# EDGAR Filing Document

**Accession Number:** 0000773141
**File Stem:** 0000773141-26-000013
**Filing Date:** 2026-5
**Character Count:** 260904
**Document Hash:** 2fb8dccf23c430cbb43849296c19fde3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000773141-26-000013.hdr.sgml**: 20260512

**ACCESSION NUMBER**: 0000773141-26-000013

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 83

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260512

**DATE AS OF CHANGE**: 20260512

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SEKISUI HOUSE U.S., INC.
- **CENTRAL INDEX KEY:** 0000773141
- **STANDARD INDUSTRIAL CLASSIFICATION:** OPERATIVE BUILDERS [1531]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 840622967
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0904

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-08951
- **FILM NUMBER:** 26968233

**BUSINESS ADDRESS:**
- **STREET 1:** 4350 S MONACO STREET
- **STREET 2:** SUITE 500
- **CITY:** DENVER
- **STATE:** CO
- **ZIP:** 80237
- **BUSINESS PHONE:** 3037731100

**MAIL ADDRESS:**
- **STREET 1:** 4350 S MONACO STREET
- **STREET 2:** SUITE 500
- **CITY:** DENVER
- **STATE:** CO
- **ZIP:** 80237

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** M.D.C. HOLDINGS, INC.
- **DATE OF NAME CHANGE:** 20200730

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MDC HOLDINGS INC
- **DATE OF NAME CHANGE:** 19920703

?xml version='1.0' encoding='ASCII'? shus-20260331

<u>[**Table of Contents**](#i4e6b1217ba184945a631b23f5e67644f_7)</u>

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

_____________________________________________

**FORM 10-Q** 

**(Mark One)**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended March 31, 2026** 

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**Commission File No. 1-8951** 

**Sekisui House U.S., Inc.** 

**(Exact name of Registrant as specified in its charter)**

---

| | |
|:---|:---|
| **Delaware** | **84-0622967** |
| **(State or other jurisdiction<br>of incorporation or organization)** | **(I.R.S. employer<br>identification no.)** |

---

---

| | |
|:---|:---|
| **4350 South Monaco Street, Suite 500** | **80237** |
| **Denver, Colorado** | **(Zip code)** |
| **(Address of principal executive offices)** | |

---

**(303) 773-1100** 

**(Registrant's telephone number, including area code)**

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| **None** | **None** | **None** |

---

**Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes** ☐ **No** ☒

**Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes** ☒ **No** ☐

**Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.**

---

| | | | |
|:---|:---|:---|:---|
| **Large Accelerated Filer** | ☐ | **Accelerated Filer** | ☐ |
| **Non-Accelerated Filer** | ☒ | **Smaller Reporting Company** | ☐ |
| **Emerging growth company** | ☐ | | |

---

**If an emerging growth company, indicate by check mark if the registrant has elected to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.** ☐

**Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes** ☐ **No** ☒

**As of March 31, 2026, outstanding common stock consisted of 100 shares of common stock, $0.01 par value per share, all of which were held by SH Residential Holdings, LLC ("Parent or SHRH").**

------

<u>[**Table of Contents**](#i4e6b1217ba184945a631b23f5e67644f_7)</u>

**Sekisui House U.S., Inc.**

**FORM 10-Q**

**FOR THE QUARTER ENDED March 31, 2026**

**INDEX**

---

| | | |
|:---|:---|:---|
| | | **Page**<br>**No.**  |
| **<u>[Part I. Financial Information:](#i4e6b1217ba184945a631b23f5e67644f_10)</u>** | **<u>[Part I. Financial Information:](#i4e6b1217ba184945a631b23f5e67644f_10)</u>** | |
| [Item 1.](#i4e6b1217ba184945a631b23f5e67644f_13) | <u>[Unaudited Consolidated Financial Statements:](#i4e6b1217ba184945a631b23f5e67644f_13)</u> |  |
| | <u>[Consolidated Balance Sheets at March 31, 2026 and December 31, 2025](#i4e6b1217ba184945a631b23f5e67644f_16)</u> | [1](#i4e6b1217ba184945a631b23f5e67644f_16) |
| | <u>[Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2026 and 2025](#i4e6b1217ba184945a631b23f5e67644f_19)</u> | [2](#i4e6b1217ba184945a631b23f5e67644f_19) |
| | <u>[Consolidated Statements of Changes in Stockholder's Equity for the three months ended March 31, 2026 and 2025](#i4e6b1217ba184945a631b23f5e67644f_22)</u> | [3](#i4e6b1217ba184945a631b23f5e67644f_22) |
| | <u>[Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025](#i4e6b1217ba184945a631b23f5e67644f_25)</u> | [4](#i4e6b1217ba184945a631b23f5e67644f_25) |
| | <u>[Notes to Unaudited Consolidated Financial Statements](#i4e6b1217ba184945a631b23f5e67644f_28)</u> | [6](#i4e6b1217ba184945a631b23f5e67644f_28) |
| [Item 2.](#i4e6b1217ba184945a631b23f5e67644f_97) | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i4e6b1217ba184945a631b23f5e67644f_97)</u> | [28](#i4e6b1217ba184945a631b23f5e67644f_97) |
| [Item 3.](#i4e6b1217ba184945a631b23f5e67644f_127) | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i4e6b1217ba184945a631b23f5e67644f_127)</u> | [42](#i4e6b1217ba184945a631b23f5e67644f_127) |
| [Item 4.](#i4e6b1217ba184945a631b23f5e67644f_130) | <u>[Controls and Procedures](#i4e6b1217ba184945a631b23f5e67644f_130)</u> | [43](#i4e6b1217ba184945a631b23f5e67644f_130) |
| **<u>[Part II. Other Information:](#i4e6b1217ba184945a631b23f5e67644f_133)</u>** | **<u>[Part II. Other Information:](#i4e6b1217ba184945a631b23f5e67644f_133)</u>** | |
| [Item 1.](#i4e6b1217ba184945a631b23f5e67644f_136) | <u>[Legal Proceedings](#i4e6b1217ba184945a631b23f5e67644f_136)</u> | [44](#i4e6b1217ba184945a631b23f5e67644f_136) |
| [Item 1A.](#i4e6b1217ba184945a631b23f5e67644f_139) | <u>[Risk Factors](#i4e6b1217ba184945a631b23f5e67644f_139)</u> | [44](#i4e6b1217ba184945a631b23f5e67644f_139) |
| [Item 5.](#i4e6b1217ba184945a631b23f5e67644f_142) | <u>[Other Information](#i4e6b1217ba184945a631b23f5e67644f_142)</u> | [44](#i4e6b1217ba184945a631b23f5e67644f_142) |
| [Item 6.](#i4e6b1217ba184945a631b23f5e67644f_145) | <u>[Exhibits](#i4e6b1217ba184945a631b23f5e67644f_145)</u> | [45](#i4e6b1217ba184945a631b23f5e67644f_145) |
| **<u>[Signatures](#i4e6b1217ba184945a631b23f5e67644f_148)</u>** | **<u>[Signatures](#i4e6b1217ba184945a631b23f5e67644f_148)</u>** | [46](#i4e6b1217ba184945a631b23f5e67644f_148) |

---

EXPLANATORY NOTE

The Company is filing this Quarterly Report on Form 10-Q on a voluntary basis to disclose the events reported herein. The Company no longer has an obligation to file reports with the Securities and Exchange Commission ("SEC") as it no longer has any class of securities registered under Sections 12(b), 12(g) or 15(d) of the Securities Exchange Act of 1934. The Company, in its sole discretion, may stop making filings with the SEC at any time and no assumptions should be made as to continued reporting with the SEC.

(i) ------

<u>[**Table of Contents**](#i4e6b1217ba184945a631b23f5e67644f_7)</u>

**PART I. FINANCIAL INFORMATION**

**Item 1.&nbsp;&nbsp;&nbsp;&nbsp;Unaudited Consolidated Financial Statements**

**Sekisui House U.S., Inc.**

**Consolidated Balance Sheets**

---

| | | |
|:---|:---|:---|
| | March 31,<br>2026 | December 31,<br>2025 |
| | (unaudited) | |
| | (Dollars in thousands, except share and per share amounts) | (Dollars in thousands, except share and per share amounts) |
| **ASSETS** |  |  |
| **Homebuilding:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $57014 | $266486 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 1 | 1 |
| &nbsp;&nbsp;&nbsp;Trade and other receivables | 105909 | 78592 |
| &nbsp;&nbsp;&nbsp;Related party receivables | 3548 | 47219 |
| &nbsp;&nbsp;&nbsp;Inventories | 7095187 | 7179927 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 99675 | 96089 |
| &nbsp;&nbsp;&nbsp;Deferred tax asset, net | 85929 | 86619 |
| &nbsp;&nbsp;&nbsp;Prepaids and other assets | 194963 | 207261 |
| &nbsp;&nbsp;&nbsp;Investment in unconsolidated entities | 21679 | 23681 |
| &nbsp;&nbsp;&nbsp;Goodwill and intangible assets, net | 235114 | 236614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total homebuilding assets | 7899019 | 8222489 |
| **Financial Services:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | 104139 | 93645 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 528 | 546 |
| &nbsp;&nbsp;&nbsp;Mortgage loans held-for-sale, net | 209315 | 216107 |
| &nbsp;&nbsp;&nbsp;Other assets | 34856 | 29159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total financial services assets | 348838 | 339457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $8247857 | $8561946 |
| **LIABILITIES AND EQUITY** |  |  |
| **Homebuilding:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $198216 | $176674 |
| &nbsp;&nbsp;&nbsp;Accrued and other liabilities | 526120 | 562284 |
| &nbsp;&nbsp;&nbsp;Revolving credit facility | 200000 |  |
| &nbsp;&nbsp;&nbsp;Related party line of credit |  | 487789 |
| &nbsp;&nbsp;&nbsp;Related party payables | 1458 | 2188 |
| &nbsp;&nbsp;&nbsp;Notes payable, net | 2950 | 2953 |
| &nbsp;&nbsp;&nbsp;Senior notes, net | 1485397 | 1485166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total homebuilding liabilities | 2414141 | 2717054 |
| **Financial Services:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 131652 | 125078 |
| &nbsp;&nbsp;&nbsp;Mortgage repurchase facility | 168225 | 177221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total financial services liabilities | 299877 | 302299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 2714018 | 3019353 |
| **Stockholder's Equity** |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.01 par value; 150 shares authorized; 100 issued and outstanding at March 31, 2026 and December 31, 2025 |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in-capital | 3683807 | 3683807 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 1850032 | 1858786 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Stockholder's Equity | 5533839 | 5542593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities and Stockholder's Equity | $8247857 | $8561946 |

---

The accompanying Notes are an integral part of these Unaudited Consolidated Financial Statements.

------

<u>[**Table of Contents**](#i4e6b1217ba184945a631b23f5e67644f_7)</u>

**Sekisui House U.S., Inc.**

**Consolidated Statements of Operations and Comprehensive Income**

---

| | | |
|:---|:---|:---|
| | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
| | 2026 | 2025 |
| | (Dollars in thousands, except share and per share amounts) | (Dollars in thousands, except share and per share amounts) |
| **Homebuilding:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home sale revenues | $1202055 | $1506375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land sale revenues | 7013 | 1443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other revenues |  | 3260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 1209068 | 1511078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home cost of sales | (1018252) | (1240380) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory impairments | (4500) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total home cost of sales | (1022752) | (1240380) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land cost of sales | (5072) | (760) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other cost of sales |  | (2839) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of sales | (1027824) | (1243979) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross margin | 181244 | 267099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | (193128) | (191492) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and other income | 1084 | 7104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense | (3692) | (3879) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Homebuilding pretax income (loss) | (14492) | 78832 |
| **Financial Services:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues | 27677 | 38514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expenses | (25024) | (27655) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income, net | 2862 | 3809 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial services pretax income | 5515 | 14668 |
| Income (loss) before income taxes | (8977) | 93500 |
| Benefit (provision) for income taxes | 223 | (16947) |
| Net income (loss) | $(8754) | $76553 |

---

The accompanying Notes are an integral part of these Unaudited Consolidated Financial Statements.

------

<u>[**Table of Contents**](#i4e6b1217ba184945a631b23f5e67644f_7)</u>

**Sekisui House U.S., Inc.**

**Consolidated Statements of Changes in Stockholder's Equity**

(Dollars in thousands, except share amounts)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2026 |
| | Common Stock | Common Stock | Additional<br>Paid-in<br>Capital | Retained<br>Earnings | Total |
| | Shares | Amount | Additional<br>Paid-in<br>Capital | Retained<br>Earnings | Total |
| Balance at December 31, 2025 | 100 | $— | $3683807 | $1858786 | $5542593 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  |  | (8754) | (8754) |
| Balance at March 31, 2026 | 100 | $— | $3683807 | $1850032 | $5533839 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 |
| | Common Stock | Common Stock | Additional<br>Paid-in<br>Capital | Retained<br>Earnings | Total |
| | Shares | Amount | Additional<br>Paid-in<br>Capital | Retained<br>Earnings | Total |
| Balance at December 31, 2024 | 100 | $— | $3154058 | $1832192 | $4986250 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  | 76553 | 76553 |
| Balance at March 31, 2025 | 100 | $— | $3154058 | $1908745 | $5062803 |

---

The accompanying Notes are an integral part of these Unaudited Consolidated Financial Statements.

------

<u>[**Table of Contents**](#i4e6b1217ba184945a631b23f5e67644f_7)</u>

**Sekisui House U.S., Inc.**

**Consolidated Statements of Cash Flows**

---

| | | |
|:---|:---|:---|
| | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
| | 2026 | 2025 |
| | (Dollars in thousands) | (Dollars in thousands) |
| **Operating Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $(8754) | $76553 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 10165 | 10772 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory impairments | 4500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Project abandonment costs | 3684 | 3097 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of property and equipment | (23) | (35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from unconsolidated entities | (375) | (736) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distribution from unconsolidated entities |  | 1090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax expense (benefit) | 690 | (4991) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade and other receivables | (27317) | (88679) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related party receivables | (1329) | 3132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans held-for-sale, net | 6792 | (29719) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 76788 | (456123) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaids and other assets | 8318 | 11438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued and other liabilities | (11254) | 218 |
| Net cash provided by (used in) operating activities | 61885 | (473983) |
| **Investing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distribution of capital from unconsolidated entities | 2377 | 385 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in receivable from cash pooling arrangement with Parent |  | 75967 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale / disposal of other assets | 23 | 389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (11469) | (8828) |
| Net cash provided by (used in) investing activities | (9069) | 67913 |
| **Financing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Draws (payments) on mortgage repurchase facilities, net | (8996) | 33335 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Draws on homebuilding line of credit, net | 200000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances (payments) on related party line of credit from cash pooling arrangement with Parent | (442789) | 40990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of notes payable, net | (27) |  |
| Net cash provided by (used in) financing activities | (251812) | 74325 |
| Net decrease in cash, cash equivalents and restricted cash | (198996) | (331745) |
| Cash, cash equivalents and restricted cash: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning of period | 360678 | 893781 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period | $161682 | $562036 |
| **Reconciliation of cash, cash equivalents and restricted cash:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Homebuilding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $57014 | $298134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 1 | 1013 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Services: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 104139 | 262147 |

---

------

<u>[**Table of Contents**](#i4e6b1217ba184945a631b23f5e67644f_7)</u>

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 528 | 742 |
| Total cash, cash equivalents and restricted cash | $161682 | $562036 |

---

The accompanying Notes are an integral part of these Unaudited Consolidated Financial Statements.

------

<u>[**Table of Contents**](#i4e6b1217ba184945a631b23f5e67644f_7)</u>

**1.&nbsp;&nbsp;&nbsp;&nbsp;Basis of Presentation**

The Unaudited Consolidated Financial Statements of Sekisui House U.S., Inc. (formerly known as M.D.C. Holdings, Inc.) ("SHUS," "the Company," "we," "us," or "our," which refer to Sekisui House U.S., Inc. and its subsidiaries) have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, they do not include all information and footnotes required by U.S. generally accepted accounting principles ("GAAP") for complete financial statements. These statements reflect all normal and recurring adjustments which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows of SHUS at March 31, 2026 and for all periods presented. These statements should be read in conjunction with SHUS's Consolidated Financial Statements and Notes thereto and the Combined Consolidated Financial Statements and Notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

On December 1, 2025, Parent contributed (for no consideration) to the Company all of Parent's interests in its wholly owned subsidiary Woodside Group, LLC ("Woodside"). Woodside is a homebuilding company with operations in Arizona, California, Idaho, Nevada and Utah. On January 1, 2026, Parent contributed (for no consideration) to the Company all of Parent's interests in its wholly owned subsidiaries Chesmar Homes, LLC ("Chesmar") and Holt Group Holdings, LLC ("Holt"). Chesmar and Holt are homebuilding companies with operations in Texas, Oregon, and Washington. The Woodside Merger and Chesmar and Holt Merger are collectively referred to as the Common Control Mergers.

Immediately prior to the contributions, the sole stockholder of the Company was also the sole stockholder of Woodside, Chesmar and Holt. As a result of the common ownership, upon closing of the transactions, the acquisitions were considered common-control transactions and were outside the scope of the business combination guidance in Accounting Standards Codification ("ASC") Topic 805, Business Combinations ("ASC 805-50"). The entities are deemed to be under common control as of April 19, 2024, which was the date that the sole stockholder acquired control of the Company and, therefore, held control over each of the companies. The consolidated financial statements incorporate Woodside, Chesmar and Holt financial results and financial information beginning on April 19, 2024.

Included in these footnotes are certain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our business, financial condition, results of operations, cash flows, strategies and prospects. These forward-looking statements may be identified by terminology such as "likely," "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue," or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements contained in this section are reasonable, we cannot guarantee future results. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by the forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in subsequent reports on Forms 10-K, 10-Q and 8-K should be considered.

Where necessary, reclassifications have been made to our prior period financial information to conform to the current year presentation.

**2.&nbsp;&nbsp;&nbsp;&nbsp;Recently Issued Accounting Standards**

**Adoption of New Accounting Standards**

In July 2025, the FASB issued ASU 2025-05, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets" ("ASU-2025-05"), which allows entities to use the practical expedient to estimate expected credit losses. ASU 2025-05 will be effective for our fiscal year ending December 31, 2026 and interim reporting periods within this annual reporting period, with early adoption permitted. We adopted this amendment and elected the practical expedient in the first quarter of 2026. The adoption of ASU 2025-05 did not have a material impact on our consolidated balance sheet or consolidated statement of operations and comprehensive income.

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which is intended to enhance the transparency and decision usefulness of income tax disclosures.

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This amendment modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold, (2) the amount of income taxes paid (net of refunds received) (disaggregated by federal, state, and foreign taxes) as well as individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid net of refunds, (3) the income or loss from continuing operations before income tax expense or benefit (disaggregated between domestic and foreign) and (4) income tax expense or benefit from continuing operations (disaggregated by federal, state and foreign). The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, while retrospective application is permitted. We adopted this amendment in the fourth quarter of 2025. As a result of the adoption, there was no material impact on our consolidated balance sheet or consolidated statement of operations and comprehensive income.

**Recent Accounting Pronouncements Not Yet Adopted**

In November 2024, the FASB issued ASU 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)" ("ASU 2024-03"). The amendments in this update enhance disclosures about a public business entity's expenses and provide more detailed information about the types of expenses included in certain expense captions in the consolidated financial statements. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures.

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**3.&nbsp;&nbsp;&nbsp;&nbsp;Segment Reporting**

An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker ("CODM"), or decision-making group, to evaluate performance and make operating decisions. We have identified our CODM as one key executive—the Chief Executive Officer ("CEO"). The CODM's evaluation of segment performance is based on segment pretax income for all reportable segments. Pretax income is used at the segment level for forecasting and actual results to evaluate performance of each segment and further assist in decision making regarding allocation of capital and other resources between segments.

During the first quarter of 2026, we reassessed our operating segments and reportable segments and realigned the aggregation of our homebuilding operating segments into six new reportable segments to better allocate our homebuilding operating segments across geographic reporting regions. We have identified each homebuilding division as an operating segment. Our homebuilding operating segments have been aggregated into the reportable segments noted below because they are similar in the following regards: (1) economic characteristics; (2) housing products; (3) class of homebuyer; (4) regulatory environments; and (5) methods used to construct and sell homes. Our homebuilding reportable segments conducted ongoing operations in the following states:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pacific Northwest (Idaho, Oregon and Washington)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• California

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Desert (Arizona, Nevada and New Mexico)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mountain (Colorado and Utah)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Texas

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• East (Florida, Maryland, Tennessee and Virginia)

Our financial services business consists of the following operating segments: (1) HomeAmerican Mortgage Corporation ("HomeAmerican"); (2) CLM Mortgage, Inc. ("CLM"); (3) StarAmerican Insurance Ltd. ("StarAmerican"); (4) American Home Insurance Agency, Inc.; (5) Entitled Insurance Agency, Inc. ("Entitled Insurance"); (6) American Home Title and Escrow Company; and (7) N Title, LLC ("N Title"). Due to its contributions to consolidated pretax income, we consider HomeAmerican and CLM to be a reportable segment ("Mortgage Operations"). The remaining operating segments have been aggregated into one reportable segment ("other") because they do not individually exceed 10 percent of: (1) consolidated revenue; (2) the greater of (a) the combined reported profit of all operating segments that did not report a loss or (b) the positive value of the combined reported loss of all operating segments that reported losses; or (3) consolidated assets.

Corporate is a non-operating segment that develops and implements strategic initiatives and supports our operating divisions by centralizing key administrative functions such as finance, treasury, information technology, insurance, risk management, litigation and human resources. A portion of the expenses incurred by Corporate are allocated to the homebuilding operating segments based on their respective percentages of assets, and to a lesser degree, a portion of Corporate expenses are allocated to the financial services segments. A majority of Corporate's personnel and resources are primarily dedicated to activities relating to the homebuilding segments, and, therefore, the balance of any unallocated Corporate expenses is included in the homebuilding operations section of our consolidated statements of operations and comprehensive income.

The following tables present operating results relating to our homebuilding and financial services operations:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2026 |
| | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| | **Homebuilding** | **Homebuilding** | **Homebuilding** | **Homebuilding** | **Homebuilding** | **Homebuilding** | **Homebuilding** | **Homebuilding** |
| | Pacific Northwest | California | Desert | Mountain | Texas | East | Corporate | Total |
| Home sale revenues | $210921 | $219059 | $268206 | $205567 | $192983 | $105319 | $— | $1202055 |
| Land sale revenues | $3300 | $— | $— | $— | $3713 | $— | $— | $7013 |
| Other revenues | $— | $— | $— | $— | $— | $— | $— | $— |
| Home cost of sales | $(179858) | $(183758) | $(227499) | $(175429) | $(159555) | $(92153) | $— | $(1018252) |
| Inventory impairments | $(700) | $— | $(1450) | $— | $— | $(2350) | $— | $(4500) |
| Land cost of sales | $(2613) | $— | $— | $— | $(2459) | $— | $— | $(5072) |
| Other cost of sales | $— | $— | $— | $— | $— | $— | $— | $— |
| Selling, general and administrative expenses | $(32140) | $(38309) | $(41042) | $(27325) | $(32674) | $(22288) | $650 | $(193128) |
| Interest and other income (1) | $(82) | $84 | $60 | $136 | $474 | $31 | $381 | $1084 |
| Other expense (3) | $(80) | $(380) | $(1492) | $(870) | $— | $(870) | $— | $(3692) |
| Pretax income (loss) | $(1252) | $(3304) | $(3217) | $2079 | $2482 | $(12311) | $1031 | $(14492) |

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| | | | |
|:---|:---|:---|:---|
| | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2026 |
| | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| | **Financial Services** | **Financial Services** | **Financial Services** |
| | Mortgage Operations | Other | Total |
| Revenues | $15404 | $12273 | $27677 |
| Expenses (2) | $(18723) | $(6301) | $(25024) |
| Other income (3) | $1841 | $1021 | $2862 |
| Pretax income (loss) | $(1478) | $6993 | $5515 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 |
| | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| | **Homebuilding** | **Homebuilding** | **Homebuilding** | **Homebuilding** | **Homebuilding** | **Homebuilding** | **Homebuilding** | **Homebuilding** |
| | Pacific Northwest | California | Desert | Mountain | Texas | East | Corporate | Total |
| Home sale revenues | $225190 | $251016 | $334511 | $323376 | $213867 | $158415 | $— | $1506375 |
| Land sale revenues | $290 | $— | $— | $— | $1153 | $— | $— | $1443 |
| Other revenues | $3219 | $41 | $— | $— | $— | $— | $— | $3260 |
| Home cost of sales | $(184740) | $(201776) | $(273123) | $(271718) | $(172633) | $(136390) | $— | $(1240380) |
| Inventory impairments | $— | $— | $— | $— | $— | $— | $— | $— |
| Land cost of sales | $245 | $(60) | $— | $— | $(945) | $— | $— | $(760) |
| Other cost of sales | $(2835) | $(4) | $— | $— | $— | $— | $— | $(2839) |
| Selling, general and administrative expenses | $(29284) | $(36607) | $(39947) | $(30499) | $(28378) | $(21392) | $(5385) | $(191492) |
| Interest and other income (1) | $(37) | $181 | $71 | $52 | $440 | $72 | $6325 | $7104 |
| Other expense (3) | $(110) | $(1089) | $(323) | $(540) | $(788) | $(800) | $(229) | $(3879) |
| Pretax income | $11938 | $11702 | $21189 | $20671 | $12716 | $(95) | $711 | $78832 |

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| | | | |
|:---|:---|:---|:---|
| | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 |
| | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| | **Financial Services** | **Financial Services** | **Financial Services** |
| | Mortgage Operations | Other | Total |
| Revenues | $21456 | $17058 | $38514 |
| Expenses (2) | $(20799) | $(6856) | $(27655) |
| Other income (3) | $1508 | $2301 | $3809 |
| Pretax income | $2165 | $12503 | $14668 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes interest income and gain (loss) on sale of other assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Includes interest expense and general and administrative expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Includes abandoned project costs and other non-operating expenses (Homebuilding) and interest income (Financial Services).

The following table summarizes total assets for our homebuilding and financial services operations. The assets in our Pacific Northwest, California, Desert, Mountain, Texas and East segments consist primarily of inventory while the assets in our Corporate segment primarily includes cash and cash equivalents, trade and other receivables and deferred tax assets. The assets in our financial services operations consist mostly of cash and cash equivalents and mortgage loans held-for-sale.

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| | | |
|:---|:---|:---|
| | March 31,<br>2026 | December 31,<br>2025 |
| | (Dollars in thousands) | (Dollars in thousands) |
| **Homebuilding assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pacific Northwest | $1122345 | $1222938 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;California | 1764597 | 1720250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Desert | 1699815 | 1697152 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mountain | 1003821 | 1059501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Texas | 1245893 | 1150647 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;East | 845036 | 890772 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate | 217512 | 481229 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total homebuilding assets | $7899019 | $8222489 |
| **Financial services assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage Operations | $271554 | $265655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 77284 | 73802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total financial services assets | $348838 | $339457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $8247857 | $8561946 |

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**4.&nbsp;&nbsp;&nbsp;&nbsp;Fair Value Measurements**

ASC Topic 820, *Fair Value Measurements* ("ASC 820"), defines fair value, establishes guidelines for measuring fair value and expands disclosures regarding fair value measurements. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs, other than quoted prices in active markets, that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The following table sets forth the fair values and methods used for measuring the fair values of financial instruments on a recurring basis, except those for which the carrying values approximate fair values:

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| | | | |
|:---|:---|:---|:---|
| | | Fair Value | Fair Value |
| Financial Instrument | Hierarchy | March 31,<br>2026 | December 31,<br>2025 |
|  |  | (Dollars in thousands) | (Dollars in thousands) |
| Mortgage loans held-for-sale, net | Level 2 | $209315 | $216107 |
| Derivative and financial instruments, net |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate lock commitments | Level 2 | $(9953) | $(5931) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward sales of mortgage-backed securities | Level 2 | $2767 | $(3615) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mandatory delivery forward loan sale commitments | Level 2 | $542 | $(451) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Best-effort delivery forward loan sale commitments | Level 2 | $14 | $(6) |

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The following methods and assumptions were used to estimate the fair value of each class of financial instruments as of March 31, 2026 and December 31, 2025.

*Mortgage loans held-for-sale, net.* Our mortgage loans held-for-sale, which are measured at fair value on a recurring basis, include (1) mortgage loans held-for-sale that are under commitments to sell and (2) mortgage loans held-for-sale that are not under commitments to sell. At March 31, 2026 and December 31, 2025, we had $95.6 million and $115.4 million, respectively, of mortgage loans held-for-sale at fair value under commitments to sell. The fair value for those loans was based on quoted market prices for those mortgage loans, which are Level 2 fair value inputs. At March 31, 2026 and December 31, 2025, we had $113.7 million and $100.7 million, respectively, of mortgage loans held-for-sale that were not under commitments to sell. The fair value for those loans was primarily based upon the estimated market price received from an outside party, which is a Level 2 fair value input.

Gains (losses) on mortgage loans, net, are included as a component of revenues in the financial services section of our consolidated statements of operations and comprehensive income. For the three months ended March 31, 2026, we recorded losses on mortgage loans held-for-sale, net of $20.2 million compared to $14.9 million for the same period in the prior year.

*Derivative and financial instruments, net.* Our derivatives and financial instruments, which include (1) interest rate lock commitments, (2) forward sales of mortgage-backed securities, (3) mandatory delivery forward loan sale commitments and (4) best-effort delivery forward loan sale commitments, are measured at fair value on a recurring basis based on market prices for similar instruments. For the three months ended March 31, 2026 and 2025, we recorded net losses on these derivative and financial instruments of $4.0 million and $11.2 million, respectively, in revenues in the financial services section of our consolidated statements of operations and comprehensive income. The following table sets forth the notional amounts of derivative and financial instruments at March 31, 2026 and December 31, 2025:

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| | | |
|:---|:---|:---|
| | Notional Values | Notional Values |
| Financial Instrument | March 31, 2026 | December 31, 2025 |
|  | (Dollars in thousands) | (Dollars in thousands) |
| Interest rate lock commitments | $314102 | $144307 |
| Forward sales of mortgage-backed securities | $420750 | $217500 |
| Mandatory delivery forward loan sale commitments | $91677 | $108673 |
| Best-effort delivery forward loan sale commitments | $4719 | $9955 |

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For the financial assets and liabilities that the Company does not reflect at fair value, the following methods and assumptions were used to estimate the fair value of each class of financial instruments.

*Cash and cash equivalents, restricted cash, trade and other receivables, related party receivables, prepaids and other assets, accounts payable, related party payables, accrued and other liabilities and borrowings on our revolving credit facility.* Fair value approximates carrying value.

*Mortgage Repurchase Facilities.* The debt associated with our mortgage repurchase facilities (see Note 14 for further discussion) is at floating rates that approximate current market rates and have relatively short-term maturities, generally within 30 days. The fair value approximates carrying value and is based on Level 2 inputs.

*Senior Notes*. The estimated values of the senior notes in the following table are based on Level 2 inputs, which primarily reflect estimated prices for our senior notes that were provided by multiple sources.

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| | | | | |
|:---|:---|:---|:---|:---|
| | March 31, 2026 | March 31, 2026 | December 31, 2025 | December 31, 2025 |
| | Carrying<br>Amount | Fair Value | Carrying<br>Amount | Fair Value |
| | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| $300 million 3.850% Senior Notes due January 2030, net | $298830 | $285881 | $298758 | $289370 |
| $350 million 2.500% Senior Notes due January 2031, net | 348400 | 309530 | 348321 | 311117 |
| $500 million 6.000% Senior Notes due January 2043, net | 491926 | 457770 | 491858 | 470270 |
| $350 million 3.966% Senior Notes due August 2061, net | 346241 | 227901 | 346229 | 228183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $1485397 | $1281082 | $1485166 | $1298940 |

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**5.&nbsp;&nbsp;&nbsp;&nbsp;Inventories**

The following table sets forth, by reportable segment, information relating to our homebuilding inventories:

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| | | |
|:---|:---|:---|
| | March 31,<br>2026 | December 31,<br>2025 |
| | (Dollars in thousands) | (Dollars in thousands) |
| Housing completed or under construction: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pacific Northwest | $411892 | $459080 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;California | 699891 | 732402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Desert | 548479 | 575557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mountain | 443957 | 510726 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Texas | 743326 | 414850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;East | 308471 | 367629 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 3156016 | 3060244 |
| Land and land under development: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pacific Northwest | 657706 | 681229 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;California | 900474 | 847635 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Desert | 1075699 | 1054816 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mountain | 526181 | 509450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Texas | 197308 | 457977 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;East | 505053 | 500941 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 3862421 | 4052048 |
| Land held for sale: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pacific Northwest | 8860 | 9928 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;California | 49595 | 46763 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Desert |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mountain |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Texas | 8573 | 10944 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;East | 9722 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 76750 | 67635 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total inventories | $7095187 | $7179927 |

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Our inventories are primarily associated with communities where we intend to construct and sell homes, including models and unsold homes. Costs capitalized to land and land under development primarily include: (1) land costs; (2) land development costs; (3) entitlement costs; (4) capitalized interest; (5) engineering fees; and (6) title insurance, real property taxes and closing costs directly related to the purchase of the land parcel. Components of housing completed or under construction primarily include: (1) land costs transferred from land and land under development; (2) direct construction costs associated with a house; (3) real property taxes, engineering fees, permits and other fees; (4) capitalized interest; and (5) indirect construction costs, which include field construction management salaries and benefits, utilities and other construction related costs. Land costs are transferred from land and land under development to housing completed or under construction at the point in time that construction of a home on an owned lot begins.

In accordance with ASC Topic 360, *Property, Plant, and Equipment* ("ASC 360"), homebuilding inventories, excluding those classified as held for sale, are carried at cost unless events and circumstances indicate that the carrying value of the underlying subdivision may not be recoverable. We evaluate inventories for impairment at each quarter end on a subdivision level basis as each such subdivision represents the lowest level of identifiable cash flows. In making this determination, we review, among other things, the following for each subdivision:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual and trending "Operating Margin" (which is defined as home sale revenues less home cost of sales and all incremental costs associated directly with the subdivision, including sales commissions, incentives and marketing costs);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• forecasted Operating Margin for homes in backlog;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual and trending net home orders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• homes available for sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• market information for each sub-market, including competition levels, home foreclosure levels, the size and style of homes currently being offered for sale and lot size; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• known or probable events indicating that the carrying value may not be recoverable.

If events or circumstances indicate that the carrying value of our inventory may not be recoverable, assets are reviewed for impairment by comparing the undiscounted estimated future cash flows from an individual subdivision (including capitalized interest) to its carrying value. If the undiscounted future cash flows are less than the subdivision's carrying value, the carrying value of the subdivision is written down to its then estimated fair value. We generally determine the estimated fair value of each subdivision by determining the present value of the estimated future cash flows at discount rates, which are Level 3 inputs, that are commensurate with the risk of the subdivision under evaluation. The evaluation for the recoverability of the carrying value of the assets for each individual subdivision can be impacted significantly by our estimates of future home sale revenues, home construction costs, and development costs per home, all of which are Level 3 inputs.

If land is classified as held for sale, we measure it in accordance with ASC 360 at the lower of the carrying value or fair value less estimated costs to sell. In determining fair value, we primarily rely upon the most recent negotiated price, which is a Level 2 input. If a negotiated price is not available, we will consider several factors including, but not limited to, current market conditions, recent comparable sales transactions and market analysis studies, which are considered Level 3 inputs. If the fair value less estimated costs to sell is lower than the current carrying value, the land is impaired down to its estimated fair value less costs to sell.

Inventory impairments recognized by segment for the three months ended March 31, 2026 and 2025 are shown in the table below.

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| | | |
|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, |
| | 2026 | 2025 |
| | (Dollars in thousands) | (Dollars in thousands) |
| Housing Completed or Under Construction: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pacific Northwest | $560 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;California |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Desert | 1450 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mountain |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Texas |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;East | 2014 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 4024 |  |
| Land and Land Under Development: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pacific Northwest | 140 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;California |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Desert |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mountain |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Texas |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;East | 336 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 476 |  |
| Total Inventory Impairments | $4500 | $— |

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The table below provides quantitative data, for the periods presented, where applicable, used in determining the fair value of the impaired inventory.

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| | | | | |
|:---|:---|:---|:---|:---|
| | Impairment Data | Impairment Data | Impairment Data | Quantitative Data |
| Three Months Ended | Number of Subdivisions Impaired | Inventory<br>Impairments | Fair Value of<br>Inventory After Impairments | Discount Rate |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |  |
| March 31, 2026 | 4 | 4500 | 23441 | 15% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  | $4500 |  |  |

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**6.**&nbsp;&nbsp;&nbsp;&nbsp;**Capitalization of Interest**

We capitalize interest to inventories during the period of development in accordance with ASC Topic 835, *Interest* ("ASC 835"). Homebuilding interest capitalized as a cost of inventories is included in cost of sales during the period that related units or lots are delivered. To the extent our homebuilding debt exceeds our qualified assets as defined in ASC 835, we expense a portion of the interest incurred. Qualified homebuilding assets consist of all lots and homes, excluding finished unsold homes or finished models, within projects that are actively selling or under development. The table set forth below summarizes homebuilding interest activity. For all periods presented below, our qualified assets exceeded our homebuilding debt and as such, all interest incurred has been capitalized.

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| | | |
|:---|:---|:---|
| | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
| | 2026 | 2025 |
| | (Dollars in thousands) | (Dollars in thousands) |
| Homebuilding interest incurred | $21173 | $24656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Interest capitalized | (21173) | (24656) |
| Homebuilding interest expensed | $— | $— |
| Interest capitalized, beginning of period | $98265 | $83670 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus: Interest capitalized during period | 21173 | 24656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Previously capitalized interest included in home cost of sales | (15279) | (21993) |
| Interest capitalized, end of period | $104159 | $86333 |

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**7.&nbsp;&nbsp;&nbsp;&nbsp;Homebuilding Prepaids and Other Assets**

The following table sets forth the components of homebuilding prepaids and other assets:

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| | | |
|:---|:---|:---|
| | March 31,<br>2026 | December 31,<br>2025 |
| | (Dollars in thousands) | (Dollars in thousands) |
| Land option deposits | $87649 | $93879 |
| Operating lease right-of-use asset | 45504 | 46596 |
| Prepaids | 40483 | 43864 |
| Deferred debt issuance costs on revolving credit facility, net | 8772 | 9401 |
| Other | 12555 | 13521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total prepaids and other assets | $194963 | $207261 |

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**8.&nbsp;&nbsp;&nbsp;&nbsp;Homebuilding Accrued and Other Liabilities and Financial Services Accounts Payable and Accrued Liabilities**

The following table sets forth information relating to homebuilding accrued and other liabilities:

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| | | |
|:---|:---|:---|
| | March 31,<br>2026 | December 31, 2025 |
| | (Dollars in thousands) | (Dollars in thousands) |
| Accrued compensation and related expenses | $82206 | $108728 |
| Customer and escrow deposits | 34314 | 24575 |
| Warranty accrual (Note 9) | 71529 | 70889 |
| Lease liability | 47035 | 48650 |
| Land development and home construction accruals | 32708 | 43136 |
| Accrued interest | 15640 | 31385 |
| Income taxes payable | 37759 | 39407 |
| Self insured retention for construction defect claims (Note 10) | 24314 | 24673 |
| Retentions payable | 38147 | 37656 |
| Other accrued liabilities | 142468 | 133185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total accrued and other liabilities | $526120 | $562284 |

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The following table sets forth information relating to financial services accounts payable and accrued liabilities:

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| | | |
|:---|:---|:---|
| | March 31,<br>2026 | December 31, 2025 |
| | (Dollars in thousands) | (Dollars in thousands) |
| Insurance reserves (Note 10) | $100349 | $100835 |
| Accounts payable and other accrued liabilities | 31303 | 24243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total accounts payable and accrued liabilities | $131652 | $125078 |

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**9.&nbsp;&nbsp;&nbsp;&nbsp;Warranty Accrual**

Our homes are sold with limited third-party warranties and, under our agreement with the issuer of the third-party warranties, we are responsible for performing all of the work for the first two years of the warranty coverage, and paying for certain work required to be performed subsequent to year two. We record accruals for general and structural warranty claims, as well as accruals for known, unusual warranty-related expenditures. Our warranty accrual is recorded based upon historical payment experience in an amount estimated to be adequate to cover expected costs of materials and outside labor during warranty periods. The determination of the warranty accrual rate for closed homes and the evaluation of our warranty accrual balance at period end are based on an internally developed analysis that includes known facts and interpretations of circumstances, including, among other things, our trends in historical warranty payment levels and warranty payments for claims not considered to be normal and recurring.

Our warranty accrual is included in accrued and other liabilities in the homebuilding section of our consolidated balance sheets and adjustments to our warranty accrual are recorded as an increase or reduction to home cost of sales in the homebuilding section of our consolidated statements of operations and comprehensive income.

The table set forth below summarizes accrual, adjustment and payment activity related to our warranty accrual for the three months ended March 31, 2026 and 2025. The warranty accrual during the three months ended March 31, 2026 increased due to a shift in the mix of closings to divisions with higher warranty accrual rates.

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| | | |
|:---|:---|:---|
| | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
| | 2026 | 2025 |
| | (Dollars in thousands) | (Dollars in thousands) |
| Balance at beginning of period | $70889 | $71004 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expense provisions | 6404 | 8408 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash payments | (5764) | (8363) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments |  |  |
| Balance at end of period | $71529 | $71049 |

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**10.**&nbsp;&nbsp;&nbsp;&nbsp;**Insurance and Construction Defect Claim Reserves**

The establishment of reserves for estimated losses to be incurred by our homebuilding subsidiaries associated with: (1) the self-insured retention ("SIR") portion of construction defect claims that are expected to be covered under either third-party insurance policies or insurance policies with StarAmerican and (2) the entire cost of any construction defect claims that are not expected to be covered by insurance policies are based on third party actuarial studies that include known facts similar to those for our insurance reserves. It is possible that changes in the payment experience used in estimating our ultimate losses for construction defect claims could have a material impact on our reserves.

The following table summarizes our self-insured retention for construction defect claims for the three months ended March 31, 2026 and 2025. These reserves are included as a component of accrued and other liabilities in the homebuilding section of the consolidated balance sheets.

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| | | |
|:---|:---|:---|
| | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
| | 2026 | 2025 |
| | (Dollars in thousands) | (Dollars in thousands) |
| Balance at beginning of period | $24673 | $24389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expense provisions | 224 | 446 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash payments, net of recoveries | (583) | (765) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments |  |  |
| Balance at end of period | $24314 | $24070 |

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The establishment of reserves for estimated losses associated with insurance policies issued by StarAmerican are based on actuarial studies that include known facts and interpretations of circumstances, including our experience with similar cases and historical trends involving claim payment patterns, pending levels of unpaid claims, product mix or concentration, claim severity, frequency patterns depending on the business conducted, and changing regulatory and legal environments. It is possible that changes in the insurance payment experience used in estimating our ultimate insurance losses could have a material impact on our insurance reserves.

Effective September 30, 2025, Allegiant novated, assigned and transferred to StarAmerican all of its rights, title, interest and obligations regarding insurance policies, including insurance reserves, claims, benefits, premiums, and other amounts payable or receivable. Effective December 19, 2025, Allegiant was dissolved.

The following table summarizes our insurance reserves associated with Allegiant and StarAmerican for the three months ended March 31, 2026 and 2025. All insurance reserves associated with Allegiant were transferred to StarAmerican effective September 30, 2025. These reserves are included as a component of accounts payable and accrued liabilities in the financial services section of the consolidated balance sheet.

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| | | |
|:---|:---|:---|
| | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
| | 2026 | 2025 |
| | (Dollars in thousands) | (Dollars in thousands) |
| Balance at beginning of period | $100835 | $96851 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expense provisions | 2812 | 3463 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash payments, net of recoveries | (3298) | (2820) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments |  |  |
| Balance at end of period | $100349 | $97494 |

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In the ordinary course of business, we make payments from our insurance and construction defect claim reserves to settle litigation claims arising from our homebuilding activities. These payments are irregular in both their timing and their magnitude. As a result, the cash payments, net of recoveries shown for the three months ended March 31, 2026 and 2025 are not necessarily indicative of what future cash payments will be for subsequent periods.

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**11.&nbsp;&nbsp;&nbsp;&nbsp;Income Taxes**

The Company is included in the Sekisui House US Holdings, LLC. (parent of SH Residential Holdings, LLC) consolidated tax group for U.S. federal income tax purposes. Although the Company's results are included in the Sekisui House consolidated return, our income tax provision is calculated primarily as though we were a separate taxpayer. However, under certain circumstances, transactions between the Company and Sekisui House are assessed using consolidated tax return rules and any difference in liability between the separate company method is planned to be addressed in a future tax sharing arrangement.

Our overall effective income tax rates were 2.5% for the three months ended March 31, 2026 and 18.1% for the three months ended March 31, 2025. The rates for the three months ended March 31, 2026 and 2025 resulted in an income tax benefit (expense) of $0.2 million and $(16.9) million, respectively. The year-over-year decrease in our effective tax rate for the three months ended March 31, 2026 was primarily due to the impact the interest for uncertain tax positions and the change in the state rate are having on the relatively small tax benefit compared to the larger tax provision during the same period in the prior year.

**12.&nbsp;&nbsp;&nbsp;&nbsp;Senior Notes and Notes Payable**

*Senior notes.* The carrying values of our senior notes as of March 31, 2026 and December 31, 2025, net of any unamortized debt issuance costs or discount, were as follows:

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| | | |
|:---|:---|:---|
| | March 31,<br>2026 | December 31, 2025 |
| | (Dollars in thousands) | (Dollars in thousands) |
| 3.850% Senior Notes due January 2030, net | $298830 | $298758 |
| 2.500% Senior Notes due January 2031, net | 348400 | 348321 |
| 6.000% Senior Notes due January 2043, net | 491926 | 491858 |
| 3.966% Senior Notes due August 2061, net | 346241 | 346229 |
| &nbsp;&nbsp;&nbsp;Total | $1485397 | $1485166 |

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Our senior notes are not secured and, while the senior note indentures contain some restrictions on secured debt and other transactions, they do not contain financial covenants. Our senior notes are fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by most of our homebuilding segment subsidiaries (including newly added subsidiaries of Woodside, Chesmar and Holt in March 2026), with the termination date of the guarantees being upon the maturity of the senior notes. The guarantors would be required to perform upon instances of default. We believe that we are in compliance with the representations, warranties and covenants in the senior note indentures.

*Notes payable, net.* Woodside had a term debt agreement ("Woodside Note") with Sumitomo Mitsui Banking Corporation ("SMBC") for $330.0 million at an interest rate of 2.09%. The Woodside Note was guaranteed by SHL. The Woodside Note was transferred to the Parent effective October 28, 2025, with no continuing obligations existing for either Woodside or SHUS.

Chesmar had a term debt agreement ("Chesmar Note") with SMBC for $100 million at an interest rate of 3.47%. The Chesmar Note was guaranteed by SHL. Outstanding principal and interest of the Chesmar Note was paid in full on July 29, 2025.

Holt had a term debt agreement ("Holt Note") with Mizuho Bank, Ltd. for $100 million at an interest rate of 2.427%. The Holt Note was guaranteed by SHL. The Holt Note was transferred to the Parent effective October 28, 2025, with no continuing obligations existing for either Holt or SHUS.

The Company had a promissory note with Surland Companies, LLC for $31.0 million with no interest until the maturity date, on December 31, 2025. This promissory note was in connection with a land sale purchase and related deferred purchase price. Effective December 31, 2025 the Company paid the $31.0 million due under the promissory note with Surland Companies, LLC.

Holt has a promissory note with GME Development, LLC for $3.0 million at an interest rate of 2.08%, with outstanding principal and interest due and payable upon maturity on December 31, 2026. This promissory note is in connection with a land purchase and phased takedown. Outstanding principal and interest was $3.0 million as of December 31, 2025 and 2024.

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*Related party note.* In June 2023, Woodside borrowed $99.9 million from the Parent under the terms of an unsecured intercompany loan agreement. The unpaid principal amount of the loan bore interest at a rate of 6.21% per annum, payable semi-annually. Outstanding principal and interest are due and payable upon maturity on June 7, 2030. The $99.9 million related party note was transferred to the Parent effective October 28, 2025, with no continuing obligations existing for either Woodside or SHUS.

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**13.&nbsp;&nbsp;&nbsp;&nbsp;Commitments and Contingencies**

*Letter of Credit Facilities.* We maintain unsecured letters of credit agreements with financial institutions ("LOC Facilities") to obtain performance letters of credit from time to time in the ordinary course of operating our business. Under the LOC Facilities, which have maturity dates between 2028 and 2029, we may issue up to $50.0 million of letters of credit. As of March 31, 2026 and December 31, 2025, we had letters of credit outstanding under the LOC Facilities of $6.3 million and $9.7 million, respectively.

*Surety Bonds and Letters of Credit.* We are required to obtain surety bonds and letters of credit in support of our obligations for land development and subdivision improvements, homeowner association dues, warranty work, contractor license fees and earnest money deposits. At March 31, 2026, we had outstanding surety bonds and letters of credit totaling $760.8 million and $140.4 million, respectively, including $110.8 million in letters of credit issued by HomeAmerican. The estimated cost to complete obligations related to these bonds and letters of credit were approximately $368.0 million and $115.9 million, respectively. All letters of credit as of March 31, 2026, excluding those issued by HomeAmerican, were issued under our letter of credit facilities or our unsecured revolving credit facility (see Note 14 for further discussion). We expect that the obligations secured by these performance bonds and letters of credit generally will be performed in the ordinary course of business and in accordance with the applicable contractual terms. To the extent that the obligations are performed, the related performance bonds and letters of credit should be released and we should not have any continuing obligations. However, in the event any such performance bonds or letters of credit are called, our indemnity obligations could require us to reimburse the issuer of the performance bond or letter of credit.

We have made no material guarantees with respect to third-party obligations.

*Litigation.* Due to the nature of the homebuilding business, we have been named as defendants in various claims, complaints and other legal actions arising in the ordinary course of business, including product liability claims and claims associated with the sale and financing of homes. In the opinion of management, the outcome of these ordinary course matters will not have a material adverse effect upon our financial condition, results of operations or cash flows.

With regard to the previously disclosed Building Trades Pension Fund of Western Pennsylvania matter, on or about March 10, 2026, a settlement agreement was executed by all parties to settle the matter for $25.0 million, which is anticipated to be fully covered by the Company's third-party insurance providers.

*Lot Option Contracts*. In the ordinary course of business, we enter into lot option purchase contracts ("Option Contracts"), generally through a deposit of cash or a letter of credit, for the right to purchase land or lots at a future point in time with predetermined terms. The use of such land option and other contracts generally allow us to reduce the risks associated with direct land ownership and development, reduces our capital and financial commitments, and minimizes the amount of land inventories on our consolidated balance sheets. In certain cases, these contracts will be settled shortly following the end of the period. Our obligation with respect to Option Contracts is generally limited to forfeiture of the related deposits. At March 31, 2026, we had cash deposits and letters of credit totaling $78.6 million and $9.1 million, respectively, at risk associated with options to purchase 8,724 lots.

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**14.&nbsp;&nbsp;&nbsp;&nbsp;Lines of Credit**

*Revolving Credit Facility.* On November 19, 2024 the Company entered into an unsecured revolving credit agreement ("Revolving Credit Facility") with a group of lenders, which may be used for general corporate purposes. On October 15, 2025, the Company entered into the First Amendment to Credit Agreement ("First Amendment") to its Revolving Credit Facility. The First Amendment increased the Aggregate Commitment to $1.40 billion (the "Commitment") and extended the Facility Termination Date of $1.36 billion of the facility commitments to October 15, 2029, with the remaining $40.0 million commitment continuing to terminate on November 17, 2028. The First Amendment also provides that the aggregate amount of the commitments may increase to an amount not to exceed $1.90 billion (the "accordion" feature) upon our request, subject to receipt of additional commitments from existing or additional lenders and, in the case of additional lenders, the consent of the co-administrative agents. The Revolving Credit Facility includes a $185.0 million sublimit for letters of credit.

Borrowings under the Revolving Credit Facility bear interest at a floating rate equal to Term SOFR or Daily Simple SOFR (in each case as defined in the Revolving Credit Facility), plus an applicable margin between 1.125% and 1.625% per annum, or if selected by the Company, a base rate plus an applicable margin between 0.125% and 0.625% per annum. The "applicable margins" described above are determined by a schedule based on the leverage ratio of the Company, as defined in the Revolving Credit Facility. The Revolving Credit Facility also provides for customary fees including commitment fees payable to each lender ranging from 0.15% to 0.30% per annum based on the Company's leverage ratio.

The Revolving Credit Facility is fully and unconditionally guaranteed, jointly and severally, by most of our homebuilding segment subsidiaries (including newly added subsidiaries of Woodside, Chesmar and Holt in March 2026). The term of the guarantees is through the termination of the Revolving Credit Facility. The facility contains various representations, warranties and covenants that we believe are customary for agreements of this type. In the case of a default, the guarantors would be required to perform under the agreement. The financial covenants include a consolidated leverage test and interest coverage test, along with a consolidated tangible net worth covenant, all as defined in the Revolving Credit Facility.

The Revolving Credit Facility also contains customary events of default, including, without limitation, payment defaults, material inaccuracy of representations and warranties, covenant defaults, bankruptcy and insolvency proceedings, cross-defaults to certain other agreements, breach of any financial covenant and change of control. Upon the occurrence and during the continuance of any event of default, the Administrative Agent, with the consent or at the direction of the required lenders, may accelerate the payment of the obligations thereunder and exercise various other customary default remedies. We believe we were in compliance with the representations, warranties and covenants included in the Revolving Credit Facility as of March 31, 2026.

We incur costs associated with unused commitment fees pursuant to the terms of the Revolving Credit Facility. At March 31, 2026 and December 31, 2025, there were $29.6 million and $35.5 million, respectively, in letters of credit outstanding, which reduced the amounts available to be borrowed under the Revolving Credit Facility. At March 31, 2026 and December 31, 2025, we had $200.0 million and $0.0 million, respectively, outstanding under the Revolving Credit Facility. As of March 31, 2026, availability under the Revolving Credit Facility was approximately $1.17 billion.

*Mortgage Repurchase Facilities.* Our Mortgage Operations enter into Mortgage Repurchase Facilities with various lenders, which provide liquidity by providing for the sale of eligible mortgage loans with an agreement by our Mortgage Operations to repurchase the mortgage loans at a future date. HomeAmerican is party to mortgage repurchase facilities with two lenders, which provide HomeAmerican with committed repurchase facilities of up to an aggregate of $300.0 million as of March 31, 2026 (subject to increase by up to $150.0 million under certain conditions with respect to one of the lenders). CLM is party to mortgage repurchase facilities with two lenders, which provide CLM with committed repurchase facilities of up to an aggregate of $105.0 million as of March 31, 2026.

At March 31, 2026 and December 31, 2025, HomeAmerican and CLM had $168.2 million and $177.2 million, respectively, of mortgage loans that they were obligated to repurchase under the Mortgage Repurchase Facilities. Mortgage loans that our Mortgage Operations are obligated to repurchase under the mortgage repurchase facilities are accounted for as a debt financing arrangement and are reported as mortgage repurchase facilities in the consolidated balance sheets. Pricing under the mortgage repurchase facilities are based on SOFR.

Effective April 16, 2025, HomeAmerican entered into a Waiver and Consent agreement with USBNA, in which USBNA as agent waived any events of default under the Mortgage Repurchase Facility arising with respect to an event of default as HomeAmerican was not in compliance by permitting the Adjusted Tangible Net Worth to be less than $21.0 million for the month ending February 28, 2025.

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The Mortgage Repurchase Facilities have varying short term maturity dates through March 3, 2027. The Mortgage Repurchase Facilities contain various representations, warranties and affirmative and negative covenants that we believe are customary for agreements of this type. The negative covenants include, among others, (i) a minimum Adjusted Tangible Net Worth requirement, (ii) a maximum Adjusted Tangible Net Worth ratio, (iii) a minimum adjusted net income requirement, and (iv) a minimum Liquidity requirement. The foregoing capitalized terms are defined in the mortgage repurchase facilities. We believe our Mortgage Operations were in compliance with the representations, warranties and covenants included in the mortgage repurchase facilities as of March 31, 2026.

*Intercompany unsecured revolving credit agreement.* Woodside, Chesmar and Holt each had an unsecured revolving credit agreement with Parent with commitments of $250.0 million, $500.0 million and $175.0 million, respectively ("Intercompany Credit Agreements"). The Intercompany Credit Agreements were effective November 20, 2024 and had a termination date of June 30, 2026.

Borrowings bore interest at a floating rate equal to the weighted average of the total interest rate and fees incurred by Parent under the agreements with the Parent's third-party banks, and included any guaranty fee incurred by the Parent under agreements with SHL. The Intercompany Credit Agreement also provided for customary fees including commitment fees of the weighted average of the total commitment fees imposed by Parent's third-party banks per annum.

The Intercompany Credit Agreements contained various representations, warranties and covenants that we believe are customary for agreements of this type. The Intercompany Credit Agreements also contained customary events of default, including, without limitation, payment defaults, material inaccuracy of representations and warranties, bankruptcy and insolvency proceedings. Upon the occurrence and during the continuance of any event of default, the Parent had the ability to accelerate the payment of the obligations thereunder and exercise various other customary default remedies. As a part of the execution of the Common Control Mergers, the Intercompany Credit Agreements were terminated on November 30, 2025, with respect to Woodside, and December 31, 2025, with respect to Chesmar and Holt, with all amounts due under the Intercompany Credit Agreements payable within five business days of the termination date. As of December 31, 2025, Chesmar and Holt had outstanding balances of $407.8 million and $80.0 million, respectively.

**15.&nbsp;&nbsp;&nbsp;&nbsp;Related Party Transactions**

In June 2023, Woodside borrowed $99.9 million from SHUSH under the terms of an unsecured intercompany loan agreement. The unpaid principal amount of the loan bore interest at a rate of 6.21% per annum. Interest payments on the loan were due the last business day of each May and November through loan maturity. Principal payments throughout the term of the loan were allowed but not required. Outstanding principal and interest was due and payable upon maturity on June 7, 2030. The $99.9 million related party note was transferred to the Parent effective October 28, 2025, with no continuing obligations existing for either Woodside or SHUS.

SHL was the guarantor of the Woodside Note, Chesmar Note and Holt Note. SHL charged Woodside, Chesmar and Holt a guarantee fee of 0.48%, 0.22% and 0.12% per annum, respectively, of the aggregate loan outstanding. Woodside, Chesmar and Holt account for guarantee fees as a component of interest. Outstanding principal and interest of the Chesmar Note was paid in full on July 29, 2025. The Woodside Note and Holt Note were transferred to the Parent effective October 28, 2025, with no continuing obligations existing for Woodside, Holt or SHUS.

*Intercompany unsecured revolving credit agreement.* Woodside, Chesmar and Holt each had an unsecured revolving credit agreement with Parent with commitments of $250.0 million, $500.0 million and $175.0 million, respectively ("Intercompany Credit Agreements"). The Intercompany Credit Agreements were effective November 20, 2024 and had a termination date of June 30, 2026.

Borrowings bore interest at a floating rate equal to the weighted average of the total interest rate and fees incurred by Parent under the agreements with the Parent's third-party banks, and included any guaranty fee incurred by the Parent under agreements with SHL. The Intercompany Credit Agreement also provided for customary fees including commitment fees of the weighted average of the total commitment fees imposed by Parent's third-party banks per annum.

The Intercompany Credit Agreements contain various representations, warranties and covenants that we believe are customary for agreements of this type. The Intercompany Credit Agreements also contain customary events of default, including, without limitation, payment defaults, material inaccuracy of representations and warranties, bankruptcy and insolvency proceedings. Upon the occurrence and during the continuance of any event of default, the Parent had the ability to accelerate the payment of the obligations thereunder and exercise various other customary default remedies. As a part of the execution of the

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Common Control Mergers, the Intercompany Credit Agreements were terminated on November 30, 2025, with respect to Woodside, and December 31, 2025, with respect to Chesmar and Holt.

The following table summarizes interest incurred, capitalized to inventory, and expensed as a result of the related party notes and intercompany unsecured revolving credit agreements and intercompany guarantee fees:

---

| | | |
|:---|:---|:---|
| | Three months ended March 31, | Three months ended March 31, |
| | 2026 | 2025 |
| | (Dollars in thousands) | (Dollars in thousands) |
| Capitalized interest, beginning of year | $16206 | $9560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest incurred |  | 3182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest within cost of sales | (2834) | (2213) |
| Capitalized interest, end of year | $13372 | $10529 |

---

SHRH and affiliates are considered a related party for the period subsequent to April 19, 2024, the date of the merger of the Company, Parent and other affiliates of the Parent (the "Merger"). As of March 31, 2026 and December 31, 2025 the Company had related party receivables of $3.5 million and $47.2 million, respectively. During the three months ended March 31, 2026, $45.0 million of the related party receivable was satisfied against the related party line of credit.

As of March 31, 2026 and December 31, 2025, the Company had $1.5 million and $2.2 million, respectively, of related party payables related to interest payable under the related party notes, intercompany unsecured revolving credit agreements, guarantee fees to SHL, and other various payables with the Parent and affiliates. During the three months ended March 31, 2026 and 2025, the Company recognized $0.0 million and $2.3 million of interest income in association with the cash pooling arrangement with the Parent within interest and other income on the consolidated statement of operations and comprehensive income.

The Company is party to a trademark license agreement with Parent and its affiliates pursuant to which it pays a royalty fee for use of these trademarks. During the three months ended March 31, 2026 and 2025, the Company recognized $0.5 million and $0.6 million of royalty fees within selling, general and administrative expenses on the consolidated statement of operations and comprehensive income.

During the three months ended March 31, 2026 and 2025, the Company purchased $0.4 million and $0.6 million, respectively, of construction related materials, such as framing materials, exterior wall panels and other related materials from Parent and some of its affiliates for use by the Company's homebuilding subsidiaries. These amounts are recognized within inventories on the consolidated balance sheets when paid and within home cost of sales on the consolidated statement of operations and comprehensive income when the homes close.

Within Inventories in the consolidated balance sheets is $67.2 million and $63.8 million of land purchased by the Company from affiliates of SHRH as of March 31, 2026 and December 31, 2025.

**16.&nbsp;&nbsp;&nbsp;&nbsp;Common Control Mergers**

On December 1, 2025, Parent contributed (for no consideration) to the Company all of Parent's interests in its wholly owned subsidiary Woodside. Woodside is a homebuilding company with operations in Arizona, California, Idaho, Nevada and Utah. On January 1, 2026, Parent contributed (for no consideration) to the Company all of Parent's interests in its wholly owned subsidiaries Chesmar and Holt. Chesmar and Holt are homebuilding companies with operations in Texas, Oregon, and Washington.

Immediately prior to the contribution, the sole stockholder of the Company was also the sole stockholder of Woodside, Chesmar and Holt. As a result of the common ownership upon closing of the transactions, the acquisitions were considered common-control transactions and were outside the scope of the business combination guidance in ASC 805-50. The entities are deemed to be under common control as of April 19, 2024, which was the date that the sole stockholder acquired control of the Company and, therefore, held control over the Company.

Assets acquired and liabilities assumed are reported at the Parent's historical carrying amounts and the net assets are recognized in additional paid-in capital. The following table summarizes the historical balances of the assets acquired and liabilities assumed as of April 19, 2024:

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| | | | |
|:---|:---|:---|:---|
| | **Woodside** | **Holt** | **Chesmar** |
| | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| ***Assets acquired*** |  |  |  |
| **Homebuilding:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $20987 | $19952 | $27056 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade and other receivables | 9386 | 18213 | 6714 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable due from Parent | 2117 | 1170 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total inventories | 1372565 | 493430 | 665338 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 22889 | 1426 | 582 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets, net | 5574 | 5368 | 14321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid and other assets | 67999 | 21982 | 42498 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in unconsolidated entities | 44374 |  | 15262 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill and intangible assets, net | 68951 | 3506 | 168189 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total homebuilding assets acquired | $1614842 | $565047 | $939959 |
| **Financial Services:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $— | $— | $13032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted Cash |  |  | 433 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans held-for-sale, net |  |  | 20301 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from related parties |  |  | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets |  |  | 8369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total financial services assets |  |  | 42181 |
| Total Assets | $1614842 | $565047 | $982140 |
| ***Liabilities assumed*** |  |  |  |
| **Homebuilding:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $49035 | $16025 | $33864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued and other liabilities | 107538 | 44365 | 47156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related party payables | 3051 | 149 | 304 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related party note | 99900 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related party line of credit |  | 20000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revolving credit facility | 10000 |  | 185000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes payable, net | 359831 | 102689 | 100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total homebuilding liabilities assumed | $629355 | $183228 | $366324 |
| **Financial Services:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | $— | $— | $2029 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage repurchase facilities |  |  | 24767 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total financial services liabilities |  |  | 26796 |
| Total Liabilities | $629355 | $183228 | $393121 |
| **Net assets** | $985487 | $381819 | $589019 |

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**Item 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management's Discussion and Analysis of Financial Condition and Results of Operations**

*The following discussion should be read in conjunction with, and is qualified in its entirety by, the Unaudited Consolidated Financial Statements and Notes thereto included elsewhere in this Quarterly Report on Form 10-Q. This item contains forward-looking statements that involve risks and uncertainties. The forward-looking statements are based upon management's experiences, observations, and analyses. Actual results may differ materially from those indicated in such forward-looking statements. Factors that may cause such a difference include, but are not limited to, those discussed in "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2025 and this Quarterly Report on Form 10-Q.* 

---

| | | |
|:---|:---|:---|
| | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
| | 2026 | 2025 |
| | (Dollars in thousands, except per share amounts) | (Dollars in thousands, except per share amounts) |
| **Homebuilding:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home sale revenues | 1202055 | 1506375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land sale revenues | 7013 | 1443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other revenues |  | 3260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 1209068 | 1511078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home cost of sales | (1018252) | (1240380) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory impairments | (4500) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total home cost of sales | (1022752) | (1240380) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land cost of sales | (5072) | (760) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other cost of sales |  | (2839) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of sales | (1027824) | (1243979) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross margin | 181244 | 267099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | (193128) | (191492) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and other income | 1084 | 7104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense | (3692) | (3879) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Homebuilding pretax income (loss) | (14492) | 78832 |
| **Financial Services:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues | 27677 | 38514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expenses | (25024) | (27655) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income, net | 2862 | 3809 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial services pretax income | 5515 | 14668 |
| Income (loss) before income taxes | (8977) | 93500 |
| Benefit (provision) for income taxes | 223 | (16947) |
| Net income (loss) | (8754) | 76553 |
| Cash provided by (used in): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Activities | 61908 | (473983) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investing Activities | 35908 | 67913 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financing Activities | (296812) | 74325 |

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<u>[**Table of Contents**](#i4e6b1217ba184945a631b23f5e67644f_7)</u>

***Overview***

*Industry Conditions and Outlook for SHUS\** 

Overall housing demand remained soft during the first quarter of 2026, with continuing affordability concerns and weak consumer confidence. Further, the macroeconomic backdrop remains challenging given continuing uncertainty related to geopolitical issues. As a result, we experienced a decrease in our sales absorption rate and our gross margin from home sales during the three months ended March 31, 2026 compared to the same period in the prior year.

We believe that we are well equipped to navigate the current market conditions given our strong financial position. We ended the quarter with total cash and cash equivalents of $161.2 million, a debt-to-capital ratio of 23.3% and no senior note maturities until 2030.

*Three Months Ended March 31, 2026*

For the three months ended March 31, 2026, our net income (loss) was $(8.8) million, a 111% decrease compared to net income of $76.6 million for the same period in the prior year. This was driven by a decrease in pretax income of both our homebuilding business and financial services business. Our homebuilding pretax income decreased $93.3 million, or 118% year-over-year. Our financial services business pretax income decreased $9.2 million, or 62%, compared to the same period in the prior year. The decrease in homebuilding pretax income was primarily due to a 20% decrease in home sale revenues, a 280 basis point decrease in gross margins from home sales and a 340 basis point increase in our selling, general and administrative expenses as a percentage of revenue. The decrease in gross margin from home sales was driven largely by inventory impairments of $4.5 million in the current year and increased incentive levels, and to a lesser extent, increased land costs. The decrease in financial services pretax income was driven by both our mortgage operations and other financial services operations. The decrease in pretax income for our mortgage operations was driven by decreased loan origination volume due to the decrease in homes closed as well as special financing programs offered on loans locked during the quarter. The decrease in pretax income for our other financial services operations was due to a decrease in home closings. Our financial services and homebuilding businesses each saw a decrease in interest income due to decreases in cash and short-term investments year-over-year.

\* See **"Forward-Looking Statements"** below.

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***Homebuilding***

*Pretax Income (Loss):*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | | |
| | March 31, | March 31, | Change | Change |
| | 2026 | 2025 | Amount | % |
| | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| Pacific Northwest | $(1252) | $11938 | $(13190) | (110)% |
| California | (3304) | 11702 | (15006) | (128)% |
| Desert | (3217) | 21189 | (24406) | (115)% |
| Mountain | 2079 | 20671 | (18592) | (90)% |
| Texas | 2482 | 12716 | (10234) | (80)% |
| East | (12311) | (95) | (12216) | (12871)% |
| Corporate | 1031 | 711 | 320 | 45% |
| &nbsp;&nbsp;&nbsp;Total Homebuilding pretax income (loss) | $(14493) | $78831 | $(93324) | (118)% |

---

For the three months ended March 31, 2026, we recorded homebuilding pretax income (loss) of $(14.5) million, a decrease of 118% from $78.8 million for the same period in the prior year. The decrease was due to a $304.3 million decrease in home sale revenues, a 280 basis point decrease in gross margin from home sales and a 340 basis point increase in our selling, general and administrative expenses as a percentage of home sale revenues.

Our Pacific Northwest, California, Desert, Mountain, Texas and East segments decrease in pretax income was driven by the decrease in home sale revenues in each segment due to a decrease in home closings. This decrease was further driven by a decrease in gross margin from home sales and increase in our selling, general and administrative expenses as a percentage of home sales revenue. Our Corporate segment experienced a $0.3 million increase in pretax income driven by a change in the allocation of the Corporate segments fees in supporting the homebuilding segments.

*Assets:*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | March 31,<br>2026 | December 31,<br>2025 | Change | Change |
| | March 31,<br>2026 | December 31,<br>2025 | Amount | % |
| | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| Pacific Northwest | $1122345 | $1222938 | $(100593) | (8)% |
| California | 1764597 | 1720250 | 44347 | 3% |
| Desert | 1699815 | 1697152 | 2663 | 0% |
| Mountain | 1003821 | 1059501 | (55680) | (5)% |
| Texas | 1245893 | 1150647 | 95246 | 8% |
| East | 845036 | 890772 | (45736) | (5)% |
| Corporate | 217512 | 481229 | (263717) | (55)% |
| &nbsp;&nbsp;Total homebuilding assets | $7899019 | $8222489 | $(323470) | (4)% |

---

Total homebuilding assets decreased 4% from December 31, 2025 to March 31, 2026. The decrease in the Corporate segment was driven by a decrease in cash and cash equivalents due to repayments on the related party line of credit, which was partially offset by borrowings on our revolving credit facility during the three months ended March 31, 2026.

The decrease in assets within our Pacific Northwest, Mountain and East homebuilding segments were due to changes in inventories due to decreased land acquisition during the current year. The increase in assets within our Texas homebuilding segment was driven by an increase in inventories due to increased land acquisition during the current year.

*New Home Deliveries & Home Sale Revenues:*

Changes in home sale revenues are impacted by changes in the number of new homes delivered and the average selling price of those delivered homes. Commentary for each of our segments on significant changes in these two metrics is provided below.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, |
| | 2026 | 2026 | 2026 | 2025 | 2025 | 2025 | % Change | % Change | % Change |
| | Homes | Home Sale<br>Revenues | Average<br>Price | Homes | Home Sale<br>Revenues | Average<br>Price | Homes | Home<br>Sale<br>Revenues | Average Price |
| | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| Pacific Northwest | 362 | $210921 | $582.7 | 384 | $225190 | $586.4 | (6)% | (6)% | (1)% |
| California | 325 | 219059 | 674.0 | 360 | 251016 | 697.3 | (10)% | (13)% | (3)% |
| Desert | 485 | 268206 | 553.0 | 634 | 334511 | 527.6 | (24)% | (20)% | 5% |
| Mountain | 355 | 205567 | 579.1 | 553 | 323376 | 584.8 | (36)% | (36)% | (1)% |
| Texas | 420 | 192983 | 459.5 | 473 | 213867 | 452.2 | (11)% | (10)% | 2% |
| East | 229 | 105319 | 459.9 | 365 | 158415 | 434.0 | (37)% | (34)% | 6% |
| Total | 2176 | $1202055 | $552.4 | 2769 | $1506375 | $544.0 | (21)% | (20)% | 2% |

---

For the three months ended March 31, 2026, the decrease in new home deliveries for all homebuilding segments was due to a decrease in net home sales during the period and for all segments except for the East segment a decrease in beginning backlog at the beginning of the respective periods. The increase in average sales price in the East and Desert homebuilding segments were driven by a change in mix to higher priced communities. The decrease in average sales price in the California homebuilding segment was a result of increased incentive levels.

*Gross Margin from Home Sales:*

Our gross margin from home sales for the three months ended March 31, 2026 decreased 280 basis points year-over-year from 17.7% to 14.9%. The decrease in gross margin from home sales was primarily due to inventory impairments and increased incentive levels, and to a lesser extent, increased land costs.

Our gross margin from home sales are impacted by our historical land buying strategy, where we have targeted an owned and optioned lot supply of approximately two to three years worth of home closings. As a result, our land associated with homes closed are represented by more recent market values.

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*Inventory Impairments:*

Inventory impairments recognized by segment for the three months ended March 31, 2026 and 2025 are shown in the table below.

---

| | | |
|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, |
| | 2026 | 2025 |
| | (Dollars in thousands) | (Dollars in thousands) |
| Housing Completed or Under Construction: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pacific Northwest | $560 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;California |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Desert | 1450 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mountain |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Texas |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;East | 2014 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 4024 |  |
| Land and Land Under Development: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pacific Northwest | 140 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;California |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Desert |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mountain |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Texas |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;East | 336 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 476 |  |
| Total Inventory Impairments | $4500 | $— |

---

The table below provides quantitative data, for the periods presented, where applicable, used in determining the fair value of the impaired inventory.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Impairment Data | Impairment Data | Impairment Data | Quantitative Data |
| Three Months Ended | Number of Subdivisions Impaired | Inventory<br>Impairments | Fair Value of<br>Inventory After Impairments | Discount Rate |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |  |
| March 31, 2026 | 4 | $4500 | $23441 | 15% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  | $4500 |  |  |

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<u>[**Table of Contents**](#i4e6b1217ba184945a631b23f5e67644f_7)</u>

*Selling, General and Administrative Expenses:*

---

| | | | |
|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, |
| | 2026 | 2025 | Change |
| | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| General and administrative expenses | $104811 | $94650 | $10161 |
| &nbsp;&nbsp;&nbsp;&nbsp;*General and administrative expenses as a percentage of home sale revenues* | 8.7% | 6.3% | 240 bps |
| Marketing expenses | $44997 | $43625 | $1372 |
| &nbsp;&nbsp;&nbsp;&nbsp;*Marketing expenses as a percentage of home sale revenues* | 3.7% | 2.9% | 80 bps |
| Commissions expenses | $43320 | $53217 | $(9896) |
| &nbsp;&nbsp;&nbsp;&nbsp;*Commissions expenses as a percentage of home sale revenues* | 3.6% | 3.5% | 10 bps |
| Total selling, general and administrative expenses | $193128 | $191492 | $1637 |
| &nbsp;&nbsp;&nbsp;&nbsp;*Total selling, general and administrative expenses as a percentage of home sale revenues* | 16.1% | 12.7% | 340 bps |

---

General and administrative expenses increased for the three months ended March 31, 2026 due to an increase in compensation related costs as well as certain overhead costs previously incurred by the Parent that are now incurred by the Company subsequent to the acquisition of Woodside in December 2025 and Chesmar and Holt in January 2026.

Marketing expenses increased for the three months ended March 31, 2026 compared to the previous period driven by an increase in maintenance and utility costs as a result of having more spec homes in inventory and increased advertising spend during the quarter.

Commissions expenses decreased for the three months ended March 31, 2026 due to decreases in home sale revenues.

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<u>[**Table of Contents**](#i4e6b1217ba184945a631b23f5e67644f_7)</u>

***Other Homebuilding Operating Data***

*Net New Orders and Active Subdivisions:*

Changes in the dollar value of net new orders are impacted by changes in the number of net new orders and the average selling price of those homes. The dollar value and average selling prices of net new orders do not include financing incentives, as these forward commitments are entered into prior to the home sales and are not specific to an individual home. Commentary for each of our segments on significant changes in these two metrics is provided below.

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, |
| | 2026 | 2026 | 2026 | 2026 | 2025 | 2025 | 2025 | 2025 | % Change | % Change | % Change | % Change |
| | Homes | Dollar<br>Value | Average<br>Price | Monthly<br>Absorption<br>Rate \* | Homes | Dollar Value | Average Price | Monthly<br>Absorption Rate \* | Homes | Dollar Value | Average Price | Monthly<br>Absorption<br>Rate |
| | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| Pacific Northwest | 565 | $338018 | $598.3 | 2.62 | 584 | $344442 | $589.8 | 2.95 | (3)% | (2)% | 1% | (11)% |
| California | 445 | 325128 | 730.6 | 2.60 | 519 | 370339 | 713.6 | 3.46 | (14)% | (12)% | 2% | (25)% |
| Desert | 705 | 402194 | 570.5 | 2.61 | 763 | 405721 | 531.7 | 3.69 | (8)% | (1)% | 7% | (29)% |
| Mountain | 460 | 286448 | 622.7 | 2.22 | 681 | 415891 | 610.7 | 3.72 | (32)% | (31)% | 2% | (40)% |
| Texas | 531 | 269431 | 507.4 | 1.65 | 621 | 289928 | 466.9 | 2.13 | (14)% | (7)% | 9% | (22)% |
| East | 309 | 147220 | 476.4 | 2.24 | 479 | 213747 | 446.2 | 3.99 | (35)% | (31)% | 7% | (44)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 3015 | $1768439 | $586.5 | 2.28 | 3647 | $2040068 | $559.4 | 3.17 | (17)% | (13)% | 5% | (28)% |

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\*Calculated as total net new orders (gross orders less cancellations) in period ÷ average active communities during period ÷ number of months in period.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | Average Active Subdivisions | Average Active Subdivisions | Average Active Subdivisions |
| | Active Subdivisions | Active Subdivisions | Active Subdivisions | Three Months Ended | Three Months Ended | Three Months Ended |
| | March 31, | March 31, | | March 31, | March 31, | |
| | 2026 | 2025 | %<br>Change | 2026 | 2025 | %<br>Change |
| Pacific Northwest | 66 | 69 | (4)% | 72 | 66 | 9% |
| California | 57 | 50 | 14% | 57 | 50 | 14% |
| Desert | 93 | 67 | 39% | 90 | 69 | 30% |
| Mountain | 71 | 59 | 20% | 69 | 61 | 13% |
| Texas | 107 | 100 | 7% | 107 | 97 | 10% |
| East | 46 | 40 | 15% | 46 | 40 | 15% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 440 | 385 | 14% | 441 | 383 | 15% |

---

For the three months ended March 31, 2026, the decrease in the number of net new orders was primarily the result of a decrease in in the monthly sales absorption rate, offset partially by an increase in average active subdivisions. The decrease in the monthly sales absorption rate is due to decreased demand as a result of current market conditions.

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*Cancellation Rate:*

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| | | |
|:---|:---|:---|
| | Cancellations as a Percentage of Gross Sales | Cancellations as a Percentage of Gross Sales |
| | Three Months Ended March 31, | Three Months Ended March 31, |
| | 2026 | 2025 |
| Pacific Northwest | 8% | 11% |
| California | 10% | 10% |
| Desert | 11% | 13% |
| Mountain | 12% | 12% |
| Texas | 11% | 12% |
| East | 13% | 14% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 11% | 12% |

---

Our cancellation rate as a percentage of gross sales decreased year-over-year during the three months ended March 31, 2026 as a result of a decrease in beginning backlog, offset partially by a decrease in gross sales (before cancellations).

*Backlog:*

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | March 31, | March 31, | March 31, | March 31, | March 31, | March 31, | March 31, | March 31, | March 31, |
| | 2026 | 2026 | 2026 | 2025 | 2025 | 2025 | % Change | % Change | % Change |
| | Homes | Dollar<br>Value | Average<br>Price | Homes | Dollar<br>Value | Average<br>Price | Homes | Dollar<br>Value | Average<br>Price |
| | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| Pacific Northwest | 481 | $286899 | $596.5 | 545 | $308634 | $566.3 | (12)% | (7)% | 5% |
| California | 291 | 238013 | 817.9 | 426 | 323439 | 759.2 | (32)% | (26)% | 8% |
| Desert | 435 | 288755 | 663.8 | 396 | 232736 | 587.7 | 10% | 24% | 13% |
| Mountain | 255 | 171486 | 672.5 | 320 | 197884 | 618.4 | (20)% | (13)% | 9% |
| Texas | 545 | 308440 | 565.9 | 623 | 309182 | 496.3 | (13)% | —% | 14% |
| East | 164 | 83035 | 506.3 | 198 | 91479 | 462.0 | (17)% | (9)% | 10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 2171 | $1376628 | $634.1 | 2508 | $1463354 | $583.5 | (13)% | (6)% | 9% |

---

At March 31, 2026, we had 2,171 homes in backlog with a total value of $1.38 billion. This represented a 13% decrease in the number of homes in backlog and a 6% decrease in the dollar value of those homes in backlog from March 31, 2025. The decrease in the number of homes in backlog was primarily a result of the decrease in net sales during the quarter. The increase in average selling price in each of the homebuilding segments is due to a change in mix to higher priced communities. The dollar value and average selling prices of homes in backlog do not include financing incentives, as these forward commitments are entered into prior to the home sales and are not specific to an individual home.

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*Homes Completed or Under Construction (WIP lots):*

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| | | | |
|:---|:---|:---|:---|
|  | March 31, | March 31, | |
|  | 2026 | 2025 | %<br>Change |
| Unsold: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Completed | 2174 | 1664 | 31% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under construction | 1742 | 3924 | (56)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total unsold started homes | 3916 | 5588 | (30)% |
| Sold homes under construction or completed | 1716 | 2151 | (20)% |
| Model homes under construction or completed | 813 | 746 | 9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total homes completed or under construction | 6445 | 8485 | (24)% |

---

The decrease in sold homes under construction or completed and increase in unsold completed homes is due to the slower sales pace during the three months ended March 31, 2026 due to current market conditions. The decrease in unsold homes under construction is due to a decrease of home starts during the period.

*Lots Owned and Optioned (including homes completed or under construction):*

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | March 31, 2026 | March 31, 2026 | March 31, 2026 | March 31, 2025 | March 31, 2025 | March 31, 2025 | |
| | Lots<br>Owned | Lots<br>Optioned | Total | Lots<br>Owned | Lots<br>Optioned | Total |<br>Total%<br>Change |
| Pacific Northwest | 7758 | 1914 | 9672 | 8472 | 3852 | 12324 | (22)% |
| California | 5873 | 512 | 6385 | 6471 | 1808 | 8279 | (23)% |
| Desert | 7543 | 777 | 8320 | 7803 | 1623 | 9426 | (12)% |
| Mountain | 5311 | 864 | 6175 | 6099 | 1028 | 7127 | (13)% |
| Texas | 7915 | 3229 | 11144 | 7711 | 2826 | 10537 | 6% |
| East | 5153 | 1428 | 6581 | 4467 | 3182 | 7649 | (14)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 39553 | 8724 | 48277 | 41023 | 14319 | 55342 | (13)% |

---

Our total owned and optioned lots at March 31, 2026 were 48,277, which represented an 13% decrease year-over-year. We believe that our total lot supply is sufficient to meet our operating needs. See **"Forward-Looking Statements"** below.

***Financial Services***

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended |  |  |
| | March 31, | March 31, | Change | Change |
| | 2026 | 2025 | Amount | % |
| | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| Financial services revenues |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Mortgage operations | $15404 | $21456 | $(6053) | (28)% |
| &nbsp;&nbsp;&nbsp;Other | 12273 | 17058 | (4785) | (28)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total financial services revenues | $27677 | $38515 | $(10838) | (28)% |
| Financial services pretax income |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Mortgage operations | $(1478) | $2165 | $(3643) | (168)% |
| &nbsp;&nbsp;&nbsp;Other | 6993 | 12503 | (5510) | (44)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total financial services pretax income | $5515 | $14668 | $(9153) | (62)% |

---

For the three months ended March 31, 2026, our financial services pretax income was $5.5 million, a 62% decrease compared to pretax income of $14.7 million for the same period in the prior year. The decrease in financial services pretax income was due to both our mortgage operations and other financial services operations. The decrease in mortgage operations was largely due to special financing programs offered on loans locked during the quarter. Both financial services segments pretax income was also impacted by the decrease in homes closed year-over-year as well as a decrease in interest income due to decreases in cash and short-term investments year-over-year.

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The following table sets forth information for our mortgage operations segment relating to mortgage loans originated and capture rate.

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| | | | |
|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | % or<br>Percentage |
| | March 31, | March 31, | % or<br>Percentage |
| | 2026 | 2025 | Change |
| | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| Total Originations (including transfer loans): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans | 1649 | 2106 | (22)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal | $799207 | $993948 | (20)% |
| Capture Rate Data: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capture rate as % of all homes delivered | 76% | 76% | —% |
| Mortgage Loan Origination Product Mix: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FHA loans | 26% | 31% | (5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other government loans (VA & USDA) | 19% | 16% | 3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total government loans | 45% | 47% | (2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conventional loans | 55% | 53% | 2% |
|  | 100% | 100% | —% |
| Loan Type: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed rate | 90% | 100% | (10)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ARM | 10% | —% | 10% |
| Credit Quality: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average FICO Score | 741 | 744 | —% |
| Other Data: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Combined LTV ratio | 86% | 85% | 1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Full documentation loans | 100% | 100% | —% |
| Loans Sold to Third Parties: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans | 1658 | 2074 | (20)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal | $803344 | $962165 | (17)% |

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***Income Taxes***

The Company is included in the Sekisui House US Holdings (parent of SH Residential Holdings, LLC) consolidated tax group for U.S. federal income tax purposes. Although the Company's results are included in the Sekisui House consolidated return, our income tax provision is calculated primarily as though we were a separate taxpayer. However, under certain circumstances, transactions between the Company and Sekisui House are assessed using consolidated tax return rules and any difference in liability between the separate company method is planned to be addressed in a future tax sharing arrangement.

Our overall effective income tax rates was 2.5% for the three months ended March 31, 2026 and 18.1% for the three months ended March 31, 2025. The rates for the three months ended March 31, 2026 and 2025 resulted in an income tax benefit (expense) of $0.2 million and $(16.9) million, respectively. The year-over-year decrease in our effective tax rate for the three months ended March 31, 2026 was primarily due to the impact the interest for uncertain tax positions and the change in the state rate are having on the relatively small tax benefit compared to the larger tax provision during the same period in the prior year.

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**<u>CRITICAL ACCOUNTING ESTIMATES AND POLICIES</u>**

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Management evaluates such estimates and judgments on an on-going basis and makes adjustments as deemed necessary. Actual results could differ from these estimates if conditions are significantly different in the future. See **"Forward-Looking Statements"** below.

Our critical accounting estimates and policies have not changed from those reported in Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2025.

**<u>LIQUIDITY AND CAPITAL RESOURCES</u>**

We use our liquidity and capital resources to (1) support our operations, including the purchase of land, land development and construction of homes; (2) provide working capital; and (3) provide mortgage loans for our homebuyers. Our liquidity includes our cash and cash equivalents, Revolving Credit Facility (as defined below) and Mortgage Repurchase Facilities (as defined below).

**Material Cash Requirements**

We are a party to many contractual obligations involving commitments to make payments to third parties. These obligations impact our short-term and long-term liquidity and capital resource needs. Certain contractual obligations are reflected on the Consolidated Balance Sheet as of March 31, 2026, while others are considered future commitments. Our contractual obligations primarily consist of long-term debt and related interest payments, payments due on our Mortgage Repurchase Facilities, payments due on our Revolving Credit Facility, purchase obligations related to expected acquisition of land under purchase agreements and land development agreements (many of which are secured by letters of credit or surety bonds) and operating leases. Other material cash requirements include land acquisition and development costs not yet contracted for, home construction costs, operating expenses, including our selling, general and administrative expenses, investments and funding of capital improvements and dividend payments.

At March 31, 2026, we had outstanding senior notes with varying maturities totaling an aggregate principal amount of $1.50 billion, with none payable within 12 months. Future interest payments associated with the notes total $1.09 billion, with $64.2 million payable within 12 months. As of March 31, 2026, we had $61.5 million of required operating lease future minimum payments.

At March 31, 2026, we had deposits of $87.6 million in the form of cash and $10.0 million in the form of letters of credit that secured option contracts to purchase 8,724 lots for a total estimated purchase price of $1.11 billion.

At March 31, 2026, we had outstanding surety bonds and letters of credit totaling $760.8 million and $140.4 million, respectively, including $110.8 million in letters of credit issued by HomeAmerican. The estimated cost to complete obligations related to these bonds and letters of credit was approximately $368.0 million and $115.9 million, respectively. We expect that the obligations secured by these performance bonds and letters of credit generally will be performed in the ordinary course of business and in accordance with the applicable contractual terms. To the extent that the obligations are performed, the related performance bonds and letters of credit should be released and we should not have any continuing obligations. However, in the event any such performance bonds or letters of credit are called, our indemnity obligations could require us to reimburse the issuer of the performance bond or letter of credit. We have made no material guarantees with respect to third-party obligations.

**Capital Resources**

Our capital structure is primarily a combination of (1) permanent financing, represented by stockholders' equity; (2) long-term financing, represented by our 3.850% senior notes due 2030, 2.500% senior notes due 2031, 6.000% senior notes due 2043, and 3.966% senior notes due 2061; (3) our Revolving Credit Facility; and (4) our Mortgage Repurchase Facilities. Because of our current balance of cash and cash equivalents, ability to access the capital markets, and available capacity under both our Revolving Credit Facility and Mortgage Repurchase Facilities, we believe that our capital resources are adequate to satisfy our

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short and long-term capital requirements, including meeting future payments on our senior notes as they become due. See **"Forward-Looking Statements"** below.

We may from time to time seek to retire or purchase our outstanding senior notes through cash purchases, whether through open market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material.

**Senior Notes, Revolving Credit Facility and Mortgage Repurchase Facilities**

*Senior Notes.* Our senior notes are not secured and, while the senior note indentures contain some restrictions on secured debt and other transactions, they do not contain financial covenants. Our senior notes are fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by most of our homebuilding segment subsidiaries (including newly added subsidiaries of Woodside, Chesmar and Holt in March 2026). We believe that we are in compliance with the representations, warranties and covenants in the senior note indentures.

*Revolving Credit Facility.* On November 19, 2024 the Company entered into an amended and restated unsecured revolving credit agreement ("Revolving Credit Facility") with a group of lenders, which may be used for general corporate purposes. On October 15, 2025, the Company entered into the First Amendment to Credit Agreement ("First Amendment") to its Revolving Credit Facility. The First Amendment increased the Aggregate Commitment to $1.40 billion (the "Commitment") and extended the Facility Termination Date of $1.36 billion of the facility commitments to October 15, 2029, with the remaining $40.0 million commitment continuing to terminate on November 17, 2028. The First Amendment also provides that the aggregate amount of the commitments may increase to an amount not to exceed $1.90 billion (the "accordion" feature) upon our request, subject to receipt of additional commitments from existing or additional lenders and, in the case of additional lenders, the consent of the co-administrative agents. The Revolving Credit Facility includes a $185.0 million sublimit for letters of credit.

Borrowings under the Revolving Credit Facility bear interest at a floating rate equal to Term SOFR or Daily Simple SOFR (in each case as defined in the Revolving Credit Facility), plus an applicable margin between 1.125% and 1.625% per annum, or if selected by the Company, a base rate plus an applicable margin between 0.125% and 0.625% per annum. The "applicable margins" described above are determined by a schedule based on the leverage ratio of the Company, as defined in the Revolving Credit Facility. The Revolving Credit Facility also provides for customary fees including commitment fees payable to each lender ranging from 0.15% to 0.30% per annum based on the Company's leverage ratio.

The Revolving Credit Facility is fully and unconditionally guaranteed, jointly and severally, by most of our homebuilding segment subsidiaries (including newly added subsidiaries of Woodside, Chesmar and Holt in March 2026). The term of the guarantees is through the termination of the Revolving Credit Facility. The facility contains various representations, warranties and covenants that we believe are customary for agreements of this type. In the case of a default, the guarantors would be required to perform under the agreement. The financial covenants include a consolidated leverage test and interest coverage test, along with a consolidated tangible net worth covenant, all as defined in the Revolving Credit Facility.

The Revolving Credit Facility also contains customary events of default, including, without limitation, payment defaults, material inaccuracy of representations and warranties, covenant defaults, bankruptcy and insolvency proceedings, cross-defaults to certain other agreements, breach of any financial covenant and change of control. Upon the occurrence and during the continuance of any event of default, the Administrative Agent, with the consent or at the direction of the required lenders, may accelerate the payment of the obligations thereunder and exercise various other customary default remedies. We believe we were in compliance with the representations, warranties and covenants included in the Revolving Credit Facility as of March 31, 2026.

We incur costs associated with unused commitment fees pursuant to the terms of the Revolving Credit Facility. At March 31, 2026 and December 31, 2025, there were $29.6 million and $35.5 million, respectively, in letters of credit outstanding, which reduced the amounts available to be borrowed under the Revolving Credit Facility. At March 31, 2026 and December 31, 2025, we had $200.0 million and $0.0 million, respectively, outstanding under the Revolving Credit Facility. As of March 31, 2026, availability under the Revolving Credit Facility was approximately $1.17 billion.

*Mortgage Repurchase Facilities.* Our Mortgage Operations enter into Mortgage Repurchase Facilities with various lenders, which provide liquidity by providing for the sale of eligible mortgage loans with an agreement by our Mortgage Operations to repurchase the mortgage loans at a future date. HomeAmerican is party to mortgage repurchase facilities with two lenders, which provide HomeAmerican with committed repurchase facilities of up to an aggregate of $300.0 million as of March 31, 2026 (subject to increase by up to $150.0 million under certain conditions with respect to one of the lenders). CLM is party to

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mortgage repurchase facilities with two lenders, which provide CLM with committed repurchase facilities of up to an aggregate of $105.0 million as of March 31, 2026.

At March 31, 2026 and December 31, 2025, HomeAmerican and CLM $168.2 million and $177.2 million, respectively, of mortgage loans that they were obligated to repurchase under the Mortgage Repurchase Facilities. Mortgage loans that our Mortgage Operations are obligated to repurchase under the mortgage repurchase facilities are accounted for as a debt financing arrangement and are reported as mortgage repurchase facilities in the consolidated balance sheets. Pricing under the mortgage repurchase facilities are based on SOFR.

Effective April 16, 2025, HomeAmerican entered into a Waiver and Consent agreement with USBNA, in which USBNA as agent waived any events of default under the Mortgage Repurchase Facility arising with respect to an event of default as HomeAmerican was not in compliance by permitting the Adjusted Tangible Net Worth to be less than $21.0 million for the month ending February 28, 2025.

The Mortgage Repurchase Facilities have varying short term maturity dates through March 3, 2027. The Mortgage Repurchase Facilities contain various representations, warranties and affirmative and negative covenants that we believe are customary for agreements of this type. The negative covenants include, among others, (i) a minimum Adjusted Tangible Net Worth requirement, (ii) a maximum Adjusted Tangible Net Worth ratio, (iii) a minimum adjusted net income requirement, and (iv) a minimum Liquidity requirement. The foregoing capitalized terms are defined in the mortgage repurchase facilities. We believe our Mortgage Operations were in compliance with the representations, warranties and covenants included in the mortgage repurchase facilities as of March 31, 2026.

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**Consolidated Cash Flow**

During the three months ended March 31, 2026, net cash provided by operating activities was $61.9 million compared with net cash used in operating activities of $474.0 million in the prior year period. During the three months ended March 31, 2026, we generated a net loss of $8.8 million compared to net income of $76.6 million during the three months ended March 31, 2025. During the three months ended March 31, 2026, included in net income was $4.5 million of inventory impairments, compared to none during the prior year period. During the three months ended March 31, 2026, cash provided by the decrease in inventory was $76.8 million compared to cash used in the increase of inventory during the prior year period of $456.1 million. The decrease in 2026 was the result of reduced lot acquisitions during the period compared to 2025. Cash used in the increase in trade and other receivables for the three months ended March 31, 2026 was $27.3 million compared to $88.7 million for the three months ended March 31, 2025. The increase during the three months ended March 31, 2026 and 2025 was driven by an decrease of homes closed at the end of the period. Cash provided by the change in mortgage loans held-for-sale, net for the three months ended March 31, 2026 was $6.8 million compared to cash used in the change in mortgage loans held-for-sale, net of $29.7 million for the three months ended March 31, 2025. The cash provided during the three months ended March 31, 2026 was due to a higher level of loan sales compared to originations, compared to a higher level of originations compared to loan sales during the same period in the prior year. The cash used in the decrease of accounts payable and accrued and other liabilities was $11.3 million during the three months ended March 31, 2026 compared to cash provided by the increase in accounts payable and accrued and other liabilities of $0.2 million during the same period in the prior year. The change in accounts payable and accrued liabilities was due to decreased construction spend during the first quarter of 2026 as a result of the year-over-year decrease in the number of homes under construction during the period.

During the three months ended March 31, 2026, net cash used in investing activities was $9.1 million, driven by purchases of property and equipment during the three months ended March 31, 2026. This is compared to the net cash provided by investing activites of $67.9 million during the three months ended March 31, 2025, due to the decrease in receivable from cash pooling arrangement with Parent of $76.0 million.

During the three months ended March 31, 2026 the net cash used in financing activities was $251.8 million compared to net cash provided by financing activities of $74.3 million during the three months ended March 31, 2025. Cash used in payments on mortgage repurchase facility, net was $9.0 million compared to cash provided by draws on mortgage repurchase facility of $33.3 million during the same period in 2025. The decrease in cash provided by draws on mortgage repurchase facility, net during the three months ended March 31, 2026 was due to decreased mortgage loans held-for-sale at the end of the period. Cash provided by draws on homebuilding line of credit, net was $200.0 million during the three months ended March 31, 2026 compared to none during the same period during 2025. Further payments on related party line of credit from cash pooling arrangement with Parent was $442.8 million compared to advances on related party line of credit from cash pooling arrangement with Parent of $41.0 million during the same period during the prior year. The payment on the related party line of credit during 2026 was due to the maturity and discontinuance of the cash pooling arrangement with the Parent. The draws on homebuilding line of credit during the three months ended March 31, 2026 was for land acquisitions given the repayment of the related party line of credit.

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**<u>OTHER</u>**

**Forward-Looking Statements**

Certain statements in this Quarterly Report on Form 10-Q, as well as statements made by us in periodic press releases, oral statements made by our officials in the course of presentations about the Company and conference calls in connection with quarterly earnings releases, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our business, financial condition, results of operations, cash flows, strategies and prospects. These forward-looking statements may be identified by terminology such as "likely," "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue," or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements contained in this Report are reasonable, we cannot guarantee future results. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by the forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in subsequent reports on Forms 10-K, 10-Q and 8-K should be considered. Additionally, information about issues that could lead to material changes in performance and risk factors that have the potential to affect us are contained under the caption "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 and Item 1A of Part II of this Quarterly Report on Form 10-Q.

**Item 3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quantitative and Qualitative Disclosures About Market Risk**

We have a cash and investment policy that enables us to achieve an appropriate investment return while preserving principal and managing risk. Under this policy, cash and cash equivalents may include U.S. government securities, commercial bank deposits, commercial paper, certificates of deposit, money market funds, and time deposits, with maturities of three months or less. Marketable securities under this policy may include holdings in U.S. government securities with a maturity of more than three months, equity securities and corporate debt securities.

As of March 31, 2026, our cash and cash equivalents included commercial bank deposits and money market funds.

We are exposed to market risks related to fluctuations in interest rates on mortgage loans held-for-sale, mortgage interest rate lock commitments, marketable securities and debt. Financial instruments utilized in the normal course of business by HomeAmerican and CLM include forward sales of mortgage-backed securities, which are commitments to sell a specified financial instrument at a specified future date for a specified price, mandatory delivery forward loan sale commitments, which are obligations of an investor to buy loans at a specified price within a specified time period, and best-effort delivery forward loan sale commitments, which are obligations of an investor to buy loans at a specified price subject to the underlying mortgage loans being funded and closed. Such contracts are the only significant financial and derivative instruments utilized by SHUS. HomeAmerican and CLM's mortgage loans in process for which an interest rate lock commitment had been made to a borrower that had not closed at March 31, 2026 had an aggregate principal balance of $314.1 million, of which $313.6 million had not yet been committed to a mortgage purchaser. In addition, HomeAmerican and CLM had mortgage loans held-for-sale with an aggregate principal balance of $216.5 million at March 31, 2026, of which $118.0 million had not yet been committed to a mortgage purchaser. In order to hedge the changes in fair value of interest rate lock commitments and mortgage loans held-for-sale that had not yet been committed to a mortgage purchaser, HomeAmerican and CLM had forward sales of securities totaling $420.8 million and $217.5 million at March 31, 2026 and December 31, 2025, respectively.

HomeAmerican and CLM provides mortgage loans that generally are sold forward on a best-efforts or mandatory commitment basis and subsequently delivered to a third-party purchaser between 5 and 35 days after closing. Forward sale commitments and forward sales of mortgage-backed securities are used for non-trading purposes to sell mortgage loans and economically hedge price risk due to fluctuations in interest rates on rate-locked mortgage loans in process that have not closed and mortgage loans held-for-sale. Due to this economic hedging philosophy, the market risk associated with these mortgages is limited. For forward sales commitments, forward sales of mortgage-backed securities and commitments to originate mortgage loans that are still outstanding at the end of a reporting period, we record the changes in fair value of these financial instruments in revenues in the financial services section of the consolidated statements of operations and comprehensive income with an offset to either other assets or accounts payable and accrued liabilities in the financial services section of our consolidated balance sheets, depending on the nature of the change.

We utilize our Revolving Credit Facility, our Mortgage Repurchase Facilities and senior notes in our financing strategy. For fixed rate debt, changes in interest rates generally affect the fair value of the debt instrument, but do not affect our earnings or

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cash flows. We do not have an obligation to prepay our senior notes prior to maturity and, as a result, interest rate risk and changes in fair value do not have an impact on our financial position, results of operations or cash flows. For variable rate debt such as our Revolving Credit Facility and Mortgage Repurchase Facilities, changes in interest rates generally do not affect the fair value of the outstanding borrowing on the debt facilities, but do affect our earnings and cash flows. See "**Forward-Looking Statements**" above.

**Item 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Controls and Procedures**

(a)*Conclusion regarding the effectiveness of disclosure controls and procedures* - An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures was performed under the supervision, and with the participation, of our management, including the Chief Executive Officer (principal executive officer) and the Chief Financial Officer (principal financial officer). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

(b)*Changes in internal control over financial reporting* - There were no changes in our internal control over financial reporting that occurred during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**Sekisui House U.S., Inc.**

**FORM 10-Q**

**PART II. OTHER INFORMATION**

**Item 1**.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Legal Proceedings**

Because of the nature of the homebuilding business, we and certain of our subsidiaries and affiliates have been named as defendants in various claims, complaints and other legal actions arising in the ordinary course of business, including product liability claims and claims associated with the sale and financing of our homes. In the opinion of management, the outcome of these ordinary course matters will not have a material adverse effect upon our financial condition, results of operations or cash flows.

**Item 1A. &nbsp;&nbsp;&nbsp;&nbsp;Risk Factors**

In addition to the other information set forth in this Form 10-Q, you should carefully consider the risk factors that appeared under Item 1A. Risk Factors in the Company's 2025 Annual Report on Form 10-K. There are no material changes from the risk factors included within the Company's 2025 Annual Report on Form 10-K.

**Item 5. Other Information**

On May 6, 2026, the Company took the actions described below with respect to compensation pursuant to authorization by the Compensation Committee (the "Committee") of the Board of Directors of the Company.

The Company awarded cash long term incentive awards to Paris G. Reece III, Jennifer Whip and David Barclay, Directors of the Company, under terms of the Sekisui House U.S., Inc. First Amendment to the Long Term Incentive Plan, in the amount of $175,000 each. The awards were authorized by the Committee on February 17, 2026, awarded by the Company on May 6, 2026, and will vest on April 1, 2028, subject to the First Amendment to the Long Term Incentive Plan documents disclosed in Exhibit 10.1.

The Company awarded cash long term incentive awards to Robert N. Martin, Director, Senior Vice President and Chief Financial Officer and David N. Viger, Director, President and Chief Executive Officer, under terms of the Sekisui House U.S., Inc. First Amendment to the Long Term Incentive Plan, in the amount of $1,700,000 and $2,250,000, respectively. The awards were authorized by the Committee on February 17, 2026, awarded by the Company on May 6, 2026, and will vest on April 1, 2028, subject to the First Amendment to the Long Term Incentive Plan documents disclosed in Exhibit 10.1.

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**Item 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits**

---

| | |
|:---|:---|
| 4.1 | <u>[Third Supplemental Indenture (6.000% Senior Notes due 2043), dated as of March 20, 2026, among the Company, the guarantors named therein and U.S. Bank National Association, as Trustee.](shus-20260331xex41.htm)</u> |
| 4.2 | <u>[Third Supplemental Indenture (3.966% Senior Notes due 2061), dated as of March 20, 2026, among the Company, the guarantors named therein and U.S. Bank National Association, as Trustee.](shus-20260331xex42.htm)</u> |
| 4.3 | <u>[Third Supplemental Indenture (3.850% Senior Notes due 2030), dated as of March 20, 2026, among the Company, the guarantors named therein and U.S. Bank National Association, as Trustee.](shus-20260331xex43.htm)</u> |
| 4.4 | <u>[Third Supplemental Indenture (2.500% Senior Notes due 2031), dated as of March 20, 2026, among the Company, the guarantors named therein and U.S. Bank National Association, as Trustee.](shus-20260331xex44.htm)</u> |
| 10.1 | <u>[First Amendment to the Sekisui House U.S., Inc. Long Term Incentive Plan](shus-20260331xex101.htm)[.](shus-20260331xex101.htm)</u> |
| 10.2 | <u>[Amended and Restated License Agreement between the Company and Sekisui House, LTD.](shus-20260331xex102.htm)</u> |
| 31.1 | <u>[Certification of principal executive officer required by 17 CFR 240.13a-14(a), pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](shus-20260331xex311.htm)</u> |
| 31.2 | <u>[Certification of principal financial officer required by 17 CFR 240.13a-14(a), pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](shus-20260331xex312.htm)</u> |
| 32.1 | <u>[Certification of principal executive officer required by 17 CFR 240.13a-14(b), pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](shus-20260331xex321.htm)</u> |
| 32.2 | <u>[Certification of principal financial officer required by 17 CFR 240.13a-14(b), pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](shus-20260331xex322.htm)</u> |
| 101 | The following financial statements, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, (ii) Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2026 and 2025, (iii) Consolidated Statements of Changes in Stockholders' Equity for the three months ended March 31, 2026 and 2025, (iv) Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025; and (v) Notes to the Unaudited Consolidated Financial Statements, tagged as blocks of text. |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

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____________________

\*Incorporated by reference.

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
| | **Sekisui House U.S., Inc.** |
| | (Registrant) |
| Date: May 12, 2026 | By: /s/ Robert N. Martin |
|  | Robert N. Martin<br>*Director, Senior Vice President and Chief Financial Officer (principal financial officer and duly authorized officer)* |
| Date: May 12, 2026 | By: /s/ Derek R. Kimmerle |
|  | Derek R. Kimmerle |
|  | *Senior Vice President and Chief Accounting Officer (chief accounting officer and duly authorized officer)* |

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## Exhibit 4.1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**THIRD SUPPLEMENTAL INDENTURE**

**6.000% Senior Notes Due 2043**

&nbsp;&nbsp;&nbsp;&nbsp;THIRD SUPPLEMENTAL INDENTURE, dated as of March 20, 2026, (this "<u>Third Supplemental Indenture</u>"), by and among Sekisui House U.S., Inc. (formerly known as M.D.C. Holdings, Inc.), a Delaware corporation (the "<u>Company</u>"), U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as Trustee (the "<u>Trustee</u>"), Holt Holdings OR, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company ("<u>HHOR</u>"), RDS Development, LLC, a California limited liability company and a wholly owned subsidiary of the Company ("<u>RDS</u>"), Chesmar Homes, LLC, a Texas limited liability company and a wholly owned subsidiary of the Company ("<u>Chesmar</u>"), Hubble Homes, LLC, an Idaho limited liability company and a wholly owned subsidiary of the Company ("<u>Hubble</u>"), SHAWOOD Communities, LLC, a California limited liability company and a wholly owned subsidiary of the Company ("<u>SHAWOOD</u>"), Woodside 05N, LP, a California limited partnership and a wholly owned subsidiary of the Company ("<u>05N</u>"), Woodside 05S, LP, a California limited partnership and a wholly owned subsidiary of the Company ("<u>05S</u>"), Woodside 06N, LP, a California limited partnership and a wholly owned subsidiary of the Company ("<u>06N</u>"), Woodside Homes of AZ, LLC, an Arizona limited liability company and a wholly owned subsidiary of the Company ("<u>WHAZ</u>"), Woodside Homes Sales AZ, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company ("<u>WHSAZ</u>"), Woodside Homes of Nevada, LLC, a Nevada limited liability company and a wholly owned subsidiary of the Company ("<u>WHNV</u>"), and Woodside Homes of Utah, LLC, a Utah limited liability company and a wholly owned subsidiary of the Company ("<u>WHUT</u>"), (HHOR, RDS, Chesmar, Hubble, SHAWOOD, 05N, 05S, 06N, WHAZ, WHSAZ, WHNV, and WHUT being referenced as the "<u>Additional Guarantors</u>", and together with the Current Guarantors, as defined below, the "<u>Guarantors</u>"). Capitalized terms not defined herein shall have the meanings given to them in the Indenture (as defined below).

<u>WITNESSETH</u>:

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company and the Trustee executed a Senior Debt Securities Indenture dated as of December 3, 2002 (the "<u>Base Indenture</u>"), to provide for the issuance of the Company's Senior Debt Securities (the "<u>Notes</u>");

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company and the Trustee executed a Supplemental Indenture, dated as of January 10, 2013 (the "<u>First Supplemental Indenture</u>") and a Second Supplemental Indenture dated as of June 23, 2021 (the "<u>Second Supplemental Indenture</u>" and together with the First Supplemental Indenture and the Base Indenture, the "<u>Indenture</u>"), among themselves and each of the following wholly owned Subsidiaries of the Company: M.D.C. Land LLC (formerly known as M.D.C. Land Corporation), a Colorado limited liability company; RAH of Florida, Inc., a Colorado corporation; Richmond American Construction, Inc., a Delaware corporation; Richmond American Construction NM, Inc., a Colorado corporation; Richmond American Homes of Arizona, Inc., a Delaware corporation; Richmond American Homes of Colorado, Inc., a Delaware corporation; Richmond American Homes of Florida, LP, a Colorado limited partnership; Richmond American Homes of Idaho, Inc. (formerly known as Richmond American Homes of Illinois, Inc.), a Colorado corporation; Richmond American Homes of Maryland, Inc.,

------

a Maryland corporation; Richmond American Homes of Nevada, Inc., a Colorado corporation; Richmond American Homes of New Mexico, Inc., a Colorado corporation; Sekisui House PNW, Inc. (formerly known as Richmond American Homes of Oregon, Inc. and Richmond American Homes of Delaware, Inc.), a Colorado corporation; Richmond American Homes of Pennsylvania, Inc., a Colorado corporation; Richmond American Homes of Tennessee, Inc. (formerly known as Richmond American Homes of New Jersey, Inc.), a Colorado corporation; Sekisui House Communities TX, Inc. (formerly known as Richmond American Homes of Texas, Inc.), a Colorado corporation; Sekisui House Utah, Inc. (formerly known as Richmond American Homes of Utah, Inc.), a Colorado corporation; Richmond American Homes of Virginia, Inc., a Virginia corporation; and Sekisui House Washington, Inc. (formerly known as Richmond American Homes of Washington, Inc.), a Colorado corporation (the foregoing Subsidiaries of the Company being referenced as the "<u>Current Guarantors</u>");

&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Additional Guarantors wish to guarantee the obligations of the Company under the Notes on the same terms that the Current Guarantors have guaranteed the obligations of the Company under the Notes;

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company has requested that the Trustee execute and deliver this Third Supplemental Indenture pursuant to Section 9.01 of the Base Indenture; and

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, all requirements necessary to make this Third Supplemental Indenture a valid instrument in accordance with its terms have been performed and the execution and delivery of this Third Supplemental Indenture has been duly authorized in all respects by the Company and the Additional Guarantors.

&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, the Company and the Additional Guarantors covenant and agree with the Trustee as follows:

ARTICLE I

GUARANTEE OF NOTES AND RELATED PROVISIONS

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.01. <u>Unconditional Guarantee</u>. The Additional Guarantors shall execute and deliver to the Trustee the following Guarantee, and shall be jointly and severally liable with any other Guarantor for their obligations under such Guarantee.

(FORM OF GUARANTEE)

&nbsp;&nbsp;&nbsp;&nbsp;The undersigned (the "<u>Guarantors</u>") have fully and unconditionally guaranteed, jointly and severally (such guarantee by each Guarantor being referred to herein as the "<u>Guarantee</u>") (i) the due and punctual payment of the principal of and interest on the Notes, whether at maturity, by acceleration or otherwise, the due and punctual payment of interest on the overdue principal and interest, if any, on the Notes, to the extent lawful, and the due and punctual performance of all other obligations of the Company to the Holders or the Trustee all in accordance with

&nbsp;&nbsp;&nbsp;&nbsp;2

------

the terms set forth in Article Six of the Supplemental Indenture and (ii) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, that the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;No past, present or future stockholder, officer, director, employee or incorporator, as such, of any of the Guarantors shall have any liability under the Guarantee by reason of such person's status as stockholder, officer, director, employee or incorporator. Each holder of a Note by accepting a Note waives and releases all such liability. This waiver and release are part of the consideration for the issuance of the Guarantees.

&nbsp;&nbsp;&nbsp;&nbsp;Each holder of a Note by accepting a Note agrees that any Guarantor named below shall have no further liability with respect to its Guarantee if such Guarantor otherwise ceases to be liable in respect of its Guarantee in accordance with the terms of the Supplemental Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;The Guarantee shall not be valid or obligatory for any purpose until the certificate of authentication on the Securities upon which the Guarantee is noted shall have been executed by the Trustee under the Supplemental Indenture by the manual signature of one of its authorized officers.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.02. <u>Execution of Guarantee</u>. To evidence the Guarantee specified in Section 1.01, the Additional Guarantors hereby agree to execute the Guarantee in substantially the form set forth above, and to deliver such Guarantee to the Trustee, which shall deliver such Guarantee to each Holder as an endorsement to the Notes held by such Holder, or alternatively hold such Guarantee on behalf of each such Holder.

ARTICLE II

MISCELLANEOUS

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.01. <u>Confirmation of Indenture</u>. The Indenture, as supplemented and amended by this Third Supplemental Indenture, is in all respects ratified and confirmed, and the Indenture, this Third Supplemental Indenture and all indentures supplemental thereto shall be read, taken and construed as one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.02. <u>Concerning the Trustee</u>. The rights and duties of the Trustee set forth in the Indenture shall not be modified by reason of this Third Supplemental Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.03. <u>Governing Law</u>. This Third Supplemental Indenture, the Indenture, the Notes, and the Guarantee shall be governed by the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.04. <u>Separability</u>. In case any one or more of the provisions contained in this Third Supplemental Indenture shall for any reason be held to be invalid, illegal or unenforceable

&nbsp;&nbsp;&nbsp;&nbsp;3

------

in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Third Supplemental Indenture, but this Third Supplemental Indenture shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.05. <u>Counterparts</u>. This Third Supplemental Indenture may be executed in any number of counterparts each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.

**[Remainder of page intentionally left blank]**

&nbsp;&nbsp;&nbsp;&nbsp;4

------

&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be duly executed as of the day and year first above written.

SEKISUI HOUSE U.S., INC. (formerly known as M.D.C. HOLDINGS, INC.)

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee

By:_______________________________

Name:_____________________________

Title:______________________________

HOLT HOLDINGS OR, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

RDS DEVELOPMENT, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

CHESMAR HOMES, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

HUBBLE HOMES, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

SHAWOOD COMMUNITIES, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

&nbsp;&nbsp;&nbsp;&nbsp;5

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WOODSIDE 05N, LP

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE 05S, LP

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE 06N, LP

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE HOMES OF AZ, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE HOMES SALES AZ, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE HOMES OF NEVADA, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE HOMES OF UTAH, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

&nbsp;&nbsp;&nbsp;&nbsp;6

## Exhibit 4.2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**THIRD SUPPLEMENTAL INDENTURE**

**3.966% Senior Notes Due 2061**

&nbsp;&nbsp;&nbsp;&nbsp;THIRD SUPPLEMENTAL INDENTURE, dated as of March 20, 2026, (this "<u>Third Supplemental Indenture</u>"), by and among Sekisui House U.S., Inc. (formerly known as M.D.C. Holdings, Inc.), a Delaware corporation (the "<u>Company</u>"), U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as Trustee (the "<u>Trustee</u>"), Holt Holdings OR, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company ("<u>HHOR</u>"), RDS Development, LLC, a California limited liability company and a wholly owned subsidiary of the Company ("<u>RDS</u>"), Chesmar Homes, LLC, a Texas limited liability company and a wholly owned subsidiary of the Company ("<u>Chesmar</u>"), Hubble Homes, LLC, an Idaho limited liability company and a wholly owned subsidiary of the Company ("<u>Hubble</u>"), SHAWOOD Communities, LLC, a California limited liability company and a wholly owned subsidiary of the Company ("<u>SHAWOOD</u>"), Woodside 05N, LP, a California limited partnership and a wholly owned subsidiary of the Company ("<u>05N</u>"), Woodside 05S, LP, a California limited partnership and a wholly owned subsidiary of the Company ("<u>05S</u>"), Woodside 06N, LP, a California limited partnership and a wholly owned subsidiary of the Company ("<u>06N</u>"), Woodside Homes of AZ, LLC, an Arizona limited liability company and a wholly owned subsidiary of the Company ("<u>WHAZ</u>"), Woodside Homes Sales AZ, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company ("<u>WHSAZ</u>"), Woodside Homes of Nevada, LLC, a Nevada limited liability company and a wholly owned subsidiary of the Company ("<u>WHNV</u>"), and Woodside Homes of Utah, LLC, a Utah limited liability company and a wholly owned subsidiary of the Company ("<u>WHUT</u>"), (HHOR, RDS, Chesmar, Hubble, SHAWOOD, 05N, 05S, 06N, WHAZ, WHSAZ, WHNV, and WHUT being referenced as the "<u>Additional Guarantors</u>", and together with the Current Guarantors, as defined below, the "<u>Guarantors</u>"). Capitalized terms not defined herein shall have the meanings given to them in the Indenture (as defined below).

<u>WITNESSETH</u>:

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company and the Trustee executed a Senior Debt Securities Indenture dated as of December 3, 2002 (the "<u>Base Indenture</u>"), to provide for the issuance of the Company's Senior Debt Securities (the "<u>Notes</u>");

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company and the Trustee executed a Supplemental Indenture, dated as of January 15, 2024 (the "<u>First Supplemental Indenture</u>") and a Second Supplemental Indenture dated as of June 23, 2021 (the "<u>Second Supplemental Indenture</u>" and together with the First Supplemental Indenture and the Base Indenture, the "<u>Indenture</u>"), among themselves and each of the following wholly owned Subsidiaries of the Company: M.D.C. Land LLC (formerly known as M.D.C. Land Corporation), a Colorado limited liability company; RAH of Florida, Inc., a Colorado corporation; Richmond American Construction, Inc., a Delaware corporation; Richmond American Construction NM, Inc., a Colorado corporation; Richmond American Homes of Arizona, Inc., a Delaware corporation; Richmond American Homes of Colorado, Inc., a Delaware corporation; Richmond American Homes of Florida, LP, a Colorado limited partnership; Richmond American Homes of Idaho, Inc. (formerly known as Richmond American Homes of Illinois, Inc.), a Colorado corporation; Richmond American Homes of Maryland, Inc.,

------

a Maryland corporation; Richmond American Homes of Nevada, Inc., a Colorado corporation; Richmond American Homes of New Mexico, Inc., a Colorado corporation; Sekisui House PNW, Inc. (formerly known as Richmond American Homes of Oregon, Inc. and Richmond American Homes of Delaware, Inc.), a Colorado corporation; Richmond American Homes of Pennsylvania, Inc., a Colorado corporation; Richmond American Homes of Tennessee, Inc. (formerly known as Richmond American Homes of New Jersey, Inc.), a Colorado corporation; Sekisui House Communities TX, Inc. (formerly known as Richmond American Homes of Texas, Inc.), a Colorado corporation; Sekisui House Utah, Inc. (formerly known as Richmond American Homes of Utah, Inc.), a Colorado corporation; Richmond American Homes of Virginia, Inc., a Virginia corporation; and Sekisui House Washington, Inc. (formerly known as Richmond American Homes of Washington, Inc.), a Colorado corporation (the foregoing Subsidiaries of the Company being referenced as the "<u>Current Guarantors</u>");

&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Additional Guarantors wish to guarantee the obligations of the Company under the Notes on the same terms that the Current Guarantors have guaranteed the obligations of the Company under the Notes;

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company has requested that the Trustee execute and deliver this Third Supplemental Indenture pursuant to Section 9.01 of the Base Indenture; and

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, all requirements necessary to make this Third Supplemental Indenture a valid instrument in accordance with its terms have been performed and the execution and delivery of this Third Supplemental Indenture has been duly authorized in all respects by the Company and the Additional Guarantors.

&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, the Company and the Additional Guarantors covenant and agree with the Trustee as follows:

ARTICLE I

GUARANTEE OF NOTES AND RELATED PROVISIONS

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.01. <u>Unconditional Guarantee</u>. The Additional Guarantors shall execute and deliver to the Trustee the following Guarantee, and shall be jointly and severally liable with any other Guarantor for their obligations under such Guarantee.

(FORM OF GUARANTEE)

&nbsp;&nbsp;&nbsp;&nbsp;The undersigned (the "<u>Guarantors</u>") have fully and unconditionally guaranteed, jointly and severally (such guarantee by each Guarantor being referred to herein as the "<u>Guarantee</u>") (i) the due and punctual payment of the principal of and interest on the Notes, whether at maturity, by acceleration or otherwise, the due and punctual payment of interest on the overdue principal and interest, if any, on the Notes, to the extent lawful, and the due and punctual performance of all other obligations of the Company to the Holders or the Trustee all in accordance with

&nbsp;&nbsp;&nbsp;&nbsp;2

------

the terms set forth in Article Six of the Supplemental Indenture and (ii) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, that the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;No past, present or future stockholder, officer, director, employee or incorporator, as such, of any of the Guarantors shall have any liability under the Guarantee by reason of such person's status as stockholder, officer, director, employee or incorporator. Each holder of a Note by accepting a Note waives and releases all such liability. This waiver and release are part of the consideration for the issuance of the Guarantees.

&nbsp;&nbsp;&nbsp;&nbsp;Each holder of a Note by accepting a Note agrees that any Guarantor named below shall have no further liability with respect to its Guarantee if such Guarantor otherwise ceases to be liable in respect of its Guarantee in accordance with the terms of the Supplemental Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;The Guarantee shall not be valid or obligatory for any purpose until the certificate of authentication on the Securities upon which the Guarantee is noted shall have been executed by the Trustee under the Supplemental Indenture by the manual signature of one of its authorized officers.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.02. <u>Execution of Guarantee</u>. To evidence the Guarantee specified in Section 1.01, the Additional Guarantors hereby agree to execute the Guarantee in substantially the form set forth above, and to deliver such Guarantee to the Trustee, which shall deliver such Guarantee to each Holder as an endorsement to the Notes held by such Holder, or alternatively hold such Guarantee on behalf of each such Holder.

ARTICLE II

MISCELLANEOUS

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.01. <u>Confirmation of Indenture</u>. The Indenture, as supplemented and amended by this Third Supplemental Indenture, is in all respects ratified and confirmed, and the Indenture, this Third Supplemental Indenture and all indentures supplemental thereto shall be read, taken and construed as one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.02. <u>Concerning the Trustee</u>. The rights and duties of the Trustee set forth in the Indenture shall not be modified by reason of this Third Supplemental Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.03. <u>Governing Law</u>. This Third Supplemental Indenture, the Indenture, the Notes, and the Guarantee shall be governed by the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.04. <u>Separability</u>. In case any one or more of the provisions contained in this Third Supplemental Indenture shall for any reason be held to be invalid, illegal or unenforceable

&nbsp;&nbsp;&nbsp;&nbsp;3

------

in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Third Supplemental Indenture, but this Third Supplemental Indenture shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.05. <u>Counterparts</u>. This Third Supplemental Indenture may be executed in any number of counterparts each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.

**[Remainder of page intentionally left blank]**

&nbsp;&nbsp;&nbsp;&nbsp;4

------

&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be duly executed as of the day and year first above written.

SEKISUI HOUSE U.S., INC. (formerly known as M.D.C. HOLDINGS, INC.)

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee

By:_______________________________

Name:_____________________________

Title:______________________________

HOLT HOLDINGS OR, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

RDS DEVELOPMENT, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

CHESMAR HOMES, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

HUBBLE HOMES, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

SHAWOOD COMMUNITIES, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

&nbsp;&nbsp;&nbsp;&nbsp;5

------

WOODSIDE 05N, LP

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE 05S, LP

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE 06N, LP

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE HOMES OF AZ, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE HOMES SALES AZ, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE HOMES OF NEVADA, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE HOMES OF UTAH, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

&nbsp;&nbsp;&nbsp;&nbsp;6

## Exhibit 4.3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**THIRD SUPPLEMENTAL INDENTURE**

**3.850% Senior Notes Due 2030**

&nbsp;&nbsp;&nbsp;&nbsp;THIRD SUPPLEMENTAL INDENTURE, dated as of March 20, 2026, (this "<u>Third Supplemental Indenture</u>"), by and among Sekisui House U.S., Inc. (formerly known as M.D.C. Holdings, Inc.), a Delaware corporation (the "<u>Company</u>"), U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as Trustee (the "<u>Trustee</u>"), Holt Holdings OR, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company ("<u>HHOR</u>"), RDS Development, LLC, a California limited liability company and a wholly owned subsidiary of the Company ("<u>RDS</u>"), Chesmar Homes, LLC, a Texas limited liability company and a wholly owned subsidiary of the Company ("<u>Chesmar</u>"), Hubble Homes, LLC, an Idaho limited liability company and a wholly owned subsidiary of the Company ("<u>Hubble</u>"), SHAWOOD Communities, LLC, a California limited liability company and a wholly owned subsidiary of the Company ("<u>SHAWOOD</u>"), Woodside 05N, LP, a California limited partnership and a wholly owned subsidiary of the Company ("<u>05N</u>"), Woodside 05S, LP, a California limited partnership and a wholly owned subsidiary of the Company ("<u>05S</u>"), Woodside 06N, LP, a California limited partnership and a wholly owned subsidiary of the Company ("<u>06N</u>"), Woodside Homes of AZ, LLC, an Arizona limited liability company and a wholly owned subsidiary of the Company ("<u>WHAZ</u>"), Woodside Homes Sales AZ, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company ("<u>WHSAZ</u>"), Woodside Homes of Nevada, LLC, a Nevada limited liability company and a wholly owned subsidiary of the Company ("<u>WHNV</u>"), and Woodside Homes of Utah, LLC, a Utah limited liability company and a wholly owned subsidiary of the Company ("<u>WHUT</u>"), (HHOR, RDS, Chesmar, Hubble, SHAWOOD, 05N, 05S, 06N, WHAZ, WHSAZ, WHNV, and WHUT being referenced as the "<u>Additional Guarantors</u>", and together with the Current Guarantors, as defined below, the "<u>Guarantors</u>"). Capitalized terms not defined herein shall have the meanings given to them in the Indenture (as defined below).

<u>WITNESSETH</u>:

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company and the Trustee executed a Senior Debt Securities Indenture dated as of December 3, 2002 (the "<u>Base Indenture</u>"), to provide for the issuance of the Company's Senior Debt Securities (the "<u>Notes</u>");

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company and the Trustee executed a Supplemental Indenture, dated as of January 9, 2020 (the "<u>First Supplemental Indenture</u>") and a Second Supplemental Indenture dated as of June 23, 2021 (the "<u>Second Supplemental Indenture</u>" and together with the First Supplemental Indenture and the Base Indenture, the "<u>Indenture</u>"), among themselves and each of the following wholly owned Subsidiaries of the Company: M.D.C. Land LLC (formerly known as M.D.C. Land Corporation), a Colorado limited liability company; RAH of Florida, Inc., a Colorado corporation; Richmond American Construction, Inc., a Delaware corporation; Richmond American Construction NM, Inc., a Colorado corporation; Richmond American Homes of Arizona, Inc., a Delaware corporation; Richmond American Homes of Colorado, Inc., a Delaware corporation; Richmond American Homes of Florida, LP, a Colorado limited partnership; Richmond American Homes of Idaho, Inc. (formerly known as Richmond American Homes of Illinois, Inc.), a Colorado corporation; Richmond American Homes of Maryland, Inc.,

------

a Maryland corporation; Richmond American Homes of Nevada, Inc., a Colorado corporation; Richmond American Homes of New Mexico, Inc., a Colorado corporation; Sekisui House PNW, Inc. (formerly known as Richmond American Homes of Oregon, Inc. and Richmond American Homes of Delaware, Inc.), a Colorado corporation; Richmond American Homes of Pennsylvania, Inc., a Colorado corporation; Richmond American Homes of Tennessee, Inc. (formerly known as Richmond American Homes of New Jersey, Inc.), a Colorado corporation; Sekisui House Communities TX, Inc. (formerly known as Richmond American Homes of Texas, Inc.), a Colorado corporation; Sekisui House Utah, Inc. (formerly known as Richmond American Homes of Utah, Inc.), a Colorado corporation; Richmond American Homes of Virginia, Inc., a Virginia corporation; and Sekisui House Washington, Inc. (formerly known as Richmond American Homes of Washington, Inc.), a Colorado corporation (the foregoing Subsidiaries of the Company being referenced as the "<u>Current Guarantors</u>");

&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Additional Guarantors wish to guarantee the obligations of the Company under the Notes on the same terms that the Current Guarantors have guaranteed the obligations of the Company under the Notes;

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company has requested that the Trustee execute and deliver this Third Supplemental Indenture pursuant to Section 9.01 of the Base Indenture; and

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, all requirements necessary to make this Third Supplemental Indenture a valid instrument in accordance with its terms have been performed and the execution and delivery of this Third Supplemental Indenture has been duly authorized in all respects by the Company and the Additional Guarantors.

&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, the Company and the Additional Guarantors covenant and agree with the Trustee as follows:

ARTICLE I

GUARANTEE OF NOTES AND RELATED PROVISIONS

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.01. <u>Unconditional Guarantee</u>. The Additional Guarantors shall execute and deliver to the Trustee the following Guarantee, and shall be jointly and severally liable with any other Guarantor for their obligations under such Guarantee.

(FORM OF GUARANTEE)

&nbsp;&nbsp;&nbsp;&nbsp;The undersigned (the "<u>Guarantors</u>") have fully and unconditionally guaranteed, jointly and severally (such guarantee by each Guarantor being referred to herein as the "<u>Guarantee</u>") (i) the due and punctual payment of the principal of and interest on the Notes, whether at maturity, by acceleration or otherwise, the due and punctual payment of interest on the overdue principal and interest, if any, on the Notes, to the extent lawful, and the due and punctual performance of all other obligations of the Company to the Holders or the Trustee all in accordance with

&nbsp;&nbsp;&nbsp;&nbsp;2

------

the terms set forth in Article Six of the Supplemental Indenture and (ii) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, that the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;No past, present or future stockholder, officer, director, employee or incorporator, as such, of any of the Guarantors shall have any liability under the Guarantee by reason of such person's status as stockholder, officer, director, employee or incorporator. Each holder of a Note by accepting a Note waives and releases all such liability. This waiver and release are part of the consideration for the issuance of the Guarantees.

&nbsp;&nbsp;&nbsp;&nbsp;Each holder of a Note by accepting a Note agrees that any Guarantor named below shall have no further liability with respect to its Guarantee if such Guarantor otherwise ceases to be liable in respect of its Guarantee in accordance with the terms of the Supplemental Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;The Guarantee shall not be valid or obligatory for any purpose until the certificate of authentication on the Securities upon which the Guarantee is noted shall have been executed by the Trustee under the Supplemental Indenture by the manual signature of one of its authorized officers.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.02. <u>Execution of Guarantee</u>. To evidence the Guarantee specified in Section 1.01, the Additional Guarantors hereby agree to execute the Guarantee in substantially the form set forth above, and to deliver such Guarantee to the Trustee, which shall deliver such Guarantee to each Holder as an endorsement to the Notes held by such Holder, or alternatively hold such Guarantee on behalf of each such Holder.

ARTICLE II

MISCELLANEOUS

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.01. <u>Confirmation of Indenture</u>. The Indenture, as supplemented and amended by this Third Supplemental Indenture, is in all respects ratified and confirmed, and the Indenture, this Third Supplemental Indenture and all indentures supplemental thereto shall be read, taken and construed as one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.02. <u>Concerning the Trustee</u>. The rights and duties of the Trustee set forth in the Indenture shall not be modified by reason of this Third Supplemental Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.03. <u>Governing Law</u>. This Third Supplemental Indenture, the Indenture, the Notes, and the Guarantee shall be governed by the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.04. <u>Separability</u>. In case any one or more of the provisions contained in this Third Supplemental Indenture shall for any reason be held to be invalid, illegal or unenforceable

&nbsp;&nbsp;&nbsp;&nbsp;3

------

in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Third Supplemental Indenture, but this Third Supplemental Indenture shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.05. <u>Counterparts</u>. This Third Supplemental Indenture may be executed in any number of counterparts each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.

**[Remainder of page intentionally left blank]**

&nbsp;&nbsp;&nbsp;&nbsp;4

------

&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be duly executed as of the day and year first above written.

SEKISUI HOUSE U.S., INC. (formerly known as M.D.C. HOLDINGS, INC.)

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee

By:_______________________________

Name:_____________________________

Title:______________________________

HOLT HOLDINGS OR, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

RDS DEVELOPMENT, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

CHESMAR HOMES, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

HUBBLE HOMES, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

SHAWOOD COMMUNITIES, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

&nbsp;&nbsp;&nbsp;&nbsp;5

------

WOODSIDE 05N, LP

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE 05S, LP

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE 06N, LP

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE HOMES OF AZ, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE HOMES SALES AZ, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE HOMES OF NEVADA, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE HOMES OF UTAH, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

&nbsp;&nbsp;&nbsp;&nbsp;6

## Exhibit 4.4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**THIRD SUPPLEMENTAL INDENTURE**

**2.500% Senior Notes Due 2031**

&nbsp;&nbsp;&nbsp;&nbsp;THIRD SUPPLEMENTAL INDENTURE, dated as of March 20, 2026, (this "<u>Third Supplemental Indenture</u>"), by and among Sekisui House U.S., Inc. (formerly known as M.D.C. Holdings, Inc.), a Delaware corporation (the "<u>Company</u>"), U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as Trustee (the "<u>Trustee</u>"), Holt Holdings OR, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company ("<u>HHOR</u>"), RDS Development, LLC, a California limited liability company and a wholly owned subsidiary of the Company ("<u>RDS</u>"), Chesmar Homes, LLC, a Texas limited liability company and a wholly owned subsidiary of the Company ("<u>Chesmar</u>"), Hubble Homes, LLC, an Idaho limited liability company and a wholly owned subsidiary of the Company ("<u>Hubble</u>"), SHAWOOD Communities, LLC, a California limited liability company and a wholly owned subsidiary of the Company ("<u>SHAWOOD</u>"), Woodside 05N, LP, a California limited partnership and a wholly owned subsidiary of the Company ("<u>05N</u>"), Woodside 05S, LP, a California limited partnership and a wholly owned subsidiary of the Company ("<u>05S</u>"), Woodside 06N, LP, a California limited partnership and a wholly owned subsidiary of the Company ("<u>06N</u>"), Woodside Homes of AZ, LLC, an Arizona limited liability company and a wholly owned subsidiary of the Company ("<u>WHAZ</u>"), Woodside Homes Sales AZ, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company ("<u>WHSAZ</u>"), Woodside Homes of Nevada, LLC, a Nevada limited liability company and a wholly owned subsidiary of the Company ("<u>WHNV</u>"), and Woodside Homes of Utah, LLC, a Utah limited liability company and a wholly owned subsidiary of the Company ("<u>WHUT</u>"), (HHOR, RDS, Chesmar, Hubble, SHAWOOD, 05N, 05S, 06N, WHAZ, WHSAZ, WHNV, and WHUT being referenced as the "<u>Additional Guarantors</u>", and together with the Current Guarantors, as defined below, the "<u>Guarantors</u>"). Capitalized terms not defined herein shall have the meanings given to them in the Indenture (as defined below).

<u>WITNESSETH</u>:

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company and the Trustee executed a Senior Debt Securities Indenture dated as of December 3, 2002 (the "<u>Base Indenture</u>"), to provide for the issuance of the Company's Senior Debt Securities (the "<u>Notes</u>");

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company and the Trustee executed a Supplemental Indenture, dated as of January 11, 2021 (the "<u>First Supplemental Indenture</u>") and a Second Supplemental Indenture dated as of June 23, 2021 (the "<u>Second Supplemental Indenture</u>" and together with the First Supplemental Indenture and the Base Indenture, the "<u>Indenture</u>"), among themselves and each of the following wholly owned Subsidiaries of the Company: M.D.C. Land LLC (formerly known as M.D.C. Land Corporation), a Colorado limited liability company; RAH of Florida, Inc., a Colorado corporation; Richmond American Construction, Inc., a Delaware corporation; Richmond American Construction NM, Inc., a Colorado corporation; Richmond American Homes of Arizona, Inc., a Delaware corporation; Richmond American Homes of Colorado, Inc., a Delaware corporation; Richmond American Homes of Florida, LP, a Colorado limited partnership; Richmond American Homes of Idaho, Inc. (formerly known as Richmond American Homes of Illinois, Inc.), a Colorado corporation; Richmond American Homes of Maryland, Inc.,

------

a Maryland corporation; Richmond American Homes of Nevada, Inc., a Colorado corporation; Richmond American Homes of New Mexico, Inc., a Colorado corporation; Sekisui House PNW, Inc. (formerly known as Richmond American Homes of Oregon, Inc. and Richmond American Homes of Delaware, Inc.), a Colorado corporation; Richmond American Homes of Pennsylvania, Inc., a Colorado corporation; Richmond American Homes of Tennessee, Inc. (formerly known as Richmond American Homes of New Jersey, Inc.), a Colorado corporation; Sekisui House Communities TX, Inc. (formerly known as Richmond American Homes of Texas, Inc.), a Colorado corporation; Sekisui House Utah, Inc. (formerly known as Richmond American Homes of Utah, Inc.), a Colorado corporation; Richmond American Homes of Virginia, Inc., a Virginia corporation; and Sekisui House Washington, Inc. (formerly known as Richmond American Homes of Washington, Inc.), a Colorado corporation (the foregoing Subsidiaries of the Company being referenced as the "<u>Current Guarantors</u>");

&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Additional Guarantors wish to guarantee the obligations of the Company under the Notes on the same terms that the Current Guarantors have guaranteed the obligations of the Company under the Notes;

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company has requested that the Trustee execute and deliver this Third Supplemental Indenture pursuant to Section 9.01 of the Base Indenture; and

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, all requirements necessary to make this Third Supplemental Indenture a valid instrument in accordance with its terms have been performed and the execution and delivery of this Third Supplemental Indenture has been duly authorized in all respects by the Company and the Additional Guarantors.

&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, the Company and the Additional Guarantors covenant and agree with the Trustee as follows:

ARTICLE I

GUARANTEE OF NOTES AND RELATED PROVISIONS

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.01. <u>Unconditional Guarantee</u>. The Additional Guarantors shall execute and deliver to the Trustee the following Guarantee, and shall be jointly and severally liable with any other Guarantor for their obligations under such Guarantee.

(FORM OF GUARANTEE)

&nbsp;&nbsp;&nbsp;&nbsp;The undersigned (the "<u>Guarantors</u>") have fully and unconditionally guaranteed, jointly and severally (such guarantee by each Guarantor being referred to herein as the "<u>Guarantee</u>") (i) the due and punctual payment of the principal of and interest on the Notes, whether at maturity, by acceleration or otherwise, the due and punctual payment of interest on the overdue principal and interest, if any, on the Notes, to the extent lawful, and the due and punctual performance of all other obligations of the Company to the Holders or the Trustee all in accordance with

&nbsp;&nbsp;&nbsp;&nbsp;2

------

the terms set forth in Article Six of the Supplemental Indenture and (ii) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, that the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;No past, present or future stockholder, officer, director, employee or incorporator, as such, of any of the Guarantors shall have any liability under the Guarantee by reason of such person's status as stockholder, officer, director, employee or incorporator. Each holder of a Note by accepting a Note waives and releases all such liability. This waiver and release are part of the consideration for the issuance of the Guarantees.

&nbsp;&nbsp;&nbsp;&nbsp;Each holder of a Note by accepting a Note agrees that any Guarantor named below shall have no further liability with respect to its Guarantee if such Guarantor otherwise ceases to be liable in respect of its Guarantee in accordance with the terms of the Supplemental Indenture.

This Guarantee may be executed in counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same instrument. Any signature to this Guarantee may be delivered by facsimile, electronic mail (including pdf) or any electronic signature complying with the U.S. Federal ESIGN Act of 2000 or the New York Electronic Signature and Records Act or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes to the fullest extent permitted by applicable law. Each of the parties hereto represents and warrants to the other parties that it has the capacity and authority to execute this Guarantee through electronic means. All notices, approvals, consents, requests and other communications hereunder must be in writing (and any communication sent to the Trustee hereunder must be in the form of a document that is signed manually or by way of a digital signature provided via DocuSign (or such other digital signature provider as specified in writing to the Trustee by the Company) or an electronic copy thereof), in English, and may only be delivered (a) by personal delivery, or (b) by national overnight courier service, or (c) by certified or registered mail, return receipt requested, or (d) by facsimile transmission, with confirmed receipt or (e) by email by way of a PDF attachment thereto. Notice will be effective upon receipt except for notice via email, which will be effective only when the recipient, by return email or notice delivered by other method provided for in this paragraph, acknowledges having received that email (with an automatically generated receipt or similar notice not constituting an acknowledgement of an email receipt for purposes of this paragraph). The Company agrees to assume all risks arising out of the use of digital signatures and electronic methods to submit communications to the Trustee, including without limitation the risk of the Trustee acting on unauthorized instructions, and the risk of interception and misuse by third parties, <u>provided</u> that the Trustee acts without negligence or bad faith.

&nbsp;&nbsp;&nbsp;&nbsp;3

------

&nbsp;&nbsp;&nbsp;&nbsp;The Guarantee shall not be valid or obligatory for any purpose until the certificate of authentication on the Securities upon which the Guarantee is noted shall have been executed by the Trustee under the Supplemental Indenture by the manual signature of one of its authorized officers.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.02. <u>Execution of Guarantee</u>. To evidence the Guarantee specified in Section 1.01, the Additional Guarantors hereby agree to execute the Guarantee in substantially the form set forth above, and to deliver such Guarantee to the Trustee, which shall deliver such Guarantee to each Holder as an endorsement to the Notes held by such Holder, or alternatively hold such Guarantee on behalf of each such Holder.

ARTICLE II

MISCELLANEOUS

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.01. <u>Confirmation of Indenture</u>. The Indenture, as supplemented and amended by this Third Supplemental Indenture, is in all respects ratified and confirmed, and the Indenture, this Third Supplemental Indenture and all indentures supplemental thereto shall be read, taken and construed as one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.02. <u>Concerning the Trustee</u>. The rights and duties of the Trustee set forth in the Indenture shall not be modified by reason of this Third Supplemental Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.03. <u>Governing Law</u>. This Third Supplemental Indenture, the Indenture, the Notes, and the Guarantee shall be governed by the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.04. <u>Separability</u>. In case any one or more of the provisions contained in this Third Supplemental Indenture shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Third Supplemental Indenture, but this Third Supplemental Indenture shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.05. <u>Counterparts</u>. This Third Supplemental Indenture may be executed in any number of counterparts each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.

**[Remainder of page intentionally left blank]**

&nbsp;&nbsp;&nbsp;&nbsp;4

------

&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be duly executed as of the day and year first above written.

SEKISUI HOUSE U.S., INC. (formerly known as M.D.C. HOLDINGS, INC.)

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee

By:_______________________________

Name:_____________________________

Title:______________________________

HOLT HOLDINGS OR, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

RDS DEVELOPMENT, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

CHESMAR HOMES, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

HUBBLE HOMES, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

SHAWOOD COMMUNITIES, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

&nbsp;&nbsp;&nbsp;&nbsp;5

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WOODSIDE 05N, LP

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE 05S, LP

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE 06N, LP

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE HOMES OF AZ, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE HOMES SALES AZ, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE HOMES OF NEVADA, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

WOODSIDE HOMES OF UTAH, LLC

By:_______________________________

Name: Clare E. Wilson

Title: Vice President and Treasurer

&nbsp;&nbsp;&nbsp;&nbsp;6

## Exhibit 10.1

**FIRST AMENDMENT TO THE**

**SEKISUI HOUSE U.S., INC.** 

**(formerly known as M.D.C. Holdings, Inc.)**

**LONG TERM INCENTIVE PLAN**

This First Amendment (the "First Amendment") amends the M.D.C. Holdings, Inc. Long Term Incentive Plan, approved January 30, 2025, with an Effective Date of January 1, 2025 (the "Plan"). All capitalized terms not defined herein shall have the meaning defined in the Plan.

**RECITALS**

M.D.C. Holdings, Inc. changed its legal name to Sekisui House U.S., Inc., on or about September 4, 2025.

Section 8(d) of the Plan permits the Plan to be amended as provided therein. The Company has determined that it is beneficial to amend the Plan to be effective for all Long Term Incentive Awards that are granted on or after January 1, 2026.

**AMENDMENT**

The Plan is hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The name of the Plan is the "Sekisui House U.S., Inc. Long Term Incentive Plan."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.All references to "M.D.C. Holdings, Inc." in the Plan are hereby replaced with "Sekisui House U.S., Inc."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Section 5(b) of the Plan document is hereby amended and fully replaced with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Plan Pool. During each Plan Year starting in or after 2025, the Board may grant Long Term Incentive Awards with an aggregate value up to or equal to ten percent (10%) of the Company's prior year "GAAP pre-tax net income" (the "Annual Plan Pool"). For the Annual Plan Pool of Awards to be issued in 2026 and 2027, the Board may grant Long Term Incentive Awards with an aggregate value of more than ten percent (10%) of the Company's prior year "GAAP pre-tax net income," as such amounts are determined by the Board. The Board is not obligated to grant Long Term Incentive Awards totaling the Annual Plan Pool amount in any Plan Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Except as provided herein by this First Amendment, the terms of the Plan remain in full force and effect. This Amendment has no effect on any Long Term Incentive Awards granted before January 1, 2026.

------

**CONFIRMATION**: This First Amendment has been adopted to be effective as of January 1, 2026.

Sekisui House U.S., Inc.

By:&nbsp;&nbsp;&nbsp;&nbsp;____________________

Robert Martin

&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer

## Exhibit 10.2

**AMENDED AND RESTATED LICENSE AGREEMENT**

THIS AMENDED AND RESTATED LICENSE AGREEMENT ("**Agreement**") is made and entered into as of April 30, 2026 ("**Effective Date**"), by and between SEKISUI HOUSE, LTD., a Japanese public company with its principal place of business at 1-1-88, Oyodonaka, Kita-ku, Osaka, 531-0076, JAPAN ("**Licensor**"), and Sekisui House U.S., Inc., a Delaware corporation with its principal place of business at 4350 South Monaco Drive, Denver, CO 80237, USA ("**Licensee**").

**BACKGROUND**

**WHEREAS**, Licensor indirectly owns 100% of the equity interests in Licensee;

**WHEREAS**, Licensee is engaged, both directly and indirectly through subsidiaries, in the business of conducting certain homebuilding activities in the USA;

**WHEREAS**, Licensee (a) owns 100% of the equity interests in entities that are involved in certain homebuilding activities in the USA and (b) may in the future own, directly or indirectly, equity interests in other entities that may be formed to carry out certain homebuilding activities in the USA, in each case involving the products or intellectual property of Licensor (the entities contemplated in (a) and (b), each, a "**Sublicensee**")

**WHEREAS**, Licensor desires to grant a license to Licensee under certain Intellectual Property Rights owned or Licensable by Licensor and Licensee desires to obtain such right for the purpose of conducting its Business in the Territory pursuant to the terms and conditions set forth in this Agreement;

**WHEREAS**, Licensor desires to authorize Licensee to grant limited sublicenses under certain of the Intellectual Property Rights licensed to Licensee hereunder to Sublicensees, pursuant to the terms and conditions of this Agreement;

**WHEREAS**, Licensor and SH Residential Holdings, LLC ("SHRH") entered into a License Agreement dated as of March 2, 2022 ("Prior Agreement"), and SHRH assigned the Prior Agreement to SHUS; and

**WHEREAS**, the Parties hereto wish to amend and restate the Prior Agreement.

**NOW, THEREFORE**, the parties hereto hereby agree as follows:

**AGREEMENT**

**1.<u>Definitions</u>**. Capitalized terms will have the meaning ascribed thereto in this Article [1](#iac0772723e9d47ec8c23e360bc5b8618_1)or elsewhere in this Agreement unless otherwise specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1**"**Affiliate**" means any company or entity which, directly or indirectly, controls or is controlled by or under common control with, a party to this Agreement, but only for as long as such control exists. For the purposes of this definition, "control" (and its correlative meanings "controlled by" or "under common control with") means, with

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respect to a company or entity, the ownership or possession of (a) at least fifty percent (50%) of the share capital having ordinary voting power, (b) the right to elect a majority of the members then-comprising the board of directors or equivalent corporate governance body of such company or entity, or (c) the sole operational management of the controlled company or entity by contract or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2**"**US Dollars**" means the lawful currency of the United States of America.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3**"**Business**" means (a) the manufacture, sale, installation, repair, servicing and other commercialization of Goods, (b) the conduct of related activities in connection with Licensee's and the Sublicensees' homebuilding activities in the Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4**"**Goods**" means the materials and other Technology constituting the "SHAWOOD System", including but not limited to framing system, tiles, sealant, and related materials, and designs, specifications, and documentation related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5**"**Improvements**" means all Intellectual Property Rights authored, invented or developed by or on behalf of Licensee or any Sublicensee, alone or with others, including any updates, upgrades, new versions, modifications, derivative works, or other improvements to any Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6**"**Intellectual Property Rights**" means all rights with respect to intellectual property and industrial property, including: (a) Patents; (b) copyrights, copyright registrations and other rights with respect to authorship; (c) trade secrets and other rights with respect to confidential or proprietary information; (d) Trademarks; and (e) other rights with respect to inventions, discoveries, improvements, know-how, formulae, algorithms, processes, databases, technical information and other Technology, whether or not subject to statutory registration or protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7**"**Licensable**" as to any Intellectual Property Rights of Licensor, means that Licensor has the right and ability to grant rights to the Licensee with respect to such Intellectual Property Rights of at least the scope of rights contemplated to be granted to Licensee under this Agreement, without such grant, or the exercise of such rights, (a) resulting in any breach or other violation of any obligation owed to any third party, (b) requiring consent from any third party, (c) giving rise to a termination right or granting of any other right to a third party, or (d) resulting in any payment or other obligation of Licensor to any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8**"**Licensed IPR**" means all Licensed Technology, Licensed Patents and Licensed Trademarks owned or Licensable by Licensor during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.9**"**Licensed Patents**" means all Patents owned or Licensable by Licensor embodied in any Licensed Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.10**"**Licensed Technology**" means all Technology owned or Licensable by Licensor during the Term and (a) embodied by or necessary to use Goods, (b) otherwise provided by or on behalf of Licensor or its Affiliates to Licensee or a Sublicensee under this Agreement for use in connection with the Business and any

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applicable Project, (c) any Improvements to any of the foregoing provided by or on behalf of Licensor or authored, invented or developed by Licensee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.11**"**Licensed Trademarks**" means the Trademarks described in <u>Appendix A</u> hereto, as <u>Appendix A</u> may be modified by Licensor from time to time during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.12**"**Patents**" means, throughout the world, all classes and types of patents, inventor's certificates, design patents, utility models, and similar rights, and, as applicable, applications, provisional applications, and registrations therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.13**"**Technology**" means, with no limitation, information, know-how, data, and other technology, including works of authorship and other creations and ideas, computer programs (in source code, object code or any other format), documentation, developments, know- how, technical information, specifications, designs, plans, drawings, writings, schematics, documents, reports, methods, procedures, concepts, techniques, protocols, tooling, hardware and products, excluding Trademarks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.14**"**Term**" is defined in Section [10.1](#iac0772723e9d47ec8c23e360bc5b8618_1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.15**"**Territory**" means the United States of America and its territories (collectively, the "USA").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.16**"**Trademarks**" means trademarks, service marks, trade dress, logos and other rights in indicia of origin.

**2.<u>Purpose, Projects and Sublicensees</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1Purpose**. The purpose of this Agreement is (a) for Licensor to grant to Licensee a license under the Licensed IPR as necessary for Licensee to conduct the Business in the Territory and to use and exploit Goods in accordance with the terms of this Agreement, and (b) to enable Licensee to further sublicense its rights to Sublicensees for purposes of enabling such Sublicensees to conduct the Business in the Territory, and to use and exploit Goods in accordance with the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2Authorization of Sublicensees**. Licensee has the right to sublicense its rights hereunder to one or more Sublicensees and such Sublicensee(s) will be authorized to exercise their license rights sublicensed from Licensee in connection with their conduct of the Business in the Territory, and to use and exploit Goods in accordance with the terms of this Agreement.

**3.<u>Licenses to Licensee</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1Licensed IPR**. Subject to and conditioned on Licensee's continued compliance with the terms and conditions of this Agreement, Licensor hereby grants to Licensee a limited, non-exclusive, non-transferable, sublicensable (solely pursuant to Article 4), royalty-bearing right and license under the Licensed IPR, during the

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Term, to (a) make, have made, use, lease, sell, offer for sale, import and otherwise commercialize Goods in the course of conducting the Business; (b) practice and otherwise use and exploit the Licensed Technology solely in connection with, Licensee's conduct of the Business in the Territory; and (c) to modify, make derivative works and otherwise improve the Licensed Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2Limited Use; Restrictions**. Licensee will not, will cause its Sublicensees not to, and will not permit any third party to, use, practice, disclose or otherwise exploit any Licensed IPR (a) other than in connection with the Business and except as expressly permitted by this Agreement or (b) in the manufacture, sale, offering for sale, import or other commercialization or exploitation any product other than the Goods, in each case without Licensor's prior written consent. Licensee acknowledges that the Licensed Technology constitutes and contains trade secrets of Licensor for the purpose of this Agreement, and, in order to protect such trade secrets and other interests that Licensor may have in such Licensed Technology, Licensee will not, will cause its Sublicensees not to, and will not permit any third party to, except as expressly authorized in this Agreement, transfer, sublicense, disclose, distribute or otherwise expose the Licensed Technology to any third party other than a Sublicensee in accordance with Article 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3Trademark License.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3.1Grant.** Subject to and conditioned on Licensee's continued compliance with the terms and conditions of this Agreement, Licensor hereby grants to Licensee a limited, non-exclusive, non-transferable, sublicensable (solely pursuant to Article 4), royalty-bearing right and license, during the Term, to use, reproduce and display the Licensed Trademarks solely in connection with (a) Goods and otherwise in connection with the exercise by Licensee of its rights pursuant to Section [3.1](#iac0772723e9d47ec8c23e360bc5b8618_1)and (b) as part of Licensee's company name, including on any media or documents (including business cards, letterhead, presentation materials, signage and the like) typical and customary in connection with the branding, marketing and promotion of an entity, in each case in the course of conducting the Business in the Territory. All goodwill arising from Licensee's or any Sublicensee's use of any of the Licensed Trademarks will inure solely to the benefit of Licensor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3.2Trademark Usage Guidelines**. The use by Licensee of the Licensed Trademarks shall at all times adhere to Licensor's then-current trademark or brand usage guidelines, as such guidelines may be revised or so indicated during the Term by Licensor. Upon Licensor's request, Licensee will provide Licensor with samples of advertising and promotional materials developed by or for Licensee and using the Licensed Trademarks in order for Licensor to assess compliance with this Section [3.3.2](#iac0772723e9d47ec8c23e360bc5b8618_1). If Licensor notifies Licensee of any breach with respect to any failure to adhere to the then-current applicable trademark or brand usage guidelines of Licensor, Licensee will immediately cease all use of the materials not conforming with such brand usage guidelines and will cure such breach within thirty (30) days with respect to Licensee's use of the Licensed Trademarks.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3.3Limited Trademark Use**. Licensee will not use or permit the use of the Licensed Trademarks (a) in any manner that could otherwise reasonably be expected to impair, tarnish, dilute or otherwise damage the value and goodwill associated with any trademarks, service marks, trade dress, logos and other rights in indicia of origin owned or used by Licensor anywhere in the world or (b) in connection with any unfair, misleading, illegal, vulgar, obscene, immoral or offensive materials, or any products or services that violate applicable laws or are false or misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3.4No Adverse Claim**. Licensee will not, and will not assist any third party to, assert any claim or interest in, or take any action which may in any way (a) adversely affect the validity or enforceability of, (b) result in the harm or misuse of, bring into disrepute, or adversely affect Licensor's rights or interest in and to, or (c) result in obtaining registrations in or otherwise challenge the validity of, Licensor's ownership of or rights in, in each case, the Licensed Trademarks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4No Other Rights**. Except as expressly set forth in this Agreement, neither party will have any license, authority, immunity, defense, or other right under the other party's or its Affiliates' Intellectual Property Rights, whether express, implied, by reason of statute, estoppel, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.5No Liability**. Licensor will have no liability whatsoever arising from or in connection with any use or exploitation of the Licensed IPR by or on behalf of Licensee (including by any Sublicensee) other than as expressly set forth in this Agreement, and Licensee and any Sublicensee will be solely liable for its and their use or exploitation of the Licensed IPR, and the exercise of its and their rights, pursuant to this Agreement.

**4.<u>Sublicense Rights</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1To Sublicensees.** Subject to and conditioned on Licensee's continued compliance with the terms and conditions of this Agreement, Licensee's rights pursuant to Section [3.1](#iac0772723e9d47ec8c23e360bc5b8618_1)and Section [3.3](#iac0772723e9d47ec8c23e360bc5b8618_1)shall include the right for Licensee to sublicense to any Sublicensee (including those authorized by Licensee pursuant to Article 2) a license of Licensee's rights pursuant to Section [3.1](#iac0772723e9d47ec8c23e360bc5b8618_1)and Section [3.3](#iac0772723e9d47ec8c23e360bc5b8618_1)to use and exploit Goods and the Licensed Technology in connection with such Sublicensee's conduct of the Business in the Territory other than as may be agreed to in writing by the parties. Any such sublicense will require that the Sublicensee assign to Licensee all right, title and interest in and to any Improvements arising from or related to the exercise by such Sublicensee of such sublicensed rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2Licensee's Rights and Obligations**. Any rights and responsibilities performed or provided by a Sublicensee will be deemed to be performed by Licensee and Licensee will be responsible and liable for any breach of the terms and conditions of this Agreement by any Sublicensee, as applicable, to the same extent as if such breach

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were committed by Licensee and any act or omission of any Sublicensee will constitute an act or omission of Licensee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3To Other Third Parties**. Other than as set forth in Sections [4.1](#iac0772723e9d47ec8c23e360bc5b8618_1), Licensee will not sublicense any of its respective rights under this Agreement, and will not have any of Licensee's rights or obligations exercised or performed on its behalf by any person or entity, without Licensor's prior written approval which may be withheld in Licensor's sole discretion.

**5.<u>Ownership; No Other Rights</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1Ownership**. Licensor will own and retain ownership of, and all right, title, and interest (including all Intellectual Property Rights) in and to the Licensed IPR and all Improvements. Licensee shall, promptly following the authoring, invention or development of any Improvement hereunder, notify Licensor of the applicable Improvement and deliver to Licensor such Improvement, together with any related information or materials as Licensor may request. Licensee hereby irrevocably assigns and agrees to assign directly to Licensor, and, other than as may be agreed to in writing by the parties, to cause all Sublicensees, to irrevocably assign and agree to directly assign to Licensor, immediately upon being authored, invented or developed without the need for further action, all of its and their right, title and interest, including all Intellectual Property Rights, in and to such Improvements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2Obligation to Bind Employees.** Licensee will ensure, and will cause all Sublicensees to ensure, that all of its and their respective officers and employees are bound by terms consistent with the provisions of this Article 5, to the extent appropriate or necessary under applicable law. Such agreement(s) or company rules(s) will obligate all such officers and employees to waive or covenant not to enforce, to the fullest extent permitted by applicable law, any and all rights relating to Improvements and other Technology, and all Intellectual Property Rights therein and thereto, arising out of or in connection with such directors, officers, and employee's participation in the exercise of Licensee's rights pursuant to Section [3.1](#iac0772723e9d47ec8c23e360bc5b8618_1), or Sublicensees', as applicable, rights pursuant to Article [4.](#iac0772723e9d47ec8c23e360bc5b8618_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3Further Assurances**. Licensee acknowledges Licensor's exclusive ownership of all right, title and interest in and to all Improvements, all Intellectual Property Rights therein and thereto, and all other Intellectual Property Rights related to or arising out of or in connection the exercise by Licensee of its rights pursuant to Section [3.1](#iac0772723e9d47ec8c23e360bc5b8618_1), or any Sublicensees' exercise of their rights pursuant to Article [4](#iac0772723e9d47ec8c23e360bc5b8618_1). Licensee will not at any time act, or fail to act, in any way impairing or otherwise adverse to Licensor's right, title and interest in and to the Licensed IPR and Licensed Technology (including Improvements), and all Intellectual Property Rights in and to the Licensed Technology. All use or exploitation of the Licensed IPR and Licensed Technology by or on behalf of Licensee, and any Sublicensee, will inure to the benefit of Licensor. Licensee agrees to promptly perform, and to cause all Sublicensees, and its and their officers and employees, to promptly perform, during and after the Term and at Licensee's sole expense and responsibility, all acts reasonably necessary and requested by Licensor to permit and assist Licensor to evidence, perfect, obtain,

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maintain, defend, and enforce its Intellectual Property Rights and Licensee's (or any Sublicensee's) assignment with respect to such Intellectual Property Rights, in any and all countries. Such acts may include, but are not limited to, execution of documentation and assistance or cooperation in legal proceedings. Licensee hereby irrevocably designates and appoints Licensor or any person or entity Licensor assigns, and Licensor's duly authorized officers and agents, as Licensee's agents and attorneys-in-fact to act for and on behalf and instead of Licensee, to execute and file any documentation and to do all other permitted acts to further the above purposes with the same legal force and effect as if executed, filed or performed by Licensee.

**6.<u>Royalties; Payment Terms</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1Royalty Payments**. Licensee will pay directly to Licensor, on a yearly basis during the Term (or such other frequency as may be mutually agreed to in writing between Licensor and Licensee), a running royalty payment in amounts stipulated in <u>Appendix B</u> of this Agreement (the "**Royalty**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2Sales Reports**. Licensee will deliver to Licensor a written report in a format Licensor and Licensee agree within ten (10) days after June 30 and December 31 of each year, or such other frequency as agreed by the Parties, reporting the sales of SHAWOOD homes in the Territory during the previous six (6) months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3Royalty Reports**. Licensee will deliver to Licensor a written report in a format Licensor and Licensee agree within ten (10) days after June 30 and December 31 of each year, or such other frequency as agreed by the Parties, reporting the amount of Royalty during the previous six (6) months to be paid to Licensor (each a "**Royalty Report**"). Licensor will invoice Licensee until January 15 of each year in accordance with Royalty Reports submitted by Licensee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.4No Apportionment**. The parties agree that the Royalties payable by Licensee have been set at a specified rate over time, without regard to potential changes in the Intellectual Property Rights licensed under this Agreement (including the expiration or possible invalidation of rights under applicable law with respect thereto), for the mutual convenience of the parties in planning their business operations over time. The parties do not regard any payment obligation as apportionable among particular Intellectual Property Rights licensed under this Agreement, but regard the Royalty payments as representative of the cumulative value associated with all Intellectual Property Rights licensed under this Agreement as a whole over the Term. The parties expressly acknowledge that no adjustment to, refund of, or right of credit or set-off with respect to, the amounts payable under this Agreement is anticipated or warranted upon the expiration or potential invalidity of any Licensed Patents or any other Intellectual Property Rights licensed under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5Payment Terms.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5.1Royalty Payments**. Licensee will pay all Royalties due and payable pursuant to Section [6.1,](#iac0772723e9d47ec8c23e360bc5b8618_1)on a yearly basis and in arrears, within thirty (30) days

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after the end of the applicable year for which each Royalty payment is payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5.2Payment Currency**. All payments under this Agreement will be made in US Dollars by wire transfer of immediately available funds to one or more bank accounts to be designated in writing by Licensor. All payments under this Agreement shall be irrevocable, unconditional and non-refundable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.6Taxes**. Licensee may deduct from the payments under this Article any withholding taxes which Licensee is required under the Territory to pay for the account of Licensor, provided that Licensee shall pay such taxes on behalf of and in the name of Licensor and furnish Licensor with proper certificates for the same from the authorities concerned as per the laws of the Territory, to enable Licensor to obtain credit therefore against its Japanese taxes.

**7.<u>Confidentiality</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1Confidential Information.** As used in this Agreement, "**Confidential Information**" means confidential, proprietary or trade secret information of Licensor (or its licensors, suppliers, vendors, clients, customers or any third party to whom Licensor owes a duty of confidentiality), in whatever form, tangible or intangible, that Licensor discloses under this Agreement. For clarity, the Licensed Technology (including Improvements), all embodiments of Licensed Technology (including Improvements), and all Royalty Reports will constitute Confidential Information. Licensee will, during the Term and thereafter, treat Confidential Information as confidential using the same degree of care as Licensee uses to protect its own similar proprietary or confidential information (and in any event no less than a reasonable degree of care), and not disclose, deliver, provide, disseminate or otherwise make available to any third party, directly or indirectly, any such Confidential Information without the prior written consent of Licensor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2Use of Confidential Information**. Licensee will use the Confidential Information solely and entirely for the purposes contemplated by this Agreement and for no other purpose without the prior written consent of Licensor. Licensee will restrict the dissemination of Confidential Information within its organization to only those persons who have a need to know, and will ensure that all of its officers and employees are bound by the confidentiality obligations consistent with those set forth in this Article [7](#iac0772723e9d47ec8c23e360bc5b8618_1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3Disclosure to Sublicensees**. Licensee may disclose Confidential Information to Sublicensees as long as, in each case, such disclosures are limited to only that Confidential Information necessary to exercise such Sublicensees' respective rights or perform their obligations. Licensee has an obligation to monitor such Sublicensees to ensure that they are not inappropriately disclosing or using Confidential Information in violation of the terms of this Article [7](#iac0772723e9d47ec8c23e360bc5b8618_1)and will promptly notify Licensor if any Sublicensee makes any unauthorized use or disclosure of Confidential Information. Licensee will remain liable for any unauthorized disclosure or use of Confidential Information by any Sublicensee. Licensee represents and warrants that each

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Sublicensee who may have access to Confidential Information is subject to a written agreement that prevents disclosure and unauthorized use of the Confidential Information in a manner consistent with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4Exceptions to Confidential Information**. The obligations of confidentiality set forth in Sections [7.1, 7.2](#iac0772723e9d47ec8c23e360bc5b8618_1)and [7.3](#iac0772723e9d47ec8c23e360bc5b8618_1)will not apply to Confidential Information that Licensee is able to demonstrate by documentary evidence: (a) was in the public domain at the time of receipt from Licensor; (b) subsequently becomes a part of the public domain through no fault of Licensee; (c) is lawfully received by Licensee, without restriction on its use or disclosure, from a third party having a right of further disclosure and without breach of any duty of confidentiality to Licensor; or (d) is independently developed by Licensee without reference to the Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.5Disclosure Required by Law**. The non-disclosure obligations pursuant to this Agreement will not apply to Confidential Information that Licensee is required to disclose pursuant to any law, judicial action, order of the court or other governmental agency, except that Licensee will make all reasonable efforts to notify Licensor prior to the disclosure of Confidential Information and allow Licensor the opportunity to contest and avoid such disclosure and cooperate with Licensor in connection with such efforts. In addition, Licensee will disclose only that portion of such Confidential Information that it is legally required to disclose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.6Return of Confidential Information**. Upon Licensor's written request, Licensee will promptly return, and will cause all Sublicensees to promptly return, all documentary, electronic or other tangible forms of Confidential Information, including any and all copies of such Confidential Information, or, at Licensor's request, destroy all or such parts of the Confidential Information as Licensor will direct and provide Licensor with written confirmation of such destruction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.7Injunctive Relief**. In the event of any breach or threatened breach by Licensee or any Sublicensee of any provision of this Article [7,](#iac0772723e9d47ec8c23e360bc5b8618_1)Licensor will be entitled to injunctive or other equitable relief, restraining Licensee or any Sublicensee, as applicable, from using or disclosing any Confidential Information, in whole or in part, or from engaging in conduct that would constitute a breach of the obligations of Licensee or any Sublicensee, as applicable, under this Article [7](#iac0772723e9d47ec8c23e360bc5b8618_1). Such relief will be in addition to and not in lieu of any other remedies that may be available, including an action for the recovery of damages.

**8.<u>Warranties; Disclaimer</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1Limited Warranties**. Each parties represents and warrants that (a) it has the right, power and authority to enter into this Agreement and to grant the rights and licenses granted by each party to the other party pursuant to this Agreement and (b) its execution of and performance under this Agreement will not breach any agreement with any third party or any express obligation owed to any third party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2No Other Rights or Warranties**. Nothing contained in this Agreement is or will be construed as a warranty or representation by either party as to the validity or scope or sufficiency of any Intellectual Property Rights licensed by such party under this Agreement, or either party's right to use or exploit any Intellectual Property Rights or other rights granted to it pursuant to this Agreement, and each party will be and remain solely liable with respect to the exercise of any rights granted to it by the other party under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3DISCLAIMER**. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES RELATING TO ANY INTELLECTUAL PROPERTY RIGHTS AND TECHNOLOGY LICENSED UNDER THIS AGREEMENT (INCLUDING WITH RESPECT TO THE VALIDITY OR ENFORCEABILITY THEREOF), OR OTHERWISE WITH RESPECT OR RELATING TO THIS AGREEMENT OR ITS SUBJECT MATTER. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HEREBY DISCLAIMS ALL OTHER REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING ANY WARRANTY OF ACCURACY, TITLE, NON- INFRINGEMENT, MERCHANTABILITY, AND FITNESS FOR A PARTICULAR PURPOSE, AND ANY AND ALL WARRANTIES THAT MAY ARISE FROM COURSE OF DEALING, COURSE OF PERFORMANCE OR USAGE OF TRADE.

**9.<u>Limitation of Liability</u>**

NEITHER PARTY WILL BE LIABLE FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGE ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ITS SUBJECT MATTER, IRRESPECTIVE OF WHETHER SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF ANY SUCH DAMAGES.

**10.<u>Term and Termination</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1Term**. This Agreement will remain in force and effect until terminated in accordance with this Agreement (the "**Term**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2Termination**. Either party may terminate this Agreement at any time upon written notice to the other party in the event of a material breach by the other party of this Agreement, except that such termination will not be effective if such breach is cured by such other party within thirty (30) days from the date of the delivery of written notice thereof. Notwithstanding the foregoing, in the event of any breach by either party of Article [3](#iac0772723e9d47ec8c23e360bc5b8618_1)or Article[7,](#iac0772723e9d47ec8c23e360bc5b8618_1)the non-breaching party may terminate this Agreement immediately upon written notice to the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3Effect of Termination**. Upon any expiration or termination of this Agreement for any reason (a) all licenses and rights granted by Licensor to Licensee pursuant to this Agreement will immediately terminate and (b) Licensee will immediately discontinue, and will cause all Sublicensee to immediately discontinue, all use of the

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Confidential Information, and to promptly comply with Licensee's and the Sublicensee's obligations pursuant to Section [7.6](#iac0772723e9d47ec8c23e360bc5b8618_1). In addition, upon any such expiration or termination, (i) all Sublicense Agreements will automatically be deemed novated so that Licensor (or its designee) is a party thereto in lieu of Licensee and (ii) upon such novation, the Sublicensees' rights under the Sublicense Agreements to use the Licensed IPR shall remain in force and effect. If for any reason the Sublicense Agreements are not novated to Licensor within thirty (30) days following expiration or termination of this Agreement, and Licensee is otherwise unable to assign such agreements to Licensor, then each Sublicensee will have thirty (30) additional days to enter into a new agreement with Licensor providing for a license of the applicable rights to use the Licensed IPR or each of their rights to use the Licensed IPR shall terminate. No Sublicensee will have any rights to use the Licensed IPR following any expiration or termination of this Agreement other than as set forth in this Section [10.3](#iac0772723e9d47ec8c23e360bc5b8618_1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4Survival of Termination**. Articles [5](#iac0772723e9d47ec8c23e360bc5b8618_1), [6](#iac0772723e9d47ec8c23e360bc5b8618_1)(solely with respect to outstanding amounts due), [7,](#iac0772723e9d47ec8c23e360bc5b8618_1) [9,](#iac0772723e9d47ec8c23e360bc5b8618_1) and [11](#iac0772723e9d47ec8c23e360bc5b8618_1) as well as Sections [3.5](#iac0772723e9d47ec8c23e360bc5b8618_1), [4.2,](#iac0772723e9d47ec8c23e360bc5b8618_1) [8.3](#iac0772723e9d47ec8c23e360bc5b8618_1), [10.3](#iac0772723e9d47ec8c23e360bc5b8618_1), and [10.4](#iac0772723e9d47ec8c23e360bc5b8618_1) will survive and continue, to the extent applicable, after the end of the Term.

**11.<u>General Provisions</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.1Assignability**. Licensee may not assign or transfer this Agreement, or any of its rights or obligations under this Agreement, in whole or in part, without the prior written consent of Licensor. Any attempt to assign any rights or obligations under this Agreement without Licensor's prior written consent will be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.2Entire Agreement; Amendment**. This Agreement set forth the entire agreement and understanding between the parties as to the subject matter of this Agreement and supersedes all prior agreements and understandings, express or implied, oral or written, between the parties regarding such subject matter. No amendment, supplement, modification or waiver of this Agreement (including this Section) will be binding on either party unless executed in writing by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.3Notices**. All notices required or permitted to be given pursuant to this Agreement must be in writing and delivered to the other party's address set forth in the first paragraph above or any other method(s) with both parties' consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.4Governing Law and Venue**. This Agreement will be governed by and construed in accordance with the laws of Colorado without reference to conflict of laws principles. Any party bringing a legal action or proceeding against any other party arising out of or relating to this Agreement may only bring the legal action or proceeding in the federal court sitting in Denver, Colorado.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.5Severability**. In case any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or portion of any provision, and this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal, or

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unenforceable provision or portion of any provision had never been contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.6Waiver**. No waiver by any party of any term or condition of this Agreement, in any one or more instances, will be deemed to be construed as a waiver of the same or any other term or condition of this Agreement on any future occasion. The failure of either party at any time or times to require performance of any provision of this Agreement will not affect its rights at a later time to enforce the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.7Counterparts**. This Agreement may be executed in two or more counterparts, all of which will be considered one and the same instrument and will become effective when one or more counterparts have been signed by each of the parties and have delivered to the other. Signatures to this Agreement transmitted by electronic mail in PDF format or by any other electronic means designed to preserve the original graphic and pictorial appearance of a document, will be deemed to have the same effect as physical delivery of the paper document bearing the original signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.8Headings**. The section headings contained in this Agreement are for reference purposes only and will not affect in any way the meaning or interpretation of this Agreement.

*[Signature pages follow]*

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**IN WITNESS WHEREOF,** each of the parties has caused this Agreement to be executed by its duly authorized representative as of the Effective Date.

[Licensor] SEKISUI HOUSE, LTD.<br>By: Name:Title: [Licensee] Sekisui House U.S., Inc.<br>By: Name:Title:

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**<u>Appendix A</u>**

**Licensed Trademarks**

Serial number of the application: 90255262 SHAWOOD

Serial number of the application: 88689705 SHAWOOD

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**<u>Appendix B</u>**

**Royalty Rates and Calculation Method**

Licensee shall pay to Licensor a royalty calculated in accordance with the formula and Royalty Rates below.

**[Royalty calculation formula]**

Royalty = Sales price<sup>1</sup> of SHAWOOD buildings \* Total Royalty Rate

**[Royalty Rates]**

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| | | | | |
|:---|:---|:---|:---|:---|
| Period | Period | A) Royalty Rate for Licensed IPR (other<br>than Licensed<br>Trademark) | B) Royalty Rate for Licensed Trademark | C) Total Royalty Rate<br>(A+B) |
| From January 1 2021 to<br>31 December 2023 ("**Introduction Period**") | Basic Royalty Rate for<br>the Introduction Period | &nbsp;&nbsp;2% | &nbsp;&nbsp;0% | &nbsp;&nbsp;2% |
| From January 1 2021 to<br>31 December 2023 ("**Introduction Period**") | Royalty Rate for the following year of a year of which operating margin before deduction of Royalty is 3% or above for two (2) consecutive FYs during the Introduction Period<sup>2</sup> | &nbsp;&nbsp;2% | &nbsp;&nbsp;1% | &nbsp;&nbsp;3% |
| From January 1 2024 ("**Expansion Period**") | Basic Royalty Rate for the Expansion Period | &nbsp;&nbsp;2% | &nbsp;&nbsp;1% | &nbsp;&nbsp;3% |
| From January 1 2024 ("**Expansion Period**") | Royalty Rate for the following year of a year of which operating margin before deduction of Royalty is 15% or above for two (2) consecutive FYs during the Expansion Period | &nbsp;&nbsp;3% | &nbsp;&nbsp;3% | &nbsp;&nbsp;6% |

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<sup>1</sup> "Sales price" means sales to customers outside the SHL group and does not include: sales related to land, sales within the SHL group, and sales outside the SHL group to subcontractors for materials, etc., which are purchased again by the SHL group. The calculation method of SHAWOOD business segmented profit and loss excluding land shall be as follows: i) Net sales: Net sales of the businesses subject to royalty calculation are allocated according to the ratio of the cost of buildings to the cost of sales. ii) Cost of goods sales: Directly allocated. iii) Selling, General and administrative expenses: Allocation based on the ration of the cost of the custom detached houses to the cost of sales.)

<sup>2</sup> "Operating margin" shall be calculated based on consolidated management profit and loss excluding land profit and loss (calculation based on consolidated profit and loss on building management).

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATIONS**

I, David N. Viger, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this report on Form 10-Q of Sekisui House U.S., Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: May 12, 2026 | /s/ David N. Viger |
| | David N. Viger<br>Director, President and Chief Executive Officer<br>(principal executive officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATIONS**

I, Robert N. Martin, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this report on Form 10-Q of Sekisui House U.S., Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: May 12, 2026 | /s/ Robert N. Martin |
| | Robert N. Martin<br>Director, Senior Vice President, Chief Financial Officer<br>(principal financial officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION**

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned principal executive officer of Sekisui House U.S., Inc. (the "Company") hereby certifies that the Report on Form 10-Q of the Company for the period ended March 31, 2026 accompanying this certification, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the periodic report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Date: May 12, 2026 | /s/ David N. Viger |
| | David N. Viger<br>Director, President and Chief Executive Officer<br>(principal executive officer) |

---

The foregoing certification is being furnished solely pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and Section 1350 of Title 18, United States Code, and is not being filed as part of the report or as a separate disclosure document.

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION**

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned principal financial officer of Sekisui House U.S., Inc. (the "Company") hereby certifies that the Report on Form 10-Q of the Company for the period ended March 31, 2026 accompanying this certification, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the periodic report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Date: May 12, 2026 | /s/ Robert N. Martin |
| | Robert N. Martin<br>Director, Senior Vice President, Chief Financial Officer<br>(principal financial officer) |

---

The foregoing certification is being furnished solely pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and Section 1350 of Title 18, United States Code, and is not being filed as part of the report or as a separate disclosure document.

<br>