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What changed in Lennar's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Lennar's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+353 added−372 removedSource: 10-K (2026-01-28) vs 10-K (2025-01-23)

Top changes in Lennar's 2025 10-K

353 paragraphs added · 372 removed · 279 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

79 edited+11 added−26 removed56 unchanged
Biggest changeThe most important factors that could cause actual results to differ materially from those anticipated by our forward-looking statements include, but are not limited to: slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities or own a substantial number of single-family homes for rent; decreased demand for our homes, either for sale or for rent, or Multifamily rental apartments; the potential impact of inflation; the impact of increased cost of mortgage financing for homebuyers, increased or continued high interest rates or increased competition in the mortgage industry; supply shortages and increased costs related to construction materials and labor; the possibility that increased tariffs will increase the cost of production materials; cost increases related to real estate taxes and insurance; the effect of increased interest rates with regard to our funds' borrowings on the willingness of the funds to invest in new projects; reductions in the market value of the Company's investments in public companies; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies, including our land lighter strategy and our planned spin-off; problems exercising options to purchase homesites; a decline in the value of the land and home inventories we maintain and resulting possible future write downs of the carrying value of our real estate assets; the forfeiture of deposits related to land purchase options we decide not to exercise; the potential negative impact to our business of public health issues; possible unfavorable outcomes in legal proceedings; changes in general economic and financial conditions that reduce demand for our products and services, lower our profit margins or reduce our access to credit; our inability to acquire land at anticipated prices; the possibility that we will incur nonrecurring costs that affect earnings in one or more reporting periods; the possibility that the benefit from our increasing use of technology will not justify its cost; increased competition for home sales from other sellers of new and resale homes; becoming unable to pay down debt; government actions or other factors that might force us to terminate our program of repurchasing our stock; the failure of the participants in various joint ventures to honor their commitments; difficulty obtaining land-use entitlements or construction financing; harm to our business from information technology failures and data security breaches; new laws or regulatory changes that adversely affect the profitability of our businesses (including changes in tax laws or liabilities); our inability to refinance our debt on terms that are as favorable as our current arrangements; and changes in accounting conventions that adversely affect our reported earnings.
Biggest changeThe most important factors that could cause actual results to differ materially from those anticipated by our forward-looking statements include, but are not limited to: slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities or own a substantial number of single-family homes for rent; decreased demand for our homes, either for sale or for rent, or Multifamily rental apartments; the potential impact of inflation; the impact of increased cost of mortgage financing for homebuyers, increased or continued high interest rates or increased competition in the mortgage industry; supply shortages and increased costs related to construction materials and labor; changes in trade policy affecting our business, including new or increased tariffs, as well as the potential impact of retaliatory tariffs and other penalties that may impact the cost of raw materials and other goods related to our homebuilding business; changes in U.S. and foreign governmental laws, regulations and policies, including retaliatory policies against the United States, that may impact our business and operations; cost increases related to real estate taxes and insurance; the effect of increased interest rates with regard to our funds' borrowings on the willingness of the funds to invest in new projects; reductions in the market value of the Company's investments in public companies; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies, including our land-light strategy; problems exercising options to purchase homesites; a decline in the value of the land and home inventories we maintain and resulting possible future write downs of the carrying value of our real estate assets; the forfeiture of deposits related to land purchase options we decide not to exercise; the potential negative impact to our business of public health issues; labor shortages and/or a decrease in the number of potential homebuyers due to increased enforcement of restrictions on immigration; possible unfavorable outcomes in legal proceedings; changes in general economic and financial conditions that reduce demand for our products and services, lower our profit margins or reduce our access to credit; our inability to acquire land at anticipated prices; the possibility that we will incur nonrecurring costs that affect earnings in one or more reporting periods; the possibility that the benefit from our increasing use of technology will not justify its cost; increased competition for home sales from other sellers of new and resale homes; becoming unable to pay down debt; government actions or other factors that might force us to terminate our program of repurchasing our stock; the failure of the participants in various joint ventures to honor their commitments; difficulty obtaining land-use entitlements or construction financing; harm to our business from information technology failures and data security breaches; new laws or regulatory changes that adversely affect the profitability of our businesses (including changes in tax laws or liabilities); our inability to refinance our debt on terms that are as favorable as our current arrangements; and changes in accounting conventions that adversely affect our reported earnings.
Key elements of our strategy include: • Strong Operating Margins - Our purchasing leverage combined with our focus on reducing selling, general and administrative costs by using technology and innovative strategies and reducing interest expense through paydowns of debt has enabled us to achieve strong gross profit and operating margins. • Everything’s Included ® Approach - We are focused on distinguishing our products, including through our Everything’s Included ® approach, which maximizes our purchasing power, enables us to include luxury features as standard items in our homes and simplifies our homebuilding operations. • Innovative Homebuilding - We are constantly innovating the homes we build to create products that better meet our customers' needs and desires.
Key elements of our strategy include: • Focus on Strong Operating Margins - Our purchasing leverage combined with our focus on reducing selling, general and administrative costs by using technology and innovative strategies and reducing interest expense through paydowns of debt has enabled us to achieve strong gross profit and operating margins. • Everything’s Included ® Approach - We are focused on distinguishing our products, including through our Everything’s Included ® approach, which maximizes our purchasing power, enables us to include luxury features as standard items in our homes and simplifies our homebuilding operations. • Innovative Homebuilding - We are constantly innovating the homes we build to create products that better meet our customers' needs and desires.
The investment period for Upward America closed in 2024, reducing the equity commitments from investors from $1.6 billion to $1.0 billion. As of November 30, 2024, institutional investors and Lennar had committed $1.0 billion to Upward America, part of which was used to reduce an initial commitment Lennar had made from $225 million to $78.1 million.
The investment period for Upward America closed in 2024, reducing the equity commitments from investors from $1.6 billion to $1.0 billion. As of November 30, 2025, institutional investors and Lennar had committed $1.0 billion to Upward America, part of which was used to reduce an initial commitment Lennar had made from $225 million to $78.1 million.
Financial Services Operations Residential Mortgage Financing We offer conforming conventional, FHA-insured and VA-guaranteed residential mortgage loan products and other residential mortgage products primarily to buyers of our homes through our financial services subsidiary, Lennar Mortgage, from locations in most of the states in which we have homebuilding operations.
Financial Services Operations Residential Mortgage Financing We offer conforming conventional, FHA-insured and VA-guaranteed residential mortgage loan products and other residential mortgage products primarily to buyers of our homes through our financial services subsidiary, Lennar Mortgage, LLC, from locations in most of the states in which we have homebuilding operations.
In connection with this strategy, we expect to spin off a significant portion of our land assets to Millrose, as discussed further below under the caption “Homebuilding Operations – Millrose Spin-Off.” • Even flow production - We adjust prices, with our gross margin being a shock absorber, in an effort to maintain consistent starts and sales paces in order to generate increased market share in all the markets we build in.
In connection with this strategy, we spun off a significant portion of our land assets to Millrose, as discussed further below under the caption “Homebuilding Operations – Millrose Spin-Off.” • Even flow production - We adjust prices, with our gross margin being a shock absorber, in an effort to maintain consistent starts and sales paces in order to generate increased market share in all the markets we build in.
The Core Plans are driving cost savings and strong operating margins, while delivering great value for our homebuyers. • Flexible Operating Structure - Our local operating structure gives us the flexibility to make operating decisions based on local homebuilding conditions and customer preferences, while our centralized management structure provides strategic oversight for our homebuilding operations. • Digital Marketing - We are increasingly advertising homes through digital channels, which is significantly increasing the cost effectiveness of our marketing efforts. • Dynamic pricing model - We match up unsold production as homes progress toward completion, with pricing information from our dynamic pricing model on a community-by-community and home-by-home basis. • Technology Focused - We partner with and/or invest in technology companies that are looking to improve the homebuilding and financial services industries to increase efficiencies, reduce customer acquisition costs and create a better customer experience. • Land light strategy - We are focused on reducing our years' supply of owned homesites and increasing the percentage of land we control through options or agreements, including agreements with strategic land banks and joint ventures, rather than ownership.
The Core Plans are driving cost savings and strong operating margins, while delivering great value for our homebuyers. • Flexible Operating Structure - Our local operating structure gives us the flexibility to make operating decisions based on local homebuilding conditions and customer preferences, while our centralized management structure provides strategic oversight for our homebuilding operations. • Digital Marketing - We are increasingly advertising homes through digital channels, which is significantly increasing the cost effectiveness of our marketing efforts. • Dynamic pricing model - We match up unsold production as homes progress toward completion, with pricing information from our dynamic pricing model on a community-by-community and home-by-home basis. • Technology Focused - We partner with and/or invest in technology companies that are looking to improve the homebuilding and financial services industries to increase efficiencies, reduce customer acquisition costs and create a better customer experience. • Land-light strategy - We are focused on having a minimal amount of years' supply of owned homesites and high percentage of land we control through options or agreements, including agreements with strategic land banks and joint ventures, rather than ownership.
During the second half of fiscal 2024, the LMV I partners decided to liquidate and sell all of the individual rental operation projects of LMV I as the fund has come to the end of its contractual life. During the year ended November 30, 2024, 33 LMV I rental operation projects were sold to various third-party buyers.
During the second half of fiscal 2024, the LMV I partners decided to liquidate and sell all of its 38 rental operation projects as the fund has come to the end of its contractual life. During the year ended November 30, 2024, 33 LMV I rental operation projects were sold to various third-party buyers.
During fiscal 2024 and 2023, increased interest rates as compared to prior years have made our homes less affordable to many prospective buyers and led us to reduce prices or increase sales incentives in a number of our communities to maintain sales pace.
During fiscal 2025 and 2024, increased interest rates as compared to prior years have made our homes less affordable to many prospective buyers and led us to reduce prices and/or increase sales incentives in a number of our communities to maintain sales pace.
We are firmly committed to providing equal employment opportunities for all applicants and employees. Our Code of Business Ethics and Conduct prohibits discrimination on the basis of a person’s race, color, religion, sex, sexual orientation, gender identity or expression, national origin, disability, veteran status, genetic information, or any other legally protected status.
We are firmly committed to providing equal employment opportunities for all applicants and employees. Our Code of Business Ethics and Conduct prohibits discrimination on the basis of a person’s race, color, religion, sex, sexual orientation, 9 Table of Contents gender identity or expression, national origin, disability, veteran status, genetic information, or any other legally protected status.
Initially all the homes purchased by Upward America were purchased from Lennar, but subsequently, Upward America began purchasing homes from multiple homebuilders. At both November 30, 2024 and 2023, approximately 6% of the homes owned by Upward America were built by homebuilders other than Lennar.
Initially all the homes purchased by Upward America were purchased from Lennar, but subsequently, Upward America began purchasing homes from multiple homebuilders. At both November 30, 2025 and 2024, approximately 6% of the homes owned by Upward America were built by homebuilders other than Lennar.
Single-Family Home Rentals In December 2020, Lennar formed the Upward America Venture, LLC (“Upward America”), which (a) acquires communities of single-family rental properties (including townhomes, duplexes and condominium buildings developed or 6 Table of Contents acquired for rental purposes), and (b) leases and manages homes in those communities. Lennar subsidiaries are the manager and the general partner of Upward America.
Single-Family Home Rentals In December 2020, Lennar formed the Upward America Venture, LLC (“Upward America”), which (a) acquires communities of single-family rental properties (including townhomes, duplexes and condominium buildings developed or acquired for rental purposes), and (b) leases and manages homes in those communities. Lennar subsidiaries are the manager and the general partner of Upward America.
Regulation The residential communities and multifamily apartment developments that we build are subject to a large variety of local, state and federal statutes, ordinances, rules and regulations relating to, among other things, zoning, construction permits 8 Table of Contents or entitlements, construction materials, density, building design and property elevation, building codes and handling of waste.
Regulation The residential communities and multifamily apartment developments that we build are subject to a large variety of local, state and federal statutes, ordinances, rules and regulations relating to, among other things, zoning, construction permits or entitlements, construction materials, density, building design and property elevation, building codes and handling of waste.
To the extent that some or all of these laws apply to our collection activities, our failure to comply with such laws could have a material adverse effect on us. We are also subject to regulations promulgated by the Federal Consumer Financial Protection Bureau regarding residential mortgage loans.
To the extent that some or all of these laws apply to our collection activities, our failure to comply with such laws could have a 8 Table of Contents material adverse effect on us. We are also subject to regulations promulgated by the Federal Consumer Financial Protection Bureau regarding residential mortgage loans.
We believe we are competitive in the market regions where we operate primarily due to our: • Everything’s Included ® marketing program, which simplifies the homebuying experience by including the most desirable features as standard items; • Innovative home designs, such as our Next Gen ® homes that provide both privacy and togetherness for multi-generational families or a home office to accommodate working from home; • Inclusion of built-in Wi-Fi, solar power systems and advanced technology in many of our homes; • Consumer insight capabilities, which allow us to continually stay tapped into consumer preferences and feedback so we can continuously evolve and fine-tune our offerings, processes and communications for our customers; • Financial position as a result of our ability to finance land purchases and development activities with operating revenues and corporate level unsecured borrowing; • Access to land, particularly in land-constrained markets; • Pricing to current market conditions; • Cost efficiencies realized through our national purchasing programs and production of value-engineered homes; • Quality construction and home warranty programs, which are supported by a responsive customer care team; • Our builder of choice program through which we maximize the efficiency of our suppliers' dealing with us; • Size and scale in leading markets; • Use of digital channels to advertise homes; and • Strategic investments in technology initiatives through our LEN X investments in companies that help us enhance the homebuying and home ownership experience, and help us stay at the forefront of homebuilding innovation.
We believe we are competitive in the market regions where we operate primarily due to our: • Everything’s Included ® marketing program, which simplifies the homebuying experience by including the most desirable features as standard items; • Innovative home designs, such as our Next Gen ® homes that provide both privacy and togetherness for multi-generational families or a home office to accommodate working from home; • Inclusion of built-in Wi-Fi, solar power systems and advanced technology in many of our homes; • Consumer insight capabilities, which allow us to continually stay tapped into consumer preferences and feedback so we can continuously evolve and fine-tune our offerings, processes and communications for our customers; • Financial position as a result of our ability to finance land purchases and development activities with operating revenues and corporate level unsecured borrowing; • Access to land, particularly in land-constrained markets; • Pricing to current market conditions; • Cost efficiencies realized through our national purchasing programs and production of value-engineered homes; • Quality construction and home warranty programs, which are supported by a responsive customer care team; • Our builder of choice program through which we maximize the efficiency of our suppliers' dealing with us; • Size and scale in leading markets; • Use of digital channels to advertise homes; • Utilization of the Lennar machine to convert digital leads into appointments and ultimately drive those appointments into closed sales; and • Strategic investments in technology initiatives through our LEN X investments in companies that help us enhance the homebuying and home ownership experience, and help us stay at the forefront of homebuilding innovation.
The quality of our homes is substantially affected by the efforts of on-site management and others engaged in the construction process, by the materials we use in particular homes, and by other similar factors. 3 Table of Contents We warrant our new homes against defective materials and workmanship for a minimum period of one year after the date of closing.
The quality of our homes is substantially affected by the efforts of on-site management and others engaged in the construction process, by the materials we use in particular homes, and by other similar factors. We warrant our new homes against defective materials and workmanship for a minimum period of one year after the date of closing.
Our Next Gen ® home provides what can be a home within a home to accommodate children or parents or can be an office from which to work remotely. • Core Plans - We are integrating standardized, highly efficient, value engineered Plan series across all divisions at different price points.
Our Next Gen ® homes provide what can be a home within a home to accommodate children or parents or can be an office from which to work remotely. • Core Plans - We are integrating standardized, highly efficient, value engineered Plan series across all divisions at different price points.
Our Everything’s Included ® marketing program enables us to differentiate our homes from those of our competitors by including luxury items as standard features at competitive prices, while reducing construction and overhead costs through a simplified construction process, product standardization and volume purchasing.
Our Everything’s Included® marketing program enables us to differentiate our homes from those of our competitors by including premium features as standard at competitive prices, while reducing construction and overhead costs through a simplified construction process, product standardization and volume purchasing.
We believe these factors give LMF Commercial an advantage over many of the lenders with which it competes. Additionally, we believe access to Lennar's local homebuilding teams provides LMF Commercial with a distinct advantage in its evaluation of real estate assets.
We believe these factors give LMF Commercial an advantage over many of the lenders with which it competes. 7 Table of Contents Additionally, we believe access to Lennar's local homebuilding teams provides LMF Commercial with a distinct advantage in its evaluation of real estate assets.
We undertake no obligation to revise any forward-looking statements to reflect events or circumstances after the date of those statements or to reflect the occurrence of anticipated or unanticipated events, except to the extent we are legally required to disclose certain matters in SEC filings or otherwise.
We undertake no obligation to revise any forward-looking statements to reflect events or circumstances after the date of those statements or to reflect the occurrence of anticipated or unanticipated events, except to the extent we are legally required to disclose certain matters in SEC filings or otherwise. 10 Table of Contents
In addition, we are working towards moving to a more even flow production where we start, sell and deliver a similar number of homes each quarter. 7 Table of Contents Competition The residential homebuilding industry is highly competitive.
In addition, we are working towards moving to a more even flow production where we start, sell and deliver a similar number of homes each quarter. Competition The residential homebuilding industry is highly competitive.
We were built on a culture of inclusivity and a conscious focus on the associate experience, bringing together the best talent to drive success as part of our “Lennar family.” We believe having an inclusive work environment, where everyone has a sense of belonging, not only drives engagement but fosters innovation, which is critical to driving growth.
We were built on a culture of “Everyone’s Included” and put a conscious focus on the associate experience, bringing together the best talent to drive success as part of our “Lennar family.” We believe having an inclusive work environment, where everyone has a sense of belonging, not only drives engagement but also fosters innovation, which is critical to drive growth.
As of both November 30, 2024 and 2023, we had equity investments in 51 active homebuilding and land unconsolidated entities, in which we were participating, and our maximum recourse debt exposure related to Homebuilding unconsolidated joint ventures was $44.2 million and $42.1 million, respectively.
As of both November 30, 2025 and 2024, we had equity investments in 50 active homebuilding and land unconsolidated entities, in which we were participating, and our maximum recourse debt exposure related to Homebuilding unconsolidated joint ventures was $30.1 million and $44.2 million, respectively.
We also have investments in companies that are engaged in applying technology to improve the homebuilding industry and real estate related aspects of the financial services industry. Our homebuilding operations are the most substantial part of our business, generating $34 billion in revenues, or approximately 96% of consolidated revenues, in fiscal 2024.
We also have investments in companies that are engaged in applying technology to improve the homebuilding industry and real estate related aspects of the financial services industry. Our homebuilding operations are the most substantial part of our business, generating $32 billion in revenues, or approximately 94% of consolidated revenues, in fiscal 2025.
At November 30, 2024, 82% of our total homesites were controlled through options with land banks, land sellers and joint ventures compared to 76% at November 30, 2023.
At November 30, 2025, 98% of our total homesites were controlled through options with land banks, land sellers and joint ventures compared to 82% at November 30, 2024.
As of November 30, 2024, our reportable Homebuilding segments and all Other Homebuilding operations not required to be reported separately have divisions located in: East: Alabama, Florida, New Jersey and Pennsylvania Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, South Carolina, Tennessee and Virginia Texas: Texas West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC ("FivePoint") Our other reportable segments are Financial Services, Multifamily and Lennar Other.
As of November 30, 2025, our reportable Homebuilding segments and all Other Homebuilding operations not required to be reported separately have divisions located in: East: Florida, New Jersey and Pennsylvania Central: Alabama, Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, South Carolina, Tennessee and Virginia South Central: Arkansas, Kansas, Missouri, Oklahoma and Texas West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC ("FivePoint").
New home deliveries, including deliveries from unconsolidated entities, were 80,210 in fiscal 2024, compared to 73,087 in fiscal 2023 and 66,399 in fiscal 2022. We primarily sell homes in communities targeted to first-time, move-up, active adult, and luxury homebuyers. The average sales price of a Lennar home varies depending on product and geographic location.
New home deliveries, including deliveries from unconsolidated entities, were 82,583 in fiscal 2025, compared to 80,210 in fiscal 2024 and 1 Table of Contents 73,087 in fiscal 2023. We primarily sell homes in communities targeted to first-time, move-up, active adult, and luxury homebuyers. The average sales price of a Lennar home varies depending on product and geographic location.
Our local operating structure consists of homebuilding divisions across the country, each of which is usually managed by a division president, a controller and personnel focused on land acquisition, entitlement and development, sales, construction, customer service and purchasing.
Local Operating Structure and Centralized Management We balance a local operating structure with centralized corporate level management. Our local operating structure consists of homebuilding divisions across the country, each of which is usually managed by a division president, a controller and personnel focused on land acquisition, entitlement and development, sales, construction, customer service and purchasing.
However, the Multifamily business now manages, and owns interests in, longer-duration funds that build multifamily communities with the intention of retaining them as rental income-generating assets. At November 30, 2024, Multifamily had interests in, and was managing, three funds and 23 joint ventures.
However, the Multifamily business now manages, and owns interests in, longer-duration funds that build multifamily communities with the intention of retaining them as rental income-generating assets. At November 30, 2025, Multifamily had interests in, and was managing, four funds and 21 active joint ventures.
At November 30, 2024, Upward America had purchased 4,697 homes in 103 communities across 19 metropolitan statistical areas for a total purchase price of $1.2 billion (an average price of $258,000 per home) and disposed of 92 homes for a total sales price of $26.0 million (an average price of $283,000 per home).
At November 30, 2025, Upward America had purchased 4,697 homes in 103 communities across 19 metropolitan statistical areas for a total purchase price of $1.2 billion (an average price of $258,000 per home) and disposed of 275 homes for a total sales price of $82.0 million (an average price of $298,000 per home).
For fiscal 2024, the average sales price, excluding deliveries from unconsolidated entities, was $423,000, compared to $446,000 in fiscal 2023 and $480,000 in fiscal 2022. 1 Table of Contents We operate primarily under the Lennar brand name. Our homebuilding mission is focused on the profitable development of residential communities.
For fiscal 2025, the average sales price, excluding deliveries from unconsolidated entities, was $391,000, compared to $423,000 in fiscal 2024 and $445,000 in fiscal 2023. We operate primarily under the Lennar brand name. Our homebuilding mission is focused on the profitable development of residential communities.
Initially, the Multifamily business almost exclusively participated in shorter-duration joint ventures that built multifamily communities with the intention of selling them soon after they were built, and in most cases after they were substantially occupied.
Multifamily Operations Our Multifamily business has been engaged in the development of multifamily communities since 2011. Initially, the Multifamily business almost exclusively participated in shorter-duration joint ventures that built multifamily communities with the intention of selling them soon after they were built, and in most cases after they were substantially occupied.
Lennar Other Strategic Technology Investments We strategically invest in companies involved in technology initiatives that, among other things, help us enhance the homebuying or home ownership experience, reduce our SG&A expenses and help us stay at the forefront of homebuilding innovation. Six of the companies in which we have strategic investments are publicly traded. They are: • Blend Labs, Inc.
Lennar Other Strategic Technology Investments We strategically invest in companies involved in technology initiatives that, among other things, help us enhance the homebuying or home ownership experience, reduce our SG&A expenses and help us stay at the forefront of homebuilding innovation.
This new technology has made the mortgage financing process easier for homebuyers and improved the customer experience. This new technology has also enabled us to increase the number of digital closings, with digital document signing and, where legally permitted, digital notarization.
We have been using new technology to automate portions of our mortgage loan origination process. This new technology has made the mortgage financing process easier for homebuyers and improved the customer experience. This new technology has also enabled us to increase the number of digital closings, with digital document signing and, where legally permitted, digital notarization.
Home Corporation, which expanded our operations into New Jersey, Maryland, Virginia, Minnesota and Colorado and strengthened our position in other states. From 2002 through 2005, we acquired several regional homebuilders, which brought us into new markets and strengthened our position in several existing markets. From 2010 through 2013, we expanded our homebuilding operations into Georgia, Oregon, Washington and Tennessee.
From 2002 through 2005, we acquired several regional homebuilders, which brought us into new markets and strengthened our position in several existing markets. From 2010 through 2013, we expanded our homebuilding operations into Georgia, Oregon, Washington and Tennessee.
Title, Insurance and Closing Services We are licensed to provide title insurance, and closing services for residential and/or commercial transactions in 41 states to our homebuyers and others. During fiscal 2024 and 2023, we provided closing services with regard to approximately 82,400 and 74,900, real estate transactions, respectively, in 25 states.
Title, Insurance and Closing Services We are licensed to provide title insurance, and closing services for residential and/or commercial transactions in 37 states to our homebuyers and others. During fiscal year 2025 and 2024, we provided closing services with regard to approximately 86,300 and 82,400, real estate transactions in 27 and 25 states, respectively.
We wish to caution readers that certain important factors may have affected and could in the future affect our actual results and could cause actual results to differ significantly from what is anticipated by our forward-looking statements.
These forward-looking statements reflect our current views about future events and are subject to risks, uncertainties and assumptions. We wish to caution readers that certain important factors may have affected and could in the future affect our actual results and could cause actual results to differ significantly from what is anticipated by our forward-looking statements.
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.
Seasonality We historically have experienced, and expect to continue to experience, variability in quarterly results. 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.
We are also committed to worker safety and regulatory compliance, and among other things, require that office associates with oversight of construction and associates who work in the field take additional safety courses.
Our experienced teams adapt quickly to changes in safety protocols to protect our associates, trade partners and homebuyers. We are also committed to worker safety and regulatory compliance, and among other things, require that office associates with oversight of construction and associates who work in the field take additional safety courses.
At November 30, 2024, we employed 13,265 individuals of whom 10,653 were involved in the Homebuilding operations, 2,066 were involved in the Financial Services operations and 546 were involved in the Multifamily operations, compared to November 30, 2023, when we employed 12,284 individuals of whom 9,622 were involved in the Homebuilding operations, 1,792 were involved in the Financial Services operations and 870 were involved in the Multifamily operations.
At November 30, 2025, we employed 12,532 individuals of whom 10,182 were involved in the Homebuilding operations, 2,132 were involved in the Financial Services operations and 218 were involved in the Multifamily operations, compared to November 30, 2024, when we employed 13,265 individuals of whom 10,653 were involved in the Homebuilding operations, 2,066 were involved in the Financial Services operations and 546 were involved in the Multifamily operations.
Although we subcontract virtually all segments of construction to others and our contracts call for the subcontractors to repair or replace any deficient items related to their trades, we are primarily responsible to the homebuyers for the correction of any deficiencies. Local Operating Structure and Centralized Management We balance a local operating structure with centralized corporate level management.
Although we subcontract virtually all segments of construction to others and our contracts call for the 3 Table of Contents subcontractors to repair or replace any deficient items related to their trades, we are primarily responsible to the homebuyers for the correction of any deficiencies.
We have no active role in the management of FivePoint, except that since August 2021 our Executive Chairman and Co-Chief Executive Officer has been the non-employee Executive Chairman of the Board of Directors (but not the chief executive officer) of FivePoint. As of November 30, 2024, the carrying amount of our investment in FivePoint was $470.8 million.
We have no active role in the management of FivePoint, except that since August 2021 our Executive Chairman and Chief Executive Officer, has been the non-employee Executive Chairman of the Board of Directors (but not the chief executive officer) of FivePoint since August 2021.
Following the Millrose Spin-Off, we expect that, when Millrose acquires undeveloped or partially developed land that we have options to purchase, Millrose will finance the horizontal development of all such homesites up to pre-negotiated development budgets, which will be incorporated into the takedown prices for Lennar’s purchase options on the properties.
In addition, when our land bank partners, including Millrose, acquire undeveloped or partially developed land that we have options to purchase, they finance the horizontal development of all such homesites up to pre-negotiated development budgets, which is incorporated into the takedown prices for Lennar’s purchase options on the properties.
Rialto Fund Investments Until November 30, 2018, we had a group of subsidiaries, including Rialto Capital Management, LLC ("Rialto"), that primarily managed real estate related investment funds and other real estate related investment vehicles. We sold the Rialto Management Group on November 30, 2018.
As of November 30, 2025, the carrying amount of our investment in FivePoint was $585.2 million. 6 Table of Contents Rialto Fund Investments Until November 30, 2018, we had a group of subsidiaries, including Rialto Capital Management, LLC ("Rialto"), that primarily managed real estate related investment funds and other real estate related investment vehicles.
We expect that a significant portion of all homes currently in backlog will be delivered in fiscal year 2025. Homebuilding Investments in Unconsolidated Entities We create and participate in joint ventures that acquire and develop land for our homebuilding operations, for sale to third parties or for use in the ventures' own homebuilding operations.
Homebuilding Investments in Unconsolidated Entities We create and participate in joint ventures that acquire and develop land for our homebuilding operations, for sale to third parties or for use in the ventures' own homebuilding operations.
We understand the importance of balance, and offer associates a competitive and comprehensive benefits package, including paid parental leave and resources for whole-self well-being (physical, social, and financial). Health and Safety We are committed to the health and safety of our associates and trade partners.
We understand the importance of balance, and offer associates a competitive and comprehensive benefits package, and resources for whole-self well-being (physical, social, and financial). Health and Safety We are committed to the health and safety of our associates and trade partners. We hired a full-time Chief Medical Officer in early 2020 at the beginning of the COVID-19 pandemic.
This was an increase from the 1,260 communities, including five communities being constructed by unconsolidated entities, in which we were actively building and marketing homes at November 30, 2023. At November 30, 2024 and 2023, we had about 2,900 and 1,200 completed unsold homes, respectively.
At November 30, 2025, we were actively building and marketing homes in 1,708 communities, including nine communities being constructed by unconsolidated entities. This was an increase from the 1,447 communities, including 11 communities being constructed by unconsolidated entities, in which we were actively building and marketing homes at November 30, 2024.
In some instances, purchasers are permitted to cancel sales contracts if they fail to qualify for financing or under certain other circumstances. We experienced a cancellation rate of 14% in 2024 and 16% in 2023.
In some instances, purchasers are permitted to cancel sales contracts if they fail to qualify for financing or under certain other circumstances. We experienced a cancellation rate of 14% in both 2025 and 2024. We do not recognize revenue on homes that are the subject of sales contracts until the sales are closed and title passes to the new homeowners.
However, we retained the right to share in carried interest distributions from some of the funds and other investment vehicles Rialto manages. We also retained limited partner investments in several Rialto funds and investment vehicles that totaled $140.1 million as of November 30, 2024. Seasonality We historically have experienced, and expect to continue to experience, variability in quarterly results.
We sold the Rialto Management Group on November 30, 2018. However, we retained the right to share in carried interest distributions from some of the funds and other investment vehicles Rialto manages. We also retained limited partner investments in several Rialto funds and investment vehicles that totaled $133.0 million as of November 30, 2025.
We completed our initial public offering in 1971 and listed our common stock on the New York Stock Exchange in 1972. During the 1980s and 1990s, we entered and expanded operations in a number of homebuilding markets, including California, Florida and Texas, through both organic growth and acquisitions, such as Pacific Greystone Corporation in 1997. In 2000, we acquired U.S.
During the 1980s and 1990s, we entered and expanded operations in a number of homebuilding markets, including California, Florida and Texas, through both organic growth and acquisitions, such as Pacific Greystone Corporation in 1997. In 2000, we acquired U.S. Home Corporation, which expanded our operations into New Jersey, Maryland, Virginia, Minnesota and Colorado and strengthened our position in other states.
We focus on executing our operating strategy to be a consistent and high-volume homebuilder with production pace in sync with sales pace while using our gross margin as a shock absorber.
We have aimed to maintain operating margins by deferring home sale price commitments until construction costs are finalized to protect against cost escalations. We focus on executing our operating strategy to be a consistent and high-volume homebuilder with production pace in sync with sales pace while using our gross margin as a shock absorber.
In addition, our home design and engineering work optimizes efficient use of building materials and reduces construction waste. We also believe in the value of clean energy from solar power, which is why we formed our own captive solar power company in 2013.
In addition, our home design and engineering work optimizes efficient use of building materials and reduces construction waste. We also believe in the value of clean energy from solar power, and we consistently seek opportunities to integrate solar power where it provides great value for our homebuyers.
("CalAtlantic"), a major homebuilder which was building homes across the homebuilding spectrum, from entry level to luxury, in 43 metropolitan statistical areas spanning 19 states, and providing mortgage, title and escrow services. We are focused on increasing efficiencies in our building process and reducing selling, general and administrative expenses by using technology and innovative strategies to reduce customer acquisition costs.
("CalAtlantic"), a major homebuilder which was building homes across the homebuilding spectrum, from entry level to luxury, in 43 metropolitan statistical areas spanning 19 states, and providing mortgage, title and escrow services.
For additional information about our investments in and relationships with unconsolidated entities, see Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Report. 2 Table of Contents Construction and Development We are involved in all phases of planning and building in our residential communities, including land acquisition, site planning, preparation and improvement of land and design, construction and marketing of homes.
For additional information about our investments in and relationships 2 Table of Contents with unconsolidated entities, see Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Report.
This is discussed in greater detail in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Report. Millrose Spin-Off We are currently preparing to spin off (the “Millrose Spin-Off”) a wholly owned subsidiary of Lennar, Millrose Properties Inc.
This is discussed in greater detail in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Report. Millrose Spin-Off and Exchange Offer In February 2025, we successfully completed the taxable spin-off of Millrose Properties, Inc.
In connection with this transition, we expect to spin off a significant portion of our land assets to Millrose (as defined below), as discussed further below under the caption “Homebuilding Operations – Millrose Spin-Off.” Homebuilding Operations Overview Our homebuilding operations include the construction and sale of single-family attached and detached homes as well as the purchase, development and sale of residential land directly through entities in which we have investments.
Homebuilding Operations Overview Our homebuilding operations include the construction and sale of single-family attached and detached homes as well as the purchase, development and sale of residential land directly through entities in which we have investments.
These forward-looking statements typically include the words “anticipate,” “believe,” “consider,” “estimate,” “expect,” “forecast,” “intend,” “objective,” “plan,” “predict,” “projection,” “seek,” “strategy,” “target,” “will”, "may" or other words of similar meaning.
These forward-looking statements typically include the words “anticipate,” “believe,” “consider,” “estimate,” “expect,” “forecast,” “intend,” “objective,” “plan,” “predict,” “projection,” “seek,” “strategy,” “target,” “will”, "may" or other words of similar meaning. Some of them are opinions formed based upon general observations, anecdotal evidence and industry experience, but that are not supported by specific investigation or analysis.
During fiscal 2024 and 2023, even with shifts in macroeconomic factors and adjusting to an inflationary environment in much of the period, we were able to develop, enhance, use, and improve the Lennar machine.
We have made it possible for potential homebuyers to take virtual tours of model homes. During fiscal 2025 and 2024, even with shifts in macroeconomic factors in much of the period, we were able to develop, enhance, use, and improve the Lennar machine.
In order to finance LMF Commercial lending activities, as of November 30, 2024, LMF Commercial had two warehouse repurchase financing agreements maturing at various dates from 2025 through 5 Table of Contents fiscal 2026 with commitments totaling $300 million.
In order to finance LMF Commercial lending activities, as of November 30, 2025, LMF Commercial had two warehouse repurchase financing agreements maturing at various dates through fiscal year 2028 with commitments totaling $300 million. This is discussed in greater detail in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Report.
We finance our mortgage loan activities with borrowings under our financial services warehouse facilities or funds from our operating activities. At November 30, 2024, Financial Services had six warehouse residential facilities maturing at various dates through fiscal 2027 with a total maximum borrowing capacity of $3.1 billion including an uncommitted amount of $675 million.
At November 30, 2025, Financial Services had six warehouse residential facilities maturing at various dates through fiscal year 2027 with a total maximum borrowing capacity of $3.3 billion including an uncommitted amount of $2.1 billion. We expect the facilities to be renewed or replaced with other facilities when they mature.
Most communities offer residents a mix of studio, one, two, and three-bedroom homes. As of November 30, 2024, funds and ventures managed by Multifamily had a pipeline of 57 potential future developments, which were owned, under contract or subject to letters of intent, totaling approximately $6.5 billion in anticipated development costs across several states.
As of November 30, 2025, funds and ventures managed by Multifamily had a pipeline of 32 potential future developments, which were owned, under contract or subject to letters of intent, totaling approximately $2.8 billion in anticipated development costs across several states. Multifamily has co-investments in all the funds and ventures it manages, and receives returns on these investments.
We consistently seek opportunities to integrate solar power where it provides great value for our homebuyers. 9 Table of Contents Human Capital Management Diversity, Equity and Inclusion; Talent Management and Leadership Development Our associates (i.e., employees) are our most valuable asset, and we are committed to supporting each associate’s unique career journey.
Human Capital Management Talent Management, Culture and Leadership Development Our associates (i.e., employees) are our most valuable asset, and we are committed to supporting each associate’s unique career journey.
After the loans are sold, we retain potential liability for claims by purchasers that we breached certain limited industry-standard representations and warranties in the loan sale agreements. Occasional claims of this type are a normal incident of loan securitization activities.
Substantially all of the residential mortgage loans we originate are sold within a short period in the secondary mortgage market, a majority of them on a servicing-released, non-recourse basis. After the loans are sold, we retain potential liability for claims by purchasers that we breached certain limited industry-standard representations and warranties in the loan sale agreements.
We have a corporate risk management policy under which we hedge our interest rate risk on rate-locked loan commitments and loans held-for-sale to mitigate exposure to interest rate fluctuations. We have been using new technology to automate portions of our mortgage loan origination process.
If they are not renewed or replaced, we would have to find other sources of funding for our mortgage originations, which might include our own funds. We have a corporate risk management policy under which we hedge our interest rate risk on rate-locked loan commitments and loans held-for-sale to mitigate exposure to interest rate fluctuations.
In fiscal year 2024, our financial services subsidiaries provided loans to 84% of our homebuyers who obtained mortgage financing in areas where we offered services. Because of the availability of mortgage loans from our financial services subsidiaries, as well as from independent mortgage lenders, we believe almost all creditworthy potential purchasers of our homes have access to financing.
In fiscal year 2025, our financial services subsidiaries provided loans to 84% of our homebuyers who obtained mortgage financing in areas where we offered services.
Financial information about our Homebuilding, Financial Services, Multifamily and Lennar Other operations is contained in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations of this Report. About Our Company Our company was founded as a local Miami homebuilder in 1954.
Our other reportable segments are Financial Services, Multifamily and Lennar Other. Financial information about our Homebuilding, Financial Services, Multifamily and Lennar Other operations is contained in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations and Note 3 of the Notes to Consolidated Financial Statements.
Arrangements with our subcontractors generally provide that our subcontractors will complete specified work in accordance with price and time schedules and in compliance with applicable building codes and laws. The price schedules may be subject to change to meet changes in labor and material costs or for other reasons.
We hire subcontractors for site improvements and virtually all of the work involved in the construction of homes. Arrangements with our subcontractors generally provide that our subcontractors will complete specified work in accordance with price and time schedules and in compliance with applicable building codes and laws.
For additional information about our investments in strategic technology investments, see Management's Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Report. Multifamily Operations Our Multifamily business has been engaged in the development of multifamily communities since 2011.
At November 30, 2025, the book value of our investment in strategic technology investments was $581.8 million and is included in our Lennar Other segment. For additional information about our investments in strategic technology investments, see Management's Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Report.
In addition, we are continuing our transition to a land light operating model by increasing the percentage of land we control through options or agreements but do not own, which reduces our years’ supply of owned homesites.
We have advanced our transition to a land-light operating model by increasing the proportion of homesites we control through options or agreements rather than ownership. This approach enhances flexibility, reduces capital intensity, and lowers our years’ supply of owned land.
We employ new home consultants who are paid salaries, commissions or both to conduct on-site sales of our homes. We also sell homes through independent realtors. We have made it possible for potential homebuyers to take virtual tours of model homes.
Most of our homes include home automation and technology components, as well as energy efficient materials and systems, which enhances our brand. We sell our homes from models that we have designed and constructed. We employ new home consultants who are paid salaries, commissions or both to conduct on-site sales of our homes. We also sell homes through independent realtors.
Multifamily has co-investments in all the funds and ventures it manages, and receives returns on these investments. In addition, it has carried interests in the funds or ventures it manages, and receives distributions with regard to those carried interests.
In addition, it has carried interests in the funds or ventures it manages, and receives distributions with regard to those carried interests. Lennar Multifamily Venture Fund I (“LMV I") is a long-term multifamily development investment vehicle involved in the development and construction of class-A multifamily assets.
From inception through November 30, 2024, the Multifamily business has capitalized and developed 123 multifamily residential communities with approximately 37,100 rental units across 20 states throughout the United States. The communities developed by the Multifamily business include a diversified mix of conventional garden, mid-rise and high-rise multifamily properties in urban and suburban locations near major employment centers.
From inception through November 30, 2025, the Multifamily business has capitalized and developed 128 multifamily residential communities with approximately 39,300 rental units across 20 states throughout the United States.
We finance construction and land development activities primarily with cash generated from operations and historically from proceeds of unsecured corporate debt.
The price schedules may be subject to change to meet changes in labor and material costs or for other reasons. We generally do not own heavy construction equipment. We finance construction and land development activities primarily with cash generated from operations and historically from proceeds of unsecured corporate debt.
Our “Everyone’s Included” mantra relative to inclusion and diversity within our company anchors our unique culture. Our success starts and ends with having the best talent, and, as a result, we are focused on attracting, developing, engaging and retaining our associates.
Our success starts and ends with having the best talent, and, as a result, we are focused on attracting, developing, engaging and retaining our associates. We believe strongly that “Leadership Matters” and seek to hire, retain and train our leaders to value integrity, curiosity, resourcefulness, operational excellence, collaboration and a customer-centric mindset.
We generally supervise and control the development of land and the design and building of our residential communities with a relatively small labor force. We hire subcontractors for site improvements and virtually all of the work involved in the construction of homes.
At November 30, 2025 and 2024, we had about 5,000 and 2,900 completed unsold homes, respectively, which resulted in 2.9 and 2.0 completed unsold homes per community, respectively. We generally supervise and control the development of land and the design and building of our residential communities with a relatively small labor force.
We use independent subcontractors for most aspects of land development and home construction. At November 30, 2024, we were actively building and marketing homes in 1,447 communities, including 11 communities being constructed by unconsolidated entities.
Construction and Development We are involved in all phases of planning and building in our residential communities, including land acquisition, site planning, preparation and improvement of land and design, construction and marketing of homes. We use independent subcontractors for most aspects of land development and home construction.
We do not believe that the ultimate resolution of these claims will have a material adverse effect on our business or financial position. During fiscal year 2024, we also locked interest rates on approximately 54,200 residential mortgage loans totaling $19.5 billion, compared to 46,600 residential mortgage loans totaling $17.2 billion during fiscal year 2023.
Occasional claims of this type are a normal incident of loan securitization activities. We do not believe that the ultimate resolution of these claims will have a material adverse effect on our business or financial position.
Pending Acquisition of Rausch Coleman Homes During the fourth quarter of 2024, we entered into a definitive agreement to purchase Rausch Coleman Homes, a residential homebuilder based in Fayetteville, Arkansas. With this acquisition, we will expand our footprint into new markets in Arkansas, Oklahoma, Alabama, Kansas and Missouri while adding to our existing footprint in Texas, Oklahoma, Alabama and Florida.
In February 2025, we acquired Rausch Coleman Homes ("Rausch"), a residential homebuilder, expanding our homebuilding operations into several new markets in Arkansas (Bentonville/Fayetteville, Little Rock and Jonesboro), Oklahoma (Tulsa and Stillwater), Alabama (Birmingham and Tuscaloosa), and Kansas/Missouri (Kansas City), while adding to our existing footprint in Texas (Houston and San Antonio), Oklahoma (Oklahoma City), Alabama (Huntsville) and Florida (Gulf Coast).
Our construction playbook has three primary areas of focus: lowering construction costs, reducing cycle time and achieving even flow production. We have aimed to maintain strong operating margins by deferring home sale price commitments until construction costs are finalized to protect against cost escalations.
We are focused on increasing efficiencies in our building process and reducing selling, general and administrative expenses by using technology and innovative strategies to reduce customer acquisition costs. Our construction playbook has three primary areas of focus: lowering construction costs, reducing cycle time and achieving even flow production.
We do not recognize revenue on homes that are the subject of sales contracts until the sales are closed and title passes to the new homeowners. The backlog dollar value including unconsolidated entities at November 30, 2024 was $5.4 billion, compared to $6.6 billion at November 30, 2023.
The backlog dollar value including unconsolidated entities at November 30, 2025 was $5.2 billion, compared to $5.4 billion at November 30, 2024. We expect that a significant portion of homes currently in backlog will be delivered in fiscal year 2026.
Removed
Although we, like homebuilders throughout the country, encountered shortages of materials and skilled labor during 2022, we believe that because of our size and our builder of choice program, where we work with our trade partners to drive efficiencies for them, we were less affected by these shortages than many of our competitors.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe extent to which public health issues impact our results will depend on future developments, which cannot be predicted. 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.
Biggest changeFurther, 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. Operational Risks Homebuilding, mortgage lending and home rentals are very competitive industries, and competitive conditions could adversely affect our business or financial results. Homebuilding . The homebuilding industry is highly competitive.
However, if in the future we have a need for significant borrowings under our Credit Facility and interest rates continue be high, that would increase the cost of the homes we build, which either would make those homes more expensive for homebuyers, which is likely to reduce demand, or would lower our operating margins, or both.
However, if in the future we have a need for significant borrowings under our Credit Facility and interest rates continue to be high, that would increase the cost of the homes we build, which either would make those homes more expensive for homebuyers, which is likely to reduce demand, or would lower our operating margins, or both.
We have made a strategic decision to increase the portion of our potential land inventory that we control through options or contracts and reduce the portion we own. This substantially reduces our investment in land.
We have made a strategic decision to increase the portion of our potential land inventory that we control through options or contracts and reduce the land that we own. This substantially reduces our investment in land.
It is not clear how, if Fannie Mae, Freddie Mac and Ginnie Mae were to curtail their secondary market mortgage loan purchases, the liquidity they provide would be replaced.
If Fannie Mae, Freddie Mac and Ginnie Mae were to curtail their secondary market mortgage loan purchases, it is not clear how the liquidity they provide would be replaced.
Our level of indebtedness exposes us to a number of risks, including: • We may be more vulnerable to volatility within the capital market, general adverse economic and homebuilding industry conditions; • We may have to pay higher interest rates upon refinancing indebtedness as a result of the increase in market interest rates, thereby reducing our earnings and cash flows; • We may find it difficult, or may be unable, to obtain additional financing to fund future working capital, capital expenditures and other general corporate requirements that would be in our best long-term interests; • We may be required to dedicate a substantial portion of our cash flow from operations to the payment of principal and interest on our debt, reducing the cash flow available to fund operations and investments and reducing the amount we can return to our stockholders; 16 Table of Contents • We may have reduced flexibility in planning for, or reacting to, changes in our businesses or the industries in which they are conducted; • We may have a competitive disadvantage relative to other companies in our industry, if any, that are less leveraged; and • We may be required to sell debt or equity securities or sell some of our core assets, possibly on unfavorable terms, in order to meet debt payment obligations.
Our level of indebtedness exposes us to a number of risks, including: • We may be more vulnerable to volatility within the capital market, general adverse economic and homebuilding industry conditions; 16 Table of Contents • We may have to pay higher interest rates upon refinancing indebtedness as a result of the increase in market interest rates, thereby reducing our earnings and cash flows; • We may find it difficult, or may be unable, to obtain additional financing to fund future working capital, capital expenditures and other general corporate requirements that would be in our best long-term interests; • We may be required to dedicate a substantial portion of our cash flow from operations to the payment of principal and interest on our debt, reducing the cash flow available to fund operations and investments and reducing the amount we can return to our stockholders; • We may have reduced flexibility in planning for, or reacting to, changes in our businesses or the industries in which they are conducted; • We may have a competitive disadvantage relative to other companies in our industry, if any, that are less leveraged; and • We may be required to sell debt or equity securities or sell some of our core assets, possibly on unfavorable terms, in order to meet debt payment obligations.
Our ability to obtain surety bonds primarily depends upon our credit rating, financial condition, past performance and similar factors, the capacity of the surety market and the underwriting practices of surety bond issuers. Our ability to obtain surety bonds also can be impacted by unwillingness of insurance companies to issue performance bonds for construction and development activities.
Our ability to obtain surety bonds primarily depends upon our credit rating, financial condition, past performance and similar factors, the capacity of the surety market and the underwriting practices of surety bond issuers. Our ability to obtain surety bonds also can be impacted by the unwillingness of insurance companies to issue performance bonds for construction and development activities.
Cyber intrusion efforts are becoming increasingly frequent and sophisticated, including as a result of the use of artificial intelligence, and it is possible that any controls we or third parties have installed could at some time be breached in a material respect.
Cyber intrusion efforts are becoming increasingly frequent and sophisticated, including as a result of the use of artificial intelligence (“AI”), and it is possible that any controls we or third parties have installed could at some time be breached in a material respect.
While we do not acquire essential components of the homes we build from either of those countries and while as of November 30, 2024, neither of these conflicts has had a material direct impact on our consolidated financial performance, those and other possible conflicts have already led and could lead to further market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions.
While we do not acquire essential components of the homes we build from either of those countries and while as of November 30, 2025 neither of these conflicts has had a material direct impact on our consolidated financial performance, those and other possible conflicts have already led and could lead to further market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions.
Housing has been considerably impacted by the more than doubling of mortgage interest rates in 2022 and 2023, and small decreases in 2024. When interest rates increase, the cost of owning a new home increases, which usually reduces the number of potential buyers who can afford, or are willing, to purchase homes we build.
Housing has been considerably impacted by the more than doubling of mortgage interest rates in 2022 and 2023, and small decreases in 2025. When interest rates increase, the cost of owning a new home increases, which usually reduces the number of potential buyers who can afford, or are willing, to purchase homes we build.
A decline in prices of new homes could require us to write down the carrying value of land we own and to write off option costs. We are constantly purchasing land, or acquiring options to purchase land, for use in our homebuilding operations.
A decline in prices of new homes could require us to write down the carrying value of land we own and to write off option costs. We are constantly acquiring options to purchase land, for use in our homebuilding operations.
If we were unable to successful protect our purchase options, buy the applicable assets directly from the lenders or otherwise retain access to these assets, that could delay or prevent us from building and delivering homes and cause us significant harm.
If we were unable to successfully protect our purchase options, buy the applicable assets directly from the lenders or otherwise retain access to these assets, that could delay or prevent us from building and delivering homes and cause us significant harm.
However, it is possible that those steps will not be successful, and that a combination of inflation and reduced demand for new homes driven by an increase in mortgage interest rates will continue to adversely affect our profitability. Further increase in mortgage interest rates could reduce potential buyers’ ability or desire to obtain financing with which to buy homes.
However, it is possible that those steps will not be successful, and that a combination of inflation and reduced demand for new homes driven by an increase in mortgage interest rates will continue to adversely affect our profitability. 11 Table of Contents Further increase in mortgage interest rates could reduce potential buyers’ ability or desire to obtain financing with which to buy homes.
Principal among these are higher income requirements, larger required down payments, increased reserves and higher required credit scores. In addition, there has been uncertainty regarding the future of Fannie Mae, Freddie Mac and Ginnie Mae, including proposals that they reduce or terminate their role as the principal sources of liquidity in the secondary market for mortgage loans.
These include higher income requirements, larger required down payments, increased reserves and higher required credit scores. In addition, there has been uncertainty regarding the future of Fannie Mae, Freddie Mac and Ginnie Mae, including proposals that they reduce or terminate their role as the principal sources of liquidity in the secondary market for mortgage loans.
There is a substantial possibility that substituting an alternate source of liquidity would increase mortgage interest rates, which would increase the buyers' effective costs of paying for the homes we sell, and therefore could reduce demand for our homes and adversely affect our results of operations. Changes in tax laws could increase the cost of owning a home.
There is a substantial possibility that substituting an alternate source of liquidity would increase mortgage interest rates, which would increase the buyers' effective costs of paying for the homes we sell, and therefore could reduce demand for our homes and adversely affect our results of operations. 15 Table of Contents Changes in tax laws could increase the cost of owning a home.
In addition, in an inflationary environment, our cost of capital, labor and materials can increase and the purchasing power of our cash resources can decline, which can have an adverse impact on our business or financial results.
In addition, in an inflationary environment, our cost of capital, labor and materials can increase and the purchasing power of our cash resources can decline, which have in the past and can in the future have an adverse impact on our business or financial results.
During fiscal 2024 and 2023, a number of our markets experienced significant softening that required us to make substantial price reductions in order to maintain a steady sales pace.
During fiscal 2025 and 2024, a number of our markets experienced significant softening that required us to make substantial price reductions in order to maintain a steady sales pace.
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.
If any of those joint ventures are unable to do this, we could be required to provide at 17 Table of Contents 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.
Although we expect all of our associates, officers and directors to comply at all times with all applicable laws, rules and regulations, there may be instances in which subcontractors or others through whom we do business engage in practices 18 Table of Contents that do not comply with applicable laws, regulations or governmental guidelines.
Although we expect all of our associates, officers and directors to comply at all times with all applicable laws, rules and regulations, there may be instances in which subcontractors or others through whom we do business engage in practices that do not comply with applicable laws, regulations or governmental guidelines.
Stuart Miller, our Executive Chairman and Co-Chief Executive Officer, through family and personal holdings of Class B, and to a lesser extent Class A, common stock, has the power to cast approximately 40% of the votes that can be cast by the holders of all our outstanding Class A and Class B common stock combined. This gives Mr.
Stuart Miller, our Executive Chairman and Chief Executive Officer, through family and personal holdings of Class B, and to a lesser extent Class A, common stock, has the power to cast approximately 42% of the votes that can be cast by the holders of all our outstanding Class A and Class B common stock combined. This gives Mr.
These broad market and industry factors could harm the market price of our Class A common stock and our Class B common stock, regardless of our actual operating performance . Other Risks We have substantial investments in real estate related funds and businesses in which we are a minority investor.
These broad market and industry factors could harm the market price of our Class A common stock and our Class B common stock, regardless of our actual operating performance . 19 Table of Contents Other Risks We have substantial investments in real estate-related funds and businesses in which we are a minority investor.
As a minority investor, we have little or no influence over decisions made with regard to 20 Table of Contents 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.
As a minority investor, we have little or no influence over decisions made with regard to 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.
We historically have sold significant numbers of homes in communities in the United States to people who are not residents of the United States, and some large investors in our multifamily development and single-family rental funds and ventures are located outside the United States.
We historically have sold significant numbers of homes in communities in the United States to people who are not residents of the United States, and some large investors in our multifamily development and single-family rental funds and 20 Table of Contents ventures are located outside the United States.
Historically, a substantial portion of our access to capital has been through the issuance of senior notes, of which we have approximately $2.0 billion outstanding, net of debt issuance costs, as of November 30, 2024. Among other things, we have often relied on proceeds of debt issuances to pay the principal of existing senior notes when they mature.
Historically, a substantial portion of our access to capital has been through the issuance of senior notes, of which we have approximately $2.1 billion outstanding, net of debt issuance costs, as of November 30, 2025. Among other things, we have often relied on proceeds of debt issuances to pay the principal of existing senior notes when they mature.
We have a substantial level of indebtedness, which may have an adverse effect on our business or limit our ability to take advantage of business, strategic or financing opportunities. As of November 30, 2024, we had outstanding senior notes which we had sold into the capital markets over a number of years totaling $2.0 billion.
We have a substantial level of indebtedness, which may have an adverse effect on our business or limit our ability to take advantage of business, strategic or financing opportunities. As of November 30, 2025, we had outstanding senior notes which we had sold into the capital markets over a number of years totaling $2.1 billion.
Our obligation to comply with the laws and regulations under which we operate, and our need to ensure that our associates, subcontractors and other agents comply with these laws and regulations, could result in delays in construction and land development, cause us to incur substantial costs and prohibit or restrict land development and homebuilding activity in certain areas in which we operate.
Our obligation to comply with the laws and regulations under which we operate, and our need to ensure that our associates, subcontractors and other agents comply with these laws and regulations, could result in delays in construction and land development, cause us to incur substantial costs and prohibit or restrict land development and homebuilding activity in 18 Table of Contents certain areas in which we operate.
We often are required to provide surety bonds to secure our performance of obligations under construction contracts, development agreements and other arrangements. At November 30, 2024, we had outstanding surety bonds of $5.1 billion including performance surety bonds related to site improvements at various projects (including certain projects of our joint ventures) and financial surety bonds.
We often are required to provide surety bonds to secure our performance of obligations under construction contracts, development agreements and other arrangements. At November 30, 2025, we had outstanding surety bonds of $5.6 billion including performance surety bonds related to site improvements at various projects (including certain projects of our joint ventures) and financial surety bonds.
Most land banks are funds that use financial investor capital to finance land acquisitions. If returns to investors in land banks are not sufficient to attract investor funds and land banks are not able to identify alternative sources of funding, we would no longer have access to land banks.
Most land banks are funds that use financial investor capital to finance land acquisitions. If returns to land bank investors are not sufficient to attract investor funds and land banks are not able to identify alternative sources of funding, we would no longer have access to financing of land acquisitions by land banks.
The tariffs that have been imposed or increased have impacted our 17 Table of Contents construction costs and caused disruptions in our supply chains. In addition, President Trump has expressed a desire to impose substantial new or increased tariffs.
The tariffs that have been imposed or increased have impacted our construction costs and caused disruptions in our supply chains. In addition, President Trump has expressed a desire to impose substantial new or increased tariffs.
Inflation may also accompany higher interest rates, which could adversely impact potential buyers’ ability to obtain financing on favorable terms, thereby decreasing demand for our homes. We are taking steps that we hope will enable us to maintain acceptable operating margins in fiscal 2025.
Inflation may also accompany higher interest rates, which could adversely impact housing affordability by limiting potential buyers’ ability to obtain financing on favorable terms, thereby decreasing demand for our homes. We are taking steps that we hope will enable us to maintain acceptable operating margins in fiscal 2026.
During 2025, we will have to replace or renew a total of $3.4 billion of warehouse lines used by Financial Services, including LMF Commercial, as they mature. We expect these facilities to be renewed or replaced with other facilities when they mature.
During fiscal 2026, we will have to replace or renew a total of $3.0 billion of warehouse lines used by Financial Services, including LMF Commercial, as they mature. We expect these facilities to be renewed or replaced with other facilities when they mature.
Our strategies for our core homebuilding and mortgage finance businesses, and any related initiatives or actions, may not be successful.
Our business strategies for our homebuilding and mortgage finance businesses may not increase our value. Our strategies for our core homebuilding and mortgage finance businesses, and any related initiatives or actions, may not be successful.
If the rate at which we sell and deliver homes slows, or if we delay the opening of new home communities, we may incur increased pre-construction costs and it may take longer for us to recover those costs. Increased interest rates could increase our cost of building homes.
If the rate at which we sell and deliver homes slows, or if we delay the opening of new home communities, we may incur increased pre-construction costs and it may take longer for us to recover those costs.
If market conditions were to deteriorate significantly in the future, we could again be required to make significant write-downs of the carrying value of our land inventory and write-offs costs relating to decisions not to exercise land purchase options. Current and threatened international conflicts could affect demand for the homes we build.
If market conditions were to deteriorate significantly in the future, we could again be required to make significant write-downs of the carrying value of our land inventory and write-offs of costs relating to decisions not to exercise land purchase options.
The indentures governing our senior notes do not restrict our incurrence of future secured or unsecured debt, and the agreement governing our Credit Facility allows us to incur a substantial amount of future unsecured debt. We reduced our outstanding senior notes during fiscal 2024 by $554.0 million, but we still have a significant amount outstanding.
The indentures governing our senior notes do not restrict our incurrence of future secured or unsecured debt, and the agreement governing our Credit Facility allows us to incur a substantial amount of future unsecured debt. We increased our outstanding senior notes during fiscal 2025 by $200 million.
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 connection with the Millrose Spin-Off, we transferred a significant portion of our inventory of undeveloped and partially developed land, as well as some finished homesites, to Millrose, which is an independent, externally managed, publicly traded company.
If Millrose were to default under these arrangements, the lenders of these arrangements may foreclose on these assets. Similarly, if Millrose were become subject to bankruptcy or insolvency proceedings, Millrose may forfeit its assets, including these assets, to any and all creditors or creditors may reject our purchase options in bankruptcy.
If a land bank were to default under these arrangements or become subject to bankruptcy or insolvency proceedings, the land bank may forfeit its assets to any and all creditors or creditors may reject our purchase options in bankruptcy.
Our business success is dependent upon the reputation of the Lennar brand and its association with quality and integrity. If we are unable to maintain the position of the Lennar brand, our business may be adversely affected, which could result in lower sales and earnings.
If we are unable to maintain the position of the Lennar brand, our business may be adversely affected, which could result in lower sales and earnings.
International conflicts also may lead potential homebuyers to decide not to invest in new homes at this time, which could have a material impact on our business operations and financial performance. 12 Table of Contents Our results of operations and financial condition may be adversely affected by public health issues, and resulting governmental actions The United States has experienced, and may experience in the future, outbreaks of contagious diseases that affect public health and public perception of health risk.
International conflicts also may lead potential homebuyers to decide not to invest in new homes at this time, which could have a material impact on our business operations and financial performance. Our results of operations and financial condition may be adversely affected by public health issues and governmental actions.
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 14 Table of Contents land that Millrose will not or cannot acquire.
However, Millrose does 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. As a result, we are reliant on additional land banks to acquire at least some of the land that Millrose will not or cannot acquire on our behalf.
Disruptions in the mortgage markets or increased government regulation could adversely affect the ability of potential homebuyers to obtain financing for home purchases, making it difficult for them to purchase our homes.
While the majority of our homebuyers obtain their mortgage financing from our Financial Services segment, others obtain mortgage financing from banks and other independent lenders. Disruptions in the mortgage markets or increased government regulation could adversely affect the ability of potential homebuyers to obtain financing for home purchases, making it difficult for them to purchase our homes.
Our business requires us to finance much of the cost of developing our residential communities. One of the ways we do this is with bank borrowings. At November 30, 2024, we had a $2.9 billion revolving credit facility with a group of banks (the "Credit Facility"), which had an accordion feature that could increase it to $3.5 billion.
One of the ways we do this is with bank borrowings. At November 30, 2025, we had a $3.1 billion revolving credit facility with a group of banks (the "Credit Facility"), which had an accordion feature that could increase it to $3.5 billion.
These factors can be significantly adversely affected by a variety of factors beyond our control. Currently, potential purchasers of our homes are being affected by inflation and continued high interest rates, both of which increase what homebuyers have to pay for new homes. Negative publicity could hurt our reputation, which could cause our revenues or results of operations to decline.
These factors can be significantly adversely affected by a variety of factors beyond our control. Currently, potential purchasers of our homes are being affected by inflation and continued high interest rates, tariffs and trade policy, all of which increase what homebuyers have to pay for new homes.
We could suffer significant losses if there are reductions in the market value of our investments in publicly traded companies. We have made investments in companies that are engaged in applying technology to improve the homebuilding industry and real estate related aspects of the financial services industry.
We have made investments in companies that are engaged in applying technology to improve the homebuilding industry and real estate related aspects of the financial services industry.
Failures in health and safety performance on our 13 Table of Contents worksites may result in penalties for non-compliance with relevant regulatory requirements and in our subcontractors having difficulty attracting the workers they need as well as in a negative impact to our reputation.
Failures in health and safety performance on our worksites may result in penalties for non-compliance with relevant regulatory requirements and in our subcontractors having difficulty attracting the workers they need as well as in a negative impact to our reputation. Products supplied to us and work done by subcontractors can expose us to risks that could adversely affect our business.
As a result, our net earnings could be significantly affected by mark-to-market gains or losses on our investments. Changes in global or regional environmental conditions and governmental actions in response to such changes may adversely affect us by increasing the costs of or restricting our planned or future growth activities.
Changes in global or regional environmental conditions and governmental actions in response to such changes may adversely affect us by increasing the costs of or restricting our planned or future growth activities.
Our quarterly results of operations may continue to fluctuate in the future as a result of a variety of factors, 21 Table of Contents including, among others, seasonal homebuying patterns, the timing of home closings and land sales and weather-related problems.
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. We could suffer significant losses if there are reductions in the market value of our investments in publicly traded companies.
If federal or state tax laws are changed to eliminate or reduce any of these income tax benefits or if personal income or property tax rates were to increase, the after-tax cost of homeownership could measurably increase and diminish consumer interest in buying a home, with a resulting adverse effect on our revenues. 15 Table of Contents Our Financial Services segment can be adversely affected by reduced demand for our homes. 100% of the residential mortgage loans made by our Financial Services segment in 2024 were made to buyers of homes we built.
If federal or state tax laws are changed to eliminate or reduce any of these income tax benefits or if personal income or property tax rates were to increase, the after-tax cost of homeownership could measurably increase and diminish consumer interest in buying a home, with a resulting adverse effect on our revenues.
In 2022 and 2023, the Federal Reserve steadily raised benchmark interest rates and the Federal Reserve did not begin reducing benchmark interest rates until well into 2024. At November 30, 2024, we had no borrowings under our Credit Facility.
The interest on borrowings under the Credit Facility is at rates based on prevailing short-term rates from time to time. In 2022 and 2023, the Federal Reserve steadily raised benchmark interest rates and the Federal Reserve did not begin reducing benchmark interest rates until well into 2024.
If the planned Millrose Spin-Off is completed, Millrose will be an independent, publicly traded company, and in the future 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.
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.
We compete in each of our markets with numerous national, regional and local homebuilders. We also compete with sellers of existing homes, including foreclosed homes, and with rental housing.
Homebuilders compete not only for homebuyers, but also for desirable land, financing, raw materials, skilled management and labor resources. We compete in each of our markets with numerous national, regional and local homebuilders. We also compete with sellers of existing homes, including foreclosed homes, and with rental housing.
However, if landowners who are parties to the options or contracts, possibly including land banks, were to refuse to honor them, we could lose access to land at the time we want to use it in our homebuilding activities.
However, if landowners who are parties to such options or contracts, including land banks, refuse to honor such arrangements, we could lose access to land at the time we want to use it in our homebuilding activities. Any loss of access to our homesites could materially impact both our revenues and our reputation as a reliable homebuilder.
If completed, in connection with the Millrose Spin-Off, we expect to enter into a number of agreements with Millrose, pursuant to which Millrose will provide Lennar with land acquisition and horizontal development financing solutions. We would rely on Millrose to satisfy its performance and payment obligations under these agreements.
In addition, we entered into a number of agreements with Millrose, pursuant to which Millrose provides Lennar with land acquisition and horizontal development financing solutions. We rely on Millrose to satisfy its performance and payment obligations under these agreements for a substantial portion of our homesite acquisition and development.
Our Financial Services residential and commercial lending businesses compete with other residential and commercial mortgage lenders, including national, regional and local banks and other financial institutions. Mortgage lenders who have greater access to low-cost funds, superior technologies or different lending criteria than we do may be able to offer more attractive financing to potential customers than we can. Multifamily .
Mortgage lenders who have greater access to low-cost funds, superior technologies or different lending criteria than we do may be able to offer more attractive financing to potential customers than we can. 12 Table of Contents Multifamily .
Budget reductions by state and local governmental agencies may increase the time it takes to obtain required approvals and therefore may aggravate the delays we encounter. In 2020 and 2021, shutdowns of government offices in response to the COVID-19 pandemic often delayed the time it took to obtain required approvals.
Budget reductions by state and local governmental agencies may increase the time it takes to obtain required approvals and therefore may aggravate the delays we encounter. Additionally, U.S. federal government shutdowns have in the past, and may in the future, delay the time it takes to obtain required approvals.
Principal among our current strategies is continuing to reduce the inventory of land we own (i.e., to become a land lighter company), and 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.
As a result of our strategy to become a land-lighter company, we continue to reduce the inventory of land that we own and we instead choose to control a greater portion of the land we expect to use through options or other contractual arrangements, including through Millrose and other land banking entities.
The cost of complying with our warranty obligations may be significant if we are unable to recover the cost of repairs from subcontractors, materials suppliers and insurers. We also can suffer damage to our reputation, and may be exposed to possible liability, if subcontractors fail to comply with applicable laws, including laws involving things that are not within our control.
We also can suffer damage to our reputation, and may be exposed to possible liability, if subcontractors fail to comply with applicable laws, including laws involving things that are not within our control. When we learn about possibly improper practices by subcontractors, we try to cause the subcontractors to discontinue them.
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.
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.
Risks Related to Ownership of our Stock We have a stockholder who can exercise significant influence over matters that are brought to a vote of our stockholders.
Governmental rulings that make us responsible for labor practices by our subcontractors could create substantial exposures for us in situations that are not within our control. Risks Related to Ownership of our Stock We have a stockholder who can exercise significant influence over matters that are brought to a vote of our stockholders.
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, while we try to get courts to require Millrose to deliver homesites to us.
For example, if Millrose were to refuse to honor option exercises, despite requirements that it do so, that could delay or prevent us from building and delivering homes, 14 Table of Contents including while we seek legal enforcement.
Despite our detailed specifications and quality control procedures, in some cases, subcontractors may use improper construction processes or defective materials. Defective products widely used by the homebuilding industry can result in the need to perform extensive repairs to large numbers of homes.
We rely on subcontractors to perform the actual construction of our homes, and in many cases, to select and obtain building materials. Despite our detailed specifications and quality control procedures, in some cases, subcontractors may use improper construction processes or defective materials.
In connection with these arrangements, Millrose 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.
In connection with these arrangements, the land banks would have the right to pledge or use as collateral the inventory of land assets we control through option contracts.
Our investments in Blend, Hippo, Opendoor, SmartRent, Sonder, and Sunnova, all of which have publicly traded shares of common stock are carried on our books at their fair values, which will change depending on the value of the Company’s shareholdings on the last day of each quarter.
Our investments in publicly traded shares of common stock are carried on our books at their fair values, which will change depending on the value of the Company’s shareholdings on the last day of each quarter. As a result, our net earnings could be significantly affected by mark-to-market gains or losses on our investments.
For example, the incidence of large wildfires in California has substantially increased in recent years and the risk of future wildfires is expected to increase.
For example, the incidence of large wildfires in California has substantially increased in recent years and the risk of future wildfires is expected to increase. The housing markets in areas affected by California’s recent wildfires have been adversely affected by increased insurance costs and difficulties in obtaining homeowners’ insurance, which was exacerbated by the January 2025 wildfires in Los Angeles.
When we learn about possibly improper practices by subcontractors, we try to cause the subcontractors to discontinue them. However, we may not always be able to do that, and even when we can, it may not avoid claims against us relating to work the subcontractors already performed.
However, we may not always be able to do that, and even when we can, it may not avoid claims against us relating to work the subcontractors already performed. A reduced number of home sales would extend the time it takes us to recover land purchase and property development costs.
We could be hurt if land banks are not able to raise investor funds needed to enable them to supplement land acquisitions by Millrose. We formed and intend to spin off Millrose to make it a recycling source of land acquisition funding.
We could be hurt if land banks are not able to raise investor funds needed to finance land acquisition to meet out demand. In February 2025, we completed the spin-off Millrose, which serves as a source of recycled capital for land acquisitions.
These statements, even if totally untrue, can spread rapidly through the use of electronic communication, including social media outlets, websites and other digital platforms. Our success in maintaining and enhancing our brand depends on our ability to adapt to this rapidly changing media environment.
These statements, even if totally untrue, can spread rapidly through the use of electronic communication, including social media outlets, newsletters, websites and other digital platforms. The harm may be immediate, without affording us an opportunity for redress or correction.
There currently are ongoing conflicts involving Ukraine and Israel.
Current and threatened international conflicts could affect demand for the homes we build. There currently are ongoing conflicts involving Ukraine and Israel.
Most purchasers of our homes obtain mortgage loans to finance a substantial portion of the purchase price of the homes they purchase. While the majority of our homebuyers obtain their mortgage financing from our Financial Services segment, others obtain mortgage financing from banks and other independent lenders.
If our homebuyers are not able to obtain suitable financing, that would reduce demand for our homes and our home sales revenues. Most purchasers of our homes obtain mortgage loans to finance a substantial portion of the purchase price of the homes they purchase.
Adverse publicity or negative commentary from media outlets could damage our reputation and reduce the demand for our homes, which would adversely affect our business. 11 Table of Contents Our business strategies for our homebuilding and mortgage finance businesses may not increase our value.
Our success in maintaining and enhancing our brand depends on our ability to recognize, respond to and effectively manage negative publicity in this rapidly changing media environment. Adverse publicity or negative commentary from media outlets could damage our reputation and reduce the demand for our homes, which would adversely affect our business.
A reduced number of home sales would extend the time it takes us to recover land purchase and property development costs. We incur many costs even before we begin to build homes in a community.
We incur many costs even before we begin to build homes in a community.
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.
A significant portion of the land inventory that we control is held by land banks, including the portion of our inventory that was transferred to Millrose in connection with the Millrose Spin-Off.
We also had warehouse borrowing facilities totaling $3.4 billion to support our residential and commercial mortgage lending activities. The interest on borrowings under the Credit Facility is at rates based on prevailing short-term rates from time to time.
In May 2025, we entered into a new unsecured delayed draw term loan facility ("Delayed Draw Term Loan Facility") with total borrowing availability up to $1.7 billion. We also had warehouse borrowing facilities totaling $3.6 billion to support our residential and commercial mortgage lending activities.
Removed
Although we have reduced our exposure to costs of that type, a certain amount of exposure is inherent in our homebuilding business.
Added
Negative publicity could hurt our reputation, which could cause our revenues or results of operations to decline. Our business success is dependent upon the reputation of the Lennar brand and its association with quality and integrity.
Removed
Operational Risks Homebuilding, mortgage lending and home rentals are very competitive industries, and competitive conditions could adversely affect our business or financial results. Homebuilding . The homebuilding industry is highly competitive. Homebuilders compete not only for homebuyers, but also for desirable land, financing, raw materials, skilled management and labor resources.
Added
Because a significant portion of our land inventory is acquired through land purchase option arrangements], in the event of adverse changes in economic, market, or community conditions, we may elect not to exercise our land purchase options and we may not be able to satisfactorily renegotiate the purchase price of the land under option.
Removed
Products supplied to us and work done by subcontractors can expose us to risks that could adversely affect our business. We rely on subcontractors to perform the actual construction of our homes, and in many cases, to select and obtain building materials.
Added
Such actions could result in the forfeiture of some or all of any deposits, fees or investments paid or made in respect of such arrangements, including any cost overruns. The forfeiture of option deposits or inventory impairments may result in a loss that could have a material adverse effect on our profitability, stock performance, business operations and financial performance.
Removed
The housing markets in areas affected by California’s recent wildfires have been adversely affected by increased insurance costs and difficulties in obtaining homeowners’ insurance, which we expect to be exacerbated by the recent wildfires in Los Angeles. If our homebuyers are not able to obtain suitable financing, that would reduce demand for our homes and our home sales revenues.
Added
The United States has experienced, and may experience in the future, outbreaks of contagious diseases that affect public health and public perception of health risk. The extent to which public health issues impact our results will depend on future developments, which cannot be predicted.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

1 edited+1 added−1 removed16 unchanged
Biggest changeSee “Risk Factors” in Item 1A of this Annual Report on Form 10-K for more information on risks from cybersecurity threats that are reasonably likely to materially affect our business strategy, results of operations and financial condition. Governance Management Our Chief Technology Officer (“CTO”) is responsible for assessing and managing our material risks from cybersecurity threats.
Biggest changeSee “Risk Factors” in Item 1A of this Annual Report on Form 10-K for more information on risks from cybersecurity threats that are reasonably likely to materially affect our business strategy, results of operations and financial condition. Governance Management In May 2025, following the retirement of our former Chief Technology Officer, we appointed an interim Chief Technology Officer (“CTO”).
Removed
Our CTO has served in this role since 2023 and has over 25 years of experience in the technology industry. Prior to his current role, he served as the CTO of Tyson Foods and before arriving at Tyson, he was the Chief Information Officer at Hewlett Packard, and then CIO at Hewlett Packard Enterprise.
Added
Our CTO has over 10 years of experience in managing teams of information technology specialists and assessing cybersecurity threats. Our CTO is responsible for assessing and managing our material risks from cybersecurity threats.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+1 added−0 removed3 unchanged
Biggest changeOn January 14, 2025, our Board declared a quarterly cash dividend of $0.50 per share on both our Class A and Class B common stock, payable on February 12, 2025 to holders of record at the close of business on January 29, 2025. 24 Table of Contents The following table provides information about our repurchases of common stock during the three months ended November 30, 2024: Period: Total Number of Shares Purchased (1) Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) Approximate Dollar Value of Shares that may yet be Purchased under the Plans or Program (2) (In thousands) September 1 to September 30, 2024 86,700 $ 178.67 86,700 3,922,943 October 1 to October 31, 2024 2,244,133 $ 175.38 2,243,114 3,529,542 November 1 to November 30, 2024 673,230 $ 167.81 670,186 3,417,075 (1) Includes shares of Class A and Class B common stock withheld by us to cover withholding taxes due with market value approximating the amount of withholding taxes due.
Biggest changeOn January 21, 2026, our Board declared a quarterly cash dividend of $0.50 per share on both our Class A and Class B common stock, payable on February 19, 2026 to holders of record at the close of business on February 4, 2026. 24 Table of Contents The following table provides information about our repurchases of common stock during the three months ended November 30, 2025: Period: Total Number of Shares Purchased (1) Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) Approximate Dollar Value of Shares that may yet be Purchased under the Plans or Program (2) (In thousands) September 1 to September 30, 2025 397 $ 137.29 — 1,691,075 October 1 to October 31, 2025 3,619 $ 128.62 — 1,691,075 November 1 to November 30, 2025 63 $ 115.16 — 1,691,075 (1) Includes shares of Class A and Class B common stock withheld by us to cover withholding taxes due with market value approximating the amount of withholding taxes due.
Performance Graph The following graph compares the five-year cumulative total return of our Class A common stock with the Dow Jones U.S. Home Construction Index and the Dow Jones U.S. Total Market Index. The graph assumes $100 invested on November 30, 2019 in our Class A common stock, the Dow Jones U.S. Home Construction Index and the Dow Jones U.S.
Performance Graph The following graph compares the five-year cumulative total return of our Class A common stock with the Dow Jones U.S. Home Construction Index and the Dow Jones U.S. Total Market Index. The graph assumes $100 invested on November 30, 2020 in our Class A common stock, the Dow Jones U.S. Home Construction Index and the Dow Jones U.S.
As of December 31, 2024, the last reported sale price of our Class A and Class B common stock on the NYSE was $136.37 and $132.15, respectively. As of December 31, 2024, there were approximately 2,326 and 855 holders of record of our Class A and Class B common stock, respectively.
As of December 31, 2025, the last reported sale price of our Class A and Class B common stock on the NYSE was $102.80 and $95.12, respectively. As of December 31, 2025, there were approximately 2,235 and 760 holders of record of our Class A and Class B common stock, respectively.
Total Market Index, and the reinvestment of all dividends. 25 Table of Contents 2019 2020 2021 2022 2023 2024 Lennar Corporation $ 100 128 180 153 226 312 Dow Jones U.S. Home Construction Index $ 100 124 169 138 200 286 Dow Jones U.S. Total Market Index $ 100 119 151 134 152 204 Item 6. Reserved.
Total Market Index, and the reinvestment of all dividends. 25 Table of Contents 2020 2021 2022 2023 2024 2025 Lennar Corporation $ 100 140 119 176 243 201 Dow Jones U.S. Home Construction Index $ 100 133 113 177 255 232 Dow Jones U.S. Total Return Index $ 100 127 113 128 172 196 Item 6. Reserved.
Added
Shares repurchased do not include 8,049,594 shares of Lennar Class A common stock accepted through a non-cash exchange for shares of Millrose Class A common stock, which was completed in November 2025.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

118 edited+47 added−47 removed85 unchanged
Biggest changeFinancial information relating to our operations was as follows: Year ended November 30, 2024 (In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total Revenues: Sales of homes $ 33,778,149 — — — — 33,778,149 Sales of land 93,384 — — — — 93,384 Other revenues 34,893 1,109,263 411,537 14,226 — 1,569,919 Total revenues 33,906,426 1,109,263 411,537 14,226 — 35,441,452 Costs and expenses: Costs of homes sold 26,255,353 — — — — 26,255,353 Costs of land sold 73,802 — — — — 73,802 Selling, general and administrative 2,480,309 — — — — 2,480,309 Other costs and expenses — 532,079 521,455 79,495 — 1,133,029 Total costs and expenses 28,809,464 532,079 521,455 79,495 — 29,942,493 Equity in earnings (losses) from unconsolidated entities 66,448 — 150,753 (53,102) — 164,099 Other income, net and other gains 178,842 — 1,800 45,224 — 225,866 Lennar Other unrealized gains from technology investments — — — 25,180 — 25,180 Operating earnings (loss) 5,342,252 577,184 42,635 (47,967) — 5,914,104 Corporate general and administrative expenses — — — — 648,986 648,986 Charitable foundation contribution — — — — 80,210 80,210 Earnings (loss) before income taxes $ 5,342,252 577,184 42,635 (47,967) (729,196) 5,184,908 28 Table of Contents Year ended November 30, 2023 (In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total Revenues: Sales of homes $ 32,459,129 — — — — 32,459,129 Sales of land 109,963 — — — — 109,963 Other revenues 91,895 976,859 573,485 22,035 — 1,664,274 Total revenues 32,660,987 976,859 573,485 22,035 — 34,233,366 Costs and expenses: Costs of homes sold 24,900,470 — — — — 24,900,470 Costs of land sold 92,142 — — — — 92,142 Selling, general and administrative 2,231,033 — — — — 2,231,033 Other costs and expenses — 467,398 573,658 27,681 — 1,068,737 Total costs and expenses 27,223,645 467,398 573,658 27,681 — 28,292,382 Equity in losses from unconsolidated entities (3,886) — (52,073) (88,651) — (144,610) Other income (expense), net and other gains (losses) 94,251 — 1,595 (65,329) — 30,517 Lennar Other unrealized losses from technology investments — — — (50,162) — (50,162) Operating earnings (loss) 5,527,707 509,461 (50,651) (209,788) — 5,776,729 Corporate general and administrative expenses — — — — 501,338 501,338 Charitable foundation contribution — — — — 73,087 73,087 Earnings (loss) before income taxes $ 5,527,707 509,461 (50,651) (209,788) (574,425) 5,202,304 2024 versus 2023 Revenues from home sales increased 4% in the year ended November 30, 2024 to $33.8 billion from $32.5 billion in the year ended November 30, 2023.
Biggest changeFor the Year Ended November 30, 2024 (In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total Revenues: Sales of homes $ 33,778,149 — — — — 33,778,149 Sales of land 93,384 — — — — 93,384 Other revenues 34,893 1,109,263 411,537 14,226 — 1,569,919 Total revenues 33,906,426 1,109,263 411,537 14,226 — 35,441,452 Costs and expenses: Costs of homes sold 26,255,353 — — — — 26,255,353 Costs of land sold 73,802 — — — — 73,802 Selling, general and administrative 2,480,309 — — — — 2,480,309 Other costs and expenses — 532,079 521,455 79,495 — 1,133,029 Total costs and expenses 28,809,464 532,079 521,455 79,495 — 29,942,493 Equity in earnings (losses) from unconsolidated entities 66,448 — 150,753 (53,102) — 164,099 Other income, net and other gains, net 178,842 — 1,800 45,224 — 225,866 Lennar Other gains from technology investments — — — 25,180 — 25,180 Operating earnings (loss) 5,342,252 577,184 42,635 (47,967) — 5,914,104 Corporate general and administrative expenses — — — — 648,986 648,986 Charitable foundation contribution — — — — 80,210 80,210 Earnings (loss) before income taxes $ 5,342,252 577,184 42,635 (47,967) (729,196) 5,184,908 28 Table of Contents As previously announced, Lennar Corporation completed our acquisition of Rausch Coleman Homes ("Rausch") in February 2025.
New Accounting Pronouncements See Note 1 of the notes to our consolidated financial statements for a comprehensive list of new accounting pronouncements. Critical Accounting Policies and Estimates Our accounting policies are more fully described in Note 1 of the notes to our consolidated financial statements included in Item 8 of this document.
New Accounting Pronouncements See Note 1 of the Notes to Consolidated Financial Statements for a comprehensive list of new accounting pronouncements. Critical Accounting Policies and Estimates Our accounting policies are more fully described in Note 1 of the Notes to Consolidated Financial Statements included in Item 8 of this document.
Multifamily Revenue Recognition Our Multifamily segment provides management services with respect to the development, construction and property management of rental projects in joint ventures in which we have investments. As a result, our Multifamily segment earns and receives fees, which are generally based upon a stated percentage of development and construction costs and a percentage of gross rental collections.
Multifamily Revenue Recognition Our Multifamily segment provides management services with respect to the development and construction of rental projects in joint ventures in which we have investments. As a result, our Multifamily segment earns and receives fees, which are generally based upon a stated percentage of development and construction costs and a percentage of gross rental collections.
The Financial Services segment uses residential mortgage loan warehouse facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected. The facilities are non-recourse to us and are expected to be renewed or replaced with other facilities when they mature.
Our Financial Services segment uses residential mortgage loan warehouse facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected. The facilities are non-recourse to us and are expected to be renewed or replaced with other facilities when they mature.
Joint ventures with strategic partners have allowed us to combine our homebuilding expertise with the specific expertise (e.g. commercial or infill experience) of our partner. Each joint venture is governed by an executive committee consisting of members from the partners. Details regarding these investments, balances and debt are included in Note 3 of the Notes to Consolidated Financial Statements.
Joint ventures with strategic partners have allowed us to combine our homebuilding expertise with the specific expertise (e.g. commercial or infill experience) of our partner. Each joint venture is governed by an executive committee consisting of members from the partners. Details regarding these investments, balances and debt are included in Note 4 of the Notes to Consolidated Financial Statements.
We believe all of the joint ventures were in compliance with their debt covenants at November 30, 2024. The following table summarizes the principal maturities of our Multifamily unconsolidated entities debt as per current debt arrangements as of November 30, 2024. It does not represent estimates of future cash payments that will be made to reduce debt balances.
We believe all of the joint ventures were in compliance with their debt covenants at November 30, 2025. The following table summarizes the principal maturities of our Multifamily unconsolidated entities debt as per current debt arrangements as of November 30, 2025. It does not represent estimates of future cash payments that will be made to reduce debt balances.
The credit agreement also provides that up to $477.5 million in commitments may be used for letters of credit. As of both November 30, 2024 and 2023, we had no outstanding borrowings under the Credit Facility. In addition to the Credit Facility, we have other letter of credit facilities with different financial institutions.
The credit agreement also provides that up to $477.5 million in commitments may be used for letters of credit. As of both November 30, 2025 and 2024, we had no outstanding borrowings under the Credit Facility. In addition to the Credit Facility, we have other letter of credit facilities with different financial institutions.
The following table summarizes the principal maturities of our Homebuilding unconsolidated entities ("JVs") debt as per current debt arrangements as of November 30, 2024. It does not represent estimates of future cash payments that will be made to reduce debt balances.
The following table summarizes the principal maturities of our Homebuilding unconsolidated entities ("JVs") debt as per current debt arrangements as of November 30, 2025. It does not represent estimates of future cash payments that will be made to reduce debt balances.
Details of these securities and related debt are within Note 2 of the Notes to Consolidated Financial Statements. LMF Commercial LMF Commercial originates and sells into securitizations first mortgage loans, which are secured by income producing commercial properties.
Details of these securities and related debt are within Note 3 of the Notes to Consolidated Financial Statements. LMF Commercial LMF Commercial originates and sells into securitizations first mortgage loans, which are secured by income producing commercial properties.
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.
In accordance with ASC Topic 350, Intangibles-Goodwill and Other , we evaluate 43 Table of Contents 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.
Therefore, the determination of estimates requires the exercise of judgment. Actual results could differ from those estimates, and such differences may be material to our 43 Table of Contents consolidated financial statements. Listed below are those policies and estimates that we believe are critical and require the use of significant judgment in their application.
Therefore, the determination of estimates requires the exercise of judgment. Actual results could differ from those estimates, and such differences may be material to our consolidated financial statements. Listed below are those policies and estimates that we believe are critical and require the use of significant judgment in their application.
In connection with some 36 Table of Contents of our non-homebuilding businesses, we are also considering other types of transactions such as sales, restructurings, joint ventures, spin-offs or initial public offerings as we continue to move back towards being a pure play homebuilding company.
In connection with some of our non-homebuilding businesses, we are also considering other types of transactions such as sales, restructurings, joint ventures, spin-offs or initial public offerings as we continue to move back towards being a pure play homebuilding company.
A series of operating losses of an investee or other factors may indicate that a decrease in the fair value of our investment in the unconsolidated entity below its carrying amount has occurred which is other-than-temporary. The amount of impairment recognized is the excess of the investment’s carrying amount over its estimated fair value.
A series of operating losses of an investee or other factors may indicate that a decrease in the fair value of our investment in the 45 Table of Contents unconsolidated entity below its carrying amount has occurred which is other-than-temporary. The amount of impairment recognized is the excess of the investment’s carrying amount over its estimated fair value.
This was offset by an increase in inventories due to our growth strategy, strategic land purchases, land development and construction costs of $285 million, an increase in deposits and pre-acquisition costs on real estate of $1.6 billion as we increased the percentage of controlled homesites, and an increase in loans held-for-sale of $218 million primarily related to the sale of loans originated by our Financial Services segment.
This was offset by (1) an increase in inventories due to our growth strategy, strategy land purchases, land development and construction costs of $285 million; (2) an increase in deposits and pre-acquisition costs on real estate of $1.6 billion as we increased the percentage of controlled homesites; and (3) an increase in loans held-for-sale of $218 million primarily related to the sale of loans by our Financial Services segment.
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 45 Table of Contents control or significant influence.
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.
Details on option contracts and related consolidated inventory not owned and exposure are included in Note 1 and Note 8 of the Notes to Consolidated Financial Statements.
Details on option contracts and related consolidated inventory not owned and exposure are included in Note 1 and Note 9 of the Notes to Consolidated Financial Statements.
Since a portion of these commitments is expected to expire without being exercised by the borrowers or borrowers may not meet certain criteria at the time of closing, the total commitments do not necessarily represent future cash requirements.
Since a portion of 42 Table of Contents these commitments is expected to expire without being exercised by the borrowers or borrowers may not meet certain criteria at the time of closing, the total commitments do not necessarily represent future cash requirements.
During 2024, our cash used in investing activities was primarily due to cash contributions of $426 million to unconsolidated entities, which primarily included (1) $222 million to Homebuilding unconsolidated entities, (2) $182 million to Lennar Other 35 Table of Contents unconsolidated entities, and (3) $21 million to Multifamily unconsolidated entities.
During 2024, our cash used in investing activities was primarily due to cash contributions of $426 million to unconsolidated entities, which primarily included (1) $222 million to Homebuilding unconsolidated entities, (2) $182 million to Lennar Other unconsolidated entities, and (3) $21 million to Multifamily unconsolidated entities.
Details of each as of and during the year ended November 30, 2024 are included in Note 3 of the Notes to Consolidated Financial Statements. We regularly monitor the results of our Multifamily unconsolidated joint ventures and any trends that may affect their future liquidity or results of operations.
Details of each as of and during the year ended November 30, 2025 are included in Note 4 of the Notes to Consolidated Financial Statements. We regularly monitor the results of our Multifamily unconsolidated joint ventures and any trends that may affect their future liquidity or results of operations.
(2) Amount includes purchase commitments due to land banks upon maturity of the contracts. Our intention is to have a land bank close on the land purchase commitments and we will option land from the land bank. (3) Interest commitments on variable interest-bearing debt are determined based on the interest rate as of November 30, 2024.
(2) Amount represents purchase commitments due to land banks upon maturity of the contracts. Our intention is to have a land bank close on the land purchase commitments and we will option land from the land bank. (3) Interest commitments on variable interest-bearing debt are determined based on the interest rate as of November 30, 2025.
Joint ventures with financial partners have allowed us to combine our development and construction expertise with access to our partners’ capital. Each joint venture is governed by an operating agreement that provides significant substantive participating voting rights on major decisions to our partners.
Joint ventures with financial partners have allowed us to combine our development and construction expertise with access to our partners’ capital. Each joint venture is governed by an operating agreement that provides significant substantive 40 Table of Contents participating voting rights on major decisions to our partners.
The Lennar Other operating loss for the year ended November 30, 2024 was primarily related to operating losses from certain strategic investments, which were partially offset by $25.2 million of mark-to-market gains on our publicly traded technology investments and a $46.5 million one-time gain on the sale of a technology investment.
The Lennar Other operating loss for the year ended November 30, 2024 was primarily related to operating losses from certain strategic investments, partially offset by $25.2 million of mark-to-market gains on our technology companies and a $46.5 million one-time gain on the sale of a technology investment.
These distributions are not subject to clawbacks but reduce future carried interest payments to which we become entitled from the applicable funds and were recorded as equity in earnings (losses) in the consolidated statement of operations. Our investment in the Rialto funds totaled $140.1 million and $148.7 million as of November 30, 2024 and 2023, respectively.
These distributions are not subject to clawbacks but reduce future carried interest payments to which we become entitled from the applicable funds and were recorded as equity in earnings (losses) in the consolidated statement of operations. Our investment in the Rialto funds totaled $133.0 million and $140.1 million as of November 30, 2025 and 2024, respectively.
As of November 30, 2024 and 2023, we had strategic technology investments in unconsolidated entities of $239.3 million and $127.5 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 November 30, 2025 and 2024, we had strategic technology investments in unconsolidated entities of $235.0 million and $239.3 million respectively, accounted for under the equity method of accounting. Our strategic technology investments through our LEN X business help to enhance the homebuying and home ownership experience, and help us stay at the forefront of homebuilding innovation.
During the years ended November 30, 2024 and 2023, our Class A and Class B common stockholders received an aggregate per share annual dividend of $2.00 and $1.50, respectively.
During the years ended November 30, 2025 and 2024 , our Class A and Class B common stockholders received an aggregate per share annual dividend of $2.00 and $2.00, respectively.
Selling, general and administrative expenses were $2.5 billion in the year ended November 30, 2024, compared to $2.2 billion in the year ended November 30, 2023.
Selling, general and administrative expenses were $2.7 billion in the year ended November 30, 2025, compared to $2.5 billion in the year ended November 30, 2024.
The maximum available borrowings on our Credit Facility were as follows: (In thousands) At November 30, 2024 Commitments - maturing in May 2027 $ 225,000 Commitments - maturing in November 2029 2,650,000 Total commitments $ 2,875,000 Accordion feature 625,000 Total maximum borrowings capacity $ 3,500,000 The proceeds available under the Credit Facility, which are subject to specified conditions for borrowing, may be used for working capital and general corporate purposes.
The maximum available borrowings on the Credit Facility were as follows: (In thousands) At November 30, 2025 Commitments - maturing in May 2027 $ 225,000 Commitments - maturing in November 2029 2,900,000 Total commitments $ 3,125,000 Accordion feature 375,000 Total maximum borrowings capacity $ 3,500,000 The proceeds available under the Credit Facility, which are subject to specified conditions for borrowing, may be used for working capital and general corporate purposes.
The average sales price of homes delivered was $423,000 in the year ended November 30, 2024, compared to $446,000 in the year ended November 30, 2023.
The average sales price of homes delivered was $391,000 in the year ended November 30, 2025, compared to $423,000 in the year ended November 30, 2024.
At November 30, 2024, we had $3.5 billion of non-refundable option deposits and pre-acquisition costs related to certain of these homesites and had posted $341.8 million of letters of credit in lieu of cash deposits under certain land and option contracts.
At November 30, 2025, we had $6.3 billion of non-refundable option deposits and pre-acquisition costs related to certain of these homesites and had posted $443.3 million of letters of credit in lieu of cash deposits under certain land and option contracts.
At November 30, 2024, we had equity investments in 51 active Homebuilding and land unconsolidated entities (of which 5 had recourse debt, 14 had non-recourse debt and 32 had no debt), compared to 48 active Homebuilding and land unconsolidated entities at November 30, 2023.
At November 30, 2025, we had equity investments in 50 active Homebuilding and land unconsolidated entities (of which 4 had recourse debt, 14 had non-recourse debt and 32 had no debt), compared to 51 active Homebuilding and land unconsolidated entities at November 30, 2024.
Gross margins on home sales were $7.5 billion, or 22.3%, in the year ended November 30, 2024, compared to $7.6 billion, or 23.3%, in the year ended November 30, 2023.
Gross margins on home sales were $5.7 billion, or 17.7%, in the year ended November 30, 2025, compared to $7.5 billion, or 22.3%, in the year ended November 30, 2024.
In conducting our review for indicators of impairment on a community level, we evaluate, among other things, the margins on homes that have been delivered, margins on homes under sales contracts in backlog, projected margins with regard to future home sales over the life of the community, projected margins with regard to future land sales, and the estimated fair value of the land itself. 44 Table of Contents We estimate the fair value of our communities using a discounted cash flow model.
In conducting our review for indicators of impairment on a community level, we evaluate, among other things, the margins on homes that have been delivered, margins on homes under sales contracts in backlog, projected margins with regard to future home sales over the life of the community, projected margins with regard to future land sales, and the estimated fair value of the land itself.
Based on our current financial condition and credit relationships, we believe that our operations and borrowing resources will provide for our current and long-term capital requirements at our anticipated levels of activity. Supplemental Financial Information Currently, certain of our 100% owned subsidiaries, which are primarily our homebuilding subsidiaries, are guaranteeing all our senior notes. The guarantees are full and unconditional.
Based on our current financial condition and credit relationships, we believe that our operations and borrowing resources will provide for our current and long-term capital requirements at our anticipated levels of activity. Supplemental Financial Information Our outstanding senior notes are guaranteed by certain of our wholly-owned subsidiaries, which are primarily homebuilding subsidiaries. These guarantees are full and unconditional.
The following table sets forth selected financial and operational information related to the residential mortgage and title activities of our Financial Services segment: Years Ended November 30, (Dollars in thousands) 2024 2023 Dollar value of mortgages originated $ 19,845,000 17,395,000 Number of mortgages originated 54,600 47,000 Mortgage capture rate of Lennar homebuyers 84% 81% Number of title and closing service transactions 82,400 74,900 At November 30, 2024 and 2023, the carrying value of Financial Services' commercial mortgage-backed securities ("CMBS") was $135.6 million and $140.7 million, respectively.
The following table sets forth selected financial and operational information related to the residential mortgage and title activities of our Financial Services segment: For the Years Ended November 30, (Dollars in thousands) 2025 2024 Dollar value of mortgages originated $ 19,987,000 19,845,000 Number of mortgages originated 55,900 54,600 Mortgage capture rate of Lennar homebuyers 84% 84% Number of title and closing service transactions 86,300 82,400 At November 30, 2025 and 2024, the carrying value of Financial Services' commercial mortgage-backed securities ("CMBS") was $132.9 million and $135.6 million, respectively.
At November 30, 2024, we had open commitments amounting to $3.8 billion to sell forward contracts, which include MBS and interest rate swaps, with varying settlement dates through February 2025 and open future contracts in the amount of $2.3 million with the varying settlement dates through March 2025.
At November 30, 2025, we had open commitments amounting to $3.0 billion to sell forward contracts, which include MBS and interest rate swaps, with varying settlement dates through February 2026 and open future contracts in the amount of $1.4 million with the varying settlement dates through May 2026.
The following table provides information related to our investment in the Multifamily segment: At November 30, (Dollars in thousands) 2024 2023 Multifamily investments in unconsolidated entities $ 503,303 599,852 Lennar's net investment in Multifamily 1,116,295 1,095,218 Number of operating properties/investments sold through joint ventures 34 — Lennar's share of gains on the sale of operating properties/investments 219,148 — The Multifamily segment manages and has investments in Multifamily Venture Fund I (the "LMV I") and Multifamily Venture Fund II LP (the "LMV II"), which are long-term multifamily development investment vehicles involved in the 33 Table of Contents development, construction and ownership of class-A multifamily rental properties.
The following table provides information related to our investment in the Multifamily segment: At November 30, (Dollars in thousands) 2025 2024 Multifamily investments in unconsolidated entities $ 506,573 503,303 Lennar's net investment in Multifamily $ 781,902 1,116,295 Number of operating properties/investments sold through joint ventures/wholly-owned 11 34 Lennar's share of gains on the sale of operating properties/investments $ 8,130 219,148 The Multifamily segment manages and has investments in Multifamily Venture Fund I (the "LMV I") and Multifamily Venture Fund II LP (the "LMV II"), which are long-term multifamily development investment vehicles involved in the development, construction and ownership of class-A multifamily rental properties.
During 2024, our cash used in financing activities was primarily due to the (1) $2.3 billion of repurchases of our common stock, which included $2.2 billion of repurchases under our repurchase program and $87 million of repurchases related to our equity compensation plan; (2) $549 million of dividend payments; (3) $233 million of net repayments under our Financial Services' warehouse facilities; (4) redemption of $454 million aggregate principal amount of our 4.50% senior notes due April 2024; (5) $100 million of partial repurchase of our 4.75% senior notes due 2027; and (6) $14 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks.
During 2024, our cash used in financing activities was primarily due to the (1) $2.3 billion of repurchases of our common stock, which included $2.2 billion of repurchases under our repurchase program and $87 million of repurchases related to our equity compensation plan; (2) $549 million of dividend payments; (3) $233 million of net repayments under our Financial Services' warehouse facilities; (4) redemptions of $454 million aggregate principal amount of our 4.50% senior notes due April 2024; (5) $100 million of partial repurchase of our 4.75% senior notes due 2027; and (6) $14 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks. 35 Table of Contents 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.
On January 14, 2025, our Board declared a quarterly cash dividend of $0.50 per share on both our Class A and Class B common stock, payable on February 12, 2025 to holders of record at the close of business on January 29, 2025.
On January 21, 2026, our Board declared a quarterly cash dividend of $0.50 per share on both our Class A and Class B common stock, payable on February 19, 2026 to holders of record at the close of business on February 4, 2026.
We review changes in estimated cash flows periodically to determine if an other-than-temporary impairment has occurred on our CMBS. Based on management’s assessment, no impairment charges were recorded during the years ended November 30, 2024 and 2023. We classify these securities as held-for-sale at November 30, 2024 and 2023.
We review changes in estimated cash flows periodically to determine if an other-than-temporary impairment has occurred on our CMBS. Based on management’s assessment, no impairment charges were recorded during the years ended November 30, 2025 and 2024.
Operating loss for the Lennar Other segment was $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.
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.
We finance all of our activities including homebuilding, financial services, multifamily, other and general operating needs primarily with cash generated from our operations, debt issuances and investor funds as well as cash borrowed under our warehouse lines of credit and our unsecured revolving credit facility (the "Credit Facility").
We finance all of our activities including homebuilding, financial services, multifamily, other and general operating needs primarily with cash generated from our operations, debt issuances and investor funds as well as cash borrowed under our warehouse lines of credit, Credit Facility and Delayed Draw Term Loan Facility (both defined below).
The following summarizes our required debt covenants and our actual levels or ratios with respect to those covenants as calculated per the Credit Agreement as of November 30, 2024: (Dollars in thousands) Covenant Level Level Achieved as of November 30, 2024 Minimum net worth test $ 10,000,000 21,384,969 Maximum leverage ratio 60.0% (6.6)% Liquidity test (1) 1.00 (139.00) (1) We are only required to maintain either (1) liquidity in an amount equal to or greater than 1.00x consolidated interest incurred for the last twelve months then ended or (2) an interest coverage ratio of equal to or greater than 1.50:1.00 for the last twelve months then ended.
The following summarizes our required debt covenants and our actual levels or ratios with respect to those covenants as calculated per the Credit Facility and Delayed Draw Term Loan Facility agreements as of November 30, 2025: (Dollars in thousands) Covenant Level Level Achieved as of November 30, 2025 Minimum net worth test $ 10,000,000 16,027,843 Maximum leverage ratio 60.0% 7.4% Liquidity test (1) 1.00 56.00 (1) We are only required to maintain either (1) liquidity in an amount equal to or greater than 1.00x consolidated interest incurred for the last twelve months then ended or (2) an interest coverage ratio of equal to or greater than 1.50:1.00 for the last twelve months then ended.
The Multifamily segment manages and has investments in LMV I, LMV II and Canada Pension Plan Investments Fund, which are long-term multifamily development investment vehicles involved in the development, construction and ownership of class-A multifamily assets.
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.
At November 30, 2024, the Financial Services segment had warehouse facilities, all of which were 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows: Maximum Aggregate Commitment (In thousands) Committed Amount Uncommitted Amount Total Residential facilities maturing: April 2025 $ 250,000 250,000 500,000 June 2025 1,400,000 — 1,400,000 August 2025 325,000 325,000 650,000 October 2025 100,000 100,000 200,000 December 2026 375,000 — 375,000 Total residential facilities $ 2,450,000 675,000 3,125,000 LMF commercial facilities maturing: December 2024 (1) 200,000 — 200,000 January 2025 100,000 — 100,000 Total LMF commercial facilities $ 300,000 — 300,000 Total $ 3,425,000 (1) Subsequent to November 30, 2024, the maturity date was extended to December 2025.
At November 30, 2025, the Financial Services segment had warehouse facilities, all of which were 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows: Maximum Aggregate Commitment (In thousands) Committed Amount Uncommitted Amount Total Residential facilities maturing: March 2026 $ 250,000 250,000 500,000 May 2026 250,000 450,000 700,000 July 2026 100,000 100,000 200,000 September 2026 500,000 500,000 1,000,000 November 2026 100,000 400,000 500,000 December 2026 — 375,000 375,000 Total residential facilities $ 1,200,000 2,075,000 3,275,000 LMF commercial facilities maturing: December 2025 (1) 200,000 — 200,000 January 2026 100,000 — 100,000 Total LMF commercial facilities $ 300,000 — 300,000 Total $ 3,575,000 (1) Subsequent to November 30, 2025, the maturity date was extended to December 2027.
LMF Commercial originated commercial loans as follows: Years Ended November 30, (Dollars in thousands) 2024 2023 Originations $ 568,520 466,043 Sold $ 522,647 430,707 Securitizations 13 10 Multifamily Segment We have been actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties.
LMF Commercial originated commercial loans as follows: For the Years Ended November 30, (Dollars in thousands) 2025 2024 Originations $ 707,262 568,520 Sold $ 730,564 522,647 Securitizations 12 13 Multifamily Segment We have been actively involved, primarily through unconsolidated entities, in the development and construction of multifamily rental properties.
We evaluate the historical performance of each of our communities as well as current trends in the market and economy impacting the community and its surrounding areas. These trends are analyzed for each of the estimates listed above.
We evaluate the historical performance of each of our communities as well as current trends in the market and economy impacting the community and its surrounding areas.
(2) For the years ended November 30, 2024 and 2023, gross margins (loss) on sales of land included $5.1 million and $19.9 million of deposit write-offs as we walked away from 6,300 and 10,600 controlled homesites, respectively.
(2) For the years ended November 30, 2025 and 2024, gross margins (losses) on sales of land included $23.1 million and $5.1 million of deposit write-offs as we walked away from 15,500 and 6,300 controlled homesites, respectively.
As of November 30, 2023, there were 38 rental operation projects in LMV I. During the second half of fiscal year 2024, the LMV I partners decided to liquidate and sell all of the individual rental operation projects of LMV I as the fund has come to the end of its contractual life.
During the second half of fiscal 2024, the LMV I partners decided to liquidate and sell all of its 38 rental operation projects of LMV I as the fund has come to the end of its contractual life. During the year ended November 30, 2024, 33 LMV I rental operation projects were sold to various third-party buyers.
We believe that we were in compliance with our debt covenants at November 30, 2024.
We were in compliance with our debt covenants at November 30, 2025.
The decrease in average sales price of homes delivered in the year ended November 30, 2024 compared to the same period last year was primarily due to pricing to market through an increased use of incentives and product mix.
The decrease in average sales price of homes delivered in the year ended November 30, 2025 compared to the same period last year was primarily due to continued weakness in the market and an increased use of sales incentives offered to homebuyers.
Revenues were higher primarily due to a 10% increase in the number of home deliveries, partially offset by a 5% decrease in the average sales price of homes delivered. New home deliveries increased to 80,210 homes in the year ended November 30, 2024 from 73,087 homes in the year ended November 30, 2023.
Revenues were lower primarily due to a 8% decrease in the average sales price of homes delivered, partially offset by a 3% increase in the number of home deliveries. New home deliveries increased to 82,583 homes in the year ended November 30, 2025 from 80,210 homes in the year ended November 30, 2024.
This authorization was in addition to what was remaining of our March 2022 stock repurchase program. At November 30, 2024, we have a remaining authorization to repurchase $3.4 billion in value of our Class A or B common stock. Repurchases are authorized to be made in open-market or private transactions. The repurchase authorization has no expiration date.
Repurchases are authorized to be made in open-market or private transactions. The repurchase authorization has no expiration date. At November 30, 2025, we have a remaining authorization to repurchase $1.7 billion in value of our Class A or B common stock. Repurchases are authorized to be made in open-market or private transactions. The repurchase authorization has no expiration date.
Our outstanding letters of credit and surety bonds are described below: At November 30, (In thousands) 2024 2023 Performance letters of credit $ 1,668,061 1,404,541 Financial letters of credit 745,578 417,976 Surety bonds 5,140,432 4,508,428 Anticipated future costs primarily for site improvements related to performance surety bonds 2,766,088 2,499,680 37 Table of Contents Our Homebuilding average debt outstanding and the average rates of interest were as follows: At November 30, (Dollars in thousands) 2024 2023 Homebuilding average debt outstanding $ 2,449,576 3,688,363 Average interest rate 4.8% 4.9% Interest incurred $ 129,310 187,640 Under the Credit Facility agreement (the "Credit Agreement"), we are required to maintain a minimum consolidated tangible net worth, a maximum leverage ratio and either a liquidity or an interest coverage ratio.
Our outstanding letters of credit and surety bonds are described below: At November 30, (In thousands) 2025 2024 Performance letters of credit $ 1,963,643 1,668,061 Financial letters of credit 926,304 745,578 Surety bonds 5,614,807 5,140,432 Anticipated future costs primarily for site improvements related to performance surety bonds 3,056,582 2,766,088 Our Homebuilding average debt outstanding and the average rates of interest were as follows: At November 30, (Dollars in thousands) 2025 2024 Homebuilding average debt outstanding $ 3,235,992 2,449,576 Average interest rate 5.1% 4.8% Interest incurred $ 184,589 129,310 Under the Credit Facility agreement (the "Credit Facility Agreement") and Delayed Draw Term Loan Facility, we are required to maintain a minimum consolidated tangible net worth, a maximum leverage ratio and either a liquidity or an interest 37 Table of Contents coverage ratio.
During the year ended November 30, 2023, treasury stock increased by 11.3 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 year ended November 30, 2024, treasury stock increased by 14.2 million shares primarily due to our repurchase of 13.6 million shares of Class A and Class B common stock through our stock repurchase program .
Loans in process for which interest rates were committed to the borrowers totaled approximately $1.8 billion as of November 30, 2024. A significant portion of these commitments had a remaining period of 60 days or less.
Our Financial Services segment had a pipeline of loan applications in process of $3.3 billion at November 30, 2025. Loans in process for which interest rates were committed to the borrowers totaled approximately $1.6 billion as of November 30, 2025. A significant portion of these commitments had a remaining period of 60 days or less.
Since the estimates and assumptions included in our cash flow models are based upon historical results and projected trends, they do not anticipate unexpected changes in market conditions or strategies that may lead to us incurring additional impairment charges in the future. Using all the available information, we calculate our best estimate of projected cash flows for each community.
These trends are analyzed for each of the estimates listed above. 44 Table of Contents Since the estimates and assumptions included in our cash flow models are based upon historical results and projected trends, they do not anticipate unexpected changes in market conditions or strategies that may lead to us incurring additional impairment charges in the future.
Homebuilding Central: Revenues from home sales increased in 2024 compared to 2023, primarily due to an increase in the number of home deliveries in all the states in the segment, which was partially offset by a decrease in the average sales price of homes delivered in all the states in the segment except in Illinois and Maryland.
Homebuilding South Central: Revenues from home sales increased in 2025 compared to 2024, primarily due to the Rausch acquisition which resulted in an increase in the number of homes delivered in all states in the segment, partially offset by a decrease in the average sales price of homes delivered in Texas.
The increase in operating earnings was due to a $179.0 million one-time net gain from the sale of assets in our LMV Fund I, partially offset by a one-time $90.0 million write-down of 29 Table of Contents noncore assets as we focus on monetizing these assets.
The operating earnings for the year ended November 30, 2024, included a $179.0 million one-time net gain from the sale of assets in our LMV Fund I, partially offset by a one-time $90.0 million write-down of noncore assets as we focus on monetizing these assets.
Investing Cash Flow Activities During 2024 and 2023, cash used in investing activities totaled $303 million and $177 million, respectively.
Investing Cash Flow Activities During 2025 and 2024, cash provided by (used in) investing activities totaled $222 million and ($303) million, respectively.
Homebuilding debt to total capital and net Homebuilding debt to total capital were calculated as follows: At November 30, (Dollars in thousands) 2024 2023 Homebuilding debt $ 2,258,283 2,816,482 Stockholders’ equity 27,870,135 26,580,664 Total capital $ 30,128,418 29,397,146 Homebuilding debt to total capital 7.5% 9.6% Homebuilding debt $ 2,258,283 2,816,482 Less: Homebuilding cash and cash equivalents 4,662,643 6,273,724 Net Homebuilding debt $ (2,404,360) (3,457,242) Net Homebuilding debt to total capital (1) (9.4)% (15.0)% (1) Net homebuilding debt to total capital is a non-GAAP financial measure defined as net homebuilding debt (homebuilding debt less homebuilding cash and cash equivalents) divided by total capital (net homebuilding debt plus stockholders' equity).
Homebuilding debt to total capital and net Homebuilding debt to total capital were calculated as follows: At November 30, (Dollars in thousands) 2025 2024 Homebuilding debt $ 4,084,686 2,258,283 Stockholders’ equity 21,959,417 27,870,135 Total capital $ 26,044,103 30,128,418 Homebuilding debt to total capital 15.7% 7.5% Homebuilding debt $ 4,084,686 2,258,283 Less: Homebuilding cash and cash equivalents 3,441,324 4,662,643 Net Homebuilding debt $ 643,362 (2,404,360) Net Homebuilding debt to total capital (1) 2.8% (9.4)% (1) Net homebuilding debt to total capital is a non-GAAP financial measure defined as net homebuilding debt (homebuilding debt less homebuilding cash and cash equivalents) divided by total capital (net homebuilding debt plus stockholders' equity).
Sales Incentives (1): Average Sales Incentives Per Home Delivered Sales Incentives as a % of Revenues Years Ended November 30, 2024 2023 2024 2023 East $ 53,000 33,800 11.6 % 7.2 % Central 41,500 34,800 9.4 % 7.7 % Texas 52,900 56,000 17.3 % 16.5 % West 47,600 47,900 7.1 % 7.2 % Other 71,300 91,500 12.4 % 11.5 % Total $ 48,800 42,900 10.3 % 8.8 % (1) Sales incentives relate to home deliveries during the period, excluding deliveries by unconsolidated entities.
Sales Incentives (1): Average Sales Incentives Per Home Delivered Sales Incentives as a % of Revenues For the Years Ended November 30, 2025 2024 2025 2024 East $ 75,200 53,000 16.8 % 11.5 % Central 51,200 42,000 11.9 % 9.6 % South Central 58,600 52,900 19.7 % 17.3 % West 67,600 47,600 10.1 % 7.1 % Other 93,400 71,300 12.6 % 12.4 % Total $ 62,700 48,800 13.8 % 10.3 % (1) Sales incentives relate to homes delivered during the years ended November 30, 2025 and 2024, excluding homes delivered by unconsolidated entities.
While many of the estimates are calculated based on historical and projected trends, all estimates are subjective and change from market to market and community to community as market and economic conditions change.
Using all the available information, we calculate our best estimate of projected cash flows for each community. While many of the estimates are calculated based on historical and projected trends, all estimates are subjective and change from market to market and community to community as market and economic conditions change.
Principal Maturities of Multifamily Unconsolidated JVs Debt by Period (In thousands) Total JV Debt 2025 2026 2027 Thereafter Other Debt without recourse to Lennar $ 2,922,010 1,120,389 841,057 777,565 182,999 — Debt issuance costs (16,097) — — — — (16,097) Total $ 2,905,913 1,120,389 841,057 777,565 182,999 (16,097) Lennar Other - Investments in Unconsolidated Entities As part of the sale of the Rialto investment and asset management platform, we retained the right to receive a portion of payments with regard to carried interests if certain funds meet specified performance thresholds.
Principal Maturities of Multifamily Unconsolidated JVs Debt by Period (In thousands) Total JV Debt 2026 2027 2028 Thereafter Other Debt without recourse to Lennar $ 2,548,374 1,146,285 908,090 208,652 285,347 — Debt issuance costs (24,914) — — — — (24,914) Total $ 2,523,460 1,146,285 908,090 208,652 285,347 (24,914) Lennar Other - Investments in Unconsolidated Entities As part of the sale of the Rialto investment and asset management platform, we retained the right to receive a portion of payments with regard to carried interests if certain funds meet specified performance thresholds.
The LMF Commercial facilities finance LMF Commercial loan originations and securitization activities and were secured by up to 80% interests in the originated commercial loans financed. 38 Table of Contents Borrowings and collateral under the facilities were as follows: At November 30, (In thousands) 2024 2023 Borrowings under the residential facilities $ 1,776,045 2,020,187 Collateral under the residential facilities 1,837,833 2,097,020 Borrowings under the LMF Commercial facilities 28,747 12,525 If the facilities are not renewed or replaced, the borrowings under the lines of credit will be repaid by selling the mortgage loans held-for-sale to investors and by collecting receivables on loans sold but not yet paid for.
Borrowings and collateral under the facilities were as follows: At November 30, (In thousands) 2025 2024 Borrowings under the residential facilities $ 1,653,484 1,776,045 Collateral under the residential facilities 1,718,338 1,837,833 Borrowings under the LMF Commercial facilities 13,719 28,747 If the facilities are not renewed or replaced, the borrowings under the lines of credit will be repaid by selling the mortgage loans held-for-sale to investors and by collecting receivables on loans sold but not yet paid for.
Homebuilding East : Revenues from home sales decreased in 2024 compared to 2023, primarily due to a decrease in the average sales price of homes delivered in all the states in the segment except in New Jersey, which was partially offset by an increase in the number of home deliveries in all the states in the segment.
Homebuilding East: Revenues from home sales decreased in 2025 compared to 2024, primarily due to decreases in the number of homes delivered and the average sales price of homes delivered in all the states of the segment except in New Jersey.
Financial Condition and Capital Resources At November 30, 2024, we had cash and cash equivalents and restricted cash related to our homebuilding, financial services, multifamily and other operations of $5.0 billion, compared to $6.6 billion at November 30, 2023.
We classify these securities as held-for-sale at November 30, 2025 and 2024. 34 Table of Contents Financial Condition and Capital Resources At November 30, 2025, we had cash and cash equivalents and restricted cash related to our homebuilding, financial services, multifamily and other operations of $3.8 billion, compared to $5.0 billion at November 30, 2024.
During the year ended November 30, 2024, gross margins decreased primarily because revenue per square foot decreased while land costs increased year over year, which was partially offset by a decrease in costs per square foot due to lower costs of materials as we continued to focus on construction cost savings.
During the year ended November 30, 2025, gross margins decreased primarily due to a lower revenue per square foot and higher land costs year over year, which were partially offset by a decrease in construction costs, reflecting our continued focus on cost-saving initiatives.
These ratios are calculated per the Credit Facility agreement, which involves adjustments to GAAP financial measures. As of the end of each fiscal quarter, we are required to maintain minimum consolidated tangible net worth of $10.0 billion. As of the end of each fiscal quarter, we are required to maintain a maximum leverage ratio that shall not exceed 60%.
These ratios are calculated per the Credit Facility and Delayed Draw Term Loan Facility agreements, which involve adjustments to GAAP financial measures. As of the end of each fiscal quarter, we are required to maintain minimum consolidated tangible net worth of $10.0 billion.
("Sonder") and Sunnova Energy International, Inc. ("Sunnova"), which are held at market and the carrying value of which will therefore change depending on the fair value of our shareholdings in those entities on the last day of each quarter.
We have investments in several publicly traded technology companies, which are held at market and the carrying value of which will therefore change depending on the value of our shareholdings in those entities on the last day of each quarter.
As a percentage of revenues from home sales, selling, general and administrative expenses increased to 7.3% in the year ended November 30, 2024, from 6.9% in the year ended November 30, 2023, primarily due to an increase in professional expenses, insurance costs and digital marketing and advertising costs to generate more direct sales.
As a percentage of revenues from home sales, selling, general and administrative expenses increased to 8.3% in the year ended November 30, 2025, from 7.3% in the year ended November 30, 2024, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses.
Amounts due from and transactions with non-guarantor subsidiaries and related parties are separately disclosed: At November 30, (In thousands) 2024 2023 Due from non-guarantor subsidiaries $ 18,396,060 22,020,227 Equity method investments 1,078,635 986,508 Total assets 50,251,091 45,830,841 Total liabilities 10,067,424 9,181,456 (In thousands) Year Ended November 30, 2024 Total revenues $ 32,600,847 Operating earnings 5,025,356 Earnings before income taxes 4,312,161 Net earnings attributable to Lennar 3,294,043 Off-Balance Sheet Arrangements Homebuilding - Investments in Unconsolidated Entities We regularly monitor the results of our Homebuilding, Multifamily, and Lennar Other unconsolidated joint ventures and any trends that may affect their future liquidity or results of operations.
Amounts due from and transactions with nonobligor subsidiaries and related parties are separately disclosed: At November 30, (In thousands) 2025 2024 Due from non-guarantor subsidiaries $ 14,709,366 18,396,060 Equity method investments 1,213,485 1,078,635 Total assets 40,496,300 50,251,091 Total liabilities 9,243,409 10,067,424 39 Table of Contents (In thousands) For the Year Ended November 30, 2025 Total revenues $ 30,196,629 Operating earnings 3,022,655 Earnings before income taxes 2,317,973 Net earnings attributable to Lennar 1,727,720 Off-Balance Sheet Arrangements Homebuilding - Investments in Unconsolidated Entities We regularly monitor the results of our Homebuilding unconsolidated joint ventures and any trends that may affect their future liquidity or results of operations.
Results of Operations Overview Our net earnings attributable to Lennar were $3.9 billion, or $14.31 per diluted and basic share in 2024 and $3.9 billion, or $13.73 per diluted and basic share in 2023.
Results of Operations Overview Our net earnings attributable to Lennar were $2.1 billion, or $7.98 per diluted and basic share for the year ended November 30, 2025 and $3.9 billion, or $14.31 per diluted and basic share for the year ended November 30, 2024.
Intercompany balances and transactions within the Obligors have been eliminated and amounts attributable to the Obligor’s investment in consolidated subsidiaries that have not issued or guaranteed the senior notes have been excluded.
Supplemental information for the Obligors, which excludes non-guarantor subsidiaries and intercompany transactions, at November 30, 2025 is included in the following tables. Intercompany balances and transactions within the Obligors have been eliminated and amounts attributable to the Obligors' investment in consolidated subsidiaries that have not issued or guaranteed the senior notes have been excluded.
(4) Amounts include $20.4 million of remaining equity investment commitment to Upward America. We are subject to the usual obligations associated with entering into contracts (including option contracts) for the purchase, development and sale of real estate in the routine conduct of our business.
We are subject to the usual obligations associated with entering into contracts (including option contracts) for the purchase, development and sale of real estate in the routine conduct of our business. Option contracts for the purchase of land generally reduce our financial risk and costs of capital associated with land holdings.
Details of each as of and during the year ended November 30, 2024 are included below: November 30, 2024 (In thousands) LMV I LMV II Lennar's carrying value of investments $ 126,784 228,496 Equity commitments 2,204,016 1,257,700 Equity commitments called 2,154,328 1,218,619 Lennar's equity commitments 504,016 381,000 Lennar's equity commitments called 500,381 368,170 Lennar's remaining commitments (1) 3,635 12,830 Distributions to Lennar 199,519 12,820 (1) While there are remaining commitments with LMV I and LMV II, there are no plans for additional capital calls.
Details of LMV I and LMV II and the Institutional JV are included below: 33 Table of Contents At November 30, 2025 (In thousands) LMV I LMV II Lennar's carrying value of investments $ 107,475 198,127 Equity commitments 2,204,016 1,257,700 Equity commitments called 2,154,328 1,229,585 Lennar's equity commitments 504,016 381,000 Lennar's equity commitments called 500,381 371,492 Lennar's remaining commitments (1) 3,635 9,508 Distributions to Lennar during the year ended November 30, 2025 19,690 770 (1) While there are remaining commitments with LMV I and LMV II, there are no plans for additional capital calls.
The decrease in the average sales price of homes delivered in Arizona, Colorado and Washington was primarily due to pricing to market through an increased use of incentives and product mix. The increase in the average sales price of homes delivered in California, Idaho, Nevada, Oregon and Utah was primarily due to product mix.
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.
Our Homebuilding senior notes and other debts payable are summarized within Note 4 of the Notes to Consolidated Financial Statements. In November 30, 2024, we amended and restated the credit agreement governing our Credit Facility.
Our Homebuilding senior notes and other debts payable are summarized within Note 5 of the Notes to Consolidated Financial Statements.
As of November 30, 2024 and 2023, our balance sheet had $894.9 million and $657.9 million, respectively, of assets in the Lennar Other segment, which included investments in unconsolidated entities of $379.4 million and $276.2 million, respectively. We have investments in Blend Labs, Inc. ("Blend Labs"), Hippo Holdings, Inc. ("Hippo"), Opendoor Technologies, Inc. ("Opendoor"), SmartRent, Inc. ("SmartRent"), Sonder Holdings, Inc.
As of November 30, 2025 and 2024, our balance sheet had $897.6 million and $894.9 million, respectively, of assets in the Lennar Other segment, which included investments in unconsolidated entities of $368.0 million and $379.4 million, respectively.
At November 30, 2024, Homebuilding debt to total capital was lower compared to November 30, 2023, primarily as a result of an increase in stockholders' equity due to net earnings and a decrease in Homebuilding debt due to debt paydowns and debt repurchases, partially offset by share repurchases.
At November 30, 2025, Homebuilding debt to total capital was higher compared to November 30, 2024, primarily as a result of a decrease in stockholders' equity due to the spin-off of Millrose, share repurchases, an increase in Homebuilding debt due to issuance of senior notes and outstanding borrowings under our Delayed Draw Term Loan Facility (defined below), partially offset by net earnings.
Homebuilding Texas: Revenues from home sales increased in 2024 compared to 2023, primarily due to an increase in the number of home deliveries, which was partially offset by a decrease in the average sales price of homes delivered. The increase in the number of home deliveries was primarily due to an increase in the number of active communities.
Homebuilding Central: Revenues from home sales decreased in 2025 compared to 2024, primarily due to a decrease in the average sales price of homes delivered in Alabama, Illinois, Maryland, North Carolina and Virginia, partially offset by an increase in the number of homes delivered in Alabama, Illinois, South Carolina and Virginia.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeInformation Regarding Interest Rate Sensitivity Principal (Notional) Amount by Expected Maturity and Average Interest Rate November 30, 2024 Years Ending November 30, Fair Value at November 30, (Dollars in millions) 2025 2026 2027 2028 2029 Thereafter Total 2024 ASSETS Financial Services: Investments held-to-maturity: Fixed rate $ — — — — — 135.6 135.6 138.2 Average interest rate — — — — — 3.6 % 3.6 % — Loans held-for-investment, net: Fixed rate $ 8.3 1.3 1.4 1.4 1.5 44.7 58.6 58.7 Average interest rate 7.0 % 4.1 % 4.1 % 4.1 % 4.1 % 4.1 % 4.5 % — Variable rate $ — — — 0.1 0.1 2.1 2.3 2.3 Average interest rate — — — 4.8 % 4.8 % 4.8 % 4.8 % — LIABILITIES Homebuilding: Senior notes and other debts payable: Fixed rate $ 532.1 620.9 1,062.2 14.1 11.5 16.6 2,257.4 2,264.4 Average interest rate 4.5 % 5.1 % 4.8 % 2.1 % 7.5 % 6.4 % 4.8 % — Financial Services: Notes and other debts payable: Fixed rate $ — — — — — 126.2 126.2 126.7 Average interest rate — — — — — 3.4 % 3.4 % — Variable rate $ 1,801.0 3.8 — — — — 1,804.8 1,804.8 Average interest rate 6.2 % 5.9 % — — — — 6.2 % — 47 Table of Contents
Biggest changeInformation Regarding Interest Rate Sensitivity Principal (Notional) Amount by Expected Maturity and Average Interest Rate November 30, 2025 For the Years Ending November 30, Fair Value at November 30, (Dollars in millions) 2026 2027 2028 2029 2030 Thereafter Total 2025 ASSETS Financial Services: Investments held-to-maturity: Fixed rate $ — — — — — 132.9 132.9 132.0 Average interest rate — — — — — 3.6 % 3.6 % — LIABILITIES Homebuilding: Senior notes and other debts payable: Fixed rate $ 453.0 1,191.8 10.2 11.5 702.2 11.8 2,380.5 2,412.0 Average interest rate 5.1 % 4.9 % 3.0 % 7.5 % 5.2 % 6.6 % 5.0 % — Variable rate $ — — 1,710.0 — — — 1,710.0 1,710.0 Average interest rate — — 5.2 % — — — 5.2 % — Financial Services: Notes and other debts payable: Fixed rate $ — — — — — 123.1 123.1 123.6 Average interest rate — — — — — 3.4 % 3.4 % — Variable rate $ 1,667.2 — — — — — 1,667.2 1,667.2 Average interest rate 5.3 % — — — — — 5.3 % — 47 Table of Contents
For variable rate debt such as our unsecured revolving credit facility and Financial Services’ and LMF Commercial’s warehouse repurchase facilities, changes in interest rates generally do not affect the fair value of the outstanding borrowings on the debt facilities but do affect our earnings and cash flows.
For variable rate debt such as our unsecured revolving credit facility, delayed draw term loan facility and Financial Services’ and LMF Commercial’s warehouse repurchase facilities, changes in interest rates generally do not affect the fair value of the outstanding borrowings on the debt facilities but do affect our earnings and cash flows.
For loans held-for-investment, net and investments held-to-maturity, senior notes and other debts payable and notes and other debts payable, the table presents principal cash flows and related weighted average effective interest rates by expected maturity dates and estimated fair values at November 30, 2024. Weighted average variable interest rates are based on the variable interest rates at November 30, 2024.
For investments held-to-maturity, senior notes and other debts payable and notes and other debts payable, the table presents principal cash flows and related weighted average effective interest rates by expected maturity dates and estimated fair values at November 30, 2025. Weighted average variable interest rates are based on the variable interest rates at November 30, 2025.
In our Financial Services operations, we utilize mortgage backed securities forward commitments, option contracts and investor commitments to protect the value of rate-locked commitments and loans held-for-sale from fluctuations in mortgage-related interest rates. 46 Table of Contents To mitigate interest risk associated with LMF Commercial's loans held-for-sale, we use derivative financial instruments to hedge our exposure to risk from the time a borrower locks a loan until the time the loan is securitized.
In our Financial Services operations, we utilize mortgage backed securities forward commitments, option contracts and investor commitments to protect the value of rate-locked commitments and loans held-for-sale from fluctuations in mortgage-related interest rates.
We hedge our interest rate exposure through entering into interest rate swap futures. We also manage a portion of our credit exposure by buying protection within the CMBX and CDX markets. We do not enter into or hold derivatives for trading or speculative purposes.
We also manage a portion of our credit exposure by buying protection within the CMBX and CDX markets. 46 Table of Contents We do not enter into or hold derivatives for trading or speculative purposes. The table below provides information at November 30, 2025 about our significant instruments that are sensitive to changes in interest rates.
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The table below provides information at November 30, 2024 about our significant instruments that are sensitive to changes in interest rates.
Added
To mitigate interest risk associated with LMF Commercial's loans held-for-sale, we use derivative financial instruments to hedge our exposure to risk from the time a borrower locks a loan until the time the loan is securitized. We hedge our interest rate exposure through entering into interest rate swap futures.

Other LEN 10-K year-over-year comparisons