Lennar (LEN) Q2 2026 earnings summary

Executive summary

• Net earnings for Q2 2026 were $305 million ($1.24/share), or $1.31/share excluding $23 million in mark-to-market losses on technology investments, with 20,519 homes delivered and 21,749 new orders at the high end of guidance.

• Revenues from home sales decreased 2% year-over-year to $7.6 billion, with a 5% drop in average sales price offset by a 2% increase in deliveries.

• Gross margin improved sequentially to 15.6% but declined from 17.8% year-over-year; net margin was 6.4%.

• Sales incentive rate on deliveries declined to 12.9%, indicating a potential sustainable trend after three years of increases.

• Operational execution remains strong despite a complex macroeconomic and geopolitical environment, with persistent affordability constraints.

Financial highlights

• Q2 2026 revenues were $7.94 billion; net income was $305 million; GAAP EPS was $1.24, or $1.31 excluding mark-to-market losses.

• Average sales price per home delivered was $371,000; SG&A expenses rose to 9.2% of revenue.

• Ended Q2 with $1.8 billion in cash and total liquidity of $4.9 billion; no outstanding borrowings under the 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 new orders expected between 21,000–22,000 homes; deliveries projected at 20,500–21,500; average sales price guidance: $375,000–$380,000; gross margin expected at ~16%.

• SG&A forecasted at 8.8%–9%; 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.