Lennar (LEN) Q3 2026 earnings summary

Executive summary

• Delivered 20,840 homes in Q3 2026, with new orders at 20,879, both slightly below targets and down year-over-year.

• Net earnings were $284 million, with EPS of $1.19 GAAP ($1.23 adjusted), down from $591 million in Q3 2025.

• Market conditions worsened due to rising interest rates, inflation, and increased resale competition, especially in Texas and Florida.

• Maintained focus on even flow production, asset-light land strategy, and cost control.

• Total revenues reached $8.0 billion, with a backlog of 16,857 homes valued at $6.3 billion.

Financial highlights

• Revenues from home sales declined 6% year-over-year to $7.7 billion, with gross margin at 15.8% and net margin at 6.6%.

• Financial services contributed $129 million, including a $39 million one-time gain.

• Ended Q3 with $1.2 billion in cash and $3.6 billion in total liquidity.

• Inventory turn was 2.4x; return on inventory was 13.2%.

• Paid down $400 million in senior debt, repurchased 3 million shares for $256 million, and paid $119 million in dividends.

Outlook and guidance

• Q4 2026 guidance: new orders of 19,500–20,500; deliveries of 22,000–23,000 homes; average sales price of $370,000–$380,000.

• Expected Q4 gross margin of 15.5%–16%, SG&A of 8.7%–9%, and EPS of $1.30–$1.65.

• Financial services earnings expected at $90–$95 million; multifamily and other segments to post modest losses.

• Full-year 2026 delivery target moderated to 80,000–81,000 homes.