Financial Performance - Total revenues for the three months ended August 31, 2025, were $8.81 billion, a decrease of 6.4% compared to $9.42 billion for the same period in 2024[17]. - Homebuilding revenues for the nine months ended August 31, 2025, were $23.38 billion, down 4.0% from $24.36 billion in the prior year[17]. - Net earnings attributable to Lennar for the three months ended August 31, 2025, were $590.97 million, down 49.1% from $1.16 billion in the same period last year[17]. - The company reported a total comprehensive income attributable to Lennar of $590.97 million for the three months ended August 31, 2025, compared to $1.16 billion in 2024, reflecting a decrease of 49.1%[17]. - Basic and diluted earnings per share for the three months ended August 31, 2025, were $2.29, compared to $4.26 for the same period in 2024, a decline of 46.4%[17]. - Net earnings for the nine months ended August 31, 2025, were $1,610,344, a decrease of 43.8% compared to $2,867,781 for the same period in 2024[21]. - Total comprehensive income attributable to Lennar for the nine months ended August 31, 2025, was $1,586,432, down from $2,838,480 in 2024, a decrease of 44.1%[17]. Assets and Liabilities - Total assets decreased to $34.88 billion as of August 31, 2025, from $41.31 billion as of November 30, 2024, representing a decline of 15.6%[12]. - Total liabilities decreased to $12.13 billion as of August 31, 2025, from $13.29 billion as of November 30, 2024, a reduction of 8.7%[12]. - The company’s inventory owned and consolidated inventory not owned totaled $13.38 billion as of August 31, 2025, down from $19.72 billion as of November 30, 2024, a decrease of 32.0%[7]. - Stockholders' equity fell from $28.02 billion in November 2024 to $22.75 billion in August 2025, representing a decline of about 18.6%[12]. - Senior notes and other debts payable increased from $2.26 billion in November 2024 to $3.52 billion in August 2025, an increase of about 55.7%[12]. Cash Flow and Investments - Cash and cash equivalents dropped significantly to $1.41 billion from $4.66 billion, a decrease of 69.9%[7]. - Cash flows from operating activities resulted in a net cash used of $1,542,675 for the nine months ended August 31, 2025, compared to a net cash provided of $1,428,874 in 2024[21]. - The company reported a net decrease in cash and cash equivalents of $3,233,213 for the nine months ended August 31, 2025, compared to a decrease of $2,259,794 in 2024[23]. - 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 company reported a net cash provided by investing activities of $175,634 for the nine months ended August 31, 2025, contrasting with a net cash used of $176,824 in 2024[23]. Segment Performance - Homebuilding revenues for the three months ended August 31, 2025, were $8.25 billion, down 8.7% from $9.05 billion in the same period of 2024[40]. - Financial Services segment revenues increased to $314.2 million for the three months ended August 31, 2025, compared to $273.3 million in 2024, reflecting a growth of 15.0%[40]. - The Homebuilding segment reported operating earnings of $759.8 million for the three months ended August 31, 2025, a decline of 48.5% from $1.48 billion in 2024[40]. - The Financial Services segment's operating earnings for the three months ended August 31, 2025, were $177.9 million, up 23.2% from $144.4 million in the same period of 2024[40]. Inventory and Construction - The company experienced an increase in inventories of $1,314,933 for the nine months ended August 31, 2025, compared to an increase of $707,702 in 2024[21]. - The company reported a significant decrease in finished homes and construction in progress from $10.88 billion in November 2024 to $10.05 billion in August 2025, a decline of approximately 7.6%[7]. - The total carrying amount of homebuilding senior notes and other debt payable increased to $3,523,766 as of August 31, 2025, compared to $2,258,283 at November 30, 2024[83]. Debt and Financing - The Company issued $700 million in 5.20% senior notes due 2030, with proceeds totaling $695.6 million after expenses[84]. - The Company entered into a new unsecured delayed draw term loan facility with an initial borrowing capacity of approximately $1.6 billion, increased to $1.7 billion in July 2025[86]. - The Company’s total maximum borrowing capacity under the Credit Facility is $3,500,000 as of August 31, 2025[88]. - The effective tax rate for the three months ended August 31, 2025, was 24.4%, an increase from 23.0% in the same period of 2024, primarily due to a decrease in tax credits[77]. Market and Strategic Developments - The acquisition of Rausch Coleman Homes on February 10, 2025, involved $312.6 million in assets and $73.0 million in assumed liabilities, expanding the company's market presence in several states[34]. - The company has options on land assets acquired from Rausch Coleman Homes, enhancing its strategic position in the housing market[34]. - The company renamed its Texas reportable Homebuilding segment to South Central to streamline operations following the Rausch acquisition[43].
Lennar(LEN_B) - 2025 Q3 - Quarterly Report