EX-99.1 2 ex991-2025831x8kq3.htm EX-99.1 Document
Exhibit 99.1





Contact:
Ian Frazer
Investor Relations
Lennar Corporation
(305) 485-4129
FOR IMMEDIATE RELEASE

Lennar Reports Third Quarter 2025 Results
Third Quarter 2025 Highlights - comparisons to the prior year quarter
•Net earnings per diluted share of $2.29 ($2.00 excluding mark-to-market gains on technology investments)
•Net earnings of $591 million
•New orders increased 12% to 23,004 homes
•Backlog of 16,953 homes with a dollar value of $6.6 billion
•Deliveries of 21,584 homes - consistent with prior year
•Total revenues of $8.8 billion
•Homebuilding operating earnings of $760 million
◦Gross margin on home sales of 17.5%
◦SG&A expenses as a % of revenues from home sales of 8.2%
◦Net margin on home sales of 9.2%
•Financial Services operating earnings of $178 million
•Multifamily operating loss of $16 million
•Lennar Other operating earnings of $62 million
•Years supply of owned homesites of 0.1 years
•Controlled homesites of 98%
•Homebuilding cash and cash equivalents of $1.4 billion
•Outstanding borrowings of $1.1 billion under the Company's $3.1 billion revolving credit facility
•Homebuilding debt to total capital of 13.5%
•Repurchased 4.1 million shares of Lennar common stock for $507 million
(more)

2-2-2
Miami, September 18, 2025 -- Lennar Corporation (NYSE: LEN and LEN.B), one of the nation’s leading homebuilders, today reported results for its third quarter ended August 31, 2025. Third quarter net earnings attributable to Lennar in 2025 were $591 million, or $2.29 per diluted share, compared to third quarter net earnings attributable to Lennar in 2024 of $1.2 billion, or $4.26 per diluted share. Excluding mark-to-market gains of $99 million on technology investments, third quarter net earnings attributable to Lennar in 2025 were $516 million, or $2.00 per diluted share. Excluding mark-to-market gains of $39 million on technology investments and one-time items of $89 million in the Company's Multifamily segment, third quarter net earnings attributable to Lennar in 2024 were $1.1 billion or $3.90 per diluted share.
Stuart Miller, Executive Chairman and Co-Chief Executive Officer of Lennar, said, “Our third quarter results reflect both the continued pressures of today’s housing market and the consistency of Lennar’s operating strategy. This quarter, we delivered 21,584 homes and recorded 23,004 new orders. Achieving these results required additional incentives, resulting in a reduced average sales price of $383,000, and our gross margin drifted down to 17.5%, while our SG&A expenses came in at 8.2%, reflecting the soft market conditions.”
Mr. Miller continued, “While our current results reflect incentives and price adjustments to match market conditions, our scale and technology investments are building the foundation for structural cost efficiencies. Backed by a strong balance sheet and disciplined execution, we remain confident in our ability to build margin as conditions stabilize and to create sustained value.”
Jon Jaffe, Lennar’s Co-Chief Executive Officer and President, added, “During the quarter, we achieved a starts pace and sales pace of 4.4 homes and 4.7 homes per community per month, respectively, as we used targeted incentives, including mortgage rate buydowns, to sustain momentum. Additionally, we carefully managed our inventory levels, ending the quarter with fewer than two completed, unsold homes per active community, which is within our historical range. Inventory turns improved to 1.9 times, and cycle time improved to 126 days, the shortest cycle time we’ve ever experienced. This reflects the impact of our production-first approach and continued successful negotiations with our trade partners. These efficiency gains, together with our digital marketing and land-management initiatives, position us to deliver consistent volume, support affordability, and drive further improvements in our cost structure.”
Mr. Miller concluded, “Interest rates remained elevated throughout the third quarter, but then declined towards the quarter’s end. This downward trend, paired with the Fed’s recent rate cut, gives us optimism as we head into the fourth quarter. Therefore, we believe that now is a good time to moderate our volume and allow the market to catch up. Accordingly, for the fourth quarter of 2025, we expect new orders of 20,000 - 21,000 homes, deliveries of 22,000 - 23,000 homes, and gross margin of approximately 17.5%, consistent with the third quarter, depending on market conditions.”
“Looking ahead, the long-term need for housing remains, and we are committed to meeting affordability, sustaining even-flow production, and lowering costs through efficiency and scale.”



3-3-3
RESULTS OF OPERATIONS
THREE MONTHS ENDED AUGUST 31, 2025 COMPARED TO
THREE MONTHS ENDED AUGUST 31, 2024
As previously announced on February 10, 2025, Lennar Corporation completed its acquisition of Rausch Coleman Homes. Prior year information includes only stand-alone data for Lennar Corporation for the three months ended August 31, 2024.
Homebuilding
Revenues from home sales decreased 9% in the third quarter of 2025 to $8.2 billion from $9.0 billion in the third quarter of 2024. Revenues were lower primarily due to a 9% decrease in the average sales price of homes delivered. New home deliveries were 21,584 homes in the third quarter of 2025, compared to 21,516 homes in the third quarter of 2024. The average sales price of homes delivered was $383,000 in the third quarter of 2025, compared to $422,000 in the third quarter of 2024. The decrease in average sales price of homes delivered in the third quarter of 2025 compared to the same period last year was primarily due to continued weakness in the market.
Gross margins on home sales were $1.4 billion, or 17.5%, in the third quarter of 2025, compared to $2.0 billion, or 22.5%, in the third quarter of 2024. During the third quarter of 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 the Company’s continued focus on cost-saving initiatives.
Selling, general and administrative expenses were $676 million in the third quarter of 2025, compared to $601 million in the third quarter of 2024. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 8.2% in the third quarter of 2025, from 6.7% in the third quarter of 2024, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses.
Financial Services
Operating earnings for the Financial Services segment were $177 million in the third quarter of 2025, compared to $144 million in the third quarter of 2024. The increase in operating earnings was primarily due to higher profit per locked loan in the mortgage business as a result of higher margins.
Ancillary Businesses
Operating loss for the Multifamily segment was $16 million in the third quarter of 2025, compared to operating earnings of $79 million in the third quarter of 2024, which was positively impacted by a $179 million one-time net gain from the sale of assets in the Company's LMV Fund I, partially offset by a one-time $90 million write-down of non-core assets. Operating earnings for the Lennar Other segment were $62 million in the third quarter of 2025, compared to operating earnings of $20 million in the third quarter of 2024. The Lennar Other operating earnings for both the third quarter of 2025 and 2024 were primarily related to mark-to-market gains on technology investments.


4-4-4
Tax Rate
In the third quarter of 2025 and 2024, the Company had tax provisions of $191 million and $348 million, which resulted in an overall effective income tax rate of 24.4% and 23.0%, respectively. For both periods, the Company's effective income tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits. The increase in the effective tax rate for the third quarter of 2025 compared to the prior period was primarily due to a decrease in tax credits. On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was enacted, introducing various changes to U.S. federal tax law. The Company does not expect the Act to have a material impact on its consolidated financial statements for the fiscal year ending November 30, 2025 and is currently evaluating the potential impact of the Act on its future periods.                       
Share Repurchases
In the third quarter of 2025, the Company repurchased 4.1 million shares of its common stock for $507 million at an average share price of $122.97.
Guidance
The following are the Company's expected results of its homebuilding and financial services activities for the fourth quarter of 2025:
New Orders20,000 - 21,000
Deliveries22,000 - 23,000
Average Sales Price$380,000 - $390,000
Gross Margin % on Home SalesApproximately 17.5% - consistent with third quarter
SG&A as a % of Home Sales7.8% - 8.0%
Financial Services Operating Earnings$130 million - $135 million



5-5-5
About Lennar
Lennar Corporation, founded in 1954, is one of the nation’s leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar’s Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar’s homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout the United States. Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties. LENX drives Lennar's technology, innovation and strategic investments. For more information about Lennar, please visit www.lennar.com.
Note Regarding Forward-Looking Statements: Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the homebuilding market and other markets in which we participate, as well as our expected results and guidance. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those anticipated by the forward-looking statements. We wish to caution readers not to place undue reliance on any forward-looking statements, which are expressly qualified in their entirety by this cautionary statement and speak only as of the date made. Important factors that could cause differences between anticipated and actual results include 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 interest rates or increased competition in the mortgage industry; supply shortages and increased costs related to construction materials, including lumber, 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; 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 or the willingness of the funds to invest in new projects; reductions in the market value of our 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; any potential subsequent transactions we may enter into following our spin-off of Millrose Properties, Inc.; a decline in the value of the land and home inventories we maintain and resulting possible future writedowns of the carrying value of our real estate assets; the forfeiture of deposits related to land purchase options we decide not to exercise; the effects of public health issues such as a major epidemic or pandemic that could have a negative impact on the economy and on our businesses; possible unfavorable results in legal proceedings; conditions in the capital, credit and financial markets; changes in laws, regulations or the regulatory environment affecting our business, and the other risks and uncertainties described in our filings from time to time with the Securities and Exchange Commission, including those included under the captions “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10-K filed on January 23, 2025 and Quarterly Reports on Form 10-Q. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
A conference call to discuss the Company’s third quarter earnings will be held at 11:00 a.m. Eastern Time on Friday, September 19, 2025. The call will be broadcast live on the Internet and can be accessed through the Company’s website at investors.lennar.com. If you are unable to participate in the conference call, the call will be archived at investors.lennar.com for 90 days. A replay of the conference call will also be available later that day by calling 203-369-0176 and entering 5723593 as the confirmation number.
###


6-6-6
LENNAR CORPORATION AND SUBSIDIARIES
Selected Revenues and Operating Information
(In thousands, except per share amounts)
(unaudited)
Three Months EndedNine Months Ended
August 31,August 31,
2025202420252024
Revenues:
Homebuilding$8,253,675 9,045,692 23,381,407 24,357,742 
Financial Services314,195 273,270 889,370 804,713 
Multifamily228,465 93,443 521,966 322,620 
Lennar Other13,943 3,637 26,582 9,489 
Total revenues$8,810,278 9,416,042 24,819,325 25,494,564 
Homebuilding operating earnings$759,785 1,477,918 2,297,292 3,846,869 
Financial Services operating earnings177,872 144,400 478,635 422,708 
Multifamily operating earnings (loss) (16,471)78,908 (31,248)42,795 
Lennar Other operating earnings (loss)62,498 20,095 (79,680)(48,417)
Corporate general and administrative expenses(171,397)(164,672)(474,628)(478,975)
Charitable foundation contribution(21,584)(21,516)(59,549)(58,004)
Earnings before income taxes790,703 1,535,133 2,130,822 3,726,976 
Provision for income taxes(190,892)(347,859)(520,478)(859,195)
Net earnings (including net earnings attributable to noncontrolling interests)599,811 1,187,274 1,610,344 2,867,781 
Less: Net earnings attributable to noncontrolling interests8,844 24,600 22,402 31,462 
Net earnings attributable to Lennar$590,967 1,162,674 1,587,942 2,836,319 
Basic and diluted average shares outstanding255,601 270,164 259,540 273,604 
Basic and diluted earnings per share$2.29 4.26 6.06 10.26 
Supplemental information:
Interest incurred (1)$54,868 29,781 128,203 100,056 
EBIT (2):
Net earnings attributable to Lennar$590,967 1,162,674 1,587,942 2,836,319 
Provision for income taxes190,892 347,859 520,478 859,195 
Interest expense included in:
Costs of homes sold45,591 39,021 106,954 121,335 
Costs of land sold— 59 412 345 
Homebuilding other income (expense), net3,707 4,704 10,758 14,298 
Total interest expense49,298 43,784 118,124 135,978 
EBIT$831,157 1,554,317 2,226,544 3,831,492 
(1)Amount represents interest incurred related to homebuilding debt.
(2)EBIT is a non-GAAP financial measure defined as earnings before interest and taxes. This financial measure has been presented because the Company finds it important and useful in evaluating its performance and believes that it helps readers of the Company's financial statements compare its operations with those of its competitors. Although management finds EBIT to be an important measure in conducting and evaluating the Company's operations, this measure has limitations as an analytical tool as it is not reflective of the actual profitability generated by the Company during the period. Management compensates for the limitations of using EBIT by using this non-GAAP measure only to supplement the Company's GAAP results. Due to the limitations discussed, EBIT should not be viewed in isolation, as it is not a substitute for GAAP measures.


7-7-7
LENNAR CORPORATION AND SUBSIDIARIES
Segment Information
(In thousands)
(unaudited)
Three Months EndedNine Months Ended
August 31,August 31,
2025202420252024
Homebuilding revenues:
Sales of homes$8,213,580 9,017,627 23,242,401 24,277,158 
Sales of land30,521 19,466 109,042 53,816 
Other homebuilding9,574 8,599 29,964 26,768 
Total homebuilding revenues8,253,675 9,045,692 23,381,407 24,357,742 
Homebuilding costs and expenses:
Costs of homes sold6,779,563 6,989,603 19,070,239 18,855,087 
Costs of land sold41,065 22,720 133,315 43,640 
Selling, general and administrative676,491 600,719 1,981,077 1,798,306 
Total homebuilding costs and expenses7,497,119 7,613,042 21,184,631 20,697,033 
Homebuilding net margins756,556 1,432,650 2,196,776 3,660,709 
Homebuilding equity in earnings from unconsolidated entities10,190 25,220 62,910 54,038 
Homebuilding other income (expense), net(6,961)20,048 37,606 132,122 
Homebuilding operating earnings$759,785 1,477,918 2,297,292 3,846,869 
Financial Services revenues$314,195 273,270 889,370 804,713 
Financial Services costs and expenses136,323 128,870 410,735 382,005 
Financial Services operating earnings$177,872 144,400 478,635 422,708 
Multifamily revenues$228,465 93,443 521,966 322,620 
Multifamily costs and expenses238,791 184,708 566,844 419,580 
Multifamily equity in earnings (loss) from unconsolidated entities and other income (expense), net(6,145)170,173 13,630 139,755 
Multifamily operating earnings (loss)$(16,471)78,908 (31,248)42,795 
Lennar Other revenues$13,943 3,637 26,582 9,489 
Lennar Other costs and expenses45,450 17,176 99,039 53,105 
Lennar Other equity in loss from unconsolidated entities and other(5,218)(5,489)(14,503)(17,273)
Lennar Other realized and unrealized gains from technology investments (1)99,223 39,123 7,280 12,472 
Lennar Other operating earnings (loss)$62,498 20,095 (79,680)(48,417)
(1)The following is a detail of Lennar Other realized and unrealized gains from mark-to-market adjustments on technology investments:
Three Months EndedNine Months Ended
August 31,August 31,
2025202420252024
Blend Labs (BLND)$— 2,270 (3,737)5,921 
Hippo (HIPO)27,754 6,609 (598)33,795 
Opendoor (OPEN)71,345 (564)39,638 (16,156)
SmartRent (SMRT)— (5,634)(4,483)(12,206)
Sonder (SOND)— 71 (19)82 
Sunnova (NOVA)124 36,371 (23,521)1,036 
$99,223 39,123 7,280 12,472 


8-8-8
LENNAR CORPORATION AND SUBSIDIARIES
Summary of Deliveries, New Orders and Backlog
(Dollars in thousands, except average sales price)
(unaudited)
Lennar's 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
Three Months Ended August 31,
202520242025202420252024
Deliveries:HomesDollar ValueAverage Sales Price
East4,770 5,270 $1,744,875 2,108,031 $366,000 400,000 
Central5,469 5,510 2,072,731 2,202,207 379,000 400,000 
South Central6,413 5,067 1,507,314 1,283,781 235,000 253,000 
West4,926 5,663 2,950,118 3,470,255 599,000 613,000 
Other6 6 3,622 3,225 604,000 538,000 
Total21,584 21,516 $8,278,660 9,067,499 $383,000 422,000 
Of the total homes delivered listed above, 146 homes with a dollar value of $65 million and an average sales price of $446,000 represent homes from unconsolidated entities for the three months ended August 31, 2025, compared to 124 homes with a dollar value of $50 million and an average sales price of $402,000 for the three months ended August 31, 2024.
At August 31,Three Months Ended August 31,
20252024202520242025202420252024
New Orders:Active CommunitiesHomesDollar ValueAverage Sales Price
East348 293 5,665 4,641 $2,034,232 1,891,226 $359,000 408,000 
Central464 365 5,555 5,405 2,005,407 2,106,128 361,000 390,000 
South Central411 245 7,055 5,217 1,582,753 1,307,688 224,000 251,000 
West440 378 4,725 5,317 2,814,895 3,254,573 596,000 612,000 
Other1 2 4 7 2,445 2,444 611,000 349,000 
Total1,664 1,283 23,004 20,587 $8,439,732 8,562,059 $367,000 416,000 
Of the total new orders listed above, 104 homes with a dollar value of $57 million and an average sales price of $546,000 represent homes in nine active communities from unconsolidated entities for the three months ended August 31, 2025, compared to 114 homes with a dollar value of $69 million and an average sales price of $606,000 in 10 active communities for the three months ended August 31, 2024.
Nine Months Ended August 31,
202520242025202420252024
Deliveries:HomesDollar ValueAverage Sales Price
East13,757 15,177 $5,153,936 6,172,193 $375,000 407,000 
Central14,102 13,604 5,399,868 5,412,479 383,000 398,000 
South Central17,317 13,999 4,173,587 3,548,464 241,000 253,000 
West14,351 15,193 8,657,783 9,255,650 603,000 609,000 
Other22 31 14,341 16,385 652,000 529,000 
Total59,549 58,004 $23,399,515 24,405,171 $393,000 421,000 
Of the total homes delivered listed above, 339 homes with a dollar value of $157 million and an average sales price of $463,000 represent homes from unconsolidated entities for the nine months ended August 31, 2025, compared to 271 homes with a dollar value of $128 million and an average sales price of $472,000 for the nine months ended August 31, 2024.








9-9-9

Nine Months Ended August 31,
202520242025202420252024
New Orders:HomesDollar ValueAverage Sales Price
East15,141 13,782 $5,498,162 5,701,708 $363,000 414,000 
Central15,562 15,396 5,869,567 6,089,912 377,000 396,000 
South Central18,602 14,861 4,362,932 3,760,078 235,000 253,000 
West14,634 15,979 8,701,073 9,929,956 595,000 621,000 
Other21 38 13,993 17,663 666,000 465,000 
Total63,960 60,056 $24,445,727 25,499,317 $382,000 425,000 
Of the total new orders listed above, 346 homes with a dollar value of $186 million and an average sales price of $539,000 represent homes from unconsolidated entities for the nine months ended August 31, 2025, compared to 234 homes with a dollar value of $134 million and an average sales price of $574,000 for the nine months ended August 31, 2024.
At August 31,
2025 (1)20242025202420252024
Backlog:HomesDollar ValueAverage Sales Price
East4,720 5,115 $1,821,044 2,222,250 $386,000 434,000 
Central4,862 5,025 1,868,613 2,075,185 384,000 413,000 
South Central4,072 2,757 892,312 694,104 219,000 252,000 
West3,299 4,037 2,066,021 2,753,198 626,000 682,000 
Other— 10 — 2,805 — 280,000 
Total16,953 16,944 $6,647,990 7,747,542 $392,000 457,000 
Of the total homes in backlog listed above, 86 homes with a backlog dollar value of $93 million and an average sales price of $1.1 million represent the backlog from unconsolidated entities at August 31, 2025, compared to 110 homes with a backlog dollar value of $81 million and an average sales price of $734,000 at August 31, 2024.
(1) During the nine months ended August 31, 2025, backlog includes 909 acquired homes of which 181, 717 and 11 homes were in the Central, South Central and West homebuilding segments, respectively.


10-10-10
LENNAR CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
(unaudited)
August 31, 2025November 30, 2024
ASSETS
Homebuilding:
Cash and cash equivalents$1,406,215 4,662,643 
Restricted cash29,928 11,799 
Receivables, net948,295 1,053,211 
Inventories:
Finished homes and construction in progress10,049,466 10,884,861 
Land and land under development1,069,620 4,750,025 
Inventory owned11,119,086 15,634,886 
Consolidated inventory not owned2,258,568 4,084,665 
Inventory owned and consolidated inventory not owned13,377,654 19,719,551 
Deposits and pre-acquisition costs on real estate6,012,493 3,625,372 
Investments in unconsolidated entities2,648,329 1,344,836 
Goodwill3,442,359 3,442,359 
Other assets1,798,459 1,734,698 
29,663,732 35,594,469 
Financial Services3,368,588 3,516,550 
Multifamily1,001,478 1,306,818 
Lennar Other844,603 894,944 
Total assets$34,878,401 41,312,781 
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable$1,521,244 1,839,440 
Liabilities related to consolidated inventory not owned1,987,263 3,563,934
Senior notes and other debts payable, net3,523,766 2,258,283 
Other liabilities2,809,923 3,201,552 
9,842,196 10,863,209 
Financial Services2,070,051 2,140,708 
Multifamily116,014 181,883 
Lennar Other98,585 105,756 
Total liabilities12,126,846 13,291,556 
Stockholders’ equity:
Preferred stock— — 
Class A common stock of $0.10 par value26,153 25,998 
Class B common stock of $0.10 par value3,660 3,660 
Additional paid-in capital5,884,528 5,729,434 
Retained earnings22,107,836 25,753,078 
Treasury stock(5,457,876)(3,649,564)
Accumulated other comprehensive income6,019 7,529 
Total stockholders’ equity22,570,320 27,870,135 
Noncontrolling interests181,235 151,090 
Total equity22,751,555 28,021,225 
Total liabilities and equity$34,878,401 41,312,781 


11-11-11

LENNAR CORPORATION AND SUBSIDIARIES
Supplemental Data
(Dollars in thousands)
(unaudited)
August 31, 2025November 30, 2024August 31, 2024
Homebuilding debt$3,523,766 2,258,283 2,263,256 
Stockholders' equity22,570,320 27,870,135 27,412,520 
Total capital$26,094,086 30,128,418 29,675,776 
Homebuilding debt to total capital13.5 %7.5 %7.6 %
Homebuilding debt$3,523,766 2,258,283 2,263,256 
Less: Homebuilding cash and cash equivalents1,406,215 4,662,643 4,037,405 
Net homebuilding debt$2,117,551 (2,404,360)(1,774,149)
Net homebuilding debt to total capital (1)8.6 %(9.4)%(6.9)%

(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). The Company believes the ratio of net homebuilding debt to total capital is a relevant and a useful financial measure to investors in understanding the leverage employed in homebuilding operations. However, because net homebuilding debt to total capital is not calculated in accordance with GAAP, this financial measure should not be considered in isolation or as an alternative to financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement the Company's GAAP results.