Lennar(US:LEN)2025-12-16 21:33Financial Performance - Net earnings for Q4 2025 were $490 million, or $1.93 per diluted share, down from $1.1 billion, or $4.06 per diluted share in Q4 2024[5]. - Total revenues for the three months ended November 30, 2025, were $9,367,609, a decrease of 5.8% from $9,946,888 in the same period of 2024[22]. - Homebuilding revenues decreased to $8,885,273 for the three months ended November 30, 2025, down 6.9% from $9,548,684 in 2024[25]. - Net earnings attributable to Lennar for the three months ended November 30, 2025, were $490,237, a decline of 55.3% compared to $1,096,214 in 2024[22]. - Homebuilding operating earnings fell to $717,960 for the three months ended November 30, 2025, down 52.0% from $1,495,383 in 2024[25]. - Financial Services operating earnings were $133 million in Q4 2025, down from $154 million in Q4 2024, due to lower volume and profit per loan[13]. - Financial Services operating earnings were $133,831 for the three months ended November 30, 2025, a decrease of 13.3% from $154,476 in 2024[25]. Home Sales and Orders - New orders increased 18% year over year to 20,018 homes in Q4 2025, while total revenues reached $9.4 billion[4]. - Deliveries for the full year 2025 were 82,583 homes, a 3% increase from 2024, with an average sales price of $386,000[6]. - The backlog of homes stood at 13,936 with a total dollar value of $5.2 billion[4]. - The company expects to deliver between 17,000 and 18,000 homes in Q1 2026, with an average sales price between $365,000 and $375,000[7]. - Total new orders for homes increased to 83,978 in 2025, up from 76,951 in 2024, representing a growth of approximately 9.5%[29]. - The total dollar value of new orders reached $31.95 billion in 2025, compared to $32.68 billion in 2024, indicating a decrease of about 2.2%[29]. - The average sales price for homes delivered decreased to $386,000 in the three months ended November 30, 2025, down from $430,000 in 2024[26]. - The average sales price of homes decreased to $380,000 in 2025 from $425,000 in 2024, a decline of approximately 10.6%[29]. - The average sales price for homes in the East region decreased to $362,000 in 2025 from $412,000 in 2024, a drop of approximately 12.1%[29]. Costs and Expenses - Homebuilding gross margin was 17.0% in Q4 2025, compared to 22.1% in Q4 2024, reflecting increased land costs and lower revenue per square foot[11]. - Selling, general and administrative expenses increased to 7.9% of home sales revenues in Q4 2025, up from 7.2% in Q4 2024[12]. - Homebuilding costs and expenses totaled $8,099,991 for the three months ended November 30, 2025, slightly down from $8,112,431 in 2024[25]. - The company reported a one-time loss of $156 million on the Millrose exchange offer included in the three months ended November 30, 2025[25]. Debt and Equity - Homebuilding debt rose significantly to $4.08 billion in 2025, compared to $2.26 billion in 2024, an increase of approximately 80.8%[35]. - Stockholders' equity decreased to $21.96 billion in 2025 from $27.87 billion in 2024, a decline of about 21.2%[35]. - The ratio of homebuilding debt to total capital increased to 15.7% in 2025 from 7.5% in 2024, indicating higher leverage[35]. - The company reported a net homebuilding debt of $643.36 million in 2025, compared to a net cash position of $2.40 billion in 2024[35]. Acquisitions - The company completed the acquisition of Rausch Coleman Homes in February 2025, enhancing its market position[9].