01—Abstract
Summary
Summary of the 10-K filed January 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Lennar Corporation reported fiscal 2025 (year ended November 30, 2025) net earnings attributable to Lennar of $2.1 billiona, or $7.98 per diluted and basic share, compared with $3.9 billion, or $14.31 per share, in fiscal 2024.
Excluding a $130.2 millionb mark-to-market gain on technology investments and a one-time $156.1 million loss on the Millrose Properties, Inc. exchange offer, net earnings were $2.1 billion, or $8.06 per diluted share. Home sales revenue was $32.1 billion, down from $33.8 billion, as deliveries rose to 82,583 homes while the average sales price fell to $391,000 from $423,000. Gross margin on home sales was 17.7%, versus 22.3% in the prior year, and the filing attributes the decline to lower revenue per square foot and higher land costs, partly offset by lower construction costs.
Sales incentives averaged $62,700c per home, or 13.8% of revenues, up from 10.3%. The balance sheet and capital structure changed significantly during the year. The February 2025 spin-off of approximately 80% of Millrose and the November 2025 exchange offer for the remaining 20% reduced equity, with stockholders' equity falling to $21.96 billion from $27.87 billion.
Homebuilding debt to total capital rose to 15.7% from 7.5%, and homebuilding cash and equivalents were $3.4 billiond at year end. Lennar drew $1.7 billion under its new Delayed Draw Term Loan Facility, issued $700 million of 5.20% senior notes due 2030, and repurchased $1.8 billion of common stock. Operating cash flow fell to $217 million from $2.4 billion, driven by a $1.5 billion increase in deposits and pre-acquisition costs on real estate.
The company expects to deliver approximately 85,000 homes in fiscal 2026 and projects first-quarter 2026 gross margins of 15% to 16%. The filing describes a difficult housing market in which affordability and consumer confidence limited demand, and management says it will prioritize volume and even-flow production while its land-light strategy shifts more homesites to options.
The company declared a quarterly dividend of $0.50 per share on January 21, 2026. Stuart Miller, Executive Chairman and CEO, holds approximately 42% of the voting power.
02—Key points
Key Highlights
- Net earnings attributable to Lennar were $2.1 billion, or $7.98 per diluted share, down from $3.9 billion, or $14.31 per share, in fiscal 2024; excluding the Millrose exchange offer loss and technology investment gains, $8.06 per diluted share.
- Home sales revenue was $32.1 billion on 82,583 deliveries, while the average sales price fell to $391,000 from $423,000.
- Gross margin on home sales was 17.7%, compared with 22.3% in fiscal 2024; sales incentives rose to 13.8% of revenues from 10.3%.
- Homebuilding debt to total capital rose to 15.7% from 7.5%, reflecting the Millrose spin-off, share repurchases and new senior notes and term loan borrowings.
- Operating cash flow was $217 million, compared with $2.4 billion in fiscal 2024, mainly because deposits and pre-acquisition costs on real estate increased $1.5 billion.
- Backlog was $5.2 billion at November 30, 2025, versus $5.4 billion a year earlier; the company expects to deliver approximately 85,000 homes in fiscal 2026.
- The company repurchased $1.8 billion of common stock and paid $521 million in dividends during fiscal 2025, and declared a $0.50 quarterly dividend in January 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed January 28, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $34.19B$35.44B | −3.5% |
| SG&A Expenses | $2.68B$2.48B | +8.0% |
| Operating Expenses | $31.52B$30.67B | +2.8% |
| Net Income | $2.08B$3.93B | −47.2% |
| EPS (Basic) | $7.98$14.31 | −44.2% |
| Shares Outstanding (Basic) | 257.75M272.02M | −5.2% |
05—Questions
Frequently Asked Questions
Why did Lennar's earnings per share fall so sharply in fiscal 2025?
Net earnings attributable to Lennar were $2.1 billion, or $7.98 per share, versus $3.9 billion, or $14.31 per share, in fiscal 2024. The filing attributes the decline mainly to lower home sales prices, with the average price falling to $391,000 from $423,000, and gross margin on home sales falling to 17.7% from 22.3%. Results also included a one-time $156.1 million loss on the Millrose exchange offer.
What was the Millrose Properties transaction and how did it affect Lennar's balance sheet?
In February 2025 Lennar spun off approximately 80% of Millrose Properties, Inc. to stockholders, contributing $5.6 billion in land assets and $1.0 billion in cash. In November 2025 it disposed of the remaining 20% through an exchange offer, accepting 8,049,594 Lennar Class A shares for 33,298,754 Millrose Class A shares. The exchange reduced investments in unconsolidated entities and stockholders' equity by $1.1 billion, and total stockholders' equity fell to $21.96 billion from $27.87 billion.
Is Lennar's leverage increasing, and how is it financed?
Homebuilding debt rose to $4.08 billion, and homebuilding debt to total capital increased to 15.7% from 7.5%. Net homebuilding debt to total capital was 2.8%, versus negative 9.4% a year earlier. Financing in fiscal 2025 included $1.7 billion drawn under the Delayed Draw Term Loan Facility and $700 million of 5.20% senior notes due 2030. The company stated it was in compliance with its debt covenants at November 30, 2025, and had no borrowings under its $3.5 billion Credit Facility.
What guidance did management give for fiscal 2026?
Management expects first-quarter 2026 gross margins of 15% to 16%, with first-quarter sales of 18,000 to 19,000 homes and deliveries of 17,000 to 18,000 homes at an average sales price of $365,000 to $375,000. It expects to deliver approximately 85,000 homes in the full 2026 fiscal year and says margins will remain under pressure in the first quarter.
06—Continue