Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and accompanying notes included under Item 1 of this Quarterly Report on Form 10-Q and our audited consolidated financial statements and accompanying notes included in our 2024 Form 10-K.

Outlook

In the second quarter of 2025, our company navigated through a challenging economic environment. Despite these challenges, we remained steadfast in our strategy to drive volume and growth, matching production and sales pace while using margin as the shock absorber to enable affordability and avoid the build-up of excess inventory. Our focus on volume and even-flow production enabled us to re-rationalize our cost structure in order to find a floor and rebuild margin even as the overall housing market continues to soften.

The macroeconomic landscape remains challenging, with higher mortgage interest rates and diminished consumer confidence being affected by a wide range of uncertainties, both domestic and global. At the same time, supply remains constrained by years of underproduction. New construction has slowed as builders have pulled back on production due to mixed demand signals, exacerbating the chronic supply shortage. Additionally, restrictive land permitting, along with higher impact fees, remain as constraints on supply, while labor and material costs, and costs of lumber, in particular, are generally increasing. Demand, however, is still high, as people want and need homes. Millennials are reaching the prime buying age and are realizing the benefit, and perhaps importance, of homeownership. But affordability and waning confidence are sending confusing signals. Actionable demand continues to cool. This is a difficult cycle, as low supply fuels high prices which lock out many of our homebuyers.

Our operational strategy is clear: we are building and delivering consistent volume by meeting the market at affordability and pushing efficiencies through our platform. We strongly believe this will produce greater efficiencies and drive down costs. Financially, we are focused on driving an efficient, land-light balance sheet to effectively have land banks and third parties hold and develop our land assets while we build cash flow. We have intentionally maintained volume rather than protecting our margin. In the past, we protected margin as market conditions slowed. However, we have learned that once we step backwards and lose momentum, it becomes difficult to restart and recapture volume. The recovery is difficult and expensive, and we end up coming back as the exact same company that we were before, with no significant changes for the future. We believe we are starting to see a bottom in the free fall in our margin that began with the spike in interest rates in 2022. Our construction costs have decreased over the past two and a half years, and we believe our margins will stabilize as we use our growing volume to work with our trade partners to reduce costs and build efficiencies.

With regard to our financial strategy of driving a land-light balance sheet, the Millrose spin-off was a critical part of this strategy, but there is more to accomplish. Predictable volume creates greater certainty for the capital markets and will help build more capital-efficient land banking vehicles to interface with our business. We are continuing to drive certainty with dependable volume for our land banking partners. That dependability will translate into certainty and predictability for us.

Additionally, this part of our strategy benefits from efficiencies derived from our technology-enabled solutions. We have spent considerable time working with, investing in, and exploring technology, and we believe that productivity and efficiencies can be significantly enhanced when these solutions achieve company-wide adoption. But modern technology is not plug-and-play. It requires substantial monetary investment, management time, and widespread engagement.

Looking ahead to the third quarter of 2025, we anticipate selling and delivering between 22,000 and 23,000 homes. Our average sales price is expected to be between $380,000 and $385,000, as we continue to see pricing pressure on homes sold during the quarter. We are focused on driving sales and closings and maintaining strong current cash flow even at reduced profitability. We expect our margin to come in at approximately 18%, depending on market conditions. For the full year, we expect to deliver at the low end of our previously stated range of 86,000 to 88,000 homes in 2025.

While the short-term road ahead may seem choppy, we are optimistic about our future. We are well-prepared with a strong national footprint, increasing community count, and growing volume. Our strong balance sheet and land banking relationships, along with our technology-enabled solutions, will afford us flexibility and advantaged opportunities for strategic growth.

(1) Results of Operations

Overview

We historically have experienced, and expect to continue to experience, variability in quarterly results. Our results of operations for the three and six months ended May 31, 2025 are not necessarily indicative of the results to be expected for the full year. Our homebuilding business is seasonal in nature and generally reflects higher levels of new home order activity in our second and third fiscal quarters and increased deliveries in the second half of our fiscal year. However, a variety of factors can alter seasonal patterns.

Our net earnings attributable to Lennar were $477.4 million, or $1.81 per diluted share, in the second quarter of 2025, compared to our second quarter net earnings attributable to Lennar in 2024 of $954.3 million, or $3.45 per diluted share. Excluding mark-to-market losses on technology investments, second quarter net earnings attributable to Lennar in 2025 were $499.5 million, or $1.90 per diluted share. Excluding mark-to-market losses on technology investments and one-time gain on the sale of a technology investment, our second quarter net earnings attributable to Lennar in 2024 were $935.3 million or $3.38 per diluted share.

Financial information relating to our operations was as follows:

			Three Months Ended May 31, 2025
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	7,788,275					—						—						—						—						7,788,275
Sales of land			43,195						—						—						—						—						43,195
Other revenues			12,392						298,098						230,305						5,237						—						546,032
Total revenues			7,843,862						298,098						230,305						5,237						—						8,377,502
Costs and expenses:
Costs of homes sold			6,402,532						—						—						—						—						6,402,532
Costs of land sold			56,173						—						—						—						—						56,173
Selling, general and administrative expenses			688,847						—						—						—						—						688,847
Other costs and expenses			—						140,818						254,677						30,025						—						425,520
Total costs and expenses			7,147,552						140,818						254,677						30,025						—						7,573,072
Equity in earnings (losses) from unconsolidated entities			17,716						—						(5,269)						(331)						—						12,116
Other income, net and other gains			14,208						—						14,887						1,664						—						30,759
Lennar Other unrealized losses from technology investments			—						—						—						(29,440)						—						(29,440)
Operating earnings (loss)			$	728,234					157,280						(14,754)						(52,895)						—						817,865
Corporate general and administrative expenses			—						—						—						—						155,853						155,853
Charitable foundation contribution			—						—						—						—						20,131						20,131
Earnings (loss) before income taxes			$	728,234					157,280						(14,754)						(52,895)						(175,984)						641,881

			Three Months Ended May 31, 2024
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	8,357,750					—						—						—						—						8,357,750
Sales of land			13,598						—						—						—						—						13,598
Other revenues			9,711						281,723						99,500						3,310						—						394,244
Total revenues			8,381,059						281,723						99,500						3,310						—						8,765,592
Costs and expenses:
Costs of homes sold			6,469,952						—						—						—						—						6,469,952
Costs of land sold			6,903						—						—						—						—						6,903
Selling, general and administrative expenses			629,600						—						—						—						—						629,600
Other costs and expenses			—						134,711						102,205						26,841						—						263,757
Total costs and expenses			7,106,455						134,711						102,205						26,841						—						7,370,212
Equity in earnings (losses) from unconsolidated entities			15,516						—						(17,557)						(2,268)						—						(4,309)
Other income (expense), net and other gains (losses)			50,035						—						(212)						18,349						—						68,172
Lennar Other unrealized losses from technology investments			—						—						—						(21,514)						—						(21,514)
Operating earnings (loss)			$	1,340,155					147,012						(20,474)						(28,964)						—						1,437,729
Corporate general and administrative expenses			—						—						—						—						156,982						156,982
Charitable foundation contribution			—						—						—						—						19,690						19,690
Earnings (loss) before income taxes			$	1,340,155					147,012						(20,474)						(28,964)						(176,672)						1,261,057

			Six Months Ended May 31, 2025
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	15,028,821					—						—						—						—						15,028,821
Sales of land			78,521						—						—						—						—						78,521
Other revenues			20,390						575,175						293,501						12,639						—						901,705
Total revenues			15,127,732						575,175						293,501						12,639						—						16,009,047
Costs and expenses:
Costs of homes sold			12,290,676						—						—						—						—						12,290,676
Costs of land sold			92,250						—						—						—						—						92,250
Selling, general and administrative expenses			1,304,586						—						—						—						—						1,304,586
Other costs and expenses			—						274,412						328,053						53,589						—						656,054
Total costs and expenses			13,687,512						274,412						328,053						53,589						—						14,343,566
Equity in earnings (losses) from unconsolidated entities			52,720						—						(4,542)						(2,827)						—						45,351
Other income (expense), net and other gains (losses)			44,567						—						24,317						(6,458)						—						62,426
Lennar Other realized and unrealized losses from technology investments			—						—						—						(91,943)						—						(91,943)
Operating earnings (loss)			$	1,537,507					300,763						(14,777)						(142,178)						—						1,681,315
Corporate general and administrative expenses			—						—						—						—						303,231						303,231
Charitable foundation contribution			—						—						—						—						37,965						37,965
Earnings (loss) before income taxes			$	1,537,507					300,763						(14,777)						(142,178)						(341,196)						1,340,119

			Six Months Ended May 31, 2024
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	15,259,531					—						—						—						—						15,259,531
Sales of land			34,350						—						—						—						—						34,350
Other revenues			18,169						531,443						229,177						5,852						—						784,641
Total revenues			15,312,050						531,443						229,177						5,852						—						16,078,522
Homebuilding costs and expenses:
Costs of homes sold			11,865,484						—						—						—						—						11,865,484
Costs of land sold			20,920						—						—						—						—						20,920
Selling, general and administrative expenses			1,197,587						—						—						—						—						1,197,587
Other costs and expenses			—						253,135						234,872						35,929												523,936
Total costs and expenses			13,083,991						253,135						234,872						35,929						—						13,607,927
Equity in earnings (losses) from unconsolidated entities			28,818						—						(30,163)						(33,509)						—						(34,854)
Other income (expense), net and other gains (losses)			112,074						—						(255)						21,725						—						133,544
Lennar Other unrealized losses from technology investments			—						—						—						(26,651)						—						(26,651)
Operating earnings (loss)			$	2,368,951					278,308						(36,113)						(68,512)						—						2,542,634
Corporate general and administrative expenses			—						—						—						—						314,303						314,303
Charitable foundation contribution			—						—						—						—						36,488						36,488
Earnings (loss) before income taxes			$	2,368,951					278,308						(36,113)						(68,512)						(350,791)						2,191,843

On February 10, 2025, we completed our acquisition of Rausch Coleman Homes ("Rausch"). Prior year information includes only stand-alone data for Lennar Corporation for the three and six months ended May 31, 2024.

Three Months Ended May 31, 2025 versus Three Months Ended May 31, 2024

Revenues from home sales decreased 7% in the second quarter of 2025 to $7.8 billion from $8.4 billion in the second quarter of 2024. Revenues were lower primarily due to a 9% decrease in the average sales price of homes delivered, partially offset by a 2% increase in the number of home deliveries. New home deliveries increased to 20,131 homes in the second quarter of 2025 from 19,690 homes in the second quarter of 2024. The average sales price of homes delivered was $389,000 in the second quarter of 2025, compared to $426,000 in the second quarter of 2024. The decrease in average sales price of homes delivered in the second 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 17.8% (18.0% excluding purchase accounting), in the second quarter of 2025, compared to $1.9 billion, or 22.6%, in the second quarter of 2024. During the second quarter of 2025, gross margins decreased due to an increase in land costs year over year, as well as a decrease in revenue per square foot, which was partially offset by a decrease in construction costs as we continue to focus on construction cost savings.

Selling, general and administrative expenses were $688.8 million in the second quarter of 2025, compared to $629.6 million in the second quarter of 2024. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 8.8% in the second quarter of 2025, from 7.5% in the second quarter of 2024, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses.

During the three months ended May 31, 2025, our homebuilding operating earnings included $13.8 million of interest income, compared to $43.2 million of interest income in the three months ended May 31, 2024. The decrease in interest income was primarily due to lower cash balances year over year.

Operating earnings for the Financial Services segment were $156.6 million in the second quarter of 2025, compared to $146.3 million in the second 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.

Operating loss for the Multifamily segment was $14.8 million in the second quarter of 2025, compared to an operating loss of $20.4 million in the second quarter of 2024. Operating loss for the Lennar Other segment was $52.9 million in the second quarter of 2025, compared to an operating loss of $27.9 million in the second quarter of 2024. The Lennar Other operating loss

for the second quarter of 2025 was primarily due to losses on our technology investments. The Lennar Other operating loss for the second quarter of 2024 includes $21.5 million of mark-to-market losses on our publicly traded technology investments and a $46.5 million one-time gain on the sale of a technology investment.

In the second quarter of 2025 and 2024, we had tax provisions of $160.1 million and $300.5 million, which resulted in an overall effective income tax rate of 25.1% and 23.9%, respectively. For both periods, our effective income tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits. The increase in the effective tax rate in the second quarter of 2025 from the prior year was primarily due to a decrease in solar tax credits.

Six Months Ended May 31, 2025 versus Six Months Ended May 31, 2024

Revenues from home sales were $15.0 billion and $15.3 billion in the six months ended May 31, 2025 and 2024, respectively. Revenues were flat primarily because of a 4% increase in the number of home deliveries, which was offset by a 5% decrease in average sales price of home deliveries. New home deliveries increased to 37,965 homes in the six months ended May 31, 2025 from 36,488 homes in the six months ended May 31, 2024. The average sales price of homes delivered was $398,000 in the six months ended May 31, 2025, compared to $420,000 in the six months ended May 31, 2024. The decrease in average sales price of homes delivered in the six months ended May 31, 2025 compared to the same period last year was primarily due to continued weakness in the market.

Gross margins on home sales were $2.7 billion, or 18.2% (18.4% excluding purchase accounting), in the six months ended May 31, 2025, compared to $3.4 billion, or 22.2%, in the six months ended May 31, 2024. During the six months ended May 31, 2025, gross margins decreased due to an increase in land costs year over year, as well as a decrease in revenue per square foot, which was partially offset by a decrease in construction costs as we continue to focus on construction cost savings.

Selling, general and administrative expenses were $1.3 billion in the six months ended May 31, 2025, compared to $1.2 billion in the six months ended May 31, 2024. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 8.7% in the six months ended May 31, 2025, from 7.8% in the six months ended May 31, 2024, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses.

During the six months ended May 31, 2025, our homebuilding operating earnings included $37.0 million of interest income, compared to $100.8 million of interest income in the six months ended May 31, 2024. The decrease in interest income was primarily due to lower cash balances year over year.

Operating earnings for the Financial Services segment were $299.5 million in the six months ended May 31, 2025, compared to $276.9 million in the six months ended May 31, 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.

Operating loss for the Multifamily segment was $14.5 million in the six months ended May 31, 2025, compared to operating loss of $35.9 million in the six months ended May 31, 2024. Operating loss for the Lennar Other segment was $142.2 million in the six months ended May 31, 2025, compared to operating loss of $67.4 million in the six months ended May 31, 2024. The Lennar Other operating loss for the second quarter of 2025 was primarily due to losses on our technology investments. The Lennar Other operating loss for the six months ended May 31, 2024 included $26.7 million of mark-to-market losses on our publicly traded technology investments and a $46.5 million one-time gain on the sale of a technology investment.

For the six months ended May 31, 2025 and 2024, we had tax provisions of $329.6 million and $511.3 million, respectively, which resulted in overall effective income tax rates of 24.8% and 23.4%, respectively. For both periods, our effective income tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits. The increase in the effective tax rate in the six months ended May 31, 2025 from the prior year was primarily due to a decrease in excess tax benefits from share-based compensation and a decrease in solar tax credits.

Homebuilding Segments

At May 31, 2025, our reportable Homebuilding segments and Homebuilding Other are outlined in Note 3 of the Notes to Condensed Consolidated Financial Statements. The following tables set forth selected financial and operational information related to our homebuilding operations for the periods indicated:

Selected Financial and Operational Data

			Three Months Ended May 31, 2025
			Gross Margins																		Operating Earnings
($ in thousands)			Sales of Homes Revenue						Costs of Sales of Homes						Gross Margin (Loss) %						Net Margins (Losses) on Sales of Homes (1)						Gross Margins (Losses) on Sales of Land						Other Revenues						Equity in Earnings (Losses) from Unconsolidated Entities						Other Income (Expense), net						Operating Earnings
East			$	1,689,129					1,367,873						19.0		%				154,866						793						3,714						8,295						7,336						175,004
Central			1,769,582						1,440,084						18.6		%				162,742						(1,789)						1,963						(1)						924						163,839
South Central			1,505,750						1,241,884						17.5		%				137,955						(1,415)						1,058						(6)						(903)						136,689
West			2,818,980						2,346,962						16.7		%				254,863						(10,567)						2,095						1,038						(2,005)						245,424
Other (2)			4,834						5,729						(18.5)		%				(13,530)						—						3,562						8,390						8,856						7,278
Totals			$	7,788,275					6,402,532						17.8		%				696,896						(12,978)						12,392						17,716						14,208						728,234

			Three Months Ended May 31, 2024
			Gross Margins																		Operating Earnings
($ in thousands)			Sales of Homes Revenue						Costs of Sales of Homes						Gross Margin (Loss) %						Net Margins (Losses) on Sales of Homes (1)						Gross Margins (Losses) on Sales of Land						Other Revenues						Equity in Earnings (Losses) from Unconsolidated Entities						Other Income, net						Operating Earnings
East			$	2,123,136					1,555,904						26.7		%				389,854						6,332						2,896						5,317						22,649						427,048
Central			1,769,843						1,384,261						21.8		%				227,555						(30)						1,436						(10)						7,485						236,436
South Central			1,194,525						912,228						23.6		%				179,400						393						680						(3)						4,106						184,576
West			3,263,903						2,609,981						20.0		%				467,453						—						1,564						1,236						8,684						478,937
Other (2)			6,343						7,578						(19.5)		%				(6,064)						—						3,135						8,976						7,111						13,158
Totals			$	8,357,750					6,469,952						22.6		%				1,258,198						6,695						9,711						15,516						50,035						1,340,155

			Six Months Ended May 31, 2025
			Gross Margins																		Operating Earnings
($ in thousands)			Sales of Homes Revenue						Costs of Sales of Homes						Gross Margin (Loss) %						Net Margins (Losses) on Sales of Homes (1)						Gross Margins (Losses) on Sales of Land						Other Revenue						Equity in Earnings (Losses) from Unconsolidated Entities						Other Income (Expense), net						Operating Earnings
East			$	3,317,027					2,646,520						20.2		%				342,915						865						6,449						14,933						32,464						397,626
Central			3,327,136						2,710,067						18.5		%				297,005						(3,690)						2,817						(4)						3,163						299,291
South Central			2,666,273						2,188,413						17.9		%				257,127						1,249						1,759						(8)						(1,355)						258,772
West			5,707,665						4,733,641						17.1		%				554,488						(12,153)						3,343						1,010						(2,483)						544,205
Other (2)			10,720						12,035						(12.3)		%				(17,976)						—						6,022						36,789						12,778						37,613
Totals			$	15,028,821					12,290,676						18.2		%				1,433,559						(13,729)						20,390						52,720						44,567						1,537,507

			Six Months Ended May 31, 2024
			Gross Margins																		Operating Earnings
($ in thousands)			Sales of Homes Revenue						Costs of Sales of Homes						Gross Margin (Loss) %						Net Margins (Losses) on Sales of Homes (1)						Gross Margins (Losses) on Sales of Land						Other Revenue						Equity in Earnings (Losses) from Unconsolidated Entities						Other Income, net						Operating Earnings
East			$	3,986,022					2,898,873						27.3		%				736,193						11,596						5,207						12,414						38,548						803,958
Central			3,210,271						2,540,020						20.9		%				377,889						(451)						2,322						6						18,293						398,059
South Central			2,264,683						1,744,100						23.0		%				340,993						1,434						1,292						(3)						9,441						353,157
West			5,785,395						4,665,604						19.4		%				754,515						851						3,208						3,713						25,437						787,724
Other (2)			13,160						16,887						(28.3)		%				(13,130)						—						6,140						12,688						20,355						26,053
Totals			$	15,259,531					11,865,484						22.2		%				2,196,460						13,430						18,169						28,818						112,074						2,368,951

(1)Net margins on sales of homes include selling, general and administrative expenses.

(2)Negative gross and net margins were due to period costs in Urban divisions that impact costs of homes sold without sufficient sales of homes revenue to offset those costs.

Summary of Homebuilding Data

Deliveries:

			Three Months Ended May 31,
			2025						2024						2025						2024						2025						2024
			Homes												Dollar Value (In thousands)												Average Sales Price
East			4,676						5,324						$	1,740,181					2,158,317						$	372,000					405,000
Central			4,604						4,393						1,769,582						1,769,842						384,000						403,000
South Central			6,174						4,669						1,505,750						1,194,525						244,000						256,000
West			4,669						5,292						2,818,980						3,263,904						604,000						617,000
Other			8						12						4,834						6,343						604,000						529,000
Total			20,131						19,690						$	7,839,327					8,392,931						$	389,000					426,000

Of the total homes delivered listed above, 113 homes with a dollar value of $51.1 million and an average sales price of $452,000 represent homes from unconsolidated entities for the three months ended May 31, 2025, compared to 70 homes with a dollar value of $35.2 million and an average sales price of $503,000 for the three months ended May 31, 2024.

			Six Months Ended May 31,
			2025						2024						2025						2024						2025						2024
			Homes												Dollar Value (In thousands)												Average Sales Price
East			8,987						9,907						$	3,409,061					4,064,163						$	379,000					410,000
Central			8,633						8,094						3,327,137						3,210,271						385,000						397,000
South Central			10,904						8,932						2,666,273						2,264,683						245,000						254,000
West			9,425						9,530						5,707,665						5,785,395						606,000						607,000
Other			16						25						10,720						13,160						670,000						526,000
Total			37,965						36,488						$	15,120,856					15,337,672						$	398,000					420,000

Of the total homes delivered listed above, 193 homes with a dollar value of $92.0 million and an average sales price of $477,000 represent homes from unconsolidated entities for the six months ended May 31, 2025, compared to 147 homes with a dollar value of $78.1 million and an average sales price of $532,000 for the six months ended May 31, 2024.

Sales Incentives (1):

			Three Months Ended May 31,																											Six Months Ended May 31,
						2025						2024						2025						2024						2025						2024						2025						2024
						Average Sales Incentives Per Home Delivered												Sales Incentives as a % of Revenue												Average Sales Incentives Per Home Delivered												Sales Incentives as a % of Revenue
East						$	75,100					47,800						16.9		%				10.6		%				$	71,400					47,200						15.9		%				10.4		%
Central						45,600						38,000						10.6		%				8.6		%				47,900						41,900						11.1		%				9.6		%
South Central						54,400						48,500						18.2		%				15.9		%				56,100						51,600						18.7		%				16.9		%
West						64,600						41,800						9.7		%				6.3		%				65,000						47,300						9.7		%				7.2		%
Other						101,700						73,400						14.4		%				12.2		%				99,500						81,700						12.9		%				13.4		%
Total						$	59,500					44,200						13.3		%				9.4		%				$	60,000					47,100						13.1		%				10.1		%

(1) Sales incentives relate to homes delivered during the period, excluding homes delivered by unconsolidated entities.

New Orders (2):

			Three Months Ended May 31,
			2025						2024						2025						2024						2025						2024						2025						2024
			Active Communities												Homes												Dollar Value (In thousands)												Average Sales Price
East			326						287						5,502						4,758						$	1,937,371					1,958,763						$	352,000					412,000
Central			457						354						5,368						5,574						2,028,662						2,218,888						378,000						398,000
South Central			391						239						6,626						5,213						1,607,319						1,332,392						243,000						256,000
West			441						363						5,098						5,735						2,997,528						3,679,145						588,000						642,000
Other			2						2						7						13						4,383						5,688						626,000						438,000
Total			1,617						1,245						22,601						21,293						$	8,575,263					9,194,876						$	379,000					432,000

Of the total new orders listed above, 141 homes with a dollar value of $69.8 million and an average sales price of $495,000 represent homes in 10 active communities from unconsolidated entities for the three months ended May 31, 2025, compared to 74 homes with a dollar value of $40.0 million and an average sales price of $540,000 in eight active communities for the three months ended May 31, 2024.

			Six Months Ended May 31,
			2025						2024						2025						2024						2025						2024
			Homes												Dollar Value (In thousands)												Average Sales Price
East			9,476						9,141						$	3,463,930					3,810,481						$	366,000					417,000
Central			10,007						9,991						3,864,160						3,983,784						386,000						399,000
South Central			11,547						9,644						2,780,180						2,452,391						241,000						254,000
West			9,909						10,662						5,886,178						6,675,384						594,000						626,000
Other			17						31						11,547						15,218						679,000						491,000
Total			40,956						39,469						$	16,005,995					16,937,258						$	391,000					429,000

Of the total new orders listed above, 242 homes with a dollar value of $129.7 million and an average sales price of $536,000 represent homes from unconsolidated entities for the six months ended May 31, 2025, compared to 120 homes with a dollar value of $65.2 million and an average sales price of $543,000 for the six months ended May 31, 2024.

(2)Homes represent the number of new sales contracts executed with homebuyers, net of cancellations, during the three and six months ended May 31, 2025 and May 31, 2024.

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

			Three Months Ended												Six Months Ended
			May 31,												May 31,
			2025						2024						2025						2024
East			14		%				17		%				15		%				17		%
Central			10		%				9		%				10		%				10		%
South Central			16		%				16		%				16		%				17		%
West			13		%				11		%				12		%				11		%
Other			13		%				13		%				19		%				9		%
Total			14		%				13		%				14		%				14		%

Backlog (3):

			At May 31,
			2025 (1)						2024						2025						2024						2025						2024
			Homes												Dollar Value (In thousands)												Average Sales Price
East			3,825						5,744						$	1,530,495					2,432,505						$	400,000					423,000
Central			4,781						5,130						1,937,087						2,171,264						405,000						423,000
South Central			3,430						2,607						815,681						663,648						238,000						255,000
West			3,500						4,383						2,200,051						2,962,332						629,000						676,000
Other			2						9						1,176						3,586						588,000						398,000
Total			15,538						17,873						$	6,484,490					8,233,335						$	417,000					461,000

Of the total homes in backlog listed above, 128 homes with a backlog dollar value of $101.4 million and an average sales price of $792,000 represent the backlog from unconsolidated entities at May 31, 2025, compared to 120 homes with a backlog dollar value of $61.5 million and an average sales price of $513,000 at May 31, 2024.

(3) During the six months ended May 31, 2025, backlog includes 914 acquired homes of which 186, 717 and 11 homes were in the Central, South Central and West homebuilding segments, respectively.

Backlog represents the number of homes under sales contracts. Homes are sold using sales contracts, which are generally accompanied by sales deposits. In some instances, purchasers are permitted to cancel sales contracts if they fail to qualify for financing or under certain other circumstances. Various state and federal laws and regulations may sometimes give purchasers a right to cancel contracts homes in backlog. We do not recognize revenue on homes under sales contracts until the sales are closed and title passes to the new homeowners.

Three Months Ended May 31, 2025 versus Three Months Ended May 31, 2024

Homebuilding East: Revenues from home sales decreased in the second quarter of 2025 compared to the second quarter of 2024, primarily due to a decrease in the number of homes delivered in all the states of the segment and lower average sales price on homes delivered in all the states of the segment except in New Jersey. The overall decrease in the number of homes delivered was primarily due to a decrease in the number of homes delivered per active community due to the timing of opening and closing of communities. The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of incentives and product mix. In the second quarter of 2025, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot. In addition, land costs increased year over year. Overall, gross margin percentage of homes delivered decreased year over year.

Homebuilding Central: Revenues from home sales were flat in the second quarter of 2025 compared to the second quarter of 2024, primarily due to an increase in the number of homes delivered in all states of the segment except in Georgia, Illinois, Indiana, Maryland, Minnesota and South Carolina, which was offset by a decrease in the average sales price of homes delivered in Alabama, Illinois, Maryland, North Carolina, South Carolina and Virginia. The overall increase in the number of homes delivered was primarily due to an increase in the number of active communities including communities acquired from Rausch. The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of incentives and product mix. In the second quarter of 2025, a decrease in revenues per square foot was offset by a decrease in costs per square foot. In addition, land costs increased year over year. Overall, gross margin percentage of homes delivered decreased year over year.

Homebuilding South Central: Revenues from home sales increased in the second quarter of 2025 compared to the second quarter of 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. The overall increase in the number of homes delivered was primarily due to an increase in the number of active communities including communities acquired from Rausch. The decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of incentives and product mix and product mix. In the second quarter of 2025, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot. In addition, land costs increased year over year. Overall, the gross margin percentage of homes delivered decreased year over year.

Homebuilding West: Revenues from home sales decreased in the second quarter of 2025 compared to the second quarter of 2024, primarily due to decreases in the number of homes delivered in all the states in the segment except in Idaho and Utah and in the average sales price of homes delivered in all the states in the segment except California and Idaho. The overall decrease in the number of homes delivered was primarily due to a decrease in the number of deliveries per active community due to the timing of opening and closing of communities. The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of incentives. In the second quarter of 2025, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot. In addition, land costs increased year over year. Overall, the gross margin percentage of homes delivered decreased year over year.

Six Months Ended May 31, 2025 versus Six Months Ended May 31, 2024

Homebuilding East: Revenues from home sales decreased in the six months ended May 31, 2025 compared to the six months ended May 31, 2024, primarily due to decreases in the number of homes delivered in all the states in the segment and the average sales price of homes delivered in all the states in the segment except in New Jersey. The overall decrease in the number of homes delivered was primarily due to a decrease in the number of homes delivered per active community due to the timing of opening and closing of communities. The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of incentives and product mix. In the six months ended May 31, 2025, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot. In addition, land costs increased year over year. Overall, gross margin percentage of homes delivered decreased year over year.

Homebuilding Central: Revenues from home sales increased in the six months ended May 31, 2025 compared to the six months ended May 31, 2024, primarily due to an increase in the number of homes delivered in all the states in the segment except in Maryland, Minnesota and South Carolina, which was partially offset by a decrease in the average sales price of homes delivered in all the states in the segment except in Indiana, Minnesota and Tennessee. The overall increase in the number of homes delivered was primarily due to an increase in the number of active communities including communities acquired from Rausch. The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of incentives and product mix. In the six months ended May 31, 2025, a decrease in revenues per square foot was partially offset by a decreas

e in costs per square foot. In addition, land costs increased year over year. Overall, gross margin percentage of homes delivered decreased year over year.

Homebuilding South Central: Revenues from home sales increased in the six months ended May 31, 2025, compared to the six months ended May 31, 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. The overall increase in the number of homes delivered was primarily due to an increase in the number of active communities including communities acquired from Rausch. The decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of incentives and product mix. In the six months ended May 31, 2025, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot. In addition, land costs increased year over year. Overall, the gross margin percentage of homes delivered decreased year over year.

Homebuilding West: Revenues from home sales decreased in the six months ended May 31, 2025 compared to the six months ended May 31, 2024, primarily due to a decrease in the number of homes delivered in all the states in the segment except in Arizona, Idaho, Utah and Washington. The overall decrease in the number of homes delivered was primarily due to a decrease in the number of homes delivered per active community due to the timing of opening and closing of communities. In the six months ended May 31, 2025, revenues per square foot were flat while costs per square foot decreased. In addition, land costs increased year over year. Overall, the gross margin percentage of homes delivered decreased year over year.

Financial Services Segment

Our Financial Services reportable segment provides mortgage financing, title and closing services primarily for buyers of our homes. The segment also originates and sells into securitizations commercial mortgage loans through its LMF Commercial business. Our Financial Services segment sells substantially all of the residential loans it originates within a short period in the secondary mortgage market, the majority of which are sold on a servicing released, non-recourse basis. After the loans are sold, we retain potential liability for possible claims by purchasers that we breached certain limited industry-standard representations and warranties in the loan sale agreements.

The following table sets forth selected financial and operational information related to the residential mortgage and title activities of our Financial Services segment:

			Three Months Ended												Six Months Ended
			May 31,												May 31,
(Dollars in thousands)			2025						2024						2025						2024
Dollar value of mortgages originated			$	4,877,000					4,998,000						9,320,000						9,110,000
Number of mortgages originated			13,600						13,700						25,900						25,200
Mortgage capture rate of Lennar homebuyers			85%						85%						85%						85%
Number of title and closing service transactions			21,000						20,200						39,200						38,000

At May 31, 2025 and November 30, 2024, the carrying value of Financial Services' commercial mortgage-backed securities was $134.3 million and $135.6 million, respectively. Details of these securities and related debt are disclosed in Note 3 of the Notes to Condensed Consolidated Financial Statements.

Multifamily Segment

We have been actively involved, primarily through unconsolidated funds and joint ventures, in the development and construction of multifamily rental properties. Our Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets.

The following table provides information related to our investment in the Multifamily segment:

Balance Sheets
(In thousands)			At May 31, 2025						At November 30, 2024
Multifamily investments in unconsolidated entities			$	518,453					503,303
Lennar's net investment in Multifamily			989,978						1,116,295

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. During the six months ended May 31, 2025, two additional LMV I rental operation projects were sold to third-party buyers.

Lennar Other Segment

Our Lennar Other segment includes fund investments we retained subsequent to our sale of the Rialto investment and asset management platform, as well as strategic investments in technology companies that are looking to improve the homebuilding and financial services industries to better serve homebuyers and homeowners and increase efficiencies. At May 31, 2025 and November 30, 2024, we had $790.5 million and $894.9 million, respectively, of assets in our Lennar Other segment, which included investments in unconsolidated entities of $368.0 million and $379.4 million, respectively. We have/had investments in Blend Labs, Inc. (“Blend Labs”), Hippo Holdings, Inc. (“Hippo”), Opendoor Technologies, Inc.(“Opendoor”), SmartRent, Inc. (“SmartRent”), Sonder Holdings, Inc. (“Sonder”) and Sunnova Energy International, Inc. (“Sunnova”), 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. All of the investments are accounted for as investments in equity securities which are held at fair value and the changes in fair values are recognized through earnings. Details of these investments are included within Note 3 of the Notes to Condensed Consolidated Financial Statements. The following is a detail of Lennar Other realized and unrealized losses from sales of shares and mark-to-market adjustments on our publicly traded technology investments:

			Three Months Ended												Six Months Ended
			May 31,												May 31,
(In thousands)			2025						2024						2025						2024
Blend Labs (BLND)			$	—					715						(3,737)						3,651
Hippo (HIPO)			(15,462)						10,737						(28,352)						27,186
Opendoor (OPEN)			(12,921)						(16,907)						(31,707)						(15,592)
SmartRent (SMRT)			—						(4,609)						(4,483)						(6,572)
Sonder (SOND)			—						(40)						(19)						11
Sunnova (NOVA)			(1,057)						(11,410)						(23,645)						(35,335)
Lennar Other realized and unrealized losses from technology investments (1)			$	(29,440)					(21,514)						(91,943)						(26,651)

(1)During the six months ended May 31, 2025, we realized a loss of $28.4 million on the sale of our shares in Blend Labs, SmartRent, Sonder and Sunnova and, as of May 31, 2025, have a small remaining interest in Sunnova.

(2) Financial Condition and Capital Resources

At May 31, 2025, we had cash and cash equivalents and restricted cash related to our homebuilding, financial services, multifamily and other operations of $1.5 billion, compared to $5.0 billion at November 30, 2024 and $3.9 billion at May 31, 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 cash borrowed under our warehouse lines of credit and our unsecured revolving credit facility (the “Credit Facility”). At May 31, 2025, we had $1.2 billion of homebuilding cash and cash equivalents and ended the second quarter with a total liquidity of $5.4 billion.

Operating Cash Flow Activities

During the six months ended May 31, 2025 and 2024, cash (used in) provided by operating activities totaled ($1.4) billion and $610 million, respectively. During the six months ended May 31, 2025, cash used in operating activities was impacted by an increase in inventories due to land purchases, land development and construction costs of $1.6 billion, an increase in deposits and pre-acquisition costs on real estate of $782 million as we increased the percentage of controlled homesites primarily as a result of option contracts with Millrose, and a decrease in accounts payable and other liabilities of $600 million. This was offset by our net earnings and a decrease in loans held-for-sale of $361 million primarily related to the sale of loans originated by our Financial Services segment.

During the six months ended May 31, 2024, cash provided by operating activities was impacted primarily by our net earnings, a decrease in loans held-for-sale of $336 million primarily related to the sale of loans originated by our Financial Services segment. This was partially offset by an increase in inventories due to strategic land purchases, land development and construction costs of $631 million, an increase in deposits and pre-acquisition costs on real estate of $755 million as we increased the percentage of controlled homesites, and a decrease in accounts payable and other liabilities of $381 million.

Investing Cash Flow Activities

During the six months ended May 31, 2025 and 2024, cash provided by (used in) investing activities totaled $183 million and ($275) million, respectively. During the six months ended May 31, 2025, our cash provided by investing activities was primarily due to $233 million received from the sale of an investment in a joint venture, $72 million proceeds from the sale of investments and distributions of capital from unconsolidated entities of $175 million, which primarily included (1) $32 million from Homebuilding unconsolidated entities, (2) $129 million from Multifamily entities and (3) $15 million from our Lennar Other

unconsolidated entities and $115 million proceeds from the sale of notes receivables. This was partially offset by the $254 million acquisition of Rausch, net of cash acquired. In addition, we had cash contributions of $145 million to unconsolidated entities, which included (1) $124 million to Homebuilding unconsolidated entities, (2) $7 million to Lennar other unconsolidated entities and (3) $14 million to Multifamily unconsolidated entities and $71 million of net additions of operating properties and equipment.

During the six months ended May 31, 2024, our cash used in investing activities was primarily due to cash contributions of $248 million to unconsolidated entities, which included (1) $118 million to Homebuilding unconsolidated entities, (2) $117 million to Lennar Other unconsolidated entities, and (3) $13 million to Multifamily unconsolidated entities and $112 million of net additions of operating properties and equipment. This was partially offset by distributions of capital from unconsolidated entities of $62 million, which primarily included (1) $40 million from Homebuilding unconsolidated entities, (2) $16 million from our Lennar Other unconsolidated entities, and (3) $6 million from Multifamily entities.

Financing Cash Flow Activities

During the six months ended May 31, 2025 and 2024, cash used in financing activities totaled $2.3 billion and $3.0 billion, respectively. During the six months ended May 31, 2025, cash used in financing activities was primarily due to (1) $515 million of net repayments under our Financial Services' warehouse facilities; (2) redemption of $500 million aggregate principal amount of our 4.75% senior notes due May 2025; (3) $416 million net cash in connection with the Millrose spin-off; (4) $386 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks; (5) $1.3 billion of repurchases of our common stock, which included $1.2 billion of repurchases under our repurchase program and $65 million of repurchases related to our equity compensation plan; and (6) $265 million of dividend payments. The cash used in financing activities was partially offset by the receipt of proceeds of the sale of $700 million aggregate principal amount of our 5.20% senior notes due 2030 and $400 million of net borrowings under our unsecured revolving credit facility.

During the six months ended May 31, 2024, cash used in financing activities was primarily due to (1) $754 million of net repayments under our Financial Services' warehouse facilities; (2) redemption of $454 million aggregate principal amount of our 4.50% senior notes due April 2024; (3) $100 million of partial repurchase of our 4.75% senior notes due 2027 (4) $1.2 billion of repurchases of our common stock, which included $1.1 billion of repurchases under our repurchase program and $86 million of repurchases related to our equity compensation plan; (5) $278 million of dividend payments; and (6) $145 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks.

Debt to total capital ratios are financial measures commonly used in the homebuilding industry and are presented to assist in understanding the leverage of our homebuilding operations. Homebuilding debt to total capital and net Homebuilding debt to total capital are calculated as follows:

(Dollars in thousands)			May 31, 2025						November 30, 2024						May 31, 2024
Homebuilding debt			$	2,791,987					2,258,283						2,241,507
Stockholders’ equity			22,579,080						27,870,135						26,877,874
Total capital			$	25,371,067					30,128,418						29,119,381
Homebuilding debt to total capital			11.0		%				7.5		%				7.7		%
Homebuilding debt			$	2,791,987					2,258,283						2,241,507
Less: Homebuilding cash and cash equivalents			1,168,143						4,662,643						3,597,493
Net Homebuilding debt			$	1,623,844					(2,404,360)						(1,355,986)
Net Homebuilding debt to total capital (1)			6.7		%				(9.4)		%				(5.3)		%

(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). We believe 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 our GAAP results.

At May 31, 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, issuance of senior notes and outstanding borrowings under our Credit Facility, partially offset by net earnings and a decrease in Homebuilding debt due to debt paydowns. At May 31, 2025, Homebuilding debt to total capital was higher compared to May 31, 2024, primarily as a result of a decrease in stockholders' equity due to the spin-off of Millrose, share repurchases, issuance of senior notes and outstanding borrowings under our Credit Facility, partially offset by net earnings and a decrease in Homebuilding debt due to debt paydowns.

We are continually exploring various types of transactions to manage our leverage and liquidity positions, take advantage of market opportunities and increase our revenues and earnings. These transactions may include the issuance of additional indebtedness, the repurchase of our outstanding indebtedness, the repurchase of our common stock, the acquisition of homebuilders and other companies, the purchase or sale of assets or lines of business, the issuance of common stock, strategic transactions to accelerate our land light strategy or securities convertible into shares of common stock, and/or the pursuit of other financing alternatives. In connection with some of our non-homebuilding businesses, we are also considering other types of transactions such as sales, restructurings, and joint ventures as we continue to move towards being a pure play homebuilding company.

On February 7, 2025, we successfully completed the taxable spin-off of Millrose from Lennar through a distribution of approximately 80% of Millrose's stock to our stockholders. We temporarily retain, but do not vote, the remaining 20% of the total outstanding shares of Millrose common stock, which we expect to dispose of through a subsequent spin-off, split-off, public offering, private sale or any combination of these potential transactions later in the year. In connection with the spin-off, we contributed to Millrose $5.6 billion in land assets and cash of $1.0 billion, which included $584 million of cash deposits related to option contracts. The spin-off transaction accelerates our longstanding strategy of becoming a pure-play, asset-light, new home manufacturing company.

On February 10, 2025, we acquired Rausch, a residential homebuilder based in Fayetteville, Arkansas. We acquired Rausch’s homebuilding operations while Millrose acquired Rausch's land assets and we have options on the land. With this acquisition, we have expanded our footprint into 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 Homebuilding senior notes and other debt payable as well as letters of credit and surety bonds are summarized within Note 8 of the Notes to Condensed Consolidated Financial Statements. Our Homebuilding average debt outstanding and the average rates of interest was as follows:

			Six Months Ended May 31,
(Dollars in thousands)			2025						2024
Homebuilding average debt outstanding			$	2,528,378					2,640,040
Average interest rate			4.9%						4.8%
Interest incurred			$	73,335					70,275

In May 2025, we 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 our 100% owned homebuilding subsidiaries. Interest on the 5.20% Senior Notes is due semi-annually beginning January 30, 2026.

We utilized the net proceeds from the sale of the 5.20% senior notes primarily to pay off $500 million aggregate principal amount of our 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, we entered into a new unsecured delayed draw term loan facility with an initial committed borrowing availability of approximately $1.6 billion (the “Delayed Draw Term Loan Facility”), which can be increased by an additional $500 million via an accordion feature. The credit agreement governing our new unsecured Delayed Draw Term Loan Facility permits us to draw up to six times in the first 180 days after the effective date of the credit agreement or May 2028. Once drawn, we may at any time prepay the loan, in whole or in part, without premium or penalty. The term loan’s maturity date is three years from the initial effectiveness date of the credit agreement, and at our discretion, it can be extended for an additional year, subject to the satisfaction of certain conditions. Under the Delayed Draw Term Loan Facility, interest rates equal the

adjusted term SOFR determined for the interest period plus the applicable margin. As of May 31, 2025, there were no borrowings under the credit agreement governing the new unsecured Delayed Draw Term Loan Facility.

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

(In thousands)						At May 31, 2025
Commitments - maturing in May 2027						$	225,000
Commitments - maturing in November 2029						2,800,000
Total commitments						$	3,025,000
Accordion feature						475,000
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. In the first quarter of 2025, we received an additional $150 million in commitments. The Credit Facility also provides that up to $477.5 million in commitments may be used for letters of credit. The maturity, debt covenants and details of the Credit Facility are unchanged from the disclosure in the Financial Condition and Capital Resources section in our 2024 Form 10-K. In addition to the Credit Facility, we have other letter of credit facilities with different financial institutions.

Under the agreements governing our Credit Facility 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 coverage ratio. These ratios are calculated per the Credit Facility and Delayed Draw Term Loan Facility agreements, which involve adjustments to GAAP financial measures. We believe we were in compliance with our debt covenants as of May 31, 2025. The following summarizes our debt covenant requirements and our actual levels or ratios with respect to those covenants as calculated per the Credit Facility and Delayed Draw Term Loan Facility agreements as of May 31, 2025:

(Dollars in thousands)			Covenant Level						Level Achieved as of May 31, 2025
Minimum net worth test			$	10,000,000					16,545,782
Maximum leverage ratio			60.0%						12.4%
Liquidity test			1.00						246.00

Financial Services Warehouse Facilities

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. The LMF Commercial warehouse facilities finance LMF Commercial loan origination and securitization activities and are secured by up to 80% interests in the originated commercial loans financed. These facilities and the related borrowings and collateral are detailed in Note 3 of the Notes to Condensed Consolidated Financial Statements.

Changes in Capital Structure

In January 2024, our Board of Directors authorized an increase to our stock repurchase program to enable us to repurchase up to an additional $5 billion in value of our outstanding Class A or Class B common stock. Repurchases are authorized to be made in open-market or private transactions. The repurchase authorization has no expiration date. At May 31, 2025, we have a remaining authorization to repurchase $2.2 billion in value of our Class A or Class B common stock. The details of our Class A and Class B common stock repurchases under the authorized repurchase program for the six months ended May 31, 2025 and May 31, 2024 are included in Note 5 of the Notes to Condensed Consolidated Financial Statements.

During the six months ended May 31, 2025, treasury shares increased by 10.6 million shares primarily due to our repurchase of 9.9 million shares of Class A and Class B common stock through our stock repurchase program. During the six months ended May 31, 2024, treasury shares increased by 7.8 million shares primarily due to our repurchase of 7.2 million shares of Class A and Class B common stock through our stock repurchase program.

On February 7, 2025, we distributed a stock dividend consisting of 120,980,401 shares of Millrose Class A common stock and 11,819,811 shares of Millrose Class B common stock (representing approximately 80% of the total outstanding shares of Millrose common stock) to the holders of Lennar Class A or Class B common stock as of the close of business on January 21, 2025, the record date of the Millrose spin-off.

On June 19, 2025, our Board of Directors declared a quarterly cash dividend of $0.50 per share on both our Class A and Class B common stock, payable on July 18, 2025 to holders of record at the close of business on July 3, 2025. On May 7, 2025, we paid a quarterly cash dividend of 0.50 per share for both our Class A and Class B common stock to holders of record at the close of business day April 23, 2025. We approved and paid cash dividends of $0.50 per share for each of the four quarters of 2024 for both our Class A and Class B common stock.

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 guarantors of our senior notes are currently those subsidiaries that also guarantee Lennar Corporation's letter of credit facilities and its Credit Facility, which is disclosed in Note 8 of the Notes to Condensed Consolidated Financial Statements. Under the indentures governing our senior notes, guarantees may be suspended or released under certain circumstances.

Supplemental information for the Obligors, which excludes non-guarantor subsidiaries and intercompany transactions, at May 31, 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. Amounts due from and transactions with nonobligor subsidiaries and related parties are separately disclosed:

(In thousands)			At May 31, 2025						At November 30, 2024
Due from non-guarantor subsidiaries			$	13,973,126					18,396,060
Equity method investments			2,380,419						1,078,635
Total assets			39,893,911						50,251,091
Total liabilities			8,937,245						10,067,424

			Six Months Ended
(In thousands)			May 31, 2025
Total revenues			$	14,351,055
Operating earnings			1,500,174
Earnings before income taxes			1,165,553
Net earnings attributable to Lennar			876,581

Off-Balance Sheet Arrangements

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. We also monitor the performance of joint ventures in which we have investments on a regular basis to assess compliance with debt covenants. For those joint ventures not in compliance with the debt covenants, we evaluate and assess possible impairment of our investments. We believe that substantially all of the joint ventures were in compliance with applicable debt covenants at May 31, 2025.

Homebuilding: Investments in Unconsolidated Entities

As of May 31, 2025, we had equity investments in 54 active Homebuilding and land unconsolidated entities (of which 4 had recourse debt, 14 had non-recourse debt and 36 had no debt) compared to 51 active Homebuilding and land unconsolidated entities at November 30, 2024. Historically, we have invested in unconsolidated entities that acquired and developed land (1) for our homebuilding operations or for sale to third parties or (2) for the construction of homes for sale to third-party homebuyers. Through these entities, we have primarily sought to reduce and share our risk by limiting the amount of our capital invested in land, while obtaining access to potential future homesites and allowing us to participate in strategic ventures. The use of these entities also, in some instances, has enabled us to acquire land to which we could not otherwise obtain access, or could not obtain access on as favorable terms, without the participation of a strategic partner. Participants in these joint ventures have been land owners/developers, other homebuilders and financial or strategic partners. Joint ventures with land owners/developers have given us access to homesites owned or controlled by our partners. Joint ventures with other homebuilders have provided us with the ability to bid jointly with our partners for large land parcels. Joint ventures with financial partners have allowed us to combine our homebuilding expertise with access to our partners’ capital. 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 partners. Each joint venture is governed by an executive committee consisting of members from each partner. Details regarding these investments, balances and debt are included in Note 4 of the Notes to Condensed Consolidated Financial Statements.

The following table summarizes the principal maturities of our Homebuilding unconsolidated entities (“JVs”) debt as per current debt arrangements as of May 31, 2025. It does not represent estimates of future cash payments that will be made to reduce debt balances. Many JV loans have extension options in the loan agreements that would allow the loans to be extended into future years.

									Principal Maturities of Unconsolidated JVs by Period
(In thousands)									Total JV Debt						2025						2026						2027						Thereafter						Other
Bank debt without recourse to Lennar									$	1,393,293					224,027						156,833						420,179						592,254						—
Land seller and other debt without recourse to Lennar									(1,242)						—						—						—						(1,242)						—
Maximum recourse debt exposure to Lennar									33,913						—						12,003						—						21,910						—
Debt issuance costs									(6,159)						—						—						—						—						(6,159)
Total									$	1,419,805					224,027						168,836						420,179						612,922						(6,159)

We own an approximately 40% interest in FivePoint Holdings, LLC., a NYSE listed company, and companies it manages, which own three large multi-use properties in California.

We temporarily hold an approximately 20% investment in the total outstanding shares of Millrose common stock, which we expect to dispose of through a subsequent spin-off, split-off, public offering, private sale or any combination of these potential transactions later in the year.

Multifamily: Investments in Unconsolidated Entities

At May 31, 2025, Multifamily had equity investments in 25 active unconsolidated entities that are engaged in multifamily residential developments (of which 17 had non-recourse debt and 8 had no debt) compared to 23 active unconsolidated entities at November 30, 2024. We invest in unconsolidated entities that acquire and develop land to construct multifamily rental properties. Through these entities, we are focusing on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. Initially, we participated in building multifamily developments and selling them soon after they were completed. Participants in these joint ventures have been financial 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 participating voting rights on major decisions to our partners.

The Multifamily segment includes LMV I, LMV II, the CPPIB Fund and the Institutional JV, which are long-term multifamily development investment vehicles involved in the development and construction of class-A multifamily assets. Details of each fund as of and during the six months ended May 31, 2025 are included in Note 4 of the Notes to Condensed Consolidated Financial Statements.

The following table summarizes the principal maturities of our Multifamily unconsolidated entities debt as per current debt arrangements as of May 31, 2025. It does not represent estimates of future cash payments that will be made to reduce debt balances.

									Principal Maturities of Unconsolidated JVs by Period
(In thousands)									Total JV Debt						2025						2026						2027						Thereafter						Other
Debt without recourse to Lennar									$	2,449,245					221,597						1,134,528						777,565						315,555						—
Debt issuance costs									(21,190)						—						—						—						—						(21,190)
Total									$	2,428,055					221,597						1,134,528						777,565						315,555						(21,190)

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. We periodically receive advance distributions related to the carried interests in order to cover income tax obligations resulting from allocations of taxable income to the carried interests. These distributions are not subject to clawbacks but reduce future carried interest payments to which we become entitled from the applicable funds and are recorded as equity in earnings (losses) in the condensed consolidated statement of operations. Our investment in the Rialto funds totaled $132.9 million and $140.1 million as of May 31, 2025 and November 30, 2024, respectively.

As of May 31, 2025 and November 30, 2024, we had strategic technology investments in unconsolidated entities of $235.1 million and $239.3 million, respectively, accounted for under the equity method of accounting. Our strategic technology investments through our LENX business help to enhance the homebuying and homeownership experience, and are an important part of our focus on using technology to reduce costs. Details regarding these investments are included in Note 4 of the Notes to Condensed Consolidated Financial Statements.

Option Contracts

We often obtain access to land through option contracts, which generally enable us to control portions of properties owned by third parties (including land banks) and unconsolidated entities until we have determined whether to exercise the options. Since fiscal year 2020, we have been increasing the percentage of our total homesites that we control through option contracts rather than own.

The table below indicates the number of homesites to which we had access through option contracts with third parties and unconsolidated JVs (i.e., controlled homesites) and homesites owned (excluding homes in inventory):

																																	Years of
May 31, 2025															Controlled Homesites						Owned Homesites						Total Homesites						Supply Owned (1)
East															113,568						1,017						114,585
Central															133,925						3,948						137,873
South Central															168,768						2,236						171,004
West															99,155						3,356						102,511
Other															4,649						1,561						6,210
Total homesites															520,065						12,118						532,183						0.1
% of total homesites															98%						2%

																																	Years of
May 31, 2024															Controlled Homesites						Owned Homesites						Total Homesites						Supply Owned (1)
East															86,067						17,180						103,247
Central															77,747						32,090						109,837
South Central															98,297						18,721						117,018
West															72,617						21,688						94,305
Other															4,828						1,891						6,719
Total homesites															339,556						91,570						431,126						1.2
% of total homesites															79%						21%

(1)Based on trailing twelve months of homes delivered.

Details on option contracts, transactions with land banks and Millrose and related consolidated inventory not owned and exposure are included in Note 10 of the Notes to Condensed Consolidated Financial Statements.

Contractual Obligations and Commercial Commitments

Our contractual obligations and commercial commitments have not changed materially from those reported in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2024 Form 10-K, except for a decrease of $515 million in borrowings under the Financial Services' warehouse repurchase facilities, a decrease of $449 million in land purchase contract obligations, and an increase of $540 million in Homebuilding senior notes and other debts payable, net.

(3) Recently Adopted Accounting Pronouncements

See Note 1 of the Notes to Condensed Consolidated Financial Statements included under Item 1 of this Quarterly Report on Form 10-Q for a discussion of recently adopted accounting pronouncements.

(4) Critical Accounting Policies

There have been no significant changes to our critical accounting policies during the six months ended May 31, 2025 as compared to those we disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2024 Form 10-K.