Lennar Corporation: Miss — EPS $1.23, Revenue $8.05B
Earnings Report· 2026-09-16
LEN
Q3 · 2026After-MarketLennar Corporation
@stockwhiz_ai
EARNING PER SHARE
Actual ($)
1.23
-38.50% YoY
Expected
1.29
Miss
-4.65%
REVENUE
Actual ($)
8.05B
-8.67% YoY
Expected
8.35B
Miss
-3.64%
Earning Report
| Metric | Q3 2026 | Q3 2025 | YoY Change % |
|---|---|---|---|
| Revenue | $8.05B | $8.81B | -8.7% |
| └─Homebuilding | $7.76B | $8.25B | -6.0% |
| └─Financial Services | $226.12M | $314.19M | -28.0% |
| └─Multifamily | $38.48M | $228.47M | -83.2% |
| └─Lennar Other | $22.03M | $13.94M | +58.0% |
| └─Sales of homes | $7.73B | $8.21B | -5.8% |
| └─Sales of land | $18.44M | $30.52M | -39.6% |
| └─Other homebuilding | $7.47M | $9.57M | -22.0% |
| Net Income | $283.88M | $590.97M | -52.0% |
| GAAP Diluted EPS | $1.19 | $2.29 | -48.0% |
| Adj. Diluted EPS | $1.23 | $2.00 | -38.5% |
Financial Outlook / Guidance
| Metric | Q4 2026 Outlook | FY 2026 Outlook |
|---|---|---|
| New Orders | ~19,500-20,500 homes | — |
| Deliveries | ~22,000-23,000 homes | ~80,000-81,000 homes (prev. 82,000-83,000 homes) |
| Average Sales Price | ~$370,000-$380,000 | — |
| Gross Margin % | ~15.5%-16.0% | — |
| SG&A | ~8.7%-9.0% | — |
| Financial Services Operating Earnings | $90M-$95M | — |
Business Highlights
- ➤Delivered 20,840 homes across 1,713 active communities.
- ➤Construction cost per square foot improved 1% sequentially and 6% year over year.
- ➤Cycle time reached a record-low 116 days.
- ➤Completed unsold inventory declined to 1.8 homes per community.
- ➤Owned fewer than 2.5% of approximately 488,000 homesites on balance sheet.
- ➤Redeemed $400M of 5.25% senior notes due June 2026.
- ➤Repurchased 3M shares of common stock for $256M.
- ➤Lennar has built more than 1.5M homes since its 1954 founding.
- ➤LENˣ drives technology, innovation and strategic investments in homebuilding.
Management Commentary
Stuart Miller, Executive Chairman, Chief Executive Officer and President
“Our third quarter 2026 results reflect consistent focus on our operating strategy of maintaining volume and production while navigating a challenging economic environment. While our earnings of $1.19 per share were below expectations, they reflect the nature of the environment in which we are operating, which has deteriorated since our last earnings call.”
Stuart Miller, Executive Chairman, Chief Executive Officer and President
“Mortgage rates increased through the quarter, with the 30-year rate at approximately 6.8% at quarter end and even higher since. Rates are responding as inflation remains above the Fed's target, driven by geopolitical tension and higher oil prices. Additionally, consumer confidence has declined as rates and affordability have driven more consumers to slow their purchase decision. Nevertheless, even while market conditions have weakened, the overall housing environment remains constructive as housing shortages continue to drive demand from both primary buyers as well as 'single-family for rent' and 'build-to-rent' buyers.”
Stuart Miller, Executive Chairman, Chief Executive Officer and President
“Against that backdrop, our team adhered to our strategy of leveraging consistent volume in order to drive costs lower. We delivered 20,840 homes, within our guidance of 20,500 to 21,500, generated 20,879 new orders and produced total revenues of $8.0 billion. Our starts pace and sales pace were both 4.1 homes per community per month across our 1,713 active communities, reflecting the even-flow balance that drives efficiency.”
Stuart Miller, Executive Chairman, Chief Executive Officer and President
“By maintaining volume, we have improved execution across numerous key metrics. Our construction cost per square foot improved another 1% sequentially, 6% year over year, and 14% since our fourth quarter 2023 baseline. Our cycle time reached a new record low of 116 days, down from 121 days last quarter and 126 days a year ago. Additionally, we reduced our completed, unsold inventory to 1.8 homes per community from 2.1 homes per community last quarter, and our inventory turn stands at 2.4 times. Of the approximately 488,000 homesites we own and control, we own fewer than 2.5%, on our balance sheet. Finally, we ended the quarter with $1.2 billion in cash, as we repurchased 3 million shares of stock for $256 million and repaid $400 million of senior notes.”
Stuart Miller, Executive Chairman, Chief Executive Officer and President
“Our average sales price was $372,000, reflecting approximately 12.0% in incentives, along with base price adjustments necessary to sustain volume in a market where affordability remains the defining constraint. Our gross margin improved sequentially to 15.8%, with SG&A of 9.2% resulting in a net margin of 6.6%.”
Stuart Miller, Executive Chairman, Chief Executive Officer and President
“Looking ahead to the fourth quarter of 2026, we expect to generate new orders of approximately 19,500 to 20,500 homes, and to deliver approximately 22,000 to 23,000 homes with gross margin of approximately 15.5% to 16.0%. We expect our average sales price to be in the range of approximately $370,000 to $380,000 and our SG&A to improve toward 8.7% to 9.0%. Given continued pressure on interest rates and the deterioration in market conditions through the quarter, we are moderating our target full-year 2026 deliveries to approximately 80,000 to 81,000 homes, from the 82,000 to 83,000 homes we discussed last quarter.”
Stuart Miller, Executive Chairman, Chief Executive Officer and President
“Our consistent strategy has been to meet demand at affordability and build supply rather than wait the market out. We have prioritized volume to create needed supply for the market, which we deliver at affordable prices, while we leverage scale advantages and ultimately improve margins. The fundamental shortage of housing in America has not been solved. We remain deeply committed to building the homes America needs, at prices families can afford, and to ultimately generate the returns our shareholders deserve.”