Lennar Third-Quarter Earnings Fall, Cuts Delivery Target
Lennar third-quarter earnings showed lower revenue and profit and a trimmed home-delivery forecast, pressuring housing-sector positioning, options flow.
KEY TAKEAWAYS
- Net earnings were $284 million, or $1.19 per diluted share.
- Total revenue fell to $8.0 billion and home-sale revenues to $7.7 billion.
- Full-year home-delivery guidance was cut to 80,000-81,000 homes citing mortgage-rate pressure.
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Lennar Corporation reported lower revenue and profit for the quarter ended Aug. 31, 2026, and again trimmed its full-year home-delivery guidance, citing higher mortgage rates and softer housing-market conditions, according to a Sept. 16 press release.
Third-Quarter Financial Results and Guidance
Net earnings attributable to Lennar were $284 million, or $1.19 per diluted share, down from $591 million, or $2.29, a year earlier. Total revenue fell to $8.0 billion from $8.8 billion, while home-sale revenues declined to $7.7 billion from $8.2 billion, reflecting weakness in the company’s core business.
Adjusted diluted earnings per share were $1.23 after excluding $53 million of mark-to-market losses on technology investments and $39 million of one-time Financial Services items. Home-sale gross margin narrowed to 15.8% from 17.5%, pressured by lower per-unit profitability amid softer sales.
Deliveries totaled 20,840 homes, down 3% year over year, while new orders fell 9% to 20,879 homes, signaling weakening demand. The backlog stood at 16,857 homes valued at $6.3 billion, providing some revenue visibility despite recent softness.
Lennar cut its full-year home-delivery guidance to 80,000–81,000 homes from 82,000–83,000, reflecting management’s expectations for continued demand pressure due to rising mortgage rates and worsening housing-market conditions.
Taken together, the lower revenue, shrinking margins, reduced orders and deliveries, and the guidance cut indicate ongoing challenges in the housing market.
