Lennar (LEN) Q4 2025 earnings summary

Executive summary

• Delivered 23,034 homes and sold just over 20,000 in Q4, exceeding delivery goals but at the expense of margin, which fell to 17%.

• Maintained volume and grew market share despite a challenging housing market marked by affordability constraints and weak consumer confidence.

• Transitioned to an asset-light model, reducing land on balance sheet to less than 5% and inventory from nearly $20B to just under $12B year-over-year.

• Leadership transition as Co-CEO Jon Jaffe retires, with internal promotions ensuring continuity.

• Completed the Millrose spin-off and acquired Rausch Coleman Homes' homebuilding operations.

Financial highlights

• Q4 total revenues were $9.4 billion; full-year revenues were $34.2 billion.

• Q4 gross margin on home sales was 17.0%; net margin was 9.1%.

• Q4 average sales price dropped to $386,000 from $430,000 year-over-year.

• SG&A was 7.9% in Q4.

• Ended Q4 with $3.4B in cash and $6.5B in total liquidity.

Outlook and guidance

• Q1 2026 gross margin expected between 15%-16%, with SG&A around 9.5%.

• Q1 deliveries projected at 17,000-18,000 homes; new orders at 18,000-19,000; average sales price $365,000-$375,000.

• Full-year 2026 deliveries expected to reach approximately 85,000 homes.

• Q1 EPS guidance is $0.80-$1.10 per share.

• Q1 2026 financial services operating earnings expected at $105–$110 million.