Lennar(US:LEN)2026-01-28 21:54Homebuilding Operations - Homebuilding operations generated $32 billion in revenues, accounting for approximately 94% of consolidated revenues in fiscal 2025[11] - New home deliveries reached 82,583 in fiscal 2025, an increase from 80,210 in fiscal 2024 and 73,087 in fiscal 2023[14] - The average sales price of a Lennar home in fiscal 2025 was $391,000, down from $423,000 in fiscal 2024 and $445,000 in fiscal 2023[15] - As of November 30, 2025, 98% of total homesites were controlled through options, up from 82% in the previous year[17] - The backlog dollar value, including unconsolidated entities, was $5.2 billion at November 30, 2025, compared to $5.4 billion at the same date in 2024[29] - The company experienced a cancellation rate of 14% in both 2025 and 2024[28] - The company operates in 1,708 communities as of November 30, 2025, up from 1,447 communities in 2024[20] Financial Services - In fiscal year 2025, the company originated approximately 55,900 residential mortgage loans totaling $20.0 billion, an increase from 54,600 loans totaling $19.8 billion in fiscal year 2024[34] - The financial services subsidiaries provided loans to 84% of homebuyers who obtained mortgage financing in areas where services were offered[33] - As of November 30, 2025, the company had a total maximum borrowing capacity of $3.3 billion under six warehouse residential facilities[35] - The company locked interest rates on approximately 56,900 residential mortgage loans totaling $19.9 billion in fiscal year 2025[34] - The company’s Financial Services operations employ mortgage-backed securities forward commitments and option contracts to protect against interest rate fluctuations[314] - Financial services fixed rate notes and other debts payable are valued at $123.1 million with an average interest rate of 3.4%[320] - Financial services variable rate debts total $1,667.2 million, with an average interest rate of 5.3%[320] Multifamily Business - The Multifamily business has capitalized and developed 128 multifamily residential communities with approximately 39,300 rental units across 20 states[42] - As of November 30, 2025, Upward America had purchased 4,697 homes in 103 communities for a total purchase price of $1.2 billion, averaging $258,000 per home[49] - The company has a pipeline of 32 potential future developments in the Multifamily segment, totaling approximately $2.8 billion in anticipated development costs[43] Technology and Innovation - The company aims to enhance efficiencies and reduce costs through technology and innovative strategies[13] - The book value of strategic technology investments was $581.8 million as of November 30, 2025[39] Land and Operating Model - In February 2025, the company completed the spin-off of Millrose Properties, contributing $5.6 billion in land assets and $1.0 billion in cash[31] - The company is focused on a land-light operating model, increasing flexibility and reducing capital intensity[13] Environmental Commitment - The company is focused on creating environmentally sustainable products, incorporating features like Low-VOC paint, WaterSense® faucets, Low-E windows, and Energy Star® appliances in new homes[67][74] - The company believes in the value of clean energy and consistently seeks opportunities to integrate solar power into its home designs[68] Workforce and Culture - The company employed 12,532 individuals as of November 30, 2025, a decrease from 13,265 individuals in the previous year, with 10,182 in Homebuilding operations[73] - The company’s overall relations with its workforce are considered healthy, despite subcontracting many phases of homebuilding operations[73] - The company is focused on attracting and retaining talent, emphasizing a culture of inclusion and providing a comprehensive benefits package[69][70] Risk Management - The company utilizes derivative financial instruments to hedge interest rate exposure, particularly for loans held-for-sale, to mitigate risks associated with fluctuations in mortgage-related interest rates[315] - The company’s primary market risk exposure relates to fluctuations in interest rates on investments, loans held-for-sale, and outstanding variable rate debt[312] - The company is subject to various local, state, and federal regulations that can increase construction costs and impact homebuilding activities, including environmental laws and zoning regulations[60][61] Health and Safety - The company is committed to health and safety, having hired a Chief Medical Officer to oversee safety protocols during the COVID-19 pandemic[71] Debt and Investments - Fixed rate investments held-to-maturity are valued at $132.9 million with an average interest rate of 3.6%[320] - Homebuilding fixed rate senior notes and other debts payable total $2,380.5 million, with an average interest rate of 5.0%[320] - Variable rate debts in homebuilding amount to $1,710.0 million, with an average interest rate of 5.2%[320]