Financial Analysis

"Commitments and Contingent Liabilities The Company is involved in various claims, legal proceedings, and regulatory matters that arise in the ordinary course of business, including, but not limited to, matters related to construction defects, product liability, warranty claims, land use, zoning and permitting issues, environmental matters, contract disputes, employment matters, and other legal matters incidental to its business operations. The Company follows established accounting standards to identify, evaluate, record, and disclose legal contingencies. A liability is recorded when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company does not record liabilities for contingencies when the likelihood of loss is remote or if reasonably possible, or when a probable loss cannot be reasonably estimated. If a loss is probable or reasonably possible, the Company discloses the nature of the contingency and, if estimable, the possible range of loss. In assessing contingencies, management considers, among other factors, the nature of the claim, the status of the matter, the advice of legal counsel, the Company's historical experience with similar matters, insurance coverage, and recoveries, if any, and other relevant facts and circumstances. Estimates of loss contingencies are inherently subjective and involve significant judgment. As a result, actual outcomes may differ materially from amounts recorded or disclosed. Certain …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Homebuilding Senior Notes and Other Debts Payable At November 30, (Dollars in thousands) 2025 2024 Unsecured delayed draw term loan facility due 2028 $ 1,710,000 5.25% senior notes due 2026 400,608 401,824 5.00% senior notes due 2027 350,590 350,974 4.75% senior notes due 2027 698,845 698,266 5.20% senior notes due 2030 694,165 4.75% senior notes due 2025 499,779 Mortgage notes on land and other debt 230,478 307,440 Total $ 4,084,686 2,258,283 The carrying amounts of the senior notes in the table above are net of debt issuance costs of $7.0 million and $2.4 million, as of November 30, 2025 and 2024, respectively. In May 2025, the Company issued $700 million in aggregate principal amount of 5.20% senior notes due 2030 (the ""5.20% senior notes"") at a price of 99.969% of the principal amount. Proceeds from the offering, after payment of expenses, totaled $695.6 million. The 5.20% Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries. Interest on the 5.20% Senior Notes is due semi-annually beginning January 30, 2026. The Company utilized the net proceeds from the sale of the 5.20% senior notes primarily to pay off $500 million aggregate principal amount of its 4.75% senior notes due May 2025. The redemption price, which was paid in cash, was 100% of the principal amount outstanding. In May 2025, the Company also entered into a new unsecured delayed draw term loan facility with an initial com …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Financial Instruments and Fair Value Disclosures The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at November 30, 2025 and 2024, using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash and cash equivalents, restricted cash, receivables, net, and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. At November 30, 2025 2024 Fair Value Carrying Fair Carrying Fair (In thousands) Hierarchy Amount Value Amount Value ASSETS Financial Services: Loans held-for-investment, net (1) Level 3 $ 60,969 61,044 Loan held-for-sale (1) Level 3 15,547 15,547 Investments held-to-maturity Level 3 132,868 132,032 135,646 138,160 LIABILITIES Homebuilding senior notes and other debt payable, net Level 2 $ 4,084,686 4,122,169 2,258,283 2,264,375 Financial Services notes and other debt payable, net Level 2 1,790,309 1,790,789 1,930,956 1,931,515 (1) During the year ended November 30, 2025, loans held-for-investment of $61.0 million (fair value of $50.3 million) were transferred to loans held-for-sale, based on the Com …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Income Taxes The provision for income taxes consisted of the following: For the Years Ended November 30, (In thousands) 2025 2024 2023 Current: Federal $ 473,890 863,867 1,037,229 State 154,378 292,960 271,752 $ 628,268 1,156,827 1,308,981 Deferred: Federal $ 61,885 48,080 (53,474) State 15,410 12,346 (14,494) 77,295 60,426 (67,968) $ 705,563 1,217,253 1,241,013 A reconciliation of the statutory rate and the effective tax rate was as follows: Percentage of Pretax Income 2025 2024 2023 Statutory rate 21.00 % 21.00 % 21.00 % State income taxes, net of federal income tax benefit 4.94 4.74 4.09 Tax credits (1.87) (1.85) (1.48) Tax reserves and interest expense, net (0.01) Deferred tax asset valuation allowance, net (0.01) Other 0.10 (0.24) 0.36 Non-deductible loss on Millrose Properties, Inc. exchange offer 1.18 Effective rate 25.35 % 23.64 % 23.96 % On July 4, 2025, the One Big Beautiful Bill Act (the ""Act"") was enacted, introducing various changes to U.S. federal tax law. The Act did not have a material impact on the Company's consolidated financial statements for the year ended November 30, 2025. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant temporary differences that give rise to the net deferred tax assets were as follows: At November 30, (In thousands) 2025 2024 Deferred tax a …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Recently Adopted Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures (""ASU 2023-07""). ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (""CODM"") and included within the segment measure of profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entitys CODM. ASU 2023-07 is applied retrospectively and is effective for annual reporting periods in fiscal years beginning after December 15, 2023, and interim reporting periods in fiscal years beginning after December 31, 2024. The Company adopted ASU 2023-07 for the fiscal year ended November 30, 2025 and retrospectively restated prior periods presented (See Note 3 for details regarding the impact of adoption). In December, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires public companies to annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). ASU 2023-09 will be effective for the Company's fiscal yea …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Operating and Reporting Segments Each reportable segment follows the accounting policies described in Note 1 - ""Summary of Significant Accounting Policies"" to the consolidated financial statements. Operations of the Companys Homebuilding segments primarily include the construction and sale of single-family attached and detached homes, as well as the purchase, development and sale of residential land directly and through the Companys unconsolidated entities. The Company defines the Chief Operating Decision Maker (""CODM"") function as the Executive Chairman and Chief Executive Officer. During fiscal year 2025, the CODM also included a Co-Chief Executive Officer and President, who retired in December 2025. The CODM manages and assesses the Company's Homebuilding performance at a regional level. The CODM evaluates the Homebuilding segment performance using each segments revenues generated from sales of homes and earnings (loss) before income taxes. These operating results are reviewed against the annual business plan and quarterly forecast updates, as applicable, and used by the CODM when making the Companys decisions about the allocation of operating and capital resources to each Homebuilding segment. The CODMs evaluation of the Financial Services, Multifamily and Lennar Other segments is based on the revenues and earnings (loss) before income taxes. Operational results of each segment are not necessarily indicative of the results that would have occurred had the segment bee …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Basis of Consolidation The accompanying consolidated financial statements include the accounts of Lennar Corporation and all subsidiaries, partnerships and other entities in which Lennar Corporation has a controlling interest and VIEs (see Note 9) in which Lennar Corporation (the ""Company"") is deemed the primary beneficiary. The Companys investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in VIEs in which the Company is not deemed to be the primary beneficiary are accounted for using the equity method. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (""GAAP"") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Revenue Recognition Homebuilding revenues and related profits from sales of homes are recognized at the time of the closing of a sale, when title to and possession of the property are transferred to the homebuyer. In order to promote sales of homes, the Company may offer sales incentives to homebuyers. The types of incentives vary on a community-by-community basis and home-by-home basis. They include primarily price discounts on indiv …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Commitments and Contingent Liabilities The Company is involved in various claims, legal proceedings, and regulatory matters that arise in the ordinary course of business, including, but not limited to, matters related to construction defects, product liability, warranty claims, land use, zoning and permitting issues, environmental matters, contract disputes, employment matters, and other legal matters incidental to its business operations. The Company follows established accounting standards to identify, evaluate, record, and disclose legal contingencies. A liability is recorded when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company does not record liabilities for contingencies when the likelihood of loss is remote or if reasonably possible, or when a probable loss cannot be reasonably estimated. If a loss is probable or reasonably possible, the Company discloses the nature of the contingency and, if estimable, the possible range of loss. In assessing contingencies, management considers, among other factors, the nature of the claim, the status of the matter, the advice of legal counsel, the Company's historical experience with similar matters, insurance coverage, and recoveries, if any, and other relevant facts and circumstances. Estimates of loss contingencies are inherently subjective and involve significant judgment. As a result, actual outcomes may differ materially from amounts recorded or disclosed. Certain …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Homebuilding Senior Notes and Other Debts Payable (Dollars in thousands) At May 31, 2026 At November 30, 2025 Unsecured delayed draw term loan facility due 2028 $ 1,704,487 1,710,000 5.25% senior notes due 2026 (1) 400,000 400,608 5.00% senior notes due 2027 350,399 350,590 4.75% senior notes due 2027 699,134 698,845 5.20% senior notes due 2030 694,791 694,165 Mortgage notes on land and other debt 198,676 230,478 $ 4,047,487 4,084,686 (1) Subsequent to May 31, 2026, the Company redeemed all of its 5.25% senior notes due June 2026. The carrying amounts of the senior notes and unsecured delayed draw term loan facility in the table above are net of debt issuance costs of $11.2 million and $7.0 million as of May 31, 2026 and November 30, 2025, respectively. The Company has an unsecured delayed draw term loan facility with committed borrowing availability of approximately $1.7 billion (the Delayed Draw Term Loan Facility), which can be increased by an additional $500 million via an accordion feature. As of May 31, 2026, the Company had outstanding borrowings of $1.7 billion under the credit agreement governing its unsecured Delayed Draw Term Loan Facility. The Company may at any time prepay the loan, in whole or in part, without premium or penalty. The term loans maturity date is three years from the initial effectiveness date of the credit agreement or May 2028, and at the Companys discretion, it can be extended for an additional year until May 2029, subject to the satisfaction …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Financial Instruments and Fair Value Disclosures The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at May 31, 2026 and November 30, 2025, using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash and cash equivalents, restricted cash, receivables, net and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. At May 31, 2026 At November 30, 2025 (In thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value ASSETS Financial Services: Loans held-for-sale Level 3 $ 13,830 13,959 15,547 15,547 Investments held-to-maturity Level 3 129,320 127,778 132,868 132,032 LIABILITIES Homebuilding senior notes and other debts payable, net Level 2 $ 4,047,487 4,072,154 4,084,686 4,122,169 Financial Services notes and other debts payable, net Level 2 1,963,746 1,964,163 1,790,309 1,790,789 The following methods and assumptions are used by the Company in estimating fair values: Financial Services - The fair values above are based on quoted market prices, if available. The fair values for …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The provision for income taxes and effective tax rate were as follows: Three Months Ended Six Months Ended May 31, May 31, (Dollars in thousands) 2026 2025 2026 2025 Provision for income taxes $105,058 160,061 174,150 329,586 Effective tax rate (1) 25.6% 25.1% 24.6 % 24.8 % (1) For the three and six months ended May 31, 2026 and 2025, the effective tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits.

IncomeTaxDisclosureTextBlock

Recently Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires public companies to annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). ASU 2023-09 is effective for the Company's fiscal year ending November 30, 2026 and may be applied either retrospectively or prospectively. The Company does not expect ASU 2023-09 to have a material effect on its condensed consolidated financial statements and disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (ASU 2024-03), which requires disclosure of disaggregated information about certain income statement expense line items in the notes to the financial statements on an interim and annual basis. ASU 2024-03 will be effective for the Company's fiscal year ending November 30, 2028. The Company is currently evaluating the impact that the adoption of ASU 2024-03 will have on its condensed consolidated financial statements and disclosures. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Operating and Reporting Segments Operations of the Companys Homebuilding segments primarily include the construction and sale of single-family attached and detached homes, as well as the purchase, development and sale of residential land directly and through the Companys unconsolidated entities. The Company defines the Chief Operating Decision Maker (""CODM"") function as the Executive Chairman, Chief Executive Officer and President. The CODM manages and assesses the Company's Homebuilding performance at a regional level. The CODM evaluates the Homebuilding segment performance using each segments revenues generated from sales of homes and earnings (loss) before income taxes. These operating results are reviewed against the annual business plan and quarterly forecast updates, as applicable, and used by the CODM when making the Companys decisions about the allocation of operating and capital resources to each Homebuilding segment. The CODMs evaluation of the Financial Services, Multifamily and Lennar Other segments is based on the revenues and earnings (loss) before income taxes. Operational results of each segment are not necessarily indicative of the results that would have occurred had the segment been an independent, stand-alone entity during the periods presented. The following are the Companys operating and reportable segments: Homebuilding segments: (1) East (2) Central (3) South Central (4) West (5) Financial Services (6) Multifamily (7) Lennar Other The assets and lia …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Stockholders' Equity The following tables reflect the changes in equity attributable to both Lennar Corporation and the noncontrolling interests of its consolidated subsidiaries in which it has less than a 100% ownership interest for the three and six months ended May 31, 2026 and 2025: Three Months Ended May 31, 2026 (In thousands) Total Equity Class A Common Stock Class B Common Stock Additional Paid-in Capital Treasury Stock Accumulated Other Comprehensive Income Retained Earnings Noncontrolling Interests Balance at February 28, 2026 $ 22,032,263 26,319 3,660 5,993,733 (6,727,316) 5,606 22,577,374 152,887 Net earnings (including net earnings attributable to noncontrolling interests) 308,129 304,772 3,357 Employee stock and directors plans (15,489) (10) 302 (15,781) Purchases of treasury stock (451,305) (451,305) Amortization of restricted stock 26,271 26,271 Cash dividends (123,057) (123,057) Receipts related to noncontrolling interests 1,460 1,460 Payments related to noncontrolling interests (15,700) (15,700) Non-cash purchase or activity of noncontrolling interests, net 3,084 3,084 Total other comprehensive income, net of tax 70 70 Balance at May 31, 2026 $ 21,765,726 26,309 3,660 6,020,306 (7,194,402) 5,676 22,759,089 145,088 Three Months Ended May 31, 2025 (In thousands) Total Equity Class A Common Stock Class B Common Stock Additional Paid-in Capital Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interests Balance at Febr …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing