Tariffs and immigration-related labor constraints are driving up material and labor costs, while geopolitical tensions and reduced institutional purchases are adding uncertainty to demand forecasts. Lennar closed Q1 with $2.1 billion in cash and a robust balance sheet, providing ample liquidity for strategic investments, land acquisitions and shareholder returns despite market volatility. The company is advancing technology projects to streamline operations and enhance customer experience, and roughly 65% of deliveries now come from core plans to simplify cost structures and improve capital allocation. Management anticipates meaningful SG&A declines in 2026 due to tech-driven overhead cuts and leadership retirements, and aims to improve inventory turns by separating land from homebuilding and optimizing just-in-time delivery systems.