Skip to content
AnalystLens

Lennar 8-K Report, Financial Results (Dec 18, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed December 18, 2024
Period End
December 18, 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 December 18, 2024. Cited figures are marked; the original filing is the authoritative source.

Lennar Corporation reported fourth-quarter and fiscal 2024 results for the periods ended November 30, 2024, in a press release furnished as Exhibit 99.1 to this Form 8-K.

For the fourth quarter, net earnings attributable to Lennar were $1.1 billiona, or $4.06 per diluted share, compared with $1.4 billion, or $4.82 per diluted share, a year earlier. Excluding mark-to-market gains on technology investments, diluted EPS was $4.03. Fourth-quarter new orders fell 3% to 16,895 homes, deliveries decreased 7% to 22,206 homes, and total revenues were $9.9 billion.

Homebuilding gross margin on home sales was 22.1%, compared with 24.2% a year earlier, and SG&A rose to 7.2% of home sales revenue from 6.6%. Management attributed the weaker quarter to rising mortgage rates, which it said climbed almost 100 basis points during the quarter, and to new orders that fell short of the low end of guidance. For fiscal 2024, net earnings attributable to Lennar were $3.9 billionb, or $14.31 per diluted share, and total revenues were $35.4 billion.

New orders increased 11% to 76,951 homes and deliveries increased 10% to 80,210 homes. The company repurchased 13.6 million shares for $2.1 billionc during the year and ended the year with $4.7 billion of Homebuilding cash and cash equivalents, no borrowings under its $2.9 billion revolving credit facility, and a homebuilding debt-to-total-capital ratio of 7.5%.

For the first quarter of 2025, Lennar guided to 17,000 to 17,500 deliveries, an average sales price of $410,000 to $415,000,d and a gross margin on home sales of 19.0% to 19.25%. Full-year 2025 deliveries are expected at 86,000 to 88,000 homes, including the Rausch Coleman acquisition, but the company will not guide full-year gross margin yet.

02—Key points

Key Highlights

  1. Q4 2024 diluted EPS was $4.06 versus $4.82 a year earlier; net earnings were $1.1 billion versus $1.4 billion.
  2. Q4 new orders fell 3% to 16,895 homes and deliveries fell 7% to 22,206 homes; management said orders fell short of the low end of its 19,000-home guidance.
  3. Homebuilding gross margin on home sales was 22.1% in Q4 2024, down from 24.2%, and SG&A rose to 7.2% of home sales revenue from 6.6%.
  4. Full-year 2024 new orders rose 11% to 76,951 homes and deliveries rose 10% to 80,210 homes, with net earnings of $3.9 billion ($14.31 per diluted share).
  5. Lennar repurchased 13.6 million shares for $2.1 billion in fiscal 2024, including 3 million shares for $521 million in Q4.
  6. The balance sheet remained strong, with $4.7 billion of Homebuilding cash, no borrowings under the $2.9 billion revolving credit facility, and homebuilding debt to total capital of 7.5%.
  7. Q1 2025 guidance calls for 17,000 to 17,500 deliveries and a 19.0% to 19.25% gross margin, and full-year 2025 deliveries of 86,000 to 88,000 homes including Rausch Coleman; full-year margin guidance was withheld.

03—Questions

Frequently Asked Questions

  1. Why did Lennar's fourth-quarter earnings and margins decline?

    Management said mortgage rates rose almost 100 basis points during the quarter, which limited affordability and slowed sales. Average sales price per home fell to $430,000 from $441,000 as the company used more incentives, and gross margin fell to 22.1% from 24.2% because revenue per square foot declined while land costs increased.

  2. How did Lennar's sales and deliveries perform?

    Fourth-quarter new orders decreased 3% to 16,895 homes, and deliveries decreased 7% to 22,206 homes. For fiscal 2024, new orders increased 11% to 76,951 homes and deliveries increased 10% to 80,210 homes. The company ended the quarter with 11,633 homes in backlog, valued at $5.4 billion.

  3. What is Lennar's outlook for 2025?

    For the first quarter of 2025, Lennar expects 17,500 to 18,000 new orders, 17,000 to 17,500 deliveries, an average sales price of $410,000 to $415,000, and a gross margin on home sales of 19.0% to 19.25%. For full-year 2025, it expects 86,000 to 88,000 deliveries, including the Rausch Coleman acquisition. It will not give full-year gross margin guidance until market conditions are clearer.

  4. How strong is Lennar's balance sheet and liquidity?

    At November 30, 2024, Homebuilding cash and cash equivalents were $4.7 billion, and there were no borrowings under the $2.9 billion revolving credit facility, giving about $7.6 billion of available capacity. Homebuilding debt to total capital was 7.5%, down from 9.6% a year earlier, and net homebuilding debt was negative at $2.4 billion.

  5. What capital allocation and strategic actions did Lennar announce?

    Lennar repurchased 3 million shares for $521 million in Q4 2024 and 13.6 million shares for $2.1 billion in fiscal 2024. It also agreed in November 2024 to acquire Rausch Coleman Homes, expected to close in Q1 2025, and filed a registration statement on Form S-11 for the planned spin-off of Millrose Properties, Inc.

04—Continue

← View all 8-K filings