How did Lennar perform in the fourth quarter of fiscal 2025?

Net earnings attributable to Lennar were $490 million, or $1.93 per diluted share, compared with $1.1 billion, or $4.06 per diluted share, a year earlier. Excluding a $123 million mark-to-market gain on technology investments and a $156 million one-time loss on the Millrose exchange offer, earnings were $514 million, or $2.03 per diluted share.

What drove the decline in homebuilding margins?

Gross margin on home sales fell to 17.0% from 22.1%, primarily due to lower revenue per square foot and higher land costs, partially offset by lower construction costs. The average sales price of homes delivered decreased to $386,000 from $430,000, reflecting market weakness and increased sales incentives.

What is Lennar's balance sheet position?

Homebuilding cash and cash equivalents were $3.4 billion at November 30, 2025. The company had no outstanding borrowings under its $3.1 billion revolving credit facility and $1.7 billion outstanding under its term loan facility. Homebuilding debt to total capital was 15.7%, compared with 7.5% a year earlier.

What is the outlook for the first quarter and full year of fiscal 2026?

For the first quarter, Lennar expects new orders of 18,000 to 19,000, deliveries of 17,000 to 18,000, an average sales price of $365,000 to $375,000, a gross margin on home sales of 15.0% to 16.0%, and SG&A of about 9.5% of home sales. For the full year, deliveries are expected to be approximately 85,000 homes.

What was the Millrose exchange offer and how did it affect results?

In November 2025, Lennar completed the Millrose exchange offer in a non-cash transaction, accepting 8,049,594 shares of its Class A common stock in exchange for 33,298,754 shares of Millrose Class A common stock, representing 20% of Millrose's outstanding shares. The exchange reduced investments in unconsolidated entities and stockholders' equity by $1.1 billion and produced a one-time loss of $156 million.

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

01—Abstract

Summary

Summary of the 8-K filed December 16, 2025. Cited figures are marked; the original filing is the authoritative source.

Lennar Corporation reported fourth-quarter and fiscal 2025 results for the period ended November 30, 2025, in a December 16, 2025 press release furnished as Exhibit 99.1.

Fourth-quarter net earnings attributable to Lennar were $490 million^a, or $1.93 per diluted share, or $2.03 per diluted share excluding a $123 million mark-to-market gain on technology investments and a $156 million one-time loss on the Millrose Properties, Inc. exchange offer. Fiscal 2025 net earnings attributable to Lennar were $2.1 billion, or $7.98 per diluted share ($8.06 excluding adjustments). Quarterly deliveries rose to 23,034 homes and new orders to 20,018 homes, but average sales price fell to $386,000 from $430,000, and gross margin on home sales declined to 17.0% from 22.1%.

Management cited continued market weakness and incentives of approximately 14% in incentives and price adjustments. Homebuilding operating earnings were $718 million^b in the quarter, compared with $1.50 billion a year earlier. Homebuilding cash and cash equivalents were $3.4 billion, with no borrowings outstanding under the $3.1 billion revolving credit facility and $1.7 billion outstanding under the term loan facility.

Homebuilding debt to total capital rose to 15.7% from 7.5% a year earlier, and homebuilding senior notes and other debts payable increased to $4.08 billion^c from $2.26 billion. Total backlog was 13,936 homes valued at $5.2 billion.

For the first quarter of fiscal 2026, Lennar expects deliveries of 17,000 to 18,000 homes, an average sales price of $365,000 to $375,000,^d and a gross margin of 15% to 16%, with SG&A of about 9.5%. For the full year, the company expects deliveries of approximately 85,000 homes.

02—Key points

Key Highlights

Fourth-quarter EPS of $1.93 (GAAP) and $2.03 excluding a $123 million technology investment mark-to-market gain and a $156 million one-time Millrose exchange offer loss.
Fiscal 2025 net earnings attributable to Lennar of $2.1 billion, or $7.98 per diluted share, versus $3.9 billion, or $14.31, in fiscal 2024.
Quarterly deliveries of 23,034 homes (up 4% year over year) and new orders of 20,018 homes (up 18%), while average sales price fell to $386,000 from $430,000.
Gross margin on home sales declined to 17.0% from 22.1% in the prior-year quarter, with SG&A rising to 7.9% of home sales revenues from 7.2%.
Homebuilding debt to total capital increased to 15.7% from 7.5%, with homebuilding debt of $4.08 billion against cash of $3.4 billion.
Completed the Millrose exchange offer, repurchasing 8,049,594 Lennar shares for 33,298,754 Millrose shares, and the Rausch Coleman Homes acquisition in February 2025.
Guidance for Q1 2026: 17,000 to 18,000 deliveries and gross margin of 15% to 16%; full-year 2026 deliveries of approximately 85,000 homes.

03—Questions

Frequently Asked Questions

How did Lennar perform in the fourth quarter of fiscal 2025?
Net earnings attributable to Lennar were $490 million, or $1.93 per diluted share, compared with $1.1 billion, or $4.06 per diluted share, a year earlier. Excluding a $123 million mark-to-market gain on technology investments and a $156 million one-time loss on the Millrose exchange offer, earnings were $514 million, or $2.03 per diluted share.
What drove the decline in homebuilding margins?
Gross margin on home sales fell to 17.0% from 22.1%, primarily due to lower revenue per square foot and higher land costs, partially offset by lower construction costs. The average sales price of homes delivered decreased to $386,000 from $430,000, reflecting market weakness and increased sales incentives.
What is Lennar's balance sheet position?
Homebuilding cash and cash equivalents were $3.4 billion at November 30, 2025. The company had no outstanding borrowings under its $3.1 billion revolving credit facility and $1.7 billion outstanding under its term loan facility. Homebuilding debt to total capital was 15.7%, compared with 7.5% a year earlier.
What is the outlook for the first quarter and full year of fiscal 2026?
For the first quarter, Lennar expects new orders of 18,000 to 19,000, deliveries of 17,000 to 18,000, an average sales price of $365,000 to $375,000, a gross margin on home sales of 15.0% to 16.0%, and SG&A of about 9.5% of home sales. For the full year, deliveries are expected to be approximately 85,000 homes.
What was the Millrose exchange offer and how did it affect results?
In November 2025, Lennar completed the Millrose exchange offer in a non-cash transaction, accepting 8,049,594 shares of its Class A common stock in exchange for 33,298,754 shares of Millrose Class A common stock, representing 20% of Millrose's outstanding shares. The exchange reduced investments in unconsolidated entities and stockholders' equity by $1.1 billion and produced a one-time loss of $156 million.

04—Continue

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