Lennar(US:LEN)2025-04-04 20:15Revenue 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, a decrease of 27.7% from $719.3 million in the same period last year[17] - Basic and diluted earnings per share for the three months ended February 28, 2025, were $1.96, compared to $2.57 for the same period in 2024, a decline of 23.7%[17] Assets and Liabilities - Total assets decreased to $34.99 billion as of February 28, 2025, down from $41.31 billion as of November 30, 2024, a decline of approximately 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 approximately 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, a decrease of about 30.9%[7] - The company reported a total inventory owned of $10.15 billion, down from $15.63 billion, a decrease of 35.0%[7] Cash and Financing Activities - Cash and cash equivalents decreased significantly to $2.28 billion from $4.66 billion, a reduction of about 51.1%[7] - For the three months ended February 28, 2025, net cash used in financing activities was $2,134,643, an increase of 39.5% compared to $1,529,422 for the same period in 2024[23] - The company reported a net cash used in financing activities of $(2.1) billion, compared to $(1.5) billion in the same period last year, indicating increased cash outflows[23] - The cash and cash equivalents at the end of the period were $2,588,015, down from $5,261,468 at the end of the same period last year[23] Homebuilding Costs and Earnings - Homebuilding costs increased to $6.54 billion, up from $5.98 billion in the previous year, indicating a rise of approximately 9.4%[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 21.3%[39] 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 prior year, representing an increase of 11.0%[39] - The Financial Services segment reported operating earnings of $143,483 for the three months ended February 28, 2025, compared to $131,296 in the prior year, marking an increase of 9.3%[39] - The Financial Services segment originated commercial loans totaling $127.965 million for the three months ended February 28, 2025, compared to $140.825 million for the same period in 2024, reflecting a decrease of approximately 9.5%[50] - The Company sold $94.887 million in commercial loans during the three months ended February 28, 2025, a significant increase from $26.950 million in the prior year, indicating a growth of approximately 252%[50] 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 $584.0 million in cash deposits related to option contracts[33] - The acquisition of Rausch Coleman Homes on February 10, 2025, involved $312.2 million in assets and assumed liabilities of $50.4 million, expanding the company's footprint into new markets[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] Stockholder Equity and Share Repurchase - 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 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] - 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] Future Outlook and Variability - 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] - The company is currently evaluating the impact of recently adopted accounting pronouncements, including ASU 2023-07 and ASU 2023-09, which may affect future financial disclosures[29][30]