Lennar Stock Earnings Reports

Lennar reported a soft Q3 driven by affordability pressure and higher incentives, but emphasized a strategic, measured pullback to protect margins while preserving market share. Q3 operating highlights: ~21,500 starts, ~21,500 deliveries and just over 23,000 orders; average sales price $383,000; sales incentives rose to 14.3%, compressing gross margin to 17.5%; SG&A 8.2% and net margin 9.2%. Operationally the company reported sustained efficiency gains: direct construction costs down ~3% year-over-year, single-family detached cycle time at a record-low 126 days, warranty spend down ~35% year-over-year, and inventory turns improved to 1.9x. Management lowered near-term volume expectations to ease pressure on margins (Q4 deliveries 22,000–23,000; updated 2025 deliveries 81,500–82,500) and expects Q4 gross margin around 17.5%, ASP $380k–$390k, SG&A 7.8%–8.0%, and EPS ~$2.10–$2.30. Balance sheet and liquidity remain strong: $1.4B cash, $5.1B total liquidity, 11k owned homesites and 523k total homesites controlled, plus ongoing buybacks ($507M repurchased YTD) and dividends ($129M paid this quarter). Strategic focus remains on high-volume, lower-cost manufacturing, land‑banking/asset‑light partnerships, tech investments (including Opendoor partnership), and returning capital to shareholders; primary near-term risks are mortgage rates, consumer confidence and affordability.