Lennar(US:LEN)2025-06-16 21:53Financial Performance - Net earnings for Q2 2025 were $477 million, or $1.81 per diluted share, down from $954 million, or $3.45 per diluted share in Q2 2024[3]. - Total revenues for Q2 2025 were $8.4 billion, with homebuilding operating earnings of $728 million and a gross margin on home sales of 17.8%[2]. - Total revenues for the three months ended May 31, 2025, were $8,377,502, a decrease of 4.4% compared to $8,765,592 for the same period in 2024[21]. - Net earnings attributable to Lennar for the three months ended May 31, 2025, were $477,449, a decrease of 50.0% from $954,311 in the same period of 2024[21]. - Basic and diluted earnings per share for the three months ended May 31, 2025, were $1.81, down from $3.45 in 2024, representing a decline of 47.5%[21]. - Homebuilding operating earnings for the three months ended May 31, 2025, were $728,234, a decrease of 45.6% compared to $1,340,155 in 2024[24]. Sales and Orders - New orders increased by 6% to 22,601 homes, while backlog stood at 15,538 homes valued at $6.5 billion[2]. - New orders for homes increased to 22,601 for the three months ended May 31, 2025, compared to 21,293 in 2024, reflecting a growth of 6.1%[26]. - Total home deliveries for the three months ended May 31, 2025, were 20,131, an increase from 19,690 in 2024, representing a growth of 2.2%[25]. - New orders for homes increased to 40,956 in the six months ended May 31, 2025, compared to 39,469 in the same period of 2024, representing a growth of approximately 3.8%[29]. Pricing and Margins - Average sales price of homes delivered decreased to $389,000, a 9% decline from $426,000 in Q2 2024, reflecting market weakness[8]. - Average sales price for homes delivered in the three months ended May 31, 2025, was $389,000, down from $426,000 in 2024, indicating a decrease of 8.7%[25]. - The average sales price of homes decreased to $391,000 in 2025 from $429,000 in 2024, reflecting a decline of approximately 8.9%[32]. - The average sales price of homes in backlog decreased to $417,000 in 2025 from $461,000 in 2024, a decline of approximately 9.5%[30]. Expenses and Costs - Selling, general and administrative expenses rose to $689 million, representing 8.8% of revenues from home sales, up from 7.5% in the prior year[10]. - Homebuilding costs and expenses for the three months ended May 31, 2025, totaled $7,147,552, slightly up from $7,106,455 in 2024, reflecting an increase of 0.6%[24]. Liquidity and Capital Structure - The company ended the quarter with total liquidity of $5.4 billion and a homebuilding debt to total capital ratio of 11.0%[2]. - Cash and cash equivalents decreased significantly to $1.17 billion as of May 31, 2025, from $4.66 billion at November 30, 2024, a reduction of about 74.9%[34]. - Total assets decreased to $34.37 billion at May 31, 2025, from $41.31 billion at November 30, 2024, a decline of approximately 16.8%[34]. - Homebuilding debt increased to $2.79 billion in 2025 from $2.26 billion in 2024, representing an increase of about 23.2%[36]. - The ratio of homebuilding debt to total capital rose to 11.0% in 2025 from 7.5% in 2024, indicating increased leverage in homebuilding operations[36]. - Stockholders' equity decreased to $22.58 billion in 2025 from $27.87 billion in 2024, a decline of approximately 18.9%[36]. Acquisitions and Strategic Moves - The company completed the acquisition of Rausch Coleman Homes, enhancing its market position[7]. - The company repurchased 4.7 million shares of common stock for $517 million at an average price of $109.79 per share[16]. Future Outlook - For Q3 2025, the company expects new orders and deliveries between 22,000 and 23,000 homes, with an average sales price projected between $380,000 and $385,000[17].