Core Insights - Lennar Corporation reported a significant decline in net earnings for Q3 2025, with net earnings of $591 million or $2.29 per diluted share, down from $1.2 billion or $4.26 per diluted share in Q3 2024 [2][4]. - The company delivered 21,584 homes and recorded 23,004 new orders, reflecting a 12% increase in new orders compared to the previous year [3][4]. - The average sales price of homes decreased to $383,000 in Q3 2025 from $422,000 in Q3 2024, primarily due to market weakness [6][7]. Financial Performance - Total revenues for Q3 2025 were $8.8 billion, down 9% from $9.4 billion in Q3 2024, mainly due to a decrease in home sales revenue [4][6]. - Homebuilding operating earnings were $760 million, with a gross margin of 17.5%, down from 22.5% in the prior year [4][7]. - Selling, general and administrative (SG&A) expenses increased to $676 million, representing 8.2% of revenues, up from 6.7% in Q3 2024 [8]. Operational Highlights - The company ended the quarter with a backlog of 16,953 homes valued at $6.6 billion [4][31]. - Inventory turns improved to 1.9 times, and cycle time decreased to 126 days, the shortest cycle time recorded [3]. - The company repurchased 4.1 million shares for $507 million at an average price of $122.97 [12]. Segment Performance - Financial Services segment operating earnings increased to $178 million, up from $144 million in Q3 2024, driven by higher profit per locked loan [9]. - The Multifamily segment reported an operating loss of $16 million, compared to operating earnings of $79 million in the prior year, impacted by a one-time gain in 2024 [10]. - Lennar Other segment operating earnings were $62 million, up from $20 million in Q3 2024, primarily due to mark-to-market gains on technology investments [10][22]. Guidance - For Q4 2025, the company expects new orders between 20,000 and 21,000 homes, deliveries of 22,000 to 23,000 homes, and a gross margin of approximately 17.5% [5][13]. - The average sales price for Q4 is projected to be between $380,000 and $390,000, with SG&A as a percentage of home sales expected to be between 7.8% and 8.0% [13]. Market Conditions - The company noted that elevated interest rates persisted throughout Q3 but showed signs of decline towards the end of the quarter, providing optimism for future performance [3]. - The long-term need for housing remains, and the company is focused on meeting affordability and sustaining production through efficiency and scale [5].

Core Insights - Century Communities, Inc. has announced a new development project for 170 single-family homes in Green Cove Springs, a rapidly growing area in the Jacksonville region [1][2][3] - The new community, named Asbury Creek, is expected to begin sales in mid-2026 and will feature amenities such as a pavilion, playground, and multi-use field, with no Community Development District (CDD) fees [2][3][7] Company Overview - Century Communities is recognized as one of the largest homebuilders in the U.S. and a leader in online home sales, having been named one of America's Most Trustworthy Companies for three consecutive years [6][8] - The company operates in 16 states and over 45 markets, providing a range of services including mortgage, title, insurance brokerage, and escrow through its subsidiaries [6][8] Development Details - The Asbury Creek community will be located off Henley Road, close to downtown Green Cove Springs, Fleming Island, and Middleburg, with convenient access to downtown Jacksonville via the First Coast Expressway [2][7] - The planned amenities aim to enhance the living experience for future residents, contributing to the community's appeal [2][7]

Core Viewpoint - Champion Homes, Inc. is donating the value of a modular home to Greater Cleveland Habitat for Humanity to support the construction of affordable homes in Cleveland [1] Company Summary - Champion Homes, Inc. emphasizes its commitment to building high-quality, affordable homes through offsite construction methods [1] - The company's President and CEO, Tim Larson, highlights the significant need for affordable housing in the area [1] Industry Summary - The collaboration with Greater Cleveland Habitat for Humanity reflects a growing trend in the industry towards partnerships aimed at addressing housing affordability [1]

Mortgage rates, meantime, on the move after yesterday's rate cut. Let's get straight to Diana Ol for the latest. Diana.>> Well, Melissa, as we discussed on Tuesday before the Fed cut, mortgage rates could go up and they did. They went up 15 basis points this morning, adding to nine basis points that they rose yesterday, making 24 basis points specifically since the Fed cut its rate. And that all according to Mortgage News Daily.Now, that's because, you know, as many experts weighed in, they expected that pe ...

Group 1 - Kennedy Wilson is acquiring Toll Brothers Apartment Living platform for $347 million, which includes a portfolio of completed properties and assets under development valued at $2.2 billion [7] - The transaction is expected to close in October and will enhance Kennedy Wilson's national platform in the rental housing space, totaling over 80,000 units [4][7] - The acquisition will allow Kennedy Wilson to manage 20 apartment and student housing properties from Toll Brothers, totaling over $3 billion in assets under management [7] Group 2 - Kennedy Wilson plans to invest approximately $90 million in the acquired interests, indicating a strong commitment to the rental housing sector [3] - The deal will create a mutually beneficial pipeline of shared deal flow, as Kennedy Wilson will refer for-sale housing opportunities to Toll Brothers, while receiving rental housing opportunities in return [5] - Toll Brothers aims to focus on its core homebuilding business and transition to a more asset-light model following the sale [6]

Group 1: Market Overview - Pre-market futures are up following a 25 basis points interest rate cut by the Fed, with the Dow up +230 points, S&P 500 up +51, Nasdaq up +287, and Russell 2000 up +30 points [1] - Bond yields have slightly increased, with the 10-year yield at +4.08% and the 2-year yield at +3.55% [1] Group 2: Jobless Claims - Initial Jobless Claims spiked to +264K due to a reporting disruption in Texas, marking the highest week of new claims since October 2021, but fell back to +231K for the last week [2] - Continuing Claims have decreased to 1.920 million, the lowest since May, remaining below 1.94 million for two consecutive weeks [3] Group 3: Manufacturing Index - The Philly Fed Index reported its highest monthly tally since January at +23.2, indicating five up-months and four down-months in 2025, contrasting with the negative Empire State Index of -8.7 for the same month [5] Group 4: Earnings Reports - Darden Restaurants (DRI) reported fiscal Q1 earnings of $1.97 per share, missing estimates by 3 cents, but revenues of $3.04 billion exceeded expectations, up from $2.76 billion a year ago [6] - FedEx (FDX) is expected to report earnings growth of +1.4% with a revenue increase of +0.9%, while Lennar Homes (LEN) faces tough comparisons with expected earnings growth of -45% and revenue decline of -4% [7]

Core Insights - D.R. Horton, Inc. (DHI) has successfully navigated challenging homebuilding market conditions, with net sales orders increasing by 0.3% year over year to 23,071 in Q3 FY25 despite affordability issues and cautious consumer sentiment [1][9] Group 1: Operational Efficiency - DHI strategically manages pricing, incentives, and sales pace to optimize returns on inventory investments, with construction cycle times improving by a few weeks in the first nine months of FY25 compared to FY24 [2] - The company maintains strong relationships with land developers and focuses on developing homes on lots controlled by others, enhancing capital efficiency and operational flexibility [3] Group 2: Market Position and Competition - D.R. Horton holds a competitive edge with unmatched scale, consistently leading in closings and revenues, and targeting multiple buyer segments from entry-level to luxury homes [6][7] - The company is better positioned than competitors like Lennar Corporation and KB Home to weather industry challenges and capitalize on opportunities [7] Group 3: Financial Performance - DHI's homebuilding pretax ROI stands at 22.1% as of the trailing 12 months ended June 30, 2025, with liquidity of $5.5 billion [4] - The stock has increased by 40.1% in the past three months, outperforming the Zacks Building Products - Home Builders industry and the broader market [8] Group 4: Earnings Estimates - Earnings estimates for fiscal 2025 indicate a year-over-year decline of 17.8%, while fiscal 2026 shows a growth of 2.2% [12] - The stock currently trades at a forward 12-month P/E ratio of 14.12, suggesting strong market potential despite being at a premium compared to industry peers [11]

Lennar Corporation (NYSE:LEN) will release earnings results for the third quarter, after the closing bell on Thursday, Sept. 18. Analysts expect the company to report quarterly earnings at $2.09 per share, down from $3.90 per share in the year-ago period. Lennar is projected to report quarterly revenue at $9.05 billion, compared to $9.42 billion a year earlier, according to data from Benzinga Pro. The company has beaten analyst estimates for revenue in five straight quarters and in nine of the last 10 qua ...

Market Overview - The S&P 500 Index closed down -0.10%, while the Dow Jones Industrials Index closed up +0.57%, and the Nasdaq 100 Index closed down -0.21% [1] - Stock indexes settled mixed, with the Dow Jones reaching a new all-time high [2] - The 10-year T-note yield rose to 4.07% after initially falling to a 5.25-month low of 3.99% [2] Federal Reserve Actions - The Federal Open Market Committee (FOMC) cut interest rates by -25 basis points and signaled an additional -50 basis points of cuts by the end of the year [3][6] - The FOMC raised its US 2025 GDP forecast to +1.6% from +1.4% [7] - Fed Chair Powell indicated that inflation remains elevated and that higher goods prices are contributing to inflationary pressures [8][12] Housing Market - US housing starts fell -8.5% month-over-month to 1.307 million, below expectations of 1.365 million [5] - Building permits also fell -3.7% month-over-month to a 5.25-year low of 1.312 million, contrary to expectations of an increase [5] Company-Specific News - Nvidia's stock fell more than -2% after reports that China's Cyberspace Administration instructed major companies to halt orders for its RTX Pro 6000D chip [4][15] - Home building suppliers, including Builders FirstSource and Mohawk Industries, retreated following disappointing housing data [16] - Uber Technologies' stock declined more than -4% amid insider selling by CEO Khosrowshahi [17] - Hologic's stock rose more than +7% as interest in a potential takeover by Blackstone Inc. and TPG Inc. was revived [18] - PayPal Holdings' stock increased more than +2% after announcing a multi-year partnership with Google [19]

Core Insights - Toll Brothers, Inc. has launched a new luxury home community named Geddes Vista in Ann Arbor, Michigan, featuring single-family homes and townhomes in a highly rated school district [1][7] Community Overview - Geddes Vista includes two collections: the Towns Collection and the Preserve Collection, offering various floor plans to accommodate different lifestyles [1][2] - The community is located at 2977 Simi Way, Ann Arbor, and is designed with walking paths and a natural, tree-lined setting [2][7] Towns Collection - The Towns Collection features townhomes with open-concept floor plans, ranging from over 2,000 square feet, including 3 bedrooms and 2.5 to 3.5 bathrooms [2] - Townhomes are priced starting from the upper $400,000s and include features like bedroom-level laundry rooms and options for finished basements [2][6] Preserve Collection - The Preserve Collection offers spacious single-family homes with designs that include first- or second-floor primary bedroom suites, flex rooms, and options for finished basements [3] - Floor plans range from 3 to 6 bedrooms and 2.5 to 4.5 bathrooms, with homes starting in the mid-$600,000s [3] Design and Personalization - Homebuyers in the Preserve Collection will have access to the Toll Brothers Design Studio, allowing them to personalize their homes with a variety of selections [5] - The Towns Collection will also feature move-in ready townhomes with designer-appointed features curated by professional design consultants [6] Location and Amenities - Geddes Vista is situated within the top-rated Ann Arbor Public Schools district, with schools located within a 10-minute drive [7] - Residents will have access to parks, golf courses, shopping, dining, and entertainment options in the greater Ann Arbor area [7] Company Background - Toll Brothers, Inc. is a Fortune 500 company and the leading builder of luxury homes in the United States, operating in over 60 markets across 24 states [10] - The company has received multiple accolades, including being named one of Fortune magazine's World's Most Admired Companies for over 10 years [11]