Company: LEN
Filing Date: 2025-10-03
Form Type: 10-Q
Source: 0001628280-25-044086
Chunk: 158

Company: LENNAR CORP /NEW/
Filing Date: 2025-10-03
Form: 10-Q
Item: Item 8
Chunk 158
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 27,870,135 27,412,520 Total capital$26,094,086 30,128,418 29,675,776 Homebuilding debt to total capital13.5 %7.5 %7.6 %Homebuilding debt$3,523,766 2,258,283 2,263,256 Less: Homebuilding cash and cash equivalents1,406,215 4,662,643 4,037,405 Net Homebuilding debt$2,117,551 (2,404,360)(1,774,149)Net Homebuilding debt to total capital (1)8.6 %(9.4)%(6.9)%

(1)Net homebuilding debt to total capital is a non-GAAP financial measure defined as net homebuilding debt (homebuilding debt less homebuilding cash and cash equivalents) divided by total capital (net homebuilding debt plus stockholders' equity). 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 August 31, 2025, Homebuilding debt to total capital was higher compared to November 30, 2024 and August 31, 2024, primarily as a result of a decrease in stockholders' equity due to the spin-off of Millrose and share repurchases, an increase in Homebuilding debt due to issuance of senior notes and outstanding borrowings under our Credit Facility, and net earnings.

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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, restruct