Lennar(LEN) - 2026 Q1 - Quarterly Results

Financial Performance - Net earnings for Q1 2026 were $229 million, or $0.93 per diluted share, down from $520 million, or $1.96 per diluted share in Q1 2025[4]. - Total revenues decreased by 13% to $6.6 billion, primarily due to an 8% drop in average sales price and a 5% decrease in home deliveries[7]. - Homebuilding operating earnings fell to $373,028 in Q1 2026, a decline of 54.0% compared to $809,273 in Q1 2025[22]. - Financial Services operating earnings fell to $91 million from $143 million in the previous year, attributed to lower lock volume[10]. - Cash and cash equivalents decreased to $2,085,384 in Q1 2026 from $3,441,324 in Q4 2025[27]. Home Sales and Orders - New orders increased by 1% year over year to 18,515 homes, while backlog stood at 15,588 homes valued at $6.0 billion[3]. - Total deliveries in Q1 2026 were 16,863 homes, down 5.4% from 17,834 homes in Q1 2025, with a total dollar value of $6,344,795[23]. - New orders increased to 18,515 homes in Q1 2026, up 0.9% from 18,355 homes in Q1 2025, with a total dollar value of $7,139,386[24]. - Backlog as of February 28, 2026, reached 15,588 homes, an increase of 18.6% from 13,145 homes in February 2025, with a total dollar value of $6,040,767[25]. Homebuilding Costs and Margins - Homebuilding revenues for Q1 2026 totaled $6,298,563, a decrease of 13.5% from $7,283,870 in Q1 2025[22]. - Total homebuilding costs and expenses decreased to $5,970,420 in Q1 2026, down 8.7% from $6,539,960 in Q1 2025[22]. - Homebuilding operating earnings were $373 million with a gross margin of 15.2% and net margin of 5.3%[3]. - The company expects to deliver approximately 20,000 to 21,000 homes in Q2 2026, with gross margin improving to 15.5% to 16%[5]. - Average sales price for homes delivered in Q1 2026 was $374,000, down from $408,000 in Q1 2025[7]. - Average sales price for homes delivered in Q1 2026 was $374,000, down 8.3% from $408,000 in Q1 2025[23]. - Selling, general and administrative expenses as a percentage of home sales increased to 9.8% from 8.5% year over year[9]. - Construction costs improved by over 2.5% in Q1 2026 and decreased by 12% over the last two years[5]. Debt and Share Repurchase - Homebuilding debt stood at $4,065,459 as of February 28, 2026, slightly down from $4,084,686 at the end of November 2025[29]. - Net homebuilding debt to total capital ratio improved to 8.3% in Q1 2026, compared to 2.8% in Q4 2025[29]. - The company repurchased 2 million shares for $237 million at an average price of $118.54 per share[14].