How did Lennar's third-quarter 2025 earnings compare with the prior year?

Net earnings attributable to Lennar were $591 million, or $2.29 per diluted share, down from $1.2 billion, or $4.26 per diluted share, in the third quarter of 2024. Excluding $99 million of mark-to-market gains on technology investments, earnings were $516 million, or $2.00 per diluted share.

What drove the decline in margins?

Gross margin on home sales decreased to 17.5% from 22.5%, primarily due to lower revenue per square foot and higher land costs, partially offset by lower construction costs. The average sales price fell to $383,000 from $422,000 amid continued market weakness, and management said additional incentives were required to achieve sales.

What is Lennar's outlook for the fourth quarter of 2025?

Lennar expects new orders of 20,000 to 21,000 homes, deliveries of 22,000 to 23,000 homes, an average sales price of $380,000 to $390,000, and gross margin of approximately 17.5%. SG&A is expected to be 7.8% to 8.0% of home sales, and Financial Services operating earnings are expected to be $130 million to $135 million.

How is Lennar managing its balance sheet and capital?

Homebuilding cash and cash equivalents were $1.4 billion at August 31, 2025, and homebuilding debt was $3.52 billion, raising the homebuilding debt to total capital ratio to 13.5% from 7.5% at November 30, 2024. Outstanding borrowings were $1.1 billion under the company's $3.1 billion revolving credit facility. During the quarter, the company repurchased 4.1 million shares for $507 million.

Why did management choose to moderate sales volume?

Management said interest rates remained elevated during the third quarter but declined toward quarter-end, and that the Federal Reserve's recent rate cut gave it optimism for the fourth quarter. It stated that it believes now is a good time to moderate volume and allow the market to catch up.

LEN/LEN-B 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed September 19, 2025. Cited figures are marked; the original filing is the authoritative source.

Lennar Corporation reported third-quarter 2025 results for the period ended August 31, 2025, with net earnings attributable to Lennar of $591 million^a, or $2.29 per diluted share, compared with $1.2 billion, or $4.26 per diluted share, a year earlier.

Excluding $99 million^b of mark-to-market gains on technology investments, earnings were $516 million, or $2.00 per diluted share. Results reflected softer market conditions: homebuilding revenues from home sales fell 9% to $8.2 billion, the average sales price of homes delivered dropped to $383,000 from $422,000, and gross margin on home sales declined to 17.5% from 22.5%. Homebuilding operating earnings were $760 million, versus $1.48 billion in the prior-year quarter.

New orders rose 12% to 23,004 homes, while deliveries were 21,584 homes, consistent with the prior year. Backlog stood at 16,953 homes with a dollar value of $6.6 billion^c. Management said it used incentives, including mortgage rate buydowns, to sustain sales pace, and reported cycle time of 126 days.

Homebuilding cash and cash equivalents were $1.4 billion^d, and homebuilding debt to total capital rose to 13.5% from 7.5% at November 30, 2024. The company repurchased 4.1 million shares for $507 million.

For the fourth quarter of 2025, Lennar guided to new orders of 20,000 to 21,000 homes, deliveries of 22,000 to 23,000 homes, an average sales price of $380,000 to $390,000, gross margin of approximately 17.5%, SG&A of 7.8% to 8.0% of home sales, and Financial Services operating earnings of $130 million to $135 million. Management stated it believes it is a good time to moderate volume to let the market catch up.

02—Key points

Key Highlights

Net earnings attributable to Lennar were $591 million, or $2.29 per diluted share, versus $1.2 billion, or $4.26 per diluted share, in the third quarter of 2024; excluding $99 million of technology investment mark-to-market gains, earnings were $2.00 per diluted share.
Gross margin on home sales fell to 17.5% from 22.5%, and the average sales price of homes delivered decreased to $383,000 from $422,000.
SG&A as a percentage of home sales revenues rose to 8.2% from 6.7%, reflecting less leverage and higher marketing and selling expenses.
New orders increased to 23,004 homes from 20,587, while deliveries of 21,584 homes were consistent with the prior year; backlog was 16,953 homes worth $6.6 billion.
Homebuilding debt to total capital increased to 13.5% from 7.5% at November 30, 2024, while homebuilding cash and cash equivalents were $1.4 billion.
The company repurchased 4.1 million shares of common stock for $507 million at an average price of $122.97.
Fourth-quarter 2025 guidance calls for 20,000 to 21,000 new orders, 22,000 to 23,000 deliveries, and gross margin of approximately 17.5%.

03—Questions

Frequently Asked Questions

How did Lennar's third-quarter 2025 earnings compare with the prior year?
Net earnings attributable to Lennar were $591 million, or $2.29 per diluted share, down from $1.2 billion, or $4.26 per diluted share, in the third quarter of 2024. Excluding $99 million of mark-to-market gains on technology investments, earnings were $516 million, or $2.00 per diluted share.
What drove the decline in margins?
Gross margin on home sales decreased to 17.5% from 22.5%, primarily due to lower revenue per square foot and higher land costs, partially offset by lower construction costs. The average sales price fell to $383,000 from $422,000 amid continued market weakness, and management said additional incentives were required to achieve sales.
What is Lennar's outlook for the fourth quarter of 2025?
Lennar expects new orders of 20,000 to 21,000 homes, deliveries of 22,000 to 23,000 homes, an average sales price of $380,000 to $390,000, and gross margin of approximately 17.5%. SG&A is expected to be 7.8% to 8.0% of home sales, and Financial Services operating earnings are expected to be $130 million to $135 million.
How is Lennar managing its balance sheet and capital?
Homebuilding cash and cash equivalents were $1.4 billion at August 31, 2025, and homebuilding debt was $3.52 billion, raising the homebuilding debt to total capital ratio to 13.5% from 7.5% at November 30, 2024. Outstanding borrowings were $1.1 billion under the company's $3.1 billion revolving credit facility. During the quarter, the company repurchased 4.1 million shares for $507 million.
Why did management choose to moderate sales volume?
Management said interest rates remained elevated during the third quarter but declined toward quarter-end, and that the Federal Reserve's recent rate cut gave it optimism for the fourth quarter. It stated that it believes now is a good time to moderate volume and allow the market to catch up.

04—Continue

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