10-K 0001628280-26-003870 (2026-01-28) vs 10-K 0001628280-25-002404 (2025-01-23)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 9,523 |
12.5% |
| MD&A | Item 7 | 11,892 |
29.8% |
| Legal Proceedings | Item 3 | 316 |
0.0% |
| Accounting Policies | Item 8, Note 1 – Summary of Significant Accounting Policies | 7,260 |
8.5% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Accounting Policies 219 words changed in this paragraph; it is 31% similar to last year's version.
Some partially offset by the consolidation of homesites under option contracts contain a predetermined take-down schedule for the optioned land parcels. However, in substantially all instances, that the Company has the right and ability is compelled to takedown, which resulted in an increase of $663.3 million of consolidated inventory not exercise its option and forfeit its deposit without further penalty, other than termination owned with a corresponding increase of the option and loss $612.7 million of any unapplied portion of its deposit and pre-acquisition costs and the incurrence of any applicable termination fee associated with the option contract. Therefore, in all instances, the Company does liabilities related to consolidated inventory not consider the take-down price to be a firm contractual obligation. In determining whether to walk away from an option contract, the Company evaluates the option primarily based upon its expected cash flows from the property under option. If the Company intends to walk away from an option contract, it records a charge to earnings in the period such decision is made for the unapplied deposit amount and any related pre-acquisition costs and accrues any applicable termination fee associated with the option contract. During the years ended November 30, 2024 and 2023, the Company wrote-off $5.1 million and $19.9 million, respectively, of deposit and pre-acquisition costs. owned. To reflect the purchase price of the homesite take-downs related to option contracts that the Company decided to exercise, takedowns, the Company had a net reclass related to option deposits from consolidated inventory not owned to finished homes and construction in progress in the accompanying consolidated balance sheet as of November 30, 2024. 2025.
Source: Item 8, Note 1 – Summary of Significant Accounting Policies, 10-K 0001628280-26-003870 vs Item 8, Note 1 – Summary of Significant Accounting Policies, 10-K 0001628280-25-002404
Risk Factors 215 words changed in this paragraph; it is 30% similar to last year's version.
In particular, if the planned Millrose Spin-Off is completed, we expect to transfer a significant portion of our inventory of undeveloped and partially developed land, as well as some finished homesites, to Millrose, which would be an independent, externally managed, publicly traded company. In addition, if the planned Millrose Spin-Off is completed, we expect that in the future we will do a number of our land acquisitions through arrangements under which Millrose will acquire land we specify and grant us options to purchase the land when it is developed into finished homesites. That land is and would be essential to our homebuilding operations, and we expect to have options that would give us access to that land when it is developed into finished homesites. We also expect that our options and other agreements with Millrose would contain provisions requiring Millrose to deliver homesites to us even if it is disputing our right to exercise options. However, if Millrose were to refuse to honor option exercises despite requirements that it honor them, that could delay or prevent us from building and delivering homes, including while we try to get courts to require Millrose to deliver homesites to us. seek legal enforcement. Even if we were to succeed in any legal proceedings against Millrose, there is no guarantee that a court would compel Millrose to deliver the homesites to us. Monetary damages may not be sufficient for us to fully recoup recover our losses, particularly if we have are not able to satisfy our obligations with respect to contracts with homebuyers with respect homebuyers.
Source: Item 1A, 10-K 0001628280-26-003870 vs Item 1A, 10-K 0001628280-25-002404
MD&A 177 words changed in this paragraph; it is 38% similar to last year's version.
We recorded a significant amount of goodwill in connection with the 2018 acquisition of CalAtlantic. We record goodwill associated with acquisitions of businesses when the purchase price of the business exceeds the fair value of the net tangible and identifiable assets acquired. In accordance with ASC Topic 350, Intangibles-Goodwill and Other, we evaluate goodwill for potential impairment on at least an annual basis. We have the option to perform a qualitative or quantitative assessment to determine whether the fair value of a reporting unit exceeds its carrying value. Qualitative factors may include, but are not limited to, economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting units and other entity and reporting unit specific events. We believe that the accounting estimate for goodwill is a critical accounting estimate because of the judgment required in assessing the fair value of each of our reporting units. We estimate fair value through various valuation methods, including the use of discounted expected future cash flows of each reporting unit. The expected future cash flows for each segment are significantly impacted by current market conditions. If these market conditions and resulting expected future cash flows for each reporting unit decline significantly, the actual results for each segment could differ from our estimate, which would cause goodwill to be impaired. Our accounting for goodwill represents our best estimate of future events.
Source: Item 7, 10-K 0001628280-26-003870 vs Item 7, 10-K 0001628280-25-002404
Every change, by type
Sentences and paragraphs of LEN's Risk Factors and MD&A, 10-K 2026-01-28 against 10-K 2025-01-23.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
including while we seek legal enforcement. Even if we were to succeed in any legal proceedings against Millrose, there is no guarantee that a court would compel Millrose to deliver the homesites to us. Monetary damages may not be sufficient for us to fully recover our losses, particularly if we are not able to satisfy our obligations with respect to contracts with homebuyers.
Read it in 10-K 2026-01-28 at sec.gov ↗
AddedRisk Factors
Additionally, if in the future we are unable to identify or to develop and maintain the necessary relationships with suitable land banks, including Millrose, we will not be able to fully implement our land-light business strategy.
Read it in 10-K 2026-01-28 at sec.gov ↗
RemovedRisk Factors
We formed and intend to spin off Millrose to make it a recycling source of land acquisition funding. However, Millrose will not have the capacity to provide all the land acquisition funding we require, and Millrose’s policies will limit its acquisitions to land we expect to use within five years. We will look to traditional land banks to acquire at least some of the
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedRisk Factors
The Millrose Spin-Off of much of our land assets may not occur on the timeline we expect or at all and we may not realize some or all of the expected benefits from this transaction even if completed.
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedRisk Factors
We previously announced that we expect to spin off a significant portion of our land assets from our balance sheet through the spin-off of Millrose. Millrose has filed a registration statement on Form S-11 with the Securities and Exchange Commission, which became effective on January 17, 2025, and our Board declared a special stock dividend to effect the Millrose Spin-Off to Lennar stockholders of record as of January 21, 2025, with a distribution date of February 7, 2025. However, the completion of the Millrose Spin-Off remains subject to the satisfaction of a number of conditions, including the execution of certain agreements relating to the Millrose Spin-Off and other customary conditions, some of which will not occur until shortly prior to the distribution date. The failure to satisfy all of the required conditions, as well as other factors outside of our control, including general economic and market conditions, could delay the completion of the Millrose Spin-Off relative to the anticipated timeline or prevent it from occurring. Any delay in the completion of the Millrose Spin-Off or any change to the anticipated terms of the transaction could reduce the expected benefits of the transaction or delay the time at which such benefits are realized. There can also be no assurance that the anticipated benefits of the transaction will be realized if the Millrose Spin-Off is completed, or that the costs will not exceed the anticipated benefits.
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedRisk Factors
In addition, whether or not the Millrose Spin-Off is ultimately completed, we have incurred, and expect to continue to incur, costs associated with the planned transaction and the pendency of the planned transaction has imposed and may continue to impose challenges on us, including the diversion of management and employee time on matters relating to the proposed transaction while continuing to operate in the ordinary course of business.
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedRisk Factors
If the planned Millrose Spin-Off is completed, Millrose may fail to perform under various transaction agreements that we expect to enter into in connection with the Millrose Spin-Off and our homebuilding operations could be seriously disrupted if Millrose refused to honor purchase options it is expected to grant us.
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedRisk Factors
to the disputed homesites, and we would not be able to satisfy our obligations with respect to those contracts. Any loss of access to our homesites could injure both our revenues and our reputation as a reliable homebuilder.
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedRisk Factors
these funds and businesses. However, we could suffer significant losses of our investments as a result of decisions that are made by the funds and businesses.
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedRisk Factors
including, among others, seasonal homebuying patterns, the timing of home closings and land sales and weather-related problems.
Read it in 10-K 2025-01-23 at sec.gov ↗
RewordedRisk Factors
Principal among As a result of our current strategies is continuing strategy to become a land-lighter company, we continue to reduce the inventory of land that we own (i.e., to become a land lighter company), and we instead choose to control a greater portion of the land we expect to use through options or other contractual arrangements, including through the proposed Millrose Spin-Off. and other land banking entities.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedRisk Factors
If any of those joint ventures are unable to do this, we could be required to provide at least a portion of the funds the joint ventures need to be able to repay the borrowings and to finance the activities for which they were incurred, which could adversely impact our financial position.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedRisk Factors
In connection with these arrangements, Millrose the land banks would have the right to pledge or use as collateral the inventory of land assets we would transfer to them in connection with the Millrose Spin-Off and the land assets that Millrose acquires in the future pursuant to our specifications. control through option contracts.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedRisk Factors
If the planned Millrose Spin-Off is completed, we We may lose access to the land or homesites we would contribute to Millrose or that Millrose acquires in the future pursuant to our specifications held by land banks in the event of lender foreclosures or bankruptcy proceedings.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedRisk Factors
If the planned Millrose Spin-Off is completed, Millrose will be an independent, publicly traded company, and in the future Further, our land banks may enter into various “secured financing arrangements,” which may include but are not limited to secured or collateralized loans, or any other transactions where assets may be pledged or used as collateral to secure the financing instrument.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedRisk Factors
Similarly, if Millrose If a land bank were to default under these arrangements or become subject to bankruptcy or insolvency proceedings, Millrose the land bank may forfeit its assets, including these assets, assets to any and all creditors or creditors may reject our purchase options in bankruptcy.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedRisk Factors
If completed, in connection with the Millrose Spin-Off, In addition, we expect to enter entered into a number of agreements with Millrose, pursuant to which Millrose will provide provides Lennar with land acquisition and horizontal development financing solutions.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedRisk Factors
Our quarterly results of operations may continue to fluctuate in the future as a result of a variety of factors, including, among others, seasonal homebuying patterns, the timing of home closings and land sales and weather-related problems.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedRisk Factors
We reduced increased our outstanding senior notes during fiscal 2024 2025 by $554.0 million, but we still have a significant amount outstanding. $200 million.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedRisk Factors
At November 30, 2024, 2025, we had no borrowings under our Credit Facility and outstanding borrowings of $1.7 billion under our Delayed Draw Term Loan Facility.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedRisk Factors
We could be hurt if land banks are not able to raise investor funds needed to enable them finance land acquisition to supplement land acquisitions by Millrose. meet out demand.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedRisk Factors
We would rely on Millrose to satisfy its performance and payment obligations under these agreements. agreements for a substantial portion of our homesite acquisition and development.
Read it in 10-K 2026-01-28 at sec.gov ↗
Quiet changesRisk Factors
If Further, if a contagious disease causes significant negative impacts to economic conditions or consumer confidence, our results of operations, financial condition and cash flows could be materially adversely impacted.
Read it in 10-K 2026-01-28 at sec.gov ↗
AddedMD&A
Lennar’s fourth quarter and year-end 2025 results reflect what is and continues to be a difficult housing market. However, while our margin has been under pressure as we focus on bringing affordable housing to an affordability-constrained consumer base, the underlying demand is still strong, while supply is short. During the past three years of difficult market conditions, we have maintained volume, grown our market share and re-engineered our operating platform for a better and more efficient future when the market normalizes.
Read it in 10-K 2026-01-28 at sec.gov ↗
AddedMD&A
We began the quarter with the expectation that declining interest rates were the start of a market recovery. While mortgage rates drifted marginally lower in the fourth quarter, the customer response remained tepid, suggesting a combination of poor affordability and diminished consumer confidence continued to limit demand. The threat of a government shutdown and ultimate actual shutdown in October and November further eroded already weak consumer confidence. While traffic was consistent, customers were both hesitant and limited by what they could afford to purchase. Clearly, inflation-driven affordability concerns rose to the center of the national conversation, shaping headlines and policy debates across the country. Cost inflation has clearly had a significant impact on the lifestyle of the average American family. At the same time, concerns about job security have become increasingly prominent as advancements in modern technology and artificial intelligence raise important questions about the future of employment for the American workforce.
Read it in 10-K 2026-01-28 at sec.gov ↗
AddedMD&A
On a positive note, the federal government has intensified its focus on the national housing crisis, with a strong likelihood of taking decisive action to enhance affordability. Although the specifics of potential programs remain to be seen, it is clear that significant attention is being devoted to developing impactful initiatives, while avoiding unintended negative consequences. This is the first time in decades that the federal government is actively recognizing the vital role that housing plays, not only in the broader national economy, but also in the well-being of American families.
Read it in 10-K 2026-01-28 at sec.gov ↗
AddedMD&A
We know that margins will remain under pressure in the first quarter of 2026 and sales and closings will be seasonally light. However, we have a lower cost structure, efficient product offerings and a strong market position that we expect to accommodate pent-up demand as rates moderate and confidence ultimately returns. Our strategy has positioned us for strong cash flow, higher returns on equity and capital, and stronger bottom line growth in the future. Meanwhile, we will remain focused on volume and even-flow production.
Read it in 10-K 2026-01-28 at sec.gov ↗
AddedMD&A
Margins are usually lowest during the first quarter of a fiscal year, and we expect our margins in the first quarter of 2026 will be between 15% and 16%, depending on market conditions. We expect that in the first quarter of fiscal 2026, we will sell between 18,000 and 19,000 homes and deliver between 17,000 and 18,000 homes at an average sales price of between $365,000 and $375,000. We expect to deliver approximately 85,000 homes in the full 2026 fiscal year.
Read it in 10-K 2026-01-28 at sec.gov ↗
AddedMD&A
As we have driven growth, production and volume, we have created efficiencies and technology that will make us a better company in the future. We have materially reduced our inventory, our construction costs, and our cycle times, and we have increased, and will continue to increase, our inventory turn. We are determined to build more with less capital deployed so that as margins begin to grow, returns on capital and equity will grow faster.
Read it in 10-K 2026-01-28 at sec.gov ↗
AddedMD&A
We are also very enthusiastic about our technology initiatives. They have made us, and are continuing to make us, faster and better in the way that we engage with our customers. We are trying to be the best manufacturing model that we can be. The programs that we have in place are helping us absorb the price reductions we are required to give to maintain desired volume levels. They offer us the likelihood of substantially increasing profit levels when market conditions return to normal.
Read it in 10-K 2026-01-28 at sec.gov ↗
AddedMD&A
(1) Homebuilding other income (expense), net and other gains (losses), net included a one-time loss of $156.1 million on the Millrose Exchange Offer for the year ended November 30, 2025.
Read it in 10-K 2026-01-28 at sec.gov ↗
AddedMD&A
As previously announced, Lennar Corporation completed our acquisition of Rausch Coleman Homes ("Rausch") in February 2025. Prior year information includes only stand-alone data for Lennar Corporation for the year ended November 30, 2024.
Read it in 10-K 2026-01-28 at sec.gov ↗
AddedMD&A
In November, we completed the Millrose Exchange Offer in a non-cash transaction, accepting 8,049,594 shares of Lennar Class A common stock in exchange for 33,298,754 shares of Millrose Class A common stock, which represented approximately 20% of Millrose's outstanding shares. The exchange resulted in a $1.1 billion reduction in investments in unconsolidated entities and stockholders' equity as of November 30, 2025 and a one-time loss of $156.1 million in Homebuilding other income (expense), net, in our consolidated statements of operations and comprehensive income.
Read it in 10-K 2026-01-28 at sec.gov ↗
AddedMD&A
For the years ended November 30, 2025 and 2024, we had a tax provision of $705.6 million and $1.2 billion, which resulted in an overall effective income tax rate of 25.3% and 23.6%, respectively. For both periods, our effective income tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits. The increase in the effective tax rate for the year ended November 30, 2025 compared to the prior period was primarily due to the loss related to the Millrose Exchange Offer not being recognized for tax purposes. On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was enacted, introducing various changes to U.S. federal tax law. The Act did not have a material impact on our consolidated financial statements for the fiscal year ended November 30, 2025, and we are still evaluating the potential impact of the Act on future periods.
Read it in 10-K 2026-01-28 at sec.gov ↗
AddedMD&A
(3) During the year ended November 30, 2025, backlog includes 908 acquired homes of which 181,716 and 11 homes were in the Central,
Read it in 10-K 2026-01-28 at sec.gov ↗
RemovedMD&A
As the fourth quarter of fiscal 2024 began, we expected affordability to ease with the reduction in interest rates by the Fed, and we priced accordingly, however, mortgage rates climbed approximately 100 basis points instead of falling. We saw sales stall at then-existing price and incentive levels, which required us to increase incentives, provide interest rate buy-downs and adjust prices to stimulate sales and avoid inventory build-up. As a result, we have moderated our expectations for margins and sales in the first quarter of fiscal 2025, as the market adjusts and stabilizes.
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedMD&A
A combination of wavering consumer confidence and elevated acquisition costs dampened customers’ desire and ability to transact. In addition, inflation and interest rates have hindered the ability of the average family to accumulate a down payment or qualify for a mortgage. Higher interest rates have curtailed the normal move up homebuyer as families expand and need more space. However, strong employment often goes hand-in-hand with a strong housing market, and we expect broad-based demand to resume as rates stabilize or even moderate, releasing pent-up demand against short supply.
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedMD&A
Tariffs and immigration have recently been added to the list of concerns confronting the homebuilding industry. Our early evaluation suggests that steps we took in the past several years to move supply into the United States will reduce our exposure to the effect of increased tariffs. The likely effects of reduced immigration and possible widespread deportations are more difficult to predict. We feel confident that similar to the supply chain disruptions during the pandemic, we will be able to work with our local trades and national manufacturers to find the most effective solutions due to our Builder of Choice position with consistent high volume and a focus on production efficiencies.
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedMD&A
The first is our focus on matching production with sales pace. Even though our execution in the fourth quarter was challenged by the unexpected change in the direction of interest rates, we were able to adjust incentives and pricing sufficiently to prevent our inventory of finished homes from significantly spiking. We are currently focused on accelerating sales volume in order to correct the sales miss that we had in the fourth quarter. Of course, the catch-up in sales pace comes at a cost, and that cost is impacting our results of operations and placing additional pressure on margin in the first quarter of 2025. We have been able to solve the community count shortfalls of the past and ended the year with 1,447 communities, which was 15% higher than the prior year. Our community count positions us to drive the volume we expect at lower absorption rates as we enter 2025. We expect lower absorption rates to put less stress on our margin over time.
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedMD&A
The other core part of our operating strategy is our migration from a company with a large inventory of undeveloped and partially developed land to a land-light model where we purchase land on a just-in-time basis. In the fourth quarter of 2024, we had land purchases of $2.1 billion, but 80% of these were finished homesites on which vertical construction can soon begin. This lowers our asset base and our risk profile and will continue to be an intense focus for us.
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedMD&A
The last major step to complete our land-light strategy will be the spin-off of Millrose Properties, Inc., to which we expect to transfer approximately $5 billion to $6 billion of undeveloped and partially developed land, subject to option agreements to repurchase the land as it is developed into finished homesites, and approximately $1 billion in cash. Because Millrose, unlike investor-financed land banking funds, is designed to be able to reinvest proceeds of homesite purchases in new land acquisition and development arrangements, we expect it to be a long-term, reliable source of land acquisition and development financing for Lennar and other homebuilders. As previously disclosed in Millrose’s registration statement on Form S-11, in connection with the Millrose Spin-Off, we are coordinating a post-spin off transaction with Millrose, which has already been approved by the current Millrose Board of Directors and which we expect will be ratified by the independent Millrose Board of Directors that will be appointed immediately prior to the distribution, in connection with our pending acquisition of Rausch Coleman Homes, a residential homebuilder based in Fayetteville, Arkansas (“Rausch Coleman”). The acquisition of Rausch Coleman will result in our expanding into new and desirable markets in Arkansas, Kansas, and Missouri, while growing our existing operations in Texas, Alabama, Oklahoma, and Florida. In this pending acquisition, Lennar will acquire the work-in-process inventory and the operations of Rausch Coleman. We intend to assign the purchase of most of Rausch Coleman’s land assets (the “Rausch Land Assets”) to Millrose. Similar to the other land assets Lennar expects to contribute to Millrose in connection with the Millrose Spin-Off, Lennar expects to enter into options to purchase the developed Rausch Land Assets homesites in accordance with pre-set takedown schedules. We are expecting the acquisition to be completed shortly following the distribution date of the Millrose Spin-Off. We believe that the ongoing relationship with Millrose can facilitate other transactions in an asset-light manner as well.
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedMD&A
Looking ahead, we will continue to drive production to meet the housing shortage we know persists across our markets. We believe volume will continue to help reduce cost pressure and as interest rates normalize, pent-up demand will be released, and margins will recover. We are well prepared with a strong and growing national footprint, an increasing community count and higher volume. Our strong balance sheet and even stronger land banking relationships afford us flexibility and opportunity to execute thoughtful growth for our future. We will focus on our manufacturing model and use our strategic land relationships to achieve higher returns on capital and equity.
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedMD&A
We will continue to pursue our pure-play business model and reduce exposure to non-core assets. We will be laser focused on our just-in-time homesite deliveries and the resulting asset-light balance sheet. As we complete our asset light
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedMD&A
transformation, we expect to continue to generate strong cash flow and to return capital to our stockholders through dividends and stock buybacks.
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedMD&A
Against the backdrop, we anticipate 17,000 to 17,500 closings in the first quarter of fiscal 2025, with gross margins of 19% to 19.25%, and we expect to deliver between 86,000 and 88,000 homes in 2025, including the impact of the Rausch Coleman acquisition.
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedMD&A
For the years ended November 30, 2024 and 2023, we had a tax provision of $1.2 billion in each period, which resulted in an overall effective income tax rate of 23.6% and 24.0%, respectively. Our overall effective income tax rate was slightly lower than last year, primarily due to additional tax credits recognized during 2024.
Read it in 10-K 2025-01-23 at sec.gov ↗
RemovedMD&A
development, construction and ownership of class-A multifamily rental properties. Details of each as of and during the year ended November 30, 2024 are included below:
Read it in 10-K 2025-01-23 at sec.gov ↗
RewordedMD&A
This was offset by (1) an increase in inventories due to our growth strategy, strategic strategy land purchases, land development and construction costs of $285 million, an increase in deposits and pre-acquisition costs on real estate of $1.6 billion as we increased the percentage of controlled homesites, and an increase in loans held-for-sale of $218 million primarily related to the sale of loans originated by our Financial Services segment. million;
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedMD&A
At November 30, 2024, 2025, Homebuilding debt to total capital was lower higher compared to November 30, 2023, 2024, primarily as a result of an increase a decrease in stockholders' equity due to net earnings and a decrease the spin-off of Millrose, share repurchases, an increase in Homebuilding debt due to debt paydowns issuance of senior notes and debt repurchases, outstanding borrowings under our Delayed Draw Term Loan Facility (defined below), partially offset by share repurchases. net earnings.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedMD&A
As a percentage of revenues from home sales, selling, general and administrative expenses increased to 8.3% in the year ended November 30, 2025, from 7.3% in the year ended November 30, 2024, from 6.9% in the year ended November 30, 2023, primarily due to less leverage as a result of lower revenues and an increase in professional expenses, insurance costs and digital marketing and advertising costs to generate more direct sales. selling expenses.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedMD&A
Principal Maturities of Homebuilding Unconsolidated JVs Debt by Period (In thousands) Total JV Debt 2025 2026 2027 2028 Thereafter Other Debt without recourse to Lennar $ 1,276,663 231,103 163,471 326,685 555,404 1,412,660 200,855 572,846 132,204 506,755 — Land seller and other debt without recourse to Lennar 1,081 2,176 — — — 1,081 2,176 — Maximum recourse debt exposure to Lennar 44,171 30,132 8,222 — 12,261 — 31,910 21,910 — Debt issuance costs (3,156) (15,384) — — — — (3,156) (15,384) Total $ 1,318,759 231,103 175,732 326,685 588,395 (3,156) 1,429,584 209,077 572,846 132,204 530,841 (15,384)
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedMD&A
Revenues from home sales decreased in 2024 2025 compared to 2023, 2024, primarily due to a decrease decreases in the number of homes delivered and the average sales price of homes delivered in all the states in of the segment except in New Jersey, which was partially offset by an increase in the number of home deliveries in all the states in the segment. Jersey.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedMD&A
During the year ended November 30, 2024, 2025, gross margins decreased primarily because due to a lower revenue per square foot decreased while and higher land costs increased year over year, which was were partially offset by a decrease in costs per square foot due to lower costs of materials as we construction costs, reflecting our continued to focus on construction cost savings. cost-saving initiatives.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedMD&A
Operating loss for the Lennar Other segment was $19.1 million in the year ended November 30, 2025, compared to an operating loss of $46.9 million in the year ended November 30, 2024, compared to an operating loss of $211.2 million in the year ended November 30, 2023. 2024.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedMD&A
For the year ended November 30, 2024, a decrease in revenues 2025, gross margin percentage of homes delivered decreased due to lower revenue per square foot was and higher land costs year over year, partially offset by a decrease in costs per square foot. construction costs.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedMD&A
For the year ended November 30, 2024, a decrease in revenues 2025, gross margin percentage of homes delivered decreased due to lower revenue per square foot was and higher land costs year over year, partially offset by a decrease in costs per square foot. construction costs.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedMD&A
For the year ended November 30, 2024, a decrease in revenues 2025, gross margin percentage of homes delivered decreased due to lower revenue per square foot was and higher land costs year over year, partially offset by a decrease in costs per square foot. construction costs.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedMD&A
For the year ended November 30, 2024, a decrease in revenues 2025, gross margin percentage of homes delivered decreased due to lower revenue per square foot was and higher land costs year over year, partially offset by a decrease in costs per square foot. construction costs.
Read it in 10-K 2026-01-28 at sec.gov ↗
RewordedMD&A
Revenues were higher lower primarily due to a 10% increase in the number of home deliveries, partially offset by a 5% 8% decrease in the average sales price of homes delivered. delivered, partially offset by a 3% increase in the number of home deliveries.
Read it in 10-K 2026-01-28 at sec.gov ↗
Quiet changesMD&A
We believe that substantially all of the joint ventures were in compliance with their debt covenants at November 30, 2024. 2025.
Read it in 10-K 2026-01-28 at sec.gov ↗
Quiet changesMD&A
The accounting policy relating to the use of the equity method of accounting is a critical accounting policy due to the judgment required in determining whether the entity is a variable interest entity ("VIE") or a voting interest entity and then whether we are the primary beneficiary or have control or significant influence.
Read it in 10-K 2026-01-28 at sec.gov ↗
