01—Abstract
Summary
Summary of the 10-Q filed October 3, 2025. Cited figures are marked; the original filing is the authoritative source.
Lennar Corporation's Form 10-Q for the quarter ended August 31, 2025 reports third-quarter net earnings attributable to Lennar of $590.97 milliona, or $2.29 per diluted share, down from $1.16 billion, or $4.26 per share, in the prior-year quarter.
Homebuilding revenues fell to $8.25 billionb from $9.05 billion, with home sales revenue of $8.21 billion. Gross margin on home sales was 17.5% versus 22.5% a year earlier, as management sold more homes than expected but needed additional incentives to do so. Management guides to fourth-quarter 2025 deliveries of 22,000 to 23,000 homes, an average sales price of $380,000 to $390,000, and a margin of approximately 17.5%.
The balance sheet changed significantly after the February 7, 2025 spin-off of Millrose Properties, Inc., in which Lennar distributed about 80% of Millrose's stock and contributed $5.6 billionc in land assets and $1.0 billion in cash. The company retains roughly 20% of Millrose, carried at $1.2 billion, which it expects to dispose of through a split-off, stock sale or another transaction. Cash and cash equivalents and restricted cash were $1.8 billion across all operations, down from $5.0 billion at November 30, 2024.
Homebuilding debt rose to $3.52 billiond, and Homebuilding debt to total capital increased to 13.5% from 7.5%. Nine-month operating cash flow was negative at $(1.54) billion. Lennar continued repurchasing stock, with $1.81 billion of repurchases in the nine months, and paid $0.50 per share quarterly dividends.
At August 31, 2025 it had $1.7 billion of remaining repurchase authorization. Note that third-quarter 2025 earnings included $99.2 million of mark-to-market gains on technology investments, and that the company acquired Rausch Coleman Homes in February 2025.
02—Key points
Key Highlights
- Q3 2025 net earnings attributable to Lennar were $590.97 million ($2.29 per diluted share), versus $1.16 billion ($4.26 per share) in Q3 2024; excluding $99.2 million of technology investment mark-to-market gains, earnings were $516.0 million ($2.00 per share), as stated in the filing.
- Gross margin on home sales was 17.5% in Q3 2025 versus 22.5% in Q3 2024, with management citing lower revenue per square foot and higher land costs, partly offset by lower construction costs.
- Average sales price of homes delivered fell to $383,000 from $422,000 year over year, while deliveries were 21,584 homes, essentially flat with 21,516 a year earlier.
- Spin-off of Millrose Properties, Inc. on February 7, 2025 moved $5.6 billion of land assets and $1.0 billion of cash out of the company; Lennar retains a roughly 20% stake carried at $1.2 billion.
- Homebuilding debt rose to $3.52 billion from $2.26 billion at November 30, 2024, after a $700 million 5.20% senior notes issuance and $1.14 billion drawn on the revolving Credit Facility; Homebuilding debt to total capital was 13.5%.
- Cash and cash equivalents and restricted cash fell to $1.76 billion from $4.99 billion at November 30, 2024, with nine-month operating cash flow of $(1.54) billion driven by inventory and land deposit growth.
- Management expects Q4 2025 deliveries of 22,000 to 23,000 homes, an average sales price of $380,000 to $390,000, and a gross margin of approximately 17.5%.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 3, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $8.81B$9.42B | −6.4% |
| SG&A Expenses | $676.49M— | — |
| Operating Expenses | $8.11B$8.13B | −0.2% |
| Net Income | $590.97M$1.16B | −49.2% |
| EPS (Basic) | $2.29$4.26 | −46.2% |
| EPS (Diluted) | $2.29$4.26 | −46.2% |
| Shares Outstanding (Basic) | 255.60M270.16M | −5.4% |
| Shares Outstanding (Diluted) | 255.60M270.16M | −5.4% |
05—Questions
Frequently Asked Questions
Why did Lennar's earnings decline so sharply in the third quarter of 2025?
Homebuilding revenue from home sales fell 9% to $8.2 billion, driven mainly by a 9% decline in the average sales price of homes delivered to $383,000. Gross margin on home sales dropped to 17.5% from 22.5%, and selling, general and administrative expenses rose to 8.2% of home sales revenue from 6.7%. The filing attributes the margin decline to lower revenue per square foot, higher land costs and added incentives needed to sustain sales volume, partly offset by lower construction costs.
What was the effect of the Millrose Properties spin-off on Lennar's financial position?
On February 7, 2025, Lennar distributed about 80% of Millrose's stock to shareholders and contributed $5.6 billion in land assets (about 87,000 homesites) and $1.0 billion in cash. Total stockholders' equity fell to $22.57 billion from $27.87 billion at November 30, 2024, and retained earnings declined by $4.84 billion for the spin-off. Lennar still holds about 20% of Millrose, carried at $1.2 billion, which it expects to dispose of through a split-off, stock sale or another transaction.
How did Lennar's liquidity and leverage change during the first nine months of 2025?
Total cash and restricted cash across operations fell to $1.76 billion from $4.99 billion at the start of the year. Homebuilding debt increased to $3.52 billion, and Homebuilding debt to total capital rose to 13.5% from 7.5%. The company issued $700 million of 5.20% senior notes due 2030, repaid $500 million of 4.75% notes due 2025, and drew $1.14 billion on its revolving Credit Facility. The filing states the company was in compliance with its debt covenants at August 31, 2025.
What is Lennar's capital return activity and how much authorization remains?
In the nine months ended August 31, 2025, Lennar repurchased $1.81 billion of common stock and paid $394 million in dividends. At August 31, 2025, the remaining repurchase authorization was $1.7 billion. The Board declared a quarterly dividend of $0.50 per share on September 26, 2025, payable October 27, 2025.
What does management expect for the fourth quarter of 2025?
Management anticipates selling 20,000 to 21,000 homes and delivering 22,000 to 23,000 homes in the fourth quarter of 2025, at an average sales price between $380,000 and $390,000. It expects a margin of approximately 17.5%, depending on market conditions, and says it remains focused on sales, closings and strong current cash flow even at reduced profitability.
06—Continue