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Lennar 8-K Report, Financial Results (Mar 13, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed March 13, 2024
Period End
March 13, 2024
Securities
LENLEN-B
In the record · 2016–202610-K1210-Q338-K129

LEN filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 129 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Apr ’18Apr ’18
  2. Leadership change8-K · Nov ’20Nov ’20
  3. Leadership change8-K · Nov ’22Nov ’22
  4. Material agreement8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed March 13, 2024. Cited figures are marked; the original filing is the authoritative source.

Lennar Corporation reported results for its first quarter ended February 29, 2024, in a press release furnished as Exhibit 99.1 to this Form 8-K.

Net earnings attributable to Lennar were $719 milliona, or $2.57 per diluted share, up from $597 million, or $2.06 per diluted share, in the prior-year quarter. Total revenues rose 13% to $7.3 billion, with new orders up 28% to 18,176 homes and deliveries up 23% to 16,798 homes. Average sales price net of incentives fell 8% to $413,000, while homebuilding gross margin on home sales reached 21.8%, up 60 basis points year over year.

Balance sheet and capital allocation were central to the quarter. Homebuilding cash and cash equivalents totaled $5.0 billionb, there were no borrowings under the $2.6 billion revolving credit facility, and homebuilding debt to total capital was 9.6%. The company repurchased 3.4 million shares for $506 million, increased its stock repurchase program by up to an additional $5.0 billion, and raised its annual dividend from $1.50 to $2.00 per share.

Management highlighted a land-light strategy, with years supply of owned homesites at 1.3 years and controlled homesites at 77%. For the second quarter of 2024, Lennar guided to 20,900 to 21,300 new orders, 19,000 to 19,500 deliveries, an average sales price of $420,000 to $425,000,c and a gross margin of about 22.5%.

Management reiterated a target of 80,000 home deliveries for the full year. The company also held a conference call on March 14, 2024.

02—Key points

Key Highlights

  1. Net earnings attributable to Lennar rose to $719 million, or $2.57 per diluted share, from $597 million, or $2.06 per diluted share, a year earlier.
  2. New orders increased 28% to 18,176 homes, with a dollar value of $7.7 billion, while deliveries rose 23% to 16,798 homes.
  3. Average sales price net of incentives declined 8% to $413,000, while homebuilding gross margin improved to 21.8%, up 60 basis points.
  4. Homebuilding cash and cash equivalents were $5.0 billion, with no borrowings under the $2.6 billion revolver and homebuilding debt to total capital of 9.6%.
  5. The board increased the stock repurchase program by up to an additional $5.0 billion and the annual dividend from $1.50 to $2.00 per share; 3.4 million shares were repurchased for $506 million in the quarter.
  6. Second-quarter 2024 guidance calls for 19,000 to 19,500 deliveries and a gross margin of about 22.5%, with the full-year target of 80,000 homes delivered reiterated.
  7. Financial Services operating earnings rose to $131 million from $78 million, driven by higher mortgage profit per locked loan and higher lock volume.

03—Questions

Frequently Asked Questions

  1. How did Lennar perform in its first quarter of 2024?

    Net earnings attributable to Lennar were $719 million, or $2.57 per diluted share, compared with $597 million, or $2.06 per diluted share, in the first quarter of 2023. Total revenues increased 13% to $7.3 billion.

  2. What drove the increase in sales volume, and at what cost to pricing?

    New orders rose 28% to 18,176 homes and deliveries rose 23% to 16,798 homes. The average sales price net of incentives fell 8% to $413,000, reflecting increased use of incentives and product mix.

  3. How strong is Lennar's balance sheet?

    Homebuilding cash and cash equivalents were $5.0 billion at February 29, 2024, the $2.6 billion revolving credit facility had no outstanding borrowings, and homebuilding debt to total capital was 9.6%. Overall liquidity was $7.6 billion.

  4. What capital return actions did Lennar announce?

    The company repurchased 3.4 million shares for $506 million in the quarter, increased its stock repurchase program by up to an additional $5.0 billion, and raised its annual dividend from $1.50 to $2.00 per share.

  5. What is the outlook for the second quarter of 2024?

    Lennar expects second-quarter new orders of 20,900 to 21,300, deliveries of 19,000 to 19,500, an average sales price of $420,000 to $425,000, and a gross margin on home sales of about 22.5%. It remains focused on delivering 80,000 homes for the full year.

04—Continue

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