Group 1 - Lennar reported quarterly earnings of $2 per share, missing the Zacks Consensus Estimate of $2.12 per share, and down from $3.9 per share a year ago, representing an earnings surprise of -5.66% [1] - The company posted revenues of $8.81 billion for the quarter ended August 2025, missing the Zacks Consensus Estimate by 2.49%, and down from $9.42 billion year-over-year [2] - Over the last four quarters, Lennar has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Group 2 - The stock has lost about 2.5% since the beginning of the year, while the S&P 500 has gained 12.2% [3] - The current consensus EPS estimate for the coming quarter is $2.80 on revenues of $10.25 billion, and for the current fiscal year, it is $9.04 on revenues of $35.2 billion [7] - The Zacks Industry Rank for Building Products - Home Builders is currently in the bottom 7% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8] Group 3 - The estimate revisions trend for Lennar was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6] - KB Home, another company in the same industry, is expected to report quarterly earnings of $1.50 per share, reflecting a year-over-year change of -26.5% [9]

Core Insights - Lennar Corp. reported adjusted earnings of $2 per share, missing the consensus estimate of $2.10, and quarterly revenue of $8.81 billion, which also fell short of the Street estimate of $8.99 billion [1][3] Financial Performance - New orders increased by 12% to 23,004 homes, while the backlog stood at 16,953 homes valued at $6.6 billion [5] - Deliveries remained consistent with the prior year at 21,584 homes [3][5] - Total revenues reached $8.81 billion, with homebuilding operating earnings of $760 million [5] - Gross margin on home sales decreased to 17.5%, and SG&A expenses accounted for 8.2% of revenues from home sales [3][5] - Net margin on home sales was reported at 9.2% [5] - Financial Services operating earnings were $178 million, while the multifamily segment reported an operating loss of $16 million [5] Market Context - The results reflect ongoing pressures in the housing market, necessitating additional incentives that led to a reduced average sales price of $383,000 [3] - The stock price of Lennar was down 3.36% to $128.40 in extended trading following the earnings report [4]

Key TakeawaysLennar Corporation (LEN) reported mixed third-quarter 2025 earnings, with EPS beating estimates at $2.29 but revenue falling short of expectations at $8.81 billion, alongside a significant year-over-year EPS drop and conservative Q4 guidance.FedEx (FDX) is set to complete its Amazon (AMZN) onboarding by the third quarter, focusing on larger, heavier packages, marking a significant rekindling of their partnership and potentially bolstering holiday delivery capacity.Japan's Sanae Takaichi plans t ...

Core Viewpoint - Lennar reported a significant decline in third-quarter profit and forecasted lower home deliveries for the fourth quarter, indicating ongoing challenges in the housing market due to inflation and elevated interest rates [1][3]. Financial Performance - Lennar's third-quarter earnings were $2.29 per share, down from $4.26 per share a year earlier [4]. - Revenue for the quarter ended August 31 fell by 8.7% to $8.25 billion, which was below analysts' estimates of $9 billion [4]. Market Outlook - The company expects fourth-quarter home deliveries to be between 22,000 and 23,000 units, which is below analysts' expectations of over 25,000 units [3]. - Analysts at BofA Securities noted that the recent Fed rate cut is unlikely to have a significant short-term impact on the housing market, as the market had already priced in the rate changes [2]. Operational Challenges - Lennar's profit margins are under pressure due to sales incentives like mortgage rate buydowns and cost adjustments amid weakening home demand [3]. - The company does not anticipate being affected by tariffs and aims to focus on improving margins [3].

[Third Quarter 2025 Earnings Overview](index=1&type=section&id=Third%20Quarter%202025%20Earnings%20Overview) Lennar Corporation's Q3 2025 performance reflects market pressures and strategic adjustments, with key financial metrics, management insights, and Q4 guidance indicating a focus on operational efficiency and market adaptation [1.1 Key Financial and Operational Highlights](index=1&type=section&id=1.1%20Key%20Financial%20and%20Operational%20Highlights) Lennar Corporation achieved diluted EPS of $2.29, 12% new orders growth to 23,004 homes, and total revenue of $8.8 billion in Q3 2025, maintaining deliveries and a healthy balance sheet amidst market pressures | Metric | Q3 2025 | Change (YoY) | | :----------------------------------- | :--------------- | :---------- | | Diluted EPS | $2.29 | -46.2% | | Net Earnings | $591 million | -50.8% | | New Orders | 23,004 homes | +12% | | Deliveries | 21,584 homes | Flat | | Total Revenue | $8.8 billion | -6.4% | | Home Sales Gross Margin | 17.5% | -5.0 ppts | | SG&A as % of Home Sales Revenue | 8.2% | +1.5 ppts | | Home Sales Net Margin | 9.2% | - | | Financial Services Operating Earnings | $178 million | +23.6% | | Homebuilding Cash & Equivalents | $1.4 billion | - | | Homebuilding Debt to Total Capital | 13.5% | +6.0 ppts | | Share Repurchases | 4.1 million shares ($507 million) | - | - New orders increased by **12%** year-over-year to **23,004 homes**, with a backlog of **16,953 homes** valued at **$6.6 billion**[3](index=3&type=chunk) - The company repurchased **4.1 million shares** of common stock for **$507 million**[3](index=3&type=chunk) [1.2 Management's Commentary and Strategic Outlook](index=2&type=section&id=1.2%20Management's%20Commentary%20and%20Strategic%20Outlook) Management noted Q3 results reflect ongoing housing market pressures and stable operations, using incentives to maintain sales momentum while improving inventory turnover and construction cycles - Market pressures led to an average sales price reduction to **$383,000**, a gross margin decline to **17.5%**, and SG&A expenses at **8.2%** of revenue[5](index=5&type=chunk) - The company maintained a start pace of **4.4 homes** per community per month and a sales pace of **4.7 homes** per community per month through targeted incentives, including mortgage rate buydowns[5](index=5&type=chunk) - Inventory turnover improved to **1.9 times**, and the construction cycle shortened to a record low of **126 days**, reflecting a production-first strategy and successful negotiations with trade partners[5](index=5&type=chunk) - Management is optimistic for Q4, projecting new orders of **20,000-21,000 homes**, deliveries of **22,000-23,000 homes**, and a gross margin of approximately **17.5%**[5](index=5&type=chunk) [1.3 Fourth Quarter 2025 Guidance](index=4&type=section&id=1.3%20Fourth%20Quarter%202025%20Guidance) The company forecasts Q4 2025 new orders between 20,000-21,000 homes, deliveries of 22,000-23,000 homes, and an average sales price of $380,000-$390,000, with homebuilding gross margin around 17.5% 2025 Fourth Quarter Guidance | Metric | Expected Results | | :-------------------------- | :--------------- | | New Orders | 20,000 - 21,000 homes | | Deliveries | 22,000 - 23,000 homes | | Average Sales Price | $380,000 - $390,000 | | Home Sales Gross Margin | Approx. 17.5% (Consistent with Q3) | | SG&A as % of Home Sales | 7.8% - 8.0% | | Financial Services Operating Earnings | $130 million - $135 million | [Detailed Financial Results (Three Months Ended August 31, 2025 vs 2024)](index=3&type=section&id=Detailed%20Financial%20Results%20(Three%20Months%20Ended%20August%2031%2C%202025%20vs%202024)) This section provides a detailed breakdown of Lennar's Q3 2025 consolidated and segment-specific financial performance, highlighting revenue, earnings, and operational shifts compared to the prior year [2.1 Consolidated Financial Performance](index=3&type=section&id=2.1%20Consolidated%20Financial%20Performance) The company's Q3 2025 net earnings and diluted EPS significantly declined year-over-year, primarily due to reduced home sales revenue and lower gross margins, with total revenue decreasing by 6.4% Consolidated Financial Results (Q3 2025 vs Q3 2024) | Metric | Q3 2025 ($) | Q3 2024 ($) | YoY Change | | :------------------------------------------------- | :--------------- | :--------------- | :------- | | Total Revenue | $8.81 billion | $9.42 billion | -6.4% | | Net Earnings Attributable to Lennar | $591 million | $1.16 billion | -49.2% | | Diluted EPS | $2.29 | $4.26 | -46.2% | | Net Earnings Attributable to Lennar (Excluding Mark-to-Market Gains on Tech Investments) | $516 million | $1.1 billion | -53.0% | | Diluted EPS (Excluding Mark-to-Market Gains on Tech Investments) | $2.00 | $3.90 | -48.7% | [2.2 Segment-Specific Performance](index=3&type=section&id=2.2%20Segment-Specific%20Performance) This section details the performance of Lennar's homebuilding, financial services, and ancillary businesses, revealing varied results across segments [2.2.1 Homebuilding Segment](index=3&type=section&id=2.2.1%20Homebuilding%20Segment) Homebuilding revenue decreased 9% to $8.2 billion in Q3 2025 due to a 9% drop in average sales price, with gross margin falling to 17.5% despite stable deliveries Homebuilding Key Metrics (Q3 2025 vs Q3 2024) | Metric | Q3 2025 | Q3 2024 | YoY Change | | :----------------------- | :--------------- | :--------------- | :------- | | Home Sales Revenue | $8.2 billion | $9.0 billion | -9% | | New Home Deliveries | 21,584 homes | 21,516 homes | +0.3% | | Average Sales Price of Homes Delivered | $383,000 | $422,000 | -9% | | Home Sales Gross Margin | 17.5% | 22.5% | -5.0 ppts | | SG&A Expenses | $676 million | $601 million | +12.5% | | SG&A as % of Home Sales Revenue | 8.2% | 6.7% | +1.5 ppts | - Gross margin decline was primarily due to lower revenue per square foot and higher land costs, partially offset by reduced construction costs[10](index=10&type=chunk) [2.2.2 Financial Services Segment](index=3&type=section&id=2.2.2%20Financial%20Services%20Segment) Financial Services operating earnings increased to $177 million in Q3 2025, driven by higher profit per locked loan in the mortgage business Financial Services Operating Earnings (Q3 2025 vs Q3 2024) | Metric | Q3 2025 | Q3 2024 | YoY Change | | :--------------- | :--------------- | :--------------- | :------- | | Operating Earnings | $177 million | $144 million | +22.9% | - The increase in operating earnings was primarily due to higher profit per locked loan in the mortgage business, reflecting improved margins[12](index=12&type=chunk) [2.2.3 Ancillary Businesses (Multifamily & Lennar Other)](index=3&type=section&id=2.2.3%20Ancillary%20Businesses%20(Multifamily%20%26%20Lennar%20Other)) Multifamily recorded a $16 million operating loss in Q3 2025, while Lennar Other operating earnings rose to $62 million, primarily due to mark-to-market gains on technology investments Ancillary Businesses Operating Earnings/Loss (Q3 2025 vs Q3 2024) | Business Segment | Q3 2025 | Q3 2024 | YoY Change | | :--------------- | :--------------- | :--------------- | :------- | | Multifamily Operating Earnings (Loss) | $(16) million | $79 million | Shift from Profit to Loss | | Lennar Other Operating Earnings | $62 million | $20 million | +210% | - Multifamily operating earnings in the prior year were positively impacted by a **$179 million** net gain from asset sales, partially offset by a **$90 million** write-down of non-core assets[13](index=13&type=chunk) - Lennar Other operating earnings were primarily related to mark-to-market gains on technology investments, totaling **$99.2 million** in Q3 2025 and **$39.1 million** in Q3 2024[13](index=13&type=chunk)[23](index=23&type=chunk) [2.3 Tax Rate](index=4&type=section&id=2.3%20Tax%20Rate) The effective income tax rate increased to 24.4% in Q3 2025 from 23.0% in the prior year, mainly due to reduced tax credits, with no significant impact expected from new legislation Income Tax Information (Q3 2025 vs Q3 2024) | Metric | Q3 2025 | Q3 2024 | | :----------- | :--------------- | :--------------- | | Provision for Income Taxes | $191 million | $348 million | | Effective Income Tax Rate | 24.4% | 23.0% | - The effective tax rate increased primarily due to reduced tax credits[14](index=14&type=chunk) [2.4 Share Repurchases](index=4&type=section&id=2.4%20Share%20Repurchases) The company repurchased 4.1 million shares of common stock for $507 million at an average price of $122.97 per share during Q3 2025 - The company repurchased **4.1 million shares** of common stock for **$507 million** at an average price of **$122.97** per share during the third quarter[15](index=15&type=chunk) [Homebuilding Operational Metrics](index=8&type=section&id=Homebuilding%20Operational%20Metrics) Key homebuilding operational metrics for Q3 2025 show stable deliveries and increased new orders, alongside a decrease in average sales prices and backlog value, reflecting dynamic market conditions [3.1 Deliveries](index=8&type=section&id=3.1%20Deliveries) In Q3 2025, the company delivered 21,584 homes, largely flat year-over-year, but the average sales price decreased 9% to $383,000, with notable declines in Western and Eastern regions Home Deliveries and Average Sales Price (Q3 2025 vs Q3 2024) | Region | 2025 Deliveries (homes) | 2024 Deliveries (homes) | YoY Change | 2025 Avg. Sales Price | 2024 Avg. Sales Price | YoY Change | | :------------ | :------------- | :------------- | :------- | :------------------- | :------------------- | :------- | | East | 4,770 | 5,270 | -9.5% | $366,000 | $400,000 | -8.5% | | Central | 5,469 | 5,510 | -0.7% | $379,000 | $400,000 | -5.3% | | Southeast | 6,413 | 5,067 | +26.6% | $235,000 | $253,000 | -7.1% | | West | 4,926 | 5,663 | -13.0% | $599,000 | $613,000 | -2.2% | | Other | 6 | 6 | 0.0% | $604,000 | $538,000 | +12.3% | | **Total** | **21,584** | **21,516** | **+0.3%** | **$383,000** | **$422,000** | **-9.2%** | Home Deliveries and Average Sales Price (Nine Months Ended August 31, 2025 vs 2024) | Region | 2025 Deliveries (homes) | 2024 Deliveries (homes) | YoY Change | 2025 Avg. Sales Price | 2024 Avg. Sales Price | YoY Change | | :------------ | :------------- | :------------- | :------- | :------------------- | :------------------- | :------- | | East | 13,757 | 15,177 | -9.4% | $375,000 | $407,000 | -7.8% | | Central | 14,102 | 13,604 | +3.7% | $383,000 | $398,000 | -3.8% | | Southeast | 17,317 | 13,999 | +23.7% | $241,000 | $253,000 | -4.7% | | West | 14,351 | 15,193 | -5.6% | $603,000 | $609,000 | -1.0% | | Other | 22 | 31 | -29.0% | $652,000 | $529,000 | +23.2% | | **Total** | **59,549** | **58,004** | **+2.7%** | **$393,000** | **$421,000** | **-6.6%** | [3.2 New Orders](index=8&type=section&id=3.2%20New%20Orders) New orders increased 12% year-over-year to 23,004 homes in Q3 2025, driven by strong growth in the Central and Eastern regions, despite an 11.8% decrease in average sales price to $367,000 New Orders and Average Sales Price (Q3 2025 vs Q3 2024) | Region | 2025 Active Communities | 2024 Active Communities | 2025 New Orders (homes) | 2024 New Orders (homes) | YoY Change | 2025 Avg. Sales Price | 2024 Avg. Sales Price | YoY Change | | :------------ | :------------- | :------------- | :------------- | :------------- | :------- | :------------------- | :------------------- | :------- | | East | 348 | 293 | 5,665 | 4,641 | +22.1% | $359,000 | $408,000 | -12.1% | | Central | 464 | 365 | 5,555 | 5,405 | +2.8% | $361,000 | $390,000 | -7.4% | | Southeast | 411 | 245 | 7,055 | 5,217 | +35.2% | $224,000 | $251,000 | -10.8% | | West | 440 | 378 | 4,725 | 5,317 | -11.2% | $596,000 | $612,000 | -2.6% | | Other | 1 | 2 | 4 | 7 | -42.9% | $611,000 | $349,000 | +75.1% | | **Total** | **1,664** | **1,283** | **23,004** | **20,587** | **+11.7%** | **$367,000** | **$416,000** | **-11.8%** | New Orders and Average Sales Price (Nine Months Ended August 31, 2025 vs 2024) | Region | 2025 New Orders (homes) | 2024 New Orders (homes) | YoY Change | 2025 Avg. Sales Price | 2024 Avg. Sales Price | YoY Change | | :------------ | :------------- | :------------- | :------- | :------------------- | :------------------- | :------- | | East | 15,141 | 13,782 | +9.9% | $363,000 | $414,000 | -12.3% | | Central | 15,562 | 15,396 | +1.1% | $377,000 | $396,000 | -4.8% | | Southeast | 18,602 | 14,861 | +25.2% | $235,000 | $253,000 | -7.1% | | West | 14,634 | 15,979 | -8.4% | $595,000 | $621,000 | -4.2% | | Other | 21 | 38 | -44.7% | $666,000 | $465,000 | +43.2% | | **Total** | **63,960** | **60,056** | **+6.5%** | **$382,000** | **$425,000** | **-10.1%** | [3.3 Backlog](index=9&type=section&id=3.3%20Backlog) As of August 31, 2025, backlog stood at 16,953 homes, flat year-over-year, but total dollar value decreased 14.2% to $6.6 billion, with average sales price also down 14.2% to $392,000 Backlog and Average Sales Price (As of August 31, 2025) | Region | 2025 Backlog (homes) | 2024 Backlog (homes) | YoY Change | 2025 Backlog Value ($) | 2024 Backlog Value ($) | YoY Change | 2025 Avg. Sales Price | 2024 Avg. Sales Price | YoY Change | | :------------ | :------------- | :------------- | :------- | :------------------- | :------------------- | :------- | :------------------- | :------------------- | :------- | | East | 4,720 | 5,115 | -7.6% | $1.82 billion | $2.22 billion | -18.0% | $386,000 | $434,000 | -11.1% | | Central | 4,862 | 5,025 | -3.2% | $1.87 billion | $2.08 billion | -10.0% | $384,000 | $413,000 | -7.0% | | Southeast | 4,072 | 2,757 | +47.7% | $892 million | $694 million | +28.6% | $219,000 | $252,000 | -13.1% | | West | 3,299 | 4,037 | -18.2% | $2.07 billion | $2.75 billion | -25.0% | $626,000 | $682,000 | -8.2% | | Other | — | 10 | -100.0% | — | $2,805 | -100.0% | — | $280,000 | -100.0% | | **Total** | **16,953** | **16,944** | **+0.1%** | **$6.65 billion** | **$7.75 billion** | **-14.2%** | **$392,000** | **$457,000** | **-14.2%** | - As of August 31, 2025, backlog included **909 acquired homes**, with **181** in Central, **717** in Southeast, and **11** in Western homebuilding operations[31](index=31&type=chunk) [Financial Position and Capital Structure](index=10&type=section&id=Financial%20Position%20and%20Capital%20Structure) Lennar's financial position as of August 31, 2025, shows a reduction in total assets and cash, an increase in homebuilding debt, and a shift to positive net homebuilding debt, impacting capital ratios [4.1 Condensed Consolidated Balance Sheets](index=10&type=section&id=4.1%20Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased by 15.6% to $34.88 billion as of August 31, 2025, reflecting significant reductions in homebuilding cash and land inventory, aligning with a 'land-light' strategy Condensed Consolidated Balance Sheet Key Data (As of August 31, 2025 vs November 30, 2024) | Metric | August 31, 2025 ($) | November 30, 2024 ($) | Change | | :--------------------------------- | :--------------- | :--------------- | :------- | | Total Assets | $34.88 billion | $41.31 billion | -15.6% | | Total Liabilities | $12.13 billion | $13.29 billion | -8.8% | | Total Equity | $22.75 billion | $28.02 billion | -18.8% | | Homebuilding Cash & Equivalents | $1.41 billion | $4.66 billion | -69.8% | | Land & Land Development Inventory | $1.07 billion | $4.75 billion | -77.5% | | Real Estate Deposits & Pre-Acquisition Costs | $6.01 billion | $3.63 billion | +65.8% | | Investments in Unconsolidated Entities | $2.65 billion | $1.34 billion | +97.0% | [4.2 Homebuilding Debt and Capital Ratios](index=11&type=section&id=4.2%20Homebuilding%20Debt%20and%20Capital%20Ratios) Homebuilding debt increased to $3.52 billion, while cash significantly decreased, resulting in a positive net homebuilding debt of $2.12 billion and an increased debt-to-capital ratio of 13.5% Homebuilding Debt and Capital Ratios (As of August 31, 2025 vs November 30, 2024) | Metric | August 31, 2025 ($) | November 30, 2024 ($) | Change | | :--------------------------------- | :--------------- | :--------------- | :------- | | Homebuilding Debt | $3.52 billion | $2.26 billion | +56.0% | | Homebuilding Cash & Equivalents | $1.41 billion | $4.66 billion | -69.8% | | Net Homebuilding Debt | $2.12 billion | $(2.40) billion | Shift from Negative to Positive | | Homebuilding Debt to Total Capital Ratio | 13.5% | 7.5% | +6.0 ppts | | Net Homebuilding Debt to Total Capital Ratio | 8.6% | (9.4)% | Shift from Negative to Positive | [Company Information](index=5&type=section&id=Company%20Information) This section provides an overview of Lennar Corporation, important disclaimers regarding forward-looking statements, and details for the upcoming Q3 earnings conference call [5.1 About Lennar Corporation](index=5&type=section&id=5.1%20About%20Lennar%20Corporation) Lennar Corporation, founded in 1954, is a leading U.S. homebuilder offering diverse housing options, financial services, multifamily developments, and strategic technology investments - Lennar Corporation is a leading U.S. homebuilder, providing affordable, move-up, and active adult communities under the Lennar brand[17](index=17&type=chunk) - The Financial Services segment offers mortgage, title, and closing services, along with commercial real estate mortgages through LMF Commercial[17](index=17&type=chunk) - The Multifamily segment focuses on developing high-quality multifamily rental properties[17](index=17&type=chunk) - The LEN segment drives the company's technology, innovation, and strategic investments[17](index=17&type=chunk) [5.2 Note Regarding Forward-Looking Statements](index=5&type=section&id=5.2%20Note%20Regarding%20Forward-Looking%20Statements) This press release contains forward-looking statements about the housing market and company performance, subject to risks and uncertainties that may cause actual results to differ materially - Forward-looking statements pertain to the housing market, company's expected performance, and guidance, not strictly based on historical or current facts[17](index=17&type=chunk) - Actual results may differ materially due to various risks and uncertainties, including a slowdown in the real estate market, decreased demand, inflation, increased mortgage costs, supply chain shortages, changes in government policies, and natural disasters[17](index=17&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements[17](index=17&type=chunk) [5.3 Conference Call Information](index=5&type=section&id=5.3%20Conference%20Call%20Information) Lennar will host a conference call on Friday, September 19, 2025, at 11:00 AM ET to discuss Q3 earnings, accessible via webcast and archived replay - The third-quarter earnings conference call will be held on **Friday, September 19, 2025, at 11:00 AM ET**[18](index=18&type=chunk) - The conference will be webcast live on the company's website, investors.lennar.com, with an archived replay available for **90 days**[18](index=18&type=chunk) - A telephone replay can be accessed by dialing **203-369-0176** and entering confirmation code **5723593**[18](index=18&type=chunk)

Core Insights - Lennar Corporation reported a significant decline in net earnings for Q3 2025, with net earnings of $591 million or $2.29 per diluted share, down from $1.2 billion or $4.26 per diluted share in Q3 2024 [2][4]. - The company delivered 21,584 homes and recorded 23,004 new orders, reflecting a 12% increase in new orders compared to the previous year [3][4]. - The average sales price of homes decreased to $383,000 in Q3 2025 from $422,000 in Q3 2024, primarily due to market weakness [6][7]. Financial Performance - Total revenues for Q3 2025 were $8.8 billion, down 9% from $9.4 billion in Q3 2024, mainly due to a decrease in home sales revenue [4][6]. - Homebuilding operating earnings were $760 million, with a gross margin of 17.5%, down from 22.5% in the prior year [4][7]. - Selling, general and administrative (SG&A) expenses increased to $676 million, representing 8.2% of revenues, up from 6.7% in Q3 2024 [8]. Operational Highlights - The company ended the quarter with a backlog of 16,953 homes valued at $6.6 billion [4][31]. - Inventory turns improved to 1.9 times, and cycle time decreased to 126 days, the shortest cycle time recorded [3]. - The company repurchased 4.1 million shares for $507 million at an average price of $122.97 [12]. Segment Performance - Financial Services segment operating earnings increased to $178 million, up from $144 million in Q3 2024, driven by higher profit per locked loan [9]. - The Multifamily segment reported an operating loss of $16 million, compared to operating earnings of $79 million in the prior year, impacted by a one-time gain in 2024 [10]. - Lennar Other segment operating earnings were $62 million, up from $20 million in Q3 2024, primarily due to mark-to-market gains on technology investments [10][22]. Guidance - For Q4 2025, the company expects new orders between 20,000 and 21,000 homes, deliveries of 22,000 to 23,000 homes, and a gross margin of approximately 17.5% [5][13]. - The average sales price for Q4 is projected to be between $380,000 and $390,000, with SG&A as a percentage of home sales expected to be between 7.8% and 8.0% [13]. Market Conditions - The company noted that elevated interest rates persisted throughout Q3 but showed signs of decline towards the end of the quarter, providing optimism for future performance [3]. - The long-term need for housing remains, and the company is focused on meeting affordability and sustaining production through efficiency and scale [5].

Lennar Corporation (NYSE:LEN) will release earnings results for the third quarter, after the closing bell on Thursday, Sept. 18. Analysts expect the company to report quarterly earnings at $2.09 per share, down from $3.90 per share in the year-ago period. Lennar is projected to report quarterly revenue at $9.05 billion, compared to $9.42 billion a year earlier, according to data from Benzinga Pro. The company has beaten analyst estimates for revenue in five straight quarters and in nine of the last 10 qua ...

Group 1 - The article highlights that investors are closely monitoring Lennar's earnings and commentary for indications of a potential rebound in the housing market [1]

Homebuilding company Lennar Corporation LEN could highlight falling mortgage rates and the impact of a potential rate cut when the company reports third-quarter financial results Thursday after market close.Here are the earnings estimates, what experts are saying and key items to watch.Earnings Estimates: Analysts expect Lennar to report third-quarter revenue of $9.00 billion, down from $9.42 billion in last year's third quarter, according to data from Benzinga Pro.The company has beaten analyst estimates f ...

Company Overview - Lennar Corp. (NYSE: LEN) is a U.S. home construction and real estate company focusing on residential communities and related financial services [2] - The company has a market capitalization of $36 billion and generated $35 billion in revenue over the past twelve months, achieving operational profitability with operating profits of $4.1 billion and net income of $3.3 billion [3] Earnings Projections - Lennar is set to announce its earnings on September 18, 2025, with consensus projections of approximately $2.10 per share in earnings and $9.05 billion in revenue [2] - The projected revenue represents a roughly 4% decline year-over-year, influenced by high mortgage rates, affordability challenges, and weak consumer confidence [2] Sales and Market Strategy - To maintain sales momentum, Lennar has increasingly relied on sales incentives, which have helped sustain unit sales but also led to margin compression, limiting potential earnings growth [2] - The company's focus on first-time and entry-level buyers makes it particularly vulnerable to affordability issues, as these customers are most affected by borrowing costs [2] Historical Earnings Performance - Over the past five years, Lennar has recorded 20 earnings data points, with 8 positive and 12 negative one-day (1D) returns, resulting in positive returns approximately 40% of the time [6] - The median of the 8 positive returns is 3.7%, while the median of the 12 negative returns is -4.0% [6] Correlation and Trading Strategies - Understanding the correlation between short-term and medium-term returns following earnings can inform trading strategies, particularly if 1D and 5D returns show a strong correlation [7] - The performance of peers can also influence stock reactions following earnings, with market pricing potentially reflecting these influences prior to the earnings announcement [8]