Lennar(US:LEN)2025-03-20 21:15Financial 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 in Q1 2025 from $6,930,991 in Q1 2024, representing a growth of 5.1%[30]. - Net earnings attributable to Lennar for Q1 2025 were $519,526, down 27.7% from $719,334 in Q1 2024[27]. - Basic and diluted earnings per share decreased to $1.96 in Q1 2025 from $2.57 in Q1 2024, a decline of 23.7%[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 Q1 2025 were 17,834, compared to 16,798 in Q1 2024, reflecting an increase of 6.2%[32]. - New orders for homes in Q1 2025 totaled 18,355, up from 18,176 in Q1 2024, indicating a growth of 1.0%[33]. - The backlog of homes as of February 28, 2025, was 13,145, down from 16,270 as of February 29, 2024, a decrease of 19.0%[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 Q1 2025 were $809,273, a decline of 21.3% from $1,028,796 in Q1 2024[27]. - Financial Services operating earnings increased to $143,483 in Q1 2025 from $131,296 in Q1 2024, a rise of 9.2%[27]. Cash and Debt Management - At the end of Q1 2025, the company had $2.3 billion in cash and cash equivalents, with no outstanding borrowings under its $3.0 billion revolving credit facility[22]. - Homebuilding debt reduced from $2.83 billion in February 2024 to $2.21 billion in February 2025, a decrease of 22%[40]. - Net homebuilding debt improved from a negative $2.40 billion in November 2024 to a negative $72.66 million in February 2025, indicating a significant reduction in leverage[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 in November 2024 to $2.28 billion in February 2025, a decrease of about 51%[38]. Investments and Acquisitions - 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]. - The company incurred $62,503 in realized and unrealized losses from technology investments in Q1 2025, compared to $5,137 in Q1 2024[30]. 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 15.5%[38]. - Stockholders' equity fell from $27.87 billion on November 30, 2024, to $22.73 billion on February 28, 2025, a decline of about 18.5%[40]. - The ratio of homebuilding debt to total capital increased from 7.5% in November 2024 to 8.9% in February 2025[40]. - The inventory owned and consolidated inventory not owned decreased from $19.72 billion in November 2024 to $13.61 billion in February 2025, a decline of approximately 30.9%[38]. - Deposits and pre-acquisition costs on real estate increased from $3.63 billion in November 2024 to $5.16 billion in February 2025, an increase of about 42.4%[38]. - Investments in unconsolidated entities rose from $1.34 billion in November 2024 to $2.65 billion in February 2025, an increase of approximately 97.1%[38].