What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-10-02 compared with 2026-06-29 · 199 added, 195 removed, 379 unchanged (51% 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 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.

Lennar's third quarter 2026 results reflect consistent operational execution against a macro backdrop that grew more difficult during the quarter.

We delivered 20,840 homes, within our guidance range, and generated 20,879 new orders, just below our range, while gross margin improved sequentially to 15.8% and net earnings totaled $284 million, or $1.19 per share or $1.23 excluding one-time items.

We remain intentionally focused on bringing affordable housing to an affordability-constrained consumer base, a choice that is still weighing on near-term margin but is building the volume and market position we believe will drive margin higher over time.

While underlying housing demand remains steady, structural supply constraints persist.

Mortgage interest rates moved higher during the quarter, with the 30-year fixed rate rising to approximately 7%, compared with the 6.4% to 6.5% range earlier this year, and the 10-year U.S.

Treasury yield rising to approximately 5%.

This increase was driven in significant part by inflation associated with energy prices tied to the ongoing geopolitical tension with Iran.

Higher rates and living costs have further strained affordability, and in many of our markets, a significant portion of prospective buyers are finding it harder to qualify for a mortgage.

The Federal Reserve remains focused on incoming economic data, but near-term interest rate relief appears unlikely.

Resales of existing housing inventory have also begun to increase, particularly in Texas and Florida, intensifying competition for buyers in those markets.

In addition, labor availability has become more constrained in certain geographies, reflecting immigration enforcement activity and competing construction demand, which we expect will continue to add cost pressure.

Land costs per home, reflected in part through option maintenance fees associated with extended deal durations, have increased and will continue to pressure margin for a period of time while we work through land positions underwritten and committed under prior market conditions.

Notwithstanding these pressures, sales incentives on deliveries declined during the quarter, and cost efficiencies from scale have helped offset a portion of the increase in labor costs.

Construction costs per square foot declined further to approximately $80, down 6% from a year ago, and our cycle time reached a record low of 116 days, down from 121 days from second quarter 2026 and 126 days a year ago, reflecting the continued benefit of consistent volume and even-flow production.

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.

We remain focused on two priorities:

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

We continue to price to market and to offer incentives intended to maintain volume and affordability.

We own approximately 2% of our homesites, with the substantial majority controlled through third parties, and approximately 86% of homes delivered this quarter were sourced through our land banking arrangements.

For the fourth quarter of 2026, we expect new orders in the range of 19,500 to 20,500 homes, with continued focus on matching starts and sales pace.

We anticipate deliveries in the range of 22,000 to 23,000 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 $380,000.

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.

We expect gross margin in the range of 15.5% to 16.0%, and our SG&A percentage should be in the range of 8.7% to 9.0%.

These expectations are dependent on market conditions and may change as the quarter progresses.

We believe the fundamental shortage of housing in America has not been resolved and that demand remains deferred rather than diminished.

We intend to continue managing our cost structure, cycle time, and land basis with the objective of positioning Lennar to benefit as affordability improves, whether through changes in interest rates, wages, or regulatory and entitlement reform, while remaining disciplined in the market as it exists today.

(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 six months ended May 31, 2026 are not necessarily indicative of the results to be expected for the full year.

Our results of operations for the three and nine months ended August 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 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.

Our third quarter net earnings attributable to Lennar in 2026 were $283.9 million, or $1.19 per diluted share, compared to third quarter net earnings attributable to Lennar in 2025 of $591.0 million, or $2.29 per diluted share.

Excluding mark-to-market losses of $53.3 million on technology investments and a benefit related to one-time items of $39.2 million, net, in our Financial Services segment, third quarter net earnings attributable to Lennar in 2026 were $294.3 million, or $1.23 per diluted share, compared to $516.0 million, or $2.00 per diluted share, excluding mark-to-market gains of $99.2 million on technology investments, in the third quarter of 2025.

Financial information relating to our operations was as follows:

Three Months Ended May 31, 2026

Three Months Ended August 31, 2026

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

9 unchanged sentences

Total costs and expenses 7,242,516 95,805 40,868 48,393 — 7,427,582

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

Equity in earnings (losses) from unconsolidated entities 4,808 — (1,342) (301) — 3,165

Other income (expense), net and other gains (losses), net (19,827) — 866 (3,604) — (22,565)

Lennar Other losses from technology investments — — — (53,335) — (53,335)

3 unchanged sentences

Earnings (loss) before income taxes $ 501,962 130,316 (2,869) (83,607) (158,723) 387,079

Three Months Ended May 31, 2025

Three Months Ended August 31, 2025

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

10 unchanged sentences

Equity in earnings (losses) from unconsolidated entities 10,190 — (6,790) 7,422 — 10,822

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

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

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

Lennar Other gains from technology investments — — — 99,223 — 99,223

Operating earnings (loss) $ 759,785 177,872 (16,471) 62,498 — 983,684

2 unchanged sentences

Earnings (loss) before income taxes $ 759,785 177,872 (16,471) 62,498 (192,981) 790,703

Six Months Ended May 31, 2026

Nine Months Ended August 31, 2026

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

10 unchanged sentences

Equity in earnings from unconsolidated entities 45,659 — 51,372 3,489 — 100,520

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

Other income (expense), net and other gains (losses), net (10,178) — 1,489 (1,674) — (10,363)

Lennar Other losses from technology investments — — — (61,749) — (61,749)

3 unchanged sentences

Earnings (loss) before income taxes $ 1,364,361 322,732 33,315 (127,797) (489,892) 1,102,719

Six Months Ended May 31, 2025

Nine Months Ended August 31, 2025

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

11 unchanged sentences

Other income (expense), net and other gains (losses), net 37,606 — 24,962 (19,097) — 43,471

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

Lennar Other gains from technology investments — — — 7,280 — 7,280

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

2 unchanged sentences

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

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.

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

Revenues from home sales decreased 6% in the third quarter of 2026 to $7.7 billion from $8.2 billion in the third quarter of 2025.

Revenues were lower primarily due to both a 3% decrease in the average sales price of homes and a 3% decrease in the number of home deliveries.

New home deliveries were 20,840 homes in the third quarter of 2026, compared to 21,584 homes in the third quarter of 2025.

The average sales price of homes delivered was $372,000 in the third quarter of 2026, compared to $383,000 in the third quarter of 2025.

The decrease in average sales price of homes delivered in the third 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 15.8%, in the third quarter of 2026, compared to $1.4 billion, or 17.5%, in the third quarter of 2025.

During the third 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 $714.0 million in the third quarter of 2026, compared to $676.5 million in the third quarter of 2025.

As a percentage of revenues from home sales, selling, general and administrative expenses increased to 9.2% in the third quarter of 2026, from 8.2% in the third quarter of 2025, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses.

Operating earnings for the Financial Services segment were $129.5 million in the third quarter of 2026, compared to operating earnings of $177.4 million in the third quarter of 2025, both amounts are net of noncontrolling interest.

The operating earnings in the third quarter of 2026 included a benefit related to one-time items of $39.2 million, net, primarily due to a litigation accrual reversal resulting from a court judgment.

Excluding the benefit related to one-time items in the current quarter, the decrease in operating earnings was primarily due to lower profit per locked loan and lower lock volume in the mortgage business.

Operating loss for the Multifamily segment was $2.9 million in the third quarter of 2026, compared to an operating loss of $16.4 million in the third quarter of 2025.

Operating loss for the Lennar Other segment was $83.6 million in the third quarter of 2026, compared to operating earnings of $62.5 million in the third quarter of 2025.

The Lennar Other operating loss for third quarter of 2026 was primarily driven by mark-to-market losses of $53.3 million on our technology investments.

The Lennar Other operating earnings for third quarter of 2025 were primarily driven by mark-to-market gains of $99.2 million on our technology investments.

In the third quarter of 2026 and 2025, we had tax provisions of $101.6 million and $190.9 million, which resulted in an overall effective income tax rate of 26.4% and 24.4%, respectively.

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

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 increase in the

effective tax rate for the three months ended August 31, 2026 compared to the prior period was primarily due to our spin-off of Millrose Properties, Inc.

Nine Months Ended August 31, 2026 versus Nine Months Ended August 31, 2025

Revenues from home sales decreased 7% in the nine months ended August 31, 2026 to $21.6 billion from $23.2 billion in the nine months ended August 31, 2025.

Revenues were lower primarily due to both a 5% decrease in the average sales price of homes and a 2% decrease in the number of home deliveries.

New home deliveries were 58,222 homes in the nine months ended August 31, 2026, compared to 59,549 homes in the nine months ended August 31, 2025.

The average sales price of homes delivered was $372,000 in the nine months ended August 31, 2026, compared to $393,000 in the nine months ended August 31, 2025.

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

Gross margins on home sales were $3.4 billion, or 15.5%, in the nine months ended August 31, 2026, compared to $4.2 billion, or 18.0%, in the nine months ended August 31, 2025.

During the nine months ended August 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 $2.0 billion in the nine months ended August 31, 2026, consistent with $2.0 billion in the nine months ended August 31, 2025.

As a percentage of revenues from home sales, selling, general and administrative expenses increased to 9.4% in the nine months ended August 31, 2026, from 8.5% in the nine months ended August 31, 2025, primarily due to less leverage as a result of lower revenues.

During the nine months ended August 31, 2026, our homebuilding operating earnings included $36.7 million of interest income, compared to $45.7 million of interest income in the nine months ended August 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.

Operating earnings for the Financial Services segment were $320.3 million in the nine months ended August 31, 2026, compared to $476.9 million in the nine months ended August 31, 2025, both amounts are net of noncontrolling interest.

The operating earnings in the nine months ended August 31, 2026, included a benefit related to one-time items of $39.2 million, net, primarily due to a litigation accrual reversal resulting from a court judgment.

Operating earnings for the Multifamily segment were $33.4 million in the nine months ended August 31, 2026, compared to an operating loss of $30.9 million in the nine months ended August 31, 2025.

Operating loss for the Lennar Other segment was $127.8 million in the nine months ended August 31, 2026, compared to an operating loss of $79.7 million in the nine months ended August 31, 2025.

The Lennar Other operating loss for the nine months ended August 31, 2026 was due to operating losses and mark-to-market losses of $61.7 million on our technology investments.

The Lennar Other operating loss for the 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.

In the nine months ended August 31, 2026 and 2025, we had tax provisions of $275.7 million and $520.5 million, which resulted in an overall effective income tax rate of 25.2% and 24.7%, 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 from the prior year for the nine months ended August 31, 2026 was primarily due to our spin-off of Millrose Properties, Inc.

Homebuilding Segments

At May 31, 2026, our reportable Homebuilding segments and Homebuilding Other are outlined in Note 2 of the Notes to Condensed Consolidated Financial Statements.

At August 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

Three Months Ended May 31, 2026

Three Months Ended August 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 $ 1,828,048 1,446,037 20.9 % 205,218 (726) 3,444 (5,736) (2,269) 199,931

4 unchanged sentences

$ 7,733,588 6,512,260 15.8 % 507,288 2,226 7,467 4,808 (19,827) 501,962

Three Months Ended May 31, 2025

Three Months Ended August 31, 2025

Gross Margins Operating Earnings

East $ 1,732,008 1,409,575 18.6 % 167,714 2,019 3,521 14,338 (1,208) 186,384

4 unchanged sentences

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

Six Months Ended May 31, 2026

Nine Months Ended August 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 $ 5,049,380 4,067,149 19.5 % 473,609 (12,132) 12,018 9,925 (4,148) 479,272

4 unchanged sentences

$ 21,601,549 18,246,493 15.5 % 1,325,126 (23,070) 26,824 45,659 (10,178) 1,364,361

Six Months Ended May 31, 2025

Nine Months Ended August 31, 2025

Gross Margins Operating Earnings

9 unchanged sentences

Summary of Homebuilding Data

Three Months Ended May 31,

Three Months Ended August 31,

2026 2025 2026 2025 2026 2025

7 unchanged sentences

Total 20,840 21,584 $ 7,771,085 8,278,660 $ 372,000 383,000

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,

Of the total homes delivered listed above, 51 homes with a dollar value of $37.5 million and an average sales price of $735,000 represent homes from unconsolidated entities for the three months ended August 31, 2026, compared to 146 homes with a dollar value of $65.1 million and an average sales price of $446,000 for the three months ended August 31, 2025.

Nine Months Ended August 31,

2026 2025 2026 2025 2026 2025

7 unchanged sentences

Total 58,222 59,549 $ 21,758,782 23,399,515 $ 372,000 393,000

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.

Of the total homes delivered listed above, 208 homes with a dollar value of $157.2 million and an average sales price of $756,000 represent homes from unconsolidated entities for the nine months ended August 31, 2026, compared to 339 homes with a dollar value of $157.1 million and an average sales price of $463,000 for the nine months ended August 31, 2025.

Sales Incentives (1):

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

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

2026 2025 2026 2025 2026 2025 2026 2025

12 unchanged sentences

New Orders (2):

As of May 31, Three Months Ended May 31,

At August 31, Three Months Ended August 31,

2026 2025 2026 2025 2026 2025 2026 2025

7 unchanged sentences

Total 1,713 1,664 20,879 23,004 $ 7,504,389 8,439,732 $ 359,000 367,000

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,

Of the total new orders listed above, 37 homes with a dollar value of $32.0 million and an average sales price of $864,000 represent homes in five active communities from unconsolidated entities for the three months ended August 31, 2026, compared to 104 homes with a dollar value of $56.7 million and an average sales price of $546,000 in nine active communities for the three months ended August 31, 2025.

Nine Months Ended August 31,

2026 2025 2026 2025 2026 2025

7 unchanged sentences

Total 61,143 63,960 $ 22,852,183 24,445,727 $ 373,000 382,000

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.

Of the total new orders listed above, 165 homes with a dollar value of $94.1 million and an average sales price of $570,000 represent homes from unconsolidated entities for the nine months ended August 31, 2026, compared to 346 homes with a dollar value of $186.4 million and an average sales price of $539,000 for the nine months ended August 31, 2025.

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

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

Three Months Ended Six Months Ended

May 31, May 31,

Three Months Ended Nine Months Ended

August 31, August 31,

2026 2025 2026 2025

5 unchanged sentences

Total 15 % 14 % 14 % 14 %

At August 31,

2026 2025 2026 2025 2026 2025

7 unchanged sentences

Total 16,857 16,953 $ 6,345,460 6,647,990 $ 376,000 392,000

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.

Of the total homes in backlog listed above, 36 homes with a backlog dollar value of $22.8 million and an average sales price of $635,000 represent the backlog from unconsolidated entities at August 31, 2026, compared to 86 homes with a backlog dollar value of $93.1 million and an average sales price of $1.1 million at August 31, 2025.

Backlog represents the number of homes under sales contracts.

3 unchanged sentences

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

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

Homebuilding East:

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.

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.

Revenues from home sales increased in the third quarter of 2026 compared to the third quarter of 2025 primarily due to increases in the average sales price of homes delivered in Florida and in the number of homes delivered in Florida and New Jersey.

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

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

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

Homebuilding Central:

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 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.

Revenues from home sales decreased in the third quarter of 2026 compared to the third 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, while the number of homes delivered was consistent with the prior period.

The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through a decrease in base prices.

During the third 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 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.

Revenues from home sales decreased in the third quarter of 2026 compared to the third quarter of 2025 primarily due to decreases in the average sales price of homes delivered in Texas and in the number of homes delivered in all states of the segment, except in Kansas.

The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through a decrease in base prices.

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 third 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 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.

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

Revenues from home sales decreased in the third quarter of 2026 compared to the third quarter of 2025 primarily due to decreases in the average sales price of homes delivered in California, Colorado, Oregon and Washington and in the number of homes delivered in all states of the segment, except in Idaho.

The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through a decrease in base prices and 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 active communities.

Nine Months Ended August 31, 2026 versus Nine Months Ended August 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.

Revenues from home sales decreased in the nine months ended August 31, 2026 compared to the nine months ended August 31, 2025 primarily due to the decrease in the number of homes delivered in all states of the segment, except in New Jersey and a decrease in average sales price of homes delivered.

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

During the nine months ended August 31, 2026, gross margin percentage on homes delivered slightly 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.

Revenues from home sales decreased in the nine months ended August 31, 2026 compared to the nine months ended August 31, 2025 primarily due to decreases in both the average sales price of homes delivered, except in Illinois, and number of homes delivered in all states of the segment, except for 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 a decrease in base prices.

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.

During the nine months ended August 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 Centra l:

Revenues from home sales decreased in the nine months ended August 31, 2026 compared to the nine months ended August 31, 2025 primarily due to decreases in the average sales price of homes delivered and in the number of homes delivered in Texas.

The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through a decrease in base prices.

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 nine months ended August 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 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 average sales price of homes delivered was primarily due to pricing to market through a decrease in base prices and 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 nine months ended August 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.

Financial Services Segment

4 unchanged sentences

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 Six Months Ended

May 31, May 31,

Three Months Ended Nine Months Ended

August 31, August 31,

(Dollars in thousands) 2026 2025 2026 2025

3 unchanged sentences

Number of title and closing service transactions 22,400 22,700 63,200 62,000

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.

At August 31, 2026 and November 30, 2025, the carrying value of Financial Services' commercial mortgage-backed securities was $124.4 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.

4 unchanged sentences

Balance Sheets At

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

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

Multifamily investments in unconsolidated entities $ 488,775 506,573

1 unchanged sentence

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

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

As of November 30, 2025, 35 LMV I rental operation projects were sold to various third-party buyers.

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

Lennar Other Segment

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.

At August 31, 2026 and November 30, 2025, we had $696.2 million and $897.6 million, respectively, of assets in our Lennar Other segment, which included investments in unconsolidated entities of $363.4 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.

1 unchanged sentence

(2) Financial Condition and Capital Resources

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.

At August 31, 2026, we had cash and cash equivalents and restricted cash related to our homebuilding, financial services, multifamily and other operations of $1.5 billion, compared to $3.8 billion at November 30, 2025 and $1.8 billion at August 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 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.

At August 31, 2026, we had $1.2 billion of homebuilding cash and cash equivalents and ended the third quarter of 2026 with total liquidity of $3.6 billion.

Operating Cash Flow Activities

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;

During the nine months ended August 31, 2026 and 2025, cash used in operating activities totaled $822 million and $1.5 billion, respectively.

During the nine months ended August 31, 2026, cash used in operating activities was impacted by (1) an increase in inventories due to land purchases and construction costs of $1.7 billion;

(2) an increase in deposits and pre-acquisition costs on real estate of $795 million primarily as a result of option contracts with land banks, which included option maintenance fees paid to land banks, and an increase in reimbursements to be received from municipalities for completed land development;

and (3) a decrease in accounts payable and other liabilities of $371 million.

2 unchanged sentences

and (3) a decrease in receivables of $333 million.

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.

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 Properties, Inc.

("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.

Investing Cash Flow Activities

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.

During the nine months ended August 31, 2026 and 2025, cash provided by investing activities totaled $114 million and $176 million, respectively.

During the nine months ended August 31, 2026, our cash provided by investing activities was primarily due to distributions of capital from unconsolidated entities of $183 million, which primarily included (1) $112 million from Multifamily entities, (2) $23 million from Homebuilding unconsolidated entities, and (3) $47 million from our Lennar Other unconsolidated entities.

This was partially offset by cash contributions of $88 million to unconsolidated entities, which primarily included (1) $48 million to Homebuilding unconsolidated entities and (2) $35 million to Multifamily unconsolidated entities.

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.

In addition, we had cash contributions of $203 million to unconsolidated entities, which included (1) $169 million to Homebuilding unconsolidated entities, (2) $10 million to Lennar Other unconsolidated entities and (3) $24 million to Multifamily unconsolidated entities and $103 million of net additions of operating properties and equipment.

Financing Cash Flow Activities

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;

During the nine months ended August 31, 2026 and 2025, cash used in financing activities totaled $1.6 billion and $1.9 billion, respectively.

During the nine months ended August 31, 2026, cash used in financing activities was primarily due to (1) $993 million of repurchases of our common stock, which included $950 million of repurchases under our repurchase program and $43 million of repurchases related to our equity compensation plan;

(2) redemption of $400 million aggregate principal amount of our 5.25% senior notes due June 2026;

(3) $206 million of net repayments under our Financial Services' warehouse facilities;

(4) $366 million of dividend payments;

and (5) $238 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks.

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;

This was partially offset by $650 million of net borrowings under our unsecured revolving Credit Facility.

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;

(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.

(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.

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) May 31, 2026 November 30, 2025 May 31, 2025

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

Homebuilding debt $ 4,297,251 4,084,686 3,523,766

10 unchanged sentences

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

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.

At August 31, 2026, Homebuilding debt to total capital was higher compared to November 30, 2025, primarily as a result of an increase in Homebuilding debt due to outstanding borrowings under our unsecured revolving Credit Facility, partially offset by net earnings and debt paydowns.

At August 31, 2026, Homebuilding debt to total capital was higher compared to August 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") and outstanding borrowings under our unsecured revolving Credit 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.

3 unchanged sentences

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

Six Months Ended May 31,

Nine Months Ended August 31,

(Dollars in thousands) 2026 2025

3 unchanged sentences

We have the Delayed Draw Term Loan Facility with committed borrowing availability of approximately $1.7 billion, which can be increased by an additional $400 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.

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

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

2 unchanged sentences

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

(In thousands) At May 31, 2026

(In thousands) At August 31, 2026

Commitments - maturing in May 2027 $ 225,000

9 unchanged sentences

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 May 31, 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 May 31, 2026:

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

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

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

Minimum net worth test $ 10,000,000 15,946,331

10 unchanged sentences

The repurchase authorization has no expiration date.

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.

At August 31, 2026, we have a remaining authorization to repurchase $751 million 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, 2026 and 2025 are included in Note 4 of the Notes to Condensed Consolidated Financial Statements.

During the nine months ended August 31, 2026, treasury shares increased by 10.6 million shares primarily due to our repurchase of 10.0 million shares of Class A and Class B common stock through our stock repurchase program.

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.

On September 23, 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 October 22, 2026 to holders of record at the close of business on October 7, 2026.

On July 24, 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 July 10, 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.

5 unchanged sentences

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 May 31, 2026 is included in the following tables.

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

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

Due from non-guarantor subsidiaries $ 14,489,893 14,709,366

2 unchanged sentences

Total liabilities 9,047,681 9,243,409

Six Months Ended

(In thousands) May 31, 2026

Nine Months Ended

(In thousands) August 31, 2026

Total revenues $ 20,282,054

6 unchanged sentences

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 May 31, 2026.

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

Homebuilding:

Investments in Unconsolidated Entities

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.

As of August 31, 2026, we had equity investments in 47 active Homebuilding and land unconsolidated entities (of which 3 had recourse debt, 10 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.

8 unchanged sentences

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 May 31, 2026.

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

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

9 unchanged sentences

Investments in Unconsolidated Entities

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.

At August 31, 2026, Multifamily had equity investments in 26 active unconsolidated entities that are engaged in multifamily residential developments (of which 18 had non-recourse debt and 8 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.

3 unchanged sentences

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

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

The Multifamily segment manages and has investments in LMV I, LMV II and Canada Pension Plan Investments Fund (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 six months ended May 31, 2026 are included in Note 3 of the Notes to Condensed Consolidated Financial Statements.

Details of each fund as of and during the nine months ended August 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.

4 unchanged sentences

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 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.

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

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

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

6 unchanged sentences

Investments in Unconsolidated Entities

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.

As of August 31, 2026 and November 30, 2025, we had strategic technology investments in unconsolidated entities of $232.1 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 home buying 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.

2 unchanged sentences

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 condensed consolidated statement of operations.

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

Our investment in the Rialto funds totaled $131.3 million and $133.0 million as of August 31, 2026 and November 30, 2025, respectively.

Option Contracts

1 unchanged sentence

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.

As part of our focus on strategic relationships to further enhance our land-light 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.

2 unchanged sentences

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):

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

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

East 107,892 1,979 109,871

5 unchanged sentences

% of total homesites 98% 2%

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

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

East 116,841 1,313 118,154

8 unchanged sentences

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 $198 million in borrowings under the Financial Services' warehouse repurchase facilities, a decrease of $400 million due to redemption of our 5.25% senior notes due June 2026 and an increase of $650 million outstanding borrowings under our revolving Credit Facility.

(3) Recently Adopted Accounting Pronouncements

1 unchanged sentence

(4) Critical Accounting Policies

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.

There have been no significant changes to our critical accounting policies during the nine months ended August 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