Lennar(LEN_B) - 2025 Q1 - Quarterly Report

Revenue and Earnings - Total revenues for the three months ended February 28, 2025, increased to $7.63 billion, up from$7.31 billion for the same period in 2024, representing a growth of approximately 4.4%[17] - Homebuilding revenues rose to $7.28 billion, compared to$6.93 billion in the prior year, reflecting an increase of about 5.0%[17] - Net earnings attributable to Lennar for the three months ended February 28, 2025, were $519.5 million, down from$719.3 million in the same period of 2024, a decrease of approximately 27.7%[17] - The company reported a basic and diluted earnings per share of $1.96 for the three months ended February 28, 2025, compared to$2.57 for the same period in 2024, a decline of approximately 23.7%[17] - Operating earnings for the Homebuilding segment were $809,273 for the three months ended February 28, 2025, down from$1,028,796 in the same period of 2024, a decline of about 21.3%[39] - The Financial Services segment reported operating earnings of $143,483 for the three months ended February 28, 2025, compared to$131,296 for the same period in 2024, an increase of approximately 9.2%[39] Assets and Liabilities - Total assets decreased to $34.99 billion as of February 28, 2025, from$41.31 billion as of November 30, 2024, a decline of about 15.3%[12] - Total liabilities decreased to $12.12 billion as of February 28, 2025, down from$13.29 billion as of November 30, 2024, a decrease of about 8.8%[12] - The company’s inventory owned and consolidated inventory not owned totaled $13.61 billion as of February 28, 2025, down from$19.72 billion as of November 30, 2024, a decrease of approximately 30.9%[7] - The company’s total homebuilding assets decreased to $29,885,928 as of February 28, 2025, from$35,594,469 as of November 30, 2024, reflecting a reduction of approximately 16.1%[44] Cash and Cash Equivalents - Cash and cash equivalents decreased significantly to $2.28 billion from$4.66 billion, a reduction of approximately 51.1%[7] - The company reported a net decrease in cash and cash equivalents and restricted cash of $2.40 billion, compared to a decrease of$1.31 billion in the prior year[23] - The cash and cash equivalents and restricted cash at the end of the period were $2.59 billion, down from$5.26 billion a year earlier[23] - Cash and cash equivalents decreased to $2,516,772 as of February 28, 2025, from$4,909,664 as of November 30, 2024, a decline of about 48.8%[38] Investments and Acquisitions - The company completed the spin-off of Millrose Properties, Inc., contributing $5.6 billion in land assets and$1.0 billion in cash, which included $584 million in cash deposits related to option contracts[33] - The acquisition of Rausch Coleman Homes involved$312.2 million in assets, expanding the company's footprint into new markets in Arkansas, Oklahoma, Alabama, and Kansas/Missouri[34] - The company’s investments in unconsolidated entities increased to $2.65 billion as of February 28, 2025, compared to$1.34 billion as of November 30, 2024, an increase of approximately 96.9%[7] - The Company has investments in unconsolidated entities totaling $2.646 billion as of February 28, 2025, an increase from$1.345 billion as of November 30, 2024[57] Stockholder Equity and Repurchases - Total stockholders' equity decreased to $22.87 billion as of February 28, 2025, from$28.02 billion as of November 30, 2024[71] - The company repurchased 4,770,000 shares of Class A common stock at an average price of $135.14, totaling$644.6 million, during the three months ended February 28, 2025[74] - The company has a remaining authorization to repurchase $2.7 billion in value of its Class A or B common stock as of February 28, 2025[72] Financial Services Performance - Financial Services segment revenues increased to$277,077 for the three months ended February 28, 2025, up from $249,720 in the same period last year, representing an increase of 11$127.965 million in commercial loans for the three months ended February 28, 2025, compared to $140.825 million for the same period in 2024, representing a decrease of approximately 9.5$124.651 million, net of debt issuance costs, as of February 28, 2025, compared to $126.164 million as of November 30, 2024[52] Market Conditions and Risks - The company continues to face risks including inflation, increased mortgage financing costs, and potential slowdowns in real estate markets[133] - The company expects continued variability in quarterly results, indicating that the results for the three months ended February 28, 2025, may not be indicative of the full year[25] Miscellaneous - The company granted 1.4 million nonvested shares to employees during the three months ended February 28, 2025, compared to 1.2 million shares in the same period of 2024[28] - The provision for income taxes for the three months ended February 28, 2025, was$169.5 million, with an effective tax rate of 24.6%, up from 22.7% in the prior year[75] - The Company recorded a total loss of $20,343 thousand on finished homes and construction in progress for the three months ended February 28, 2025[96] - The Company reported a delinquency rate of 14% as of February 28, 2025, compared to 12% on November 30, 2024[91]