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Segment Information
 12 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
The Company’s operating segments are its 92 homebuilding divisions, its rental operations, its majority-owned Forestar residential lot development operations, its financial services operations and its other business activities. The Company’s reporting segments are its homebuilding reporting segments, its Forestar lot development segment, its financial services segment and its rental operations segment. The accounting policies of the reporting segments are described throughout Note A.

Homebuilding

The homebuilding operating segments are aggregated into six reporting segments. The reporting segments and the states in which the Company has homebuilding operations are as follows:
Northwest:Colorado, Oregon, Utah and Washington
Southwest:Arizona, California, Hawaii, Nevada and New Mexico
South Central:Arkansas, Oklahoma and Texas
Southeast:Alabama, Florida, Louisiana and Mississippi
East:Georgia, North Carolina, South Carolina and Tennessee
North:Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Minnesota, Missouri, Nebraska, New Jersey, Ohio, Pennsylvania, Virginia, West Virginia and Wisconsin

Homebuilding is the Company’s core business, generating 92% of consolidated revenues in fiscal 2025 and 2024 and 90% of consolidated revenues in fiscal 2023. The Company’s homebuilding divisions are primarily engaged in the acquisition and development of land and the construction and sale of residential homes, with operations in 126 markets across 36 states. Most of the revenue generated by the Company’s homebuilding operations is from the sale of completed homes and to a lesser extent from the sale of land and lots.

Rental

The Company’s rental segment consists of single-family and multi-family rental operations. The single-family rental operations construct and lease single-family homes within a community and market each community for a bulk sale of rental homes. The multi-family rental operations develop, construct, lease and sell residential rental properties, the majority of which are apartment communities.

Forestar

The Forestar segment is a residential lot development company with operations in 64 markets across 23 states. The Company’s homebuilding divisions acquire finished lots from Forestar in accordance with the master supply agreement between the two companies. Forestar’s segment results are presented on their historical cost basis, consistent with the manner in which management evaluates segment performance.

Financial Services

The Company’s financial services segment provides mortgage financing and title agency services to homebuyers in many of the Company’s homebuilding markets. The segment generates the substantial majority of its revenues from originating and selling mortgages and collecting fees for title insurance agency and closing services. The Company sells substantially all of the mortgages it originates and the related servicing rights to third-party purchasers, typically within 60 days of origination.

Other

In addition to its homebuilding, rental, Forestar and financial services operations, the Company engages in other business activities through its subsidiaries. The Company conducts insurance-related operations, owns water rights and other water-related assets and owns non-residential real estate including ranch land and improvements. The results of these operations are immaterial for separate reporting and therefore are grouped together and presented in the Eliminations and Other column in the tables that follow.
The Company’s Chief Executive Officer, Chief Operating Officer and Chief Financial Officer are its Chief Operating Decision Makers (CODMs). The CODMs evaluate segment performance primarily based on revenues, pre-tax income and inventories for all reporting segments. Revenues, pre-tax income and inventories at the segment level are compared to forecasted results to evaluate the performance of each segment and assist in decision making regarding capital allocation between segments. The tables that follow present financial information pertaining to the Company’s reporting segments.


September 30, 2025
HomebuildingRentalForestarFinancial ServicesEliminations and Other (1)Consolidated
(In millions)
Assets
Cash and cash equivalents
$2,210.5 $140.8 $379.2 $244.5 $10.4 $2,985.4 
Restricted cash
25.5 2.5 — 19.9 — 47.9 
Inventories:
Construction in progress and finished homes7,743.7 — — — (95.2)7,648.5 
Residential land and lots — developed and under development12,513.1 — 2,465.1 — (282.4)14,695.8 
Land held for development38.3 — 180.0 — — 218.3 
Land held for sale21.4 — — — — 21.4 
Rental properties— 2,710.4 — — (7.1)2,703.3 
20,316.5 2,710.4 2,645.1 — (384.7)25,287.3 
Mortgage loans held for sale
— — — 2,566.5 — 2,566.5 
Deferred income taxes, net
125.7 (42.2)— — (39.0)44.5 
Property and equipment, net
543.0 0.6 8.1 4.3 22.9 578.9 
Other assets
3,344.1 38.9 104.6 220.6 89.0 3,797.2 
Goodwill
134.3 — — — 29.2 163.5 
$26,699.6 $2,851.0 $3,137.0 $3,055.8 $(272.2)$35,471.2 
Liabilities
Accounts payable
$1,016.8 $230.6 $71.0 $0.7 $(97.2)$1,221.9 
Accrued expenses and other liabilities3,122.1 34.7 494.3 294.7 (404.2)3,541.6 
Notes payable
3,154.4 600.0 802.8 1,408.3 — 5,965.5 
$7,293.3 $865.3 $1,368.1 $1,703.7 $(501.4)$10,729.0 
_______________
(1)Amounts include the balances of the Company’s other businesses and the elimination of intercompany transactions.
September 30, 2024
HomebuildingRentalForestarFinancial ServicesEliminations and Other (1)Consolidated
(In millions)
Assets
Cash and cash equivalents$3,623.0 $157.6 $481.2 $242.3 $12.3 $4,516.4 
Restricted cash4.8 2.2 — 20.6 — 27.6 
Inventories:
Construction in progress and finished homes8,986.1 — — — (110.3)8,875.8 
Residential land and lots — developed and under development11,011.7 — 2,126.1 — (189.7)12,948.1 
Land held for development20.5 — 140.1 — — 160.6 
Land held for sale12.7 — — — — 12.7 
Rental properties— 2,902.4 — — 3.6 2,906.0 
20,031.0 2,902.4 2,266.2 — (296.4)24,903.2 
Mortgage loans held for sale— — — 2,477.5 — 2,477.5 
Deferred income taxes, net211.6 (14.7)— — (29.4)167.5 
Property and equipment, net500.2 1.1 7.1 4.0 18.6 531.0 
Other assets2,976.5 74.5 85.6 212.3 (31.3)3,317.6 
Goodwill134.3 — — — 29.2 163.5 
$27,481.4 $3,123.1 $2,840.1 $2,956.7 $(297.0)$36,104.3 
Liabilities
Accounts payable$1,046.1 $474.2 $85.9 $0.8 $(261.5)$1,345.5 
Accrued expenses and other liabilities2,552.0 67.8 452.8 234.6 (290.5)3,016.7 
Notes payable2,926.8 750.7 706.4 1,533.8 — 5,917.7 
$6,524.9 $1,292.7 $1,245.1 $1,769.2 $(552.0)$10,279.9 
_______________
(1)Amounts include the balances of the Company’s other businesses and the elimination of intercompany transactions.
Year Ended September 30, 2025
HomebuildingRentalForestarFinancial ServicesEliminations and Other (1)Consolidated
(In millions)
Revenues
Home sales
$31,432.0 $— $— $— $— $31,432.0 
Land/lot sales and other
83.5 — 1,662.4 — (1,409.1)336.8 
Rental property sales— 1,640.4 — — — 1,640.4 
Financial services
— — — 841.2 — 841.2 
31,515.5 1,640.4 1,662.4 841.2 (1,409.1)34,250.4 
Cost of sales
Home sales (2)
24,664.9 — — — (227.3)24,437.6 
Land/lot sales and other
50.1 — 1,291.7 — (1,132.5)209.3 
Rental property sales— 1,333.4 — — (4.2)1,329.2 
Inventory and land option charges
144.2 7.3 7.2 — (0.6)158.1 
24,859.2 1,340.7 1,298.9 — (1,364.6)26,134.2 
Selling, general and
administrative expense
2,623.1 245.2 154.4 651.4 17.9 3,692.0 
Other (income) expense (3)
(101.7)(115.5)(10.2)(88.9)0.6 (315.7)
Income before income taxes$4,134.9 $170.0 $219.3 $278.7 $(63.0)$4,739.9 
Summary Cash Flow Information
Depreciation and amortization
$93.4 $2.0 $3.5 $1.8 $0.6 $101.3 
Cash provided by (used in) operating activities$3,407.6 $105.5 $(197.7)$173.2 $(67.7)$3,420.9 
_______________
(1)Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions.
(2)Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers.
(3)Other (income) expense primarily includes interest income but also consists of various other types of ancillary income, gains, expenses and losses not directly associated with sales of homes, land and lots.
Year Ended September 30, 2024
HomebuildingRentalForestarFinancial ServicesEliminations and Other (1)Consolidated
(In millions)
Revenues
Home sales
$33,903.6 $— $— $— $— $33,903.6 
Land/lot sales and other
58.2 — 1,509.4 — (1,237.4)330.2 
Rental property sales— 1,685.1 — — — 1,685.1 
Financial services
— — — 882.5 — 882.5 
33,961.8 1,685.1 1,509.4 882.5 (1,237.4)36,801.4 
Cost of sales
Home sales (2)
25,952.1 — — — (262.9)25,689.2 
Land/lot sales and other
40.0 — 1,145.9 — (989.8)196.1 
Rental property sales— 1,315.9 — — (14.0)1,301.9 
Inventory and land option charges
68.9 5.8 4.1 — — 78.8 
26,061.0 1,321.7 1,150.0 — (1,266.7)27,266.0 
Selling, general and
administrative expense
2,553.3 236.2 118.5 672.4 19.1 3,599.5 
Other (income) expense (3)
(107.6)(101.5)(29.2)(101.1)(9.4)(348.8)
Income before income taxes$5,455.1 $228.7 $270.1 $311.2 $19.6 $6,284.7 
Summary Cash Flow Information
Depreciation and amortization
$79.4 $2.4 $3.0 $1.8 $0.5 $87.1 
Cash provided by (used in) operating activities$2,239.0 $(231.0)$(158.6)$281.6 $58.8 $2,189.8 
_______________
(1)Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions.
(2)Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers.
(3)Other (income) expense primarily includes interest income but also consists of various other types of ancillary income, gains, expenses and losses not directly associated with sales of homes, land and lots.
Year Ended September 30, 2023
HomebuildingRentalForestarFinancial ServicesEliminations and Other (1)Consolidated
(In millions)
Revenues
Home sales
$31,641.0 $— $— $— $— $31,641.0 
Land/lot sales and other
102.2 — 1,436.9 — (1,126.7)412.4 
Rental property sales— 2,605.5 — — — 2,605.5 
Financial services
— — — 801.5 — 801.5 
31,743.2 2,605.5 1,436.9 801.5 (1,126.7)35,460.4 
Cost of sales
Home sales (2)
24,201.3 — — — (248.5)23,952.8 
Land/lot sales and other
53.8 — 1,108.9 — (959.9)202.8 
Rental property sales— 1,886.8 — — (12.7)1,874.1 
Inventory and land option charges
60.7 6.7 24.0 — (11.1)80.3 
24,315.8 1,893.5 1,132.9 — (1,232.2)26,110.0 
Selling, general and
administrative expense
2,239.9 290.2 97.7 594.9 26.1 3,248.8 
Other (income) expense (3)
(78.8)(102.4)(15.3)(76.7)60.1 (213.1)
Income before income taxes$5,266.3 $524.2 $221.6 $283.3 $19.3 $6,314.7 
Summary Cash Flow Information
Depreciation and amortization
$64.0 $2.4 $3.0 $2.1 $20.1 $91.6 
Cash provided by operating activities$3,078.4 $739.2 $364.1 $13.2 $109.2 $4,304.1 
_______________
(1)Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions.
(2)Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers.
(3)Other (income) expense primarily includes interest income but also consists of various other types of ancillary income, gains, expenses and losses not directly associated with sales of homes, land and lots.
Revenues, expenses and pre-tax income of the Company’s homebuilding segment are disaggregated into the individual homebuilding reporting segments in the tables below. Expenses maintained at the corporate level consist primarily of homebuilding interest and property taxes, which are capitalized and amortized to cost of sales or expensed directly, and the expenses related to operating the Company’s corporate office. The amortization of capitalized interest and property taxes is allocated to each homebuilding segment based on the segment’s cost of sales, while expenses associated with the corporate office are allocated to each homebuilding segment based on the segment’s inventory balances.

Homebuilding Results by Reporting SegmentYear Ended September 30, 2025
NorthwestSouthwestSouth CentralSoutheastEastNorthTotal
(In millions)
Revenues
Home sales
$2,685.7 $4,573.7 $6,885.4 $6,939.4 $6,131.1 $4,216.7 $31,432.0 
Land/lot sales and other
0.5 21.6 13.9 31.8 6.9 8.8 83.5 
2,686.2 4,595.3 6,899.3 6,971.2 6,138.0 4,225.5 31,515.5 
Cost of sales
Home sales2,075.7 3,695.4 5,350.7 5,510.1 4,768.1 3,264.9 24,664.9 
Land/lot sales and other
0.2 19.9 10.0 9.0 4.8 6.2 50.1 
Inventory and land option charges
3.8 16.7 36.7 45.4 29.2 12.4 144.2 
2,079.7 3,732.0 5,397.4 5,564.5 4,802.1 3,283.5 24,859.2 
Selling, general and
administrative expense
220.0 361.9 558.3 587.8 522.1 373.0 2,623.1 
Other (income) expense(9.2)(15.7)(21.0)(21.0)(20.2)(14.6)(101.7)
Income before income taxes$395.7 $517.1 $964.6 $839.9 $834.0 $583.6 $4,134.9 


Homebuilding Results by Reporting SegmentYear Ended September 30, 2024
NorthwestSouthwestSouth CentralSoutheastEastNorthTotal
(In millions)
Revenues
Home sales
$2,744.6 $4,913.3 $7,639.6 $8,853.4 $6,070.9 $3,681.8 $33,903.6 
Land/lot sales and other
17.1 1.4 12.5 23.4 2.2 1.6 58.2 
2,761.7 4,914.7 7,652.1 8,876.8 6,073.1 3,683.4 33,961.8 
Cost of sales
Home sales2,121.2 3,862.5 5,765.4 6,790.5 4,534.8 2,877.7 25,952.1 
Land/lot sales and other
14.8 0.1 8.1 15.9 0.6 0.5 40.0 
Inventory and land option charges
4.4 12.7 11.4 18.4 11.9 10.1 68.9 
2,140.4 3,875.3 5,784.9 6,824.8 4,547.3 2,888.3 26,061.0 
Selling, general and
administrative expense
211.1 354.1 557.0 634.4 484.6 312.1 2,553.3 
Other (income) expense(10.6)(18.2)(21.2)(23.8)(18.4)(15.4)(107.6)
Income before income taxes$420.8 $703.5 $1,331.4 $1,441.4 $1,059.6 $498.4 $5,455.1 
Homebuilding Results by Reporting SegmentYear Ended September 30, 2023
NorthwestSouthwestSouth CentralSoutheastEastNorthTotal
(In millions)
Revenues
Home sales
$2,574.1 $4,246.7 $7,598.1 $8,756.5 $5,323.9 $3,141.7 $31,641.0 
Land/lot sales and other
8.3 36.1 14.5 4.3 1.4 37.6 102.2 
2,582.4 4,282.8 7,612.6 8,760.8 5,325.3 3,179.3 31,743.2 
Cost of sales
Home sales2,003.6 3,451.2 5,721.6 6,485.5 3,992.7 2,546.7 24,201.3 
Land/lot sales and other
7.1 28.8 10.7 (5.1)0.2 12.1 53.8 
Inventory and land option charges
6.6 11.3 7.6 14.6 8.4 12.2 60.7 
2,017.3 3,491.3 5,739.9 6,495.0 4,001.3 2,571.0 24,315.8 
Selling, general and
administrative expense
182.2 315.3 500.9 574.7 399.5 267.3 2,239.9 
Other (income) expense(8.2)(13.1)(16.5)(20.0)(11.2)(9.8)(78.8)
Income before income taxes$391.1 $489.3 $1,388.3 $1,711.1 $935.7 $350.8 $5,266.3 


The Company’s total inventories are disaggregated into the individual reporting segments in the table below. Inventories are the only assets included in the measure of segment assets used by the Company’s chief operating decision makers.

Inventories by Reporting SegmentSeptember 30,
202520242023
 (In millions)
Homebuilding
Northwest$1,891.8 $1,935.2 $1,907.5 
Southwest3,068.5 3,278.9 3,133.0 
South Central3,931.9 3,728.0 3,810.5 
Southeast4,061.8 4,284.5 3,958.5 
East4,397.7 3,978.2 3,024.7 
North2,637.6 2,551.2 2,078.0 
Corporate and unallocated (1)
327.2 275.0 243.6 
Total Homebuilding20,316.5 20,031.0 18,155.8 
Rental2,710.4 2,902.4 2,708.4 
Forestar2,645.1 2,266.2 1,790.3 
Eliminations and other (2)(384.7)(296.4)(281.2)
Consolidated inventories$25,287.3 $24,903.2 $22,373.3 
_______________
(1)Corporate and unallocated consists primarily of homebuilding capitalized interest and property taxes.
(2)Amounts include the balances of the Company’s other businesses and the elimination of intercompany transactions.