Lennar(LEN_B) - 2025 Q1 - Quarterly Results

Financial Performance - Net earnings for Q1 2025 were $520 million, or$ 1.96 per diluted share, down from $719 million, or$ 2.57 per diluted share in Q1 2024[4] - Total revenues for the first quarter of 2025 were $7,631,545, an increase of 4.4% compared to$ 7,312,930 in the first quarter of 2024[27] - Homebuilding revenues increased to $7,283,870, up 5.1% from$ 6,930,991 in the prior year[30] - Net earnings attributable to Lennar for the first quarter of 2025 were $519,526, a decrease of 27.7% from$ 719,334 in the same period last year[27] - Basic and diluted earnings per share for the first quarter of 2025 were $1.96, down from$ 2.57 in the first quarter of 2024[27] Orders and Deliveries - New orders increased by 1% to 18,355 homes, while the dollar value of new orders decreased by 4% to $7.4 billion[3] - Deliveries rose by 6% to 17,834 homes, contributing to total revenues of$ 7.6 billion, a 5% increase from $6.9 billion in Q1 2024[11] - Total home deliveries in the first quarter of 2025 were 17,834 homes, compared to 16,798 homes in the first quarter of 2024, representing an increase of 6.2%[32] - New orders for homes in the first quarter of 2025 totaled 18,355, an increase of 6.5% from 18,176 in the first quarter of 2024[33] - The backlog of homes as of February 28, 2025, was 13,145 homes, a decrease of 19.3% from 16,270 homes at the end of February 2024[34] Margins and Expenses - Gross margin on home sales was 18.7%, down from 21.8% in Q1 2024, primarily due to increased land costs and decreased revenue per square foot[12] - Selling, general and administrative expenses as a percentage of revenues from home sales increased to 8.5% from 8.2% year-over-year[14] - Homebuilding operating earnings for the first quarter of 2025 were$ 809,273, down 21.3% from $1,028,796 in the prior year[27] - Financial Services operating earnings increased to$ 143,483, up 9.2% from $131,296 in the first quarter of 2024[27] Cash and Debt Management - At the end of Q1 2025, the company had$ 2.3 billion in cash and cash equivalents and no outstanding borrowings under its $3.0 billion revolving credit facility[22] - Homebuilding debt reduced from$ 2.83 billion on February 29, 2024, to $2.21 billion on February 28, 2025, a decrease of about 22%[40] - Total liabilities decreased from$ 13.29 billion on November 30, 2024, to $12.12 billion on February 28, 2025, a reduction of approximately 8.8%[38] - Cash and cash equivalents dropped from$ 4.66 billion on November 30, 2024, to $2.28 billion on February 28, 2025, a decline of about 51%[38] - Net homebuilding debt improved from a negative$ 2.40 billion on November 30, 2024, to a negative $72.66 million on February 28, 2025, reflecting a significant reduction in net debt[40] Shareholder Actions and Corporate Changes - The company repurchased 5.2 million shares for$ 703 million at an average price of $134.40 per share[18] - The spin-off of Millrose Properties, Inc. was completed on February 7, 2025, distributing approximately 80% of Millrose's stock to shareholders[19] - The acquisition of Rausch Coleman Homes was completed on February 10, 2025, expanding the company's footprint into new markets[20] Asset Management - Total assets decreased from$ 41.31 billion on November 30, 2024, to $34.99 billion on February 28, 2025, representing a decline of approximately 15.4%[38] - Stockholders' equity fell from$ 27.87 billion on November 30, 2024, to $22.73 billion on February 28, 2025, a decline of approximately 18.5%[40] - The ratio of homebuilding debt to total capital increased from 7.5% to 8.9% during the same period, indicating a rise in leverage[40] - The inventory owned and consolidated inventory not owned decreased from$ 19.72 billion to $13.61 billion, a reduction of approximately 30.9%[38] - Deposits and pre-acquisition costs on real estate increased from$ 3.63 billion to $5.16 billion, an increase of about 42.5%[38] - The company reported a decrease in retained earnings from$ 25.75 billion to $21.30 billion, a decline of approximately 17.5%[38] Investment Losses - The company incurred$ 62,503 in realized and unrealized losses from technology investments in the first quarter of 2025, compared to $5,137 in the same period last year[30]