolidated entities for the three months ended May 31, 2026, compared to 141 homes with a dollar value of $69.8 million and an average sales price of $495,000 in 10 active communities for the three months ended May 31, 2025.

Six Months Ended May 31,

2026 2025 2026 2025 2026 2025

Homes Dollar Value (In thousands)

Average Sales Price

East 9,544 9,667 $ 3,641,071 3,539,940 $ 382,000 366,000

Central 9,810 9,816 3,532,795 3,788,150 360,000 386,000

South Central 11,298 11,547 2,639,114 2,780,180 234,000 241,000

West 9,604 9,909 5,529,034 5,886,178 576,000 594,000

Other 8 17 5,781 11,547 723,000 679,000

Total 40,264 40,956 $ 15,347,795 16,005,995 $ 381,000 391,000

Of the total new orders listed above, 128 homes with a dollar value of $62.1 million and an average sales price of $485,000 represent homes from unconsolidated entities for the six months ended May 31, 2026, compared to 242 homes with a dollar value of $129.7 million and an average sales price of $536,000 for the six months ended May 31, 2025.

(2) Homes represent the number of new sales contracts executed with homebuyers, net of cancellations, during the three and six months ended May 31, 2026 and 2025.

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

First Quarter

Three Months Ended Six Months Ended

May 31, May 31,

2026 2025 2026 2025

East 15 % 14 % 14 % 15 %

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Total 14 % 14 % 14 % 14 %

First Quarter

2026 2025 2026 2025 2026 2025

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Total 16,818 15,538 $ 6,606,273 6,484,490 $ 393,000 417,000

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.

Of the total homes in backlog listed above, 50 homes with a backlog dollar value of $28.4 million and an average sales price of $568,000 represent the backlog from unconsolidated entities at May 31, 2026, compared to 128 homes with a backlog dollar value of $101.4 million and an average sales price of $792,000 at May 31, 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.

First Quarter 2026 versus First Quarter 2025

Three Months Ended May 31, 2026 versus Three Months Ended May 31, 2025

Homebuilding East:

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.

Revenues from home sales decreased in the second quarter of 2026 compared to the second quarter of 2025 primarily due to a decrease in the average sales price of homes delivered in all states of the segment, partially offset by an increase in the number of homes delivered in New Jersey.

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.

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

During the second quarter of 2026, gross margin percentage on homes delivered increased primarily due to a decrease in construction costs, partially offset by lower revenue per square foot and higher land costs year over year.

Homebuilding Central:

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.

Revenues from home sales decreased in the second quarter of 2026 compared to the second quarter of 2025 primarily due to a decrease in the average sales price of homes delivered in all states of the segment, except in Illinois, partially offset by an increase in the number of homes delivered in Alabama, Georgia, Illinois, 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.

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

During the second 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 South Central:

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.

Revenues from home sales decreased in the second quarter of 2026 compared to the second quarter of 2025 primarily due to decreases in the average sales price of homes delivered in Arkansas and Texas, partially offset by an increase in the number of homes delivered in all states of the segment.

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

During the second quarter of 2026, gross margin percentage on homes delivered decreased slightly 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 second quarter of 2026 compared to the second quarter of 2025 primarily due to a decrease in the average sales price of homes delivered in California, Oregon and Washington, partially offset by an increase in the number of homes delivered in Arizona, California, Idaho, and Oregon.

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.

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

Six Months Ended May 31, 2026 versus Six Months Ended May 31, 2025

Homebuilding East:

Revenues from home sales decreased in the six months ended May 31, 2026 compared to the six months ended May 31, 2025 primarily due to decreases in both the number of homes delivered and the average sales price of homes delivered in all states of the segment, except for an increase in the number of homes delivered 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.

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 six months ended May 31, 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 decreased in the six months ended May 31, 2026 compared to the six months ended May 31, 2025 primarily due to decreases in both the average sales price of homes delivered and number of homes delivered in all states of the segment, except for an increase in the number of homes delivered in Alabama, Illinois 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.

During the six months ended May 31, 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 South Central:

Revenues from home sales decreased in the six months ended May 31, 2026 compared to the six months ended May 31, 2025 primarily due to a decrease in the average sales price of homes delivered in all states of the segment, except in Oklahoma, partially offset by an increase in the number of homes delivered in all states of the segment,

except in Texas.

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.

During the six months ended May 31, 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 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.

Revenues from home sales decreased in the six months ended May 31, 2026 compared to the six months ended May 31, 2025 primarily due to a decrease in the average sales price of homes delivered in Arizona, California, Utah and Washington and a decrease in the number of homes delivered in all states of the segment, except in Idaho and Oregon.

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.

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:

First Quarter

Three Months Ended Six Months Ended

May 31, May 31,

(Dollars in thousands) 2026 2025 2026 2025

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Number of title and closing service transactions 22,200 21,000 40,800 39,200

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.

At May 31, 2026 and November 30, 2025, the carrying value of Financial Services' commercial mortgage-backed securities was $129.3 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) February 28, 2026 November 30, 2025

(In thousands) May 31, 2026 November 30, 2025

Multifamily investments in unconsolidated entities $ 491,325 506,573

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

During the six months ended May 31, 2026, one additional LMV I rental operation project was sold to a third-party buyer.

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 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.

Our Lennar Other segment includes 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 well as fund investments we retained subsequent to our sale of the Rialto investment and asset management platform.

At May 31, 2026 and November 30, 2025, we had $800.4 million and $897.6 million, respectively, of assets in our Lennar Other segment, which included investments in unconsolidated entities of $364.5 million and $368.0 million, respectively.

We have investments in 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 as discussed in the Overview section earlier of our Management's Discussions and Analysis of Financial Condition and Results of Operations.

(2) Financial Condition and Capital Resources

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.

At May 31, 2026, we had cash and cash equivalents and restricted cash related to our homebuilding, financial services, multifamily and other operations of $2.2 billion, compared to $3.8 billion at November 30, 2025 and $1.5 billion at May 31, 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 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.

At May 31, 2026, we had $1.8 billion of homebuilding cash and cash equivalents and ended the second quarter of 2026 with total liquidity of $4.9 billion.

Operating Cash Flow Activities

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;

During the six months ended May 31, 2026 and 2025, cash used in operating activities totaled $718 million and $1.4 billion, respectively.

During the six months ended May 31, 2026, cash used in operating activities was impacted by (1) an increase in inventories due to land purchases and construction costs of $1.1 billion;

(2) an increase in deposits and pre-acquisition costs on real estate of $555 million primarily as a result of option contracts with land banks, which included option maintenance fees paid to land banks;

and (3) a decrease in accounts payable and other liabilities of $272 million.

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and (3) a decrease in receivables of $129 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.

During the six months ended May 31, 2025, cash used in operating activities was impacted by an increase in inventories due to land purchases, land development and construction costs of $1.6 billion, an increase in deposits and pre-acquisition costs on real estate of $782 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 $600 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.

This was partially offset by our net earnings and a decrease in loans held-for-sale of $361 million primarily related to the sale of loans originated by our Financial Services segment.

Investing Cash Flow Activities

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 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.

During the six months ended May 31, 2026 and 2025, cash provided by investing activities totaled $77 million and $183 million, respectively.

During the six months ended May 31, 2026, our cash provided by investing activities was primarily due to distributions of capital from unconsolidated entities of $134 million, which primarily included (1) $105 million from Multifamily entities, (2) $23 million from Homebuilding unconsolidated entities, and (3) $6 million from our Lennar Other unconsolidated entities.

This was partially offset by cash contributions of $59 million to unconsolidated entities, which included (1) $30 million to Homebuilding unconsolidated entities, (2) $2 million to Lennar Other unconsolidated entities and (3) $27 million to Multifamily unconsolidated entities.

During the six months ended May 31, 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 $175 million, which primarily included (1) $32 million from Homebuilding unconsolidated entities, (2) $129 million from Multifamily entities and (3) $15 million from our Lennar Other unconsolidated entities and $115 million proceeds from the sale of loan receivables.

This was partially offset by the $254 million acquisition of Rausch Coleman Homes, net of cash acquired, and cash contributions of $145 million to unconsolidated entities, which included (1) $124 million to Homebuilding unconsolidated entities, (2) $7 million to Lennar Other unconsolidated entities and (3) $14 million to Multifamily unconsolidated entities and $71 million of net additions of operating properties and equipment.

Financing Cash Flow Activities

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;

During the six months ended May 31, 2026 and 2025, cash used in financing activities totaled $1.0 billion and $2.3

billion, respectively.

During the six months ended May 31, 2026, cash used in financing activities was primarily due to (1) $737 million of repurchases of our common stock, which included $691 million of repurchases under our repurchase program and $46 million of repurchases related to our equity compensation plan;

(2) $247 million of dividend payments;

and (3) $155 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;

This was partially offset by $173 million of net borrowings under our Financial Services' warehouse facilities.

During the six months ended May 31, 2025, cash used in financing activities was primarily due to (1) $515 million of net repayments under our Financial Services' warehouse facilities;

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

(3) $416 million net cash in connection with the Millrose spin-off;

(4) $386 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;

(5) $1.3 billion of repurchases of our common stock, which included $1.2 billion of repurchases under our repurchase program and $65 million of repurchases related to our equity compensation plan;

and (6) $265 million of dividend payments.

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 $400 million of net borrowings under our unsecured revolving credit facility.

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) February 28, 2026 November 30, 2025 February 28, 2025

(Dollars in thousands) May 31, 2026 November 30, 2025 May 31, 2025

Homebuilding debt $ 4,047,487 4,084,686 2,791,987

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

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.

At May 31, 2026, Homebuilding debt to total capital was consistent with November 30, 2025.

At May 31, 2026, Homebuilding debt to total capital was higher compared to May 31, 2025, primarily as a result of a decrease in stockholders' equity due to the non-cash exchange of Millrose Class A common stock, stock repurchases, an increase in Homebuilding debt due to issuance of senior notes and outstanding borrowings under our unsecured delayed draw term loan facility (the "Delayed Draw Term Loan Facility"), partially offset by net earnings and 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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Our Homebuilding average debt outstanding and the average rates of interest was as follows:

Three Months Ended February 28,

Six Months Ended May 31,

(Dollars in thousands) 2026 2025

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Interest incurred $ 111,456 73,335

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.

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

We have the Delayed Draw Term Loan Facility with committed borrowing availability of approximately $1.7 billion, which can be increased by an additional $500 million via an accordion feature.

As of May 31, 2026, we had outstanding borrowings of $1.7 billion under the credit agreement governing its unsecured Delayed Draw Term Loan Facility.

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 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.

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

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

(In thousands) At February 28, 2026

(In thousands) At May 31, 2026

Commitments - maturing in May 2027 $ 225,000

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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 February 28, 2026.

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 February 28, 2026:

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

We believe we were in compliance with our debt covenants as of May 31, 2026.

(Dollars in thousands) Covenant Level Level Achieved as of May 31, 2026

Minimum net worth test $ 10,000,000 15,955,029

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The repurchase authorization has no expiration date.

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.

At May 31, 2026, we have a remaining authorization to repurchase $1.0 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 six months ended May 31, 2026 and 2025 are included in Note 4 of the Notes to Condensed Consolidated Financial Statements.

During the six months ended May 31, 2026, treasury shares increased by 7.6 million shares primarily due to our repurchase of 7.0 million shares of Class A and Class B common stock through our stock repurchase program.

During the six months ended May 31, 2025, treasury shares increased by 10.6 million shares primarily due to our repurchase of 9.9 million shares of Class A and Class B common stock through our stock repurchase program.

On June 25, 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 July 24, 2026 to holders of record at the close of business on July 10, 2026.

On May 6, 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 April 22, 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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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 February 28, 2026 is included in the following tables.

Supplemental information for the Obligors, which excludes non-guarantor subsidiaries and intercompany transactions, at May 31, 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 February 28, 2026 At November 30, 2025

(In thousands) At May 31, 2026 At November 30, 2025

Due from non-guarantor subsidiaries $ 14,452,756 14,709,366

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Total liabilities 8,857,475 9,243,409

Three Months Ended

(In thousands) February 28, 2026

Six Months Ended

(In thousands) May 31, 2026

Total revenues $ 13,025,813

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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 their debt covenants at February 28, 2026.

We believe that substantially all of the joint ventures were in compliance with their debt covenants at May 31, 2026.

Homebuilding:

Investments in Unconsolidated Entities

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.

As of May 31, 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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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 February 28, 2026.

The following table summarizes the principal maturities of our Homebuilding unconsolidated entities (“JVs”) debt as per current debt arrangements as of May 31, 2026.

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

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Investments in Unconsolidated Entities

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.

At May 31, 2026, Multifamily had equity investments in 27 active unconsolidated entities that are engaged in multifamily residential developments (of which 18 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.

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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.

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 six months ended May 31, 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.

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

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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.

We believe all of the joint ventures were in compliance with their debt covenants at May 31, 2026.

The following table summarizes the principal maturities of our Multifamily unconsolidated entities debt as per current debt arrangements as of May 31, 2026.

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

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Investments in Unconsolidated Entities

As part of the sale of the Rialto investment and asset management platform, we retained the right to receive a portion of payments with regard to carried interests if certain funds meet specified performance thresholds.

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 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.

As of May 31, 2026 and November 30, 2025, we had strategic technology investments in unconsolidated entities of $234.1 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.

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.

Our investment in the Rialto funds totaled $130.3 million and $133.0 million as of May 31, 2026 and November 30, 2025, respectively.

Option Contracts

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 options rather than own.

Since fiscal year 2020, we have increased 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.

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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, including the spin-off of Millrose in 2025, were 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):

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

May 31, 2026 Controlled Homesites Owned Homesites Total Homesites Supply Owned (1)

East 110,893 1,670 112,563

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% of total homesites 98% 2%

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

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

East 118,389 1,412 119,801

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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 2025 Form 10-K, except for a decrease of $599 million in borrowings under the Financial Services' warehouse repurchase facilities.

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 an increase of $177 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 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.

There have been no significant changes to our critical accounting policies during the six months ended May 31, 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