Lennar (LEN) Q2 2026 earnings summary

Executive summary

• Delivered 20,519 homes in Q2 2026, a 2% year-over-year increase, with 21,749 new orders at the high end of guidance but down 4% year-over-year.

• Net earnings for Q2 2026 were $305 million ($1.24 per share), or $322 million ($1.31 per share) excluding $23 million in mark-to-market losses.

• Gross margin improved sequentially to 15.6%, net margin was 6.4%, and EPS was $1.31 excluding mark-to-market items.

• Average sales price per home delivered was $371,000–$371,500, with a 12.9% sales incentive rate.

• Persistently high mortgage rates, affordability constraints, and geopolitical uncertainty continued to impact the housing market.

Financial highlights

• Revenues from home sales were $7.6 billion, down 2% year-over-year due to a 5% drop in average sales price, partially offset by higher deliveries.

• SG&A was 9.2% of revenue; EBIT for Q2 2026 was $465 million, down from $675 million in Q2 2025.

• Ended the quarter with $1.8 billion in cash and total liquidity of $4.9 billion; no outstanding borrowings under the $3.1 billion revolver.

• Homebuilding debt-to-total capital ratio was 15.8%; net homebuilding debt-to-total capital was 9.4%.

• Inventory turn improved to 2.5x, and return on inventory reached 15.3%.

Outlook and guidance

• Q3 2026 guidance: 20,500–21,500 home deliveries, new orders expected between 21,000–22,000, gross margin ~16%, SG&A 8.8–9%, average sales price $375,000–$380,000.

• Q3 EPS guidance is $1.20–$1.40.

• Annual delivery guidance adjusted to 82,000–83,000 homes due to interest rate and macro uncertainty.

• Financial Services operating earnings expected at $95–$100 million for Q3 2026.