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 revenues for Q1 2026 totaled $6,298,563, a decrease of 13.5% from $7,283,870 in Q1 2025[22]. - Financial Services revenues decreased to $215,555 in Q1 2026 from $277,077 in Q1 2025, with operating earnings of $91,313, down from $143,483[22]. - Financial Services operating earnings fell to $91 million from $143 million in the previous year, attributed to lower lock volume[10]. 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]. - New orders increased to 18,515 homes in Q1 2026, compared to 18,355 homes in Q1 2025, with a total dollar value of $7,139,386, a decrease of 3.9% from $7,430,732[24]. - Backlog increased to 15,588 homes in Q1 2026, with a dollar value of $6,040,767, up from 13,145 homes valued at $5,766,084 in Q1 2025[25]. - Total home deliveries decreased to 16,863 homes in Q1 2026 from 17,834 homes in Q1 2025, with a total dollar value of $6,344,795, down 12.9% from $7,281,529[23]. Homebuilding Operations - Homebuilding operating earnings were $373 million with a gross margin of 15.2% and net margin of 5.3%[3]. - Homebuilding net margins for Q1 2026 were $328,143, down 55.9% from $743,910 in Q1 2025[22]. - Average sales price for homes delivered in Q1 2026 was $374,000, down from $408,000 in Q1 2025[7]. - Construction costs improved by over 2.5% in Q1 2026 and have decreased by 12% over the last two years[5]. Cash and Assets - Cash and cash equivalents decreased to $2,085,384 as of February 28, 2026, from $3,441,324 as of November 30, 2025[27]. - Total assets decreased to $33,210,342 as of February 28, 2026, from $34,430,437 as of November 30, 2025[27]. - Net homebuilding debt increased to $1,980,075 as of February 28, 2026, compared to $643,362 as of November 30, 2025[29]. - Homebuilding debt to total capital ratio remained stable at 15.7% for both February 28, 2026, and November 30, 2025[29]. Shareholder Actions - The company repurchased 2 million shares for $237 million at an average price of $118.54 per share[14]. Future Outlook - 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]. - Selling, general and administrative expenses as a percentage of revenues increased to 9.8% from 8.5% year over year[9].
Lennar(LEN_B) - 2026 Q1 - Quarterly Results