Lennar (LEN) investor relations material

Executive summary

• Delivered 20,840 homes and recorded 20,879 net new orders in Q3; deliveries fell 3% and orders fell 9% year over year.

• Net earnings were $283.9M, or $1.19 per diluted share; adjusted net earnings were $294.3M, or $1.23 per share.

• Gross margin improved sequentially to 15.8%, while affordability-focused pricing and incentives weighed on margins year over year.

• Higher mortgage rates, inflation and resale competition challenged demand, while persistent housing shortages supported underlying demand.

Financial highlights

• Q3 revenue was $8.05B versus $8.81B a year earlier; net earnings were $283.9M versus $591.0M, and diluted EPS was $1.19 versus $2.29.

• Home sales revenue declined 6% year over year to $7.7B as deliveries and average delivered price each fell 3%; average delivered price was $372,000.

• Home sales net margin was 6.6%; SG&A rose to 9.2% of home sales revenue from 8.2% a year earlier.

• Financial Services operating earnings were $129.5M, including a $39.2M one-time net benefit from reversal of a litigation accrual.

• Q3 Multifamily recorded a $2.9M operating loss; the Other segment recorded an $83.6M loss, including $53.3M in technology investment mark-to-market losses.

Outlook and guidance

• Q4 guidance: 19,500–20,500 new orders, 22,000–23,000 deliveries and average delivered price of $370,000–$380,000.

• Q4 gross margin is expected at 15.5%–16.0% and SG&A at 8.7%–9.0%.

• Full-year 2026 delivery target was moderated to 80,000–81,000 homes; Q4 Financial Services operating earnings are expected at $90–$95M.

• Strategy remains focused on even-flow production, volume, affordability and an asset-light land model; ~2% of homesites are owned, and 86% of Q3 deliveries came through land banking arrangements.