Lennar Q1 Earnings Fall as Revenue Drops

Lennar Corporation (NYSE: LEN) said in an SEC filing on March 12 that its first-quarter earnings declined as demand softened and homebuilding margins narrowed, while the company set higher delivery targets for the second quarter.

First-Quarter Results and Orders

Lennar reported net earnings attributable to the company of $229 million, or $0.93 per diluted share, down from $520 million, or $1.96, a year earlier. Total revenues fell 13% year over year to $6.6 billion, with homebuilding revenues dropping to $6.3 billion from $7.3 billion.

Home deliveries declined 5% to 16,863 homes, and the average sales price slipped 8% to $374,000. The company attributed the decline to lower prices and volumes, which drove the revenue contraction and margin compression. The homebuilding gross margin on home sales narrowed to 15.2% from 18.7% a year earlier. Selling, general, and administrative expenses (SG&A) rose to 9.8% of home-sales revenue from 8.5%, reducing the net margin on home sales to 5.3%.

New orders increased 1% to 18,515 homes, and backlog grew to 15,588 homes valued at $6.0 billion, providing forward sales visibility as Lennar works to stabilize volumes.

Capital Position and Second-Quarter Outlook

For the quarter ending May 31, 2026, Lennar guided to 20,000–21,000 home deliveries, an average sales price of $370,000–$375,000, a home-sales gross margin of 15.5%–16.0%, SG&A of 8.9%–9.1% of home-sales revenue, and Financial Services operating earnings of $100–$110 million. These targets suggest a volume recovery while maintaining margin expectations slightly above the first-quarter level.

Homebuilding cash and equivalents totaled $2.1 billion. Homebuilding debt to total capital was 15.7%, with net homebuilding debt at 8.3%. This liquidity and relatively low leverage provide flexibility as the company aims to increase deliveries.

Financial Services operating earnings fell to $91 million from $143 million a year earlier. Multifamily operating earnings improved to about $17.9–$18.0 million from a loss in the prior-year period. The decline in Financial Services earnings removed a partial offset to pressure in the homebuilding segment.

Lennar repurchased 2 million shares for $237 million at an average price of $118.54 per share during the quarter, signaling continued capital returns despite the earnings decline.

Together, the results and guidance indicate Lennar expects a volume rebound in the second quarter to restore revenue growth, while profitability will remain under pressure, setting a weaker baseline heading into the next period.