EX-99.1 2 ex991-2025531x8kq2.htm EX-99 Document
Exhibit 99.1





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

Lennar Reports Second Quarter 2025 Results
Second Quarter 2025 Highlights - comparisons to the prior year quarter
•Net earnings per diluted share of $1.81 ($1.90 excluding mark-to-market losses on technology investments)
•Net earnings of $477 million
•New orders increased 6% to 22,601 homes
•Backlog of 15,538 homes with a dollar value of $6.5 billion
•Deliveries increased 2% to 20,131 homes
•Total revenues of $8.4 billion
•Homebuilding operating earnings of $728 million
◦Gross margin on home sales of 17.8% (18.0% excluding purchase accounting)
◦SG&A expenses as a % of revenues from home sales of 8.8%
◦Net margin on home sales of 8.9% (9.2% excluding purchase accounting)
•Financial Services operating earnings of $157 million
•Multifamily operating loss of $15 million
•Lennar Other operating loss of $53 million
•Years supply of owned homesites of 0.1 years
•Controlled homesites of 98%
•Homebuilding cash and cash equivalents of $1.2 billion; total liquidity of $5.4 billion
•Issued $700 million of 5.20% senior notes due 2030, primarily used to redeem $500 million of 4.75% senior notes due in May 2025
•Outstanding borrowings of $400 million under the Company's $3.0 billion revolving credit facility
•Homebuilding debt to total capital of 11.0%
•Repurchased 4.7 million shares of Lennar common stock for $517 million
(more)

2-2-2
Miami, June 16, 2025 -- Lennar Corporation (NYSE: LEN and LEN.B), one of the nation’s leading homebuilders, today reported results for its second quarter ended May 31, 2025. Second quarter net earnings attributable to Lennar in 2025 were $477 million, or $1.81 per diluted share, compared to second quarter net earnings attributable to Lennar in 2024 of $954 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 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, second quarter net earnings attributable to Lennar in 2024 were $935 million or $3.38 per diluted share.
Stuart Miller, Executive Chairman and Co-Chief Executive Officer of Lennar, said, "While we continue to see softness in the housing market due to affordability challenges and a decline in consumer confidence, we adhered to our strategy of driving starts, sales, and closings in order to build long-term efficiencies in our business.”
“During the quarter, we drove new orders to 22,601 homes, within our guidance, and delivered 20,131 homes, also within our guidance, as we continued to focus on matching production pace with sales pace. Accordingly, we ended the quarter with limited inventory of 2,900 homes, which is fewer than two completed, unsold homes per community, and continues to be within our historical range."
"Reflecting softer market conditions, our average sales price, net of incentives, declined to $389,000. As mortgage interest rates remained higher and consumer confidence continued to weaken, we drove volume with starts while incentivizing sales to enable affordability and help consumers to purchase homes. Additionally, our gross margin was 18.0% excluding purchase accounting, which met guidance, and our SG&A expenses ran higher at 8.8%, reflecting further investment and engagement in future efficiencies. We produced a 9.2% net margin, all contributing to earnings of $477 million, or $1.81 per diluted share."
"During the quarter, our balance sheet remained strong. We repaid $500 million of our 4.75% senior notes due in May 2025, issued $700 million in debt, and repurchased $517 million of our common stock. We ended the quarter with $5.4 billion in liquidity, and a homebuilding debt to total capital of 11.0%."
Jon Jaffe, Lennar’s Co-Chief Executive Officer and President, added, “On the operational front, our starts pace and sales pace in the second quarter were 5.1 homes and 4.7 homes per community per month, respectively, as we continue to move towards an even flow operating model. Our production-first focus led to a cycle time of 132 days this quarter, 12% lower than last year, which has a positive impact on our construction efficiency. In addition, our inventory turn improved to 1.8 times, compared to 1.6 last year, in part reflecting these efficiencies and, in part, as a result of our asset-light land strategy.”
Mr. Miller concluded, "We continue to focus on consistent volume and pace as we drive efficiencies through every part of our platform in order to realize improved margin even as market conditions soften. As we look ahead to the third quarter, we expect new orders between 22,000 and 23,000 homes, deliveries between 22,000 and 23,000 homes, and expect our gross margin to remain approximately 18%, all depending on market conditions.”



3-3-3
RESULTS OF OPERATIONS
THREE MONTHS ENDED MAY 31, 2025 COMPARED TO
THREE MONTHS ENDED MAY 31, 2024
As previously announced on February 10, 2025, Lennar Corporation completed its acquisition of Rausch Coleman Homes (“Rausch”). Prior year information includes only stand-alone data for Lennar Corporation for the three months ended May 31, 2024.
Homebuilding
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 the Company continues to focus on construction cost savings.
Selling, general and administrative expenses were $689 million in the second quarter of 2025, compared to $630 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.
Financial Services
Operating earnings for the Financial Services segment were $157 million in the second quarter of 2025, compared to $146 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.
Ancillary Businesses
Operating loss for the Multifamily segment was $15 million in the second quarter of 2025, compared to an operating loss of $20 million in the second quarter of 2024. Operating loss for the Lennar Other segment was $53 million in the second quarter of 2025, compared to an operating loss of $28 million in the second quarter of 2024. The Lennar Other operating loss for the second quarter of 2025 was primarily due to losses on the Company's technology investments. The Lennar Other operating loss for the second quarter of 2024 includes $22 million of mark-to-market losses on the Company's publicly traded technology investments and a $47 million one-time gain on the sale of a technology investment.


4-4-4
Tax Rate
In the second quarter of 2025 and 2024, the Company had tax provisions of $160 million and $300 million, which resulted in an overall effective income tax rate of 25.1% and 23.9%, 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 in the second quarter of 2025 from the prior year was primarily due to a decrease in solar tax credits.
OTHER TRANSACTIONS
Senior Notes
In May 2025, the Company issued $700 million in aggregate principal amount of 5.20% senior notes due 2030 (the "5.20% senior notes"). The Company utilized the net proceeds from the issuance of the 5.20% senior notes primarily to pay off $500 million aggregate principal amount of its 4.75% senior notes due May 2025.
Share Repurchases
In the second quarter of 2025, the Company repurchased 4.7 million shares of its common stock for $517 million at an average share price of $109.79.
Guidance
The following are the Company's expected results of its homebuilding and financial services activities for the third quarter of 2025:
New Orders22,000 - 23,000
Deliveries22,000 - 23,000
Average Sales Price$380,000 - $385,000
Gross Margin % on Home SalesApproximately 18%
SG&A as a % of Home Sales8.0% - 8.2%
Financial Services Operating Earnings$175 million - $180 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 second quarter earnings will be held at 11:00 a.m. Eastern Time on Tuesday, June 17, 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 EndedSix Months Ended
May 31,May 31,
2025202420252024
Revenues:
Homebuilding$7,843,862 8,381,059 15,127,732 15,312,050 
Financial Services298,098 281,723 575,175 531,443 
Multifamily230,305 99,500 293,501 229,177 
Lennar Other5,237 3,310 12,639 5,852 
Total revenues$8,377,502 8,765,592 16,009,047 16,078,522 
Homebuilding operating earnings$728,234 1,340,155 1,537,507 2,368,951 
Financial Services operating earnings157,280 147,012 300,763 278,308 
Multifamily operating loss(14,754)(20,474)(14,777)(36,113)
Lennar Other operating loss(52,895)(28,964)(142,178)(68,512)
Corporate general and administrative expenses(155,853)(156,982)(303,231)(314,303)
Charitable foundation contribution(20,131)(19,690)(37,965)(36,488)
Earnings before income taxes641,881 1,261,057 1,340,119 2,191,843 
Provision for income taxes(160,061)(300,471)(329,586)(511,336)
Net earnings (including net earnings attributable to noncontrolling interests)481,820 960,586 1,010,533 1,680,507 
Less: Net earnings attributable to noncontrolling interests4,371 6,275 13,558 6,862 
Net earnings attributable to Lennar$477,449 954,311 996,975 1,673,645 
Basic and diluted average shares outstanding260,286 273,703 261,510 275,325 
Basic and diluted earnings per share$1.81 3.45 3.77 6.01 
Supplemental information:
Interest incurred (1)$41,846 33,764 73,335 70,275 
EBIT (2):
Net earnings attributable to Lennar$477,449 954,311 996,975 1,673,645 
Provision for income taxes160,061 300,471 329,586 511,336 
Interest expense included in:
Costs of homes sold33,245 43,100 61,363 82,314 
Costs of land sold280 286 412 286 
Homebuilding other income, net3,655 4,679 7,051 9,594 
Total interest expense37,180 48,065 68,826 92,194 
EBIT$674,690 1,302,847 1,395,387 2,277,175 
(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 EndedSix Months Ended
May 31,May 31,
2025202420252024
Homebuilding revenues:
Sales of homes$7,788,275 8,357,750 15,028,821 15,259,531 
Sales of land43,195 13,598 78,521 34,350 
Other homebuilding12,392 9,711 20,390 18,169 
Total homebuilding revenues7,843,862 8,381,059 15,127,732 15,312,050 
Homebuilding costs and expenses:
Costs of homes sold6,402,532 6,469,952 12,290,676 11,865,484 
Costs of land sold56,173 6,903 92,250 20,920 
Selling, general and administrative688,847 629,600 1,304,586 1,197,587 
Total homebuilding costs and expenses7,147,552 7,106,455 13,687,512 13,083,991 
Homebuilding net margins696,310 1,274,604 1,440,220 2,228,059 
Homebuilding equity in earnings from unconsolidated entities17,716 15,516 52,720 28,818 
Homebuilding other income, net14,208 50,035 44,567 112,074 
Homebuilding operating earnings$728,234 1,340,155 1,537,507 2,368,951 
Financial Services revenues$298,098 281,723 575,175 531,443 
Financial Services costs and expenses140,818 134,711 274,412 253,135 
Financial Services operating earnings$157,280 147,012 300,763 278,308 
Multifamily revenues$230,305 99,500 293,501 229,177 
Multifamily costs and expenses254,677 102,205 328,053 234,872 
Multifamily equity in earnings (loss) from unconsolidated entities and other income (expense), net9,618 (17,769)19,775 (30,418)
Multifamily operating loss$(14,754)(20,474)(14,777)(36,113)
Lennar Other revenues$5,237 3,310 12,639 5,852 
Lennar Other costs and expenses30,025 26,841 53,589 35,929 
Lennar Other equity in earnings (loss) from unconsolidated entities and other1,333 16,081 (9,285)(11,784)
Lennar Other realized and unrealized losses from technology investments (1)(29,440)(21,514)(91,943)(26,651)
Lennar Other operating loss$(52,895)(28,964)(142,178)(68,512)
(1)The following is a detail of Lennar Other realized and unrealized losses from mark-to-market adjustments on technology investments:
Three Months EndedSix Months Ended
May 31,May 31,
2025202420252024
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)
$(29,440)(21,514)(91,943)(26,651)


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 May 31,
202520242025202420252024
Deliveries:HomesDollar ValueAverage Sales Price
East4,676 5,324 $1,740,181 2,158,317 $372,000 405,000 
Central4,604 4,393 1,769,582 1,769,842 384,000 403,000 
South Central6,174 4,669 1,505,750 1,194,525 244,000 256,000 
West4,669 5,292 2,818,980 3,263,904 604,000 617,000 
Other8 12 4,834 6,343 604,000 529,000 
Total20,131 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 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 million and an average sales price of $503,000 for the three months ended May 31, 2024.
As of May 31,Three Months Ended May 31,
20252024202520242025202420252024
New Orders:Active CommunitiesHomesDollar ValueAverage Sales Price
East326 287 5,502 4,758 $1,937,371 1,958,763 $352,000 412,000 
Central457 354 5,368 5,574 2,028,662 2,218,888 378,000 398,000 
South Central391 239 6,626 5,213 1,607,319 1,332,392 243,000 256,000 
West441 363 5,098 5,735 2,997,528 3,679,145 588,000 642,000 
Other2 2 7 13 4,383 5,688 626,000 438,000 
Total1,617 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 $70 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 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,
202520242025202420252024
Deliveries:HomesDollar ValueAverage Sales Price
East8,987 9,907 $3,409,061 4,064,163 $379,000 410,000 
Central8,633 8,094 3,327,137 3,210,271 385,000 397,000 
South Central10,904 8,932 2,666,273 2,264,683 245,000 254,000 
West9,425 9,530 5,707,665 5,785,395 606,000 607,000 
Other16 25 10,720 13,160 670,000 526,000 
Total37,965 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 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 million and an average sales price of $532,000 for the six months ended May 31, 2024.








9-9-9

Six Months Ended May 31,
202520242025202420252024
New Orders:HomesDollar ValueAverage Sales Price
East9,476 9,141 $3,463,930 3,810,481 $366,000 417,000 
Central10,007 9,991 3,864,160 3,983,784 386,000 399,000 
South Central11,547 9,644 2,780,180 2,452,391 241,000 254,000 
West9,909 10,662 5,886,178 6,675,384 594,000 626,000 
Other17 31 11,547 15,218 679,000 491,000 
Total40,956 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 $130 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 million and an average sales price of $543,000 for the six months ended May 31, 2024.
At May 31,
2025 (1)20242025202420252024
Backlog:HomesDollar ValueAverage Sales Price
East3,825 5,744 $1,530,495 2,432,505 $400,000 423,000 
Central4,781 5,130 1,937,087 2,171,264 405,000 423,000 
South Central3,430 2,607 815,681 663,648 238,000 255,000 
West3,500 4,383 2,200,051 2,962,332 629,000 676,000 
Other2 9 1,176 3,586 588,000 398,000 
Total15,538 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 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 $62 million and an average sales price of $513,000 at May 31, 2024.
(1) 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.


10-10-10
LENNAR CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
(unaudited)
May 31, 2025November 30, 2024
ASSETS
Homebuilding:
Cash and cash equivalents$1,168,143 4,662,643 
Restricted cash23,987 11,799 
Receivables, net995,664 1,053,211 
Inventories:
Finished homes and construction in progress10,104,530 10,884,861 
Land and land under development1,270,931 4,750,025 
Inventory owned11,375,461 15,634,886 
Consolidated inventory not owned2,660,686 4,084,665 
Inventory owned and consolidated inventory not owned14,036,147 19,719,551 
Deposits and pre-acquisition costs on real estate5,265,591 3,625,372 
Investments in unconsolidated entities2,699,981 1,344,836 
Goodwill3,442,359 3,442,359 
Other assets1,759,645 1,734,698 
29,391,517 35,594,469 
Financial Services3,059,237 3,516,550 
Multifamily1,133,255 1,306,818 
Lennar Other790,537 894,944 
Total assets$34,374,546 41,312,781 
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable$2,126,002 1,839,440 
Liabilities related to consolidated inventory not owned2,317,996 3,563,934
Senior notes and other debts payable, net2,791,987 2,258,283 
Other liabilities2,584,497 3,201,552 
9,820,482 10,863,209 
Financial Services1,592,386 2,140,708 
Multifamily134,922 181,883 
Lennar Other94,874 105,756 
Total liabilities11,642,664 13,291,556 
Stockholders’ equity:
Preferred stock— — 
Class A common stock of $0.10 par value26,136 25,998 
Class B common stock of $0.10 par value3,660 3,660 
Additional paid-in capital5,842,732 5,729,434 
Retained earnings21,645,991 25,753,078 
Treasury stock(4,945,458)(3,649,564)
Accumulated other comprehensive income6,019 7,529 
Total stockholders’ equity22,579,080 27,870,135 
Noncontrolling interests152,802 151,090 
Total equity22,731,882 28,021,225 
Total liabilities and equity$34,374,546 41,312,781 


11-11-11

LENNAR CORPORATION AND SUBSIDIARIES
Supplemental Data
(Dollars in thousands)
(unaudited)
May 31, 2025November 30, 2024May 31, 2024
Homebuilding debt$2,791,987 2,258,283 2,241,507 
Stockholders' equity22,579,080 27,870,135 26,877,874 
Total capital$25,371,067 30,128,418 29,119,381 
Homebuilding debt to total capital11.0 %7.5 %7.7 %
Homebuilding debt$2,791,987 2,258,283 2,241,507 
Less: Homebuilding cash and cash equivalents1,168,143 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). 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.