01—Abstract
Summary
Summary of the 8-K filed March 12, 2026. Cited figures are marked; the original filing is the authoritative source.
Lennar Corporation reported first-quarter 2026 results for the period ended February 28, 2026, in a press release furnished as Exhibit 99.1 to this Form 8-K filed March 12, 2026.
Net earnings attributable to Lennar were $229 milliona, or $0.93 per diluted share, versus $520 million, or $1.96 per diluted share, in the prior-year quarter. Excluding pretax mark-to-market gains of $15 million on technology investments, earnings were $218 million, or $0.88 per diluted share. Total revenues were $6.6 billion, and homebuilding operating earnings fell to $373 million from $809 million.
Gross margin on home sales was 15.2%b, down from 18.7%, and SG&A rose to 9.8% of home sales revenue from 8.5%, as management cited lower revenue per square foot, higher land costs, and less operating leverage. Management attributed the weakness to high mortgage rates, constrained affordability, and geopolitical uncertainty, including the recent conflict in Iran. Orders were 18,515 homes, up 1% year over year, while deliveries declined 5% to 16,863 homes.
The average sales price of homes delivered was $374,000,c down from $408,000, reflecting continued use of approximately 14% in incentives. Homebuilding cash and cash equivalents were $2.1 billion, down from $3.4 billion at November 30, 2025, and homebuilding debt to total capital was 15.7%. The company repurchased 2 million shares for $237 million and had no outstanding borrowings under its $3.1 billion revolving credit facility.
For the second quarter of 2026, Lennar guided to 21,000 to 22,000 new orders, 20,000 to 21,000 deliveries, an average sales price of $370,000 to $375,000,d gross margin on home sales of 15.5% to 16.0%, SG&A of 8.9% to 9.1% of home sales, and Financial Services operating earnings of $100 million to $110 million. A conference call was scheduled for March 13, 2026.
02—Key points
Key Highlights
- Net earnings attributable to Lennar were $229 million, or $0.93 per diluted share, compared with $520 million, or $1.96 per diluted share, in the first quarter of 2025; excluding technology investment mark-to-market gains, EPS was $0.88.
- Gross margin on home sales fell to 15.2% from 18.7%, and SG&A rose to 9.8% of home sales revenue from 8.5%, as lower revenue per square foot and higher land costs outweighed construction cost decreases.
- Deliveries decreased 5% to 16,863 homes while new orders increased 1% to 18,515 homes; the average sales price fell to $374,000 from $408,000 amid incentives of approximately 14%.
- Homebuilding operating earnings were $373 million, versus $809 million a year earlier, and Financial Services operating earnings declined to $91 million from $143 million.
- Backlog stood at 15,588 homes with a dollar value of $6.0 billion, compared with 13,145 homes a year earlier.
- The company repurchased 2 million shares for $237 million at an average price of $118.54 and had no borrowings outstanding under its $3.1 billion revolving credit facility.
- Second-quarter 2026 guidance calls for 20,000 to 21,000 deliveries, gross margin of 15.5% to 16.0%, and Financial Services operating earnings of $100 million to $110 million.
03—Questions
Frequently Asked Questions
How did Lennar's first-quarter 2026 earnings compare with the prior year?
Net earnings attributable to Lennar were $229 million, or $0.93 per diluted share, down from $520 million, or $1.96 per diluted share, in the first quarter of 2025. Excluding pretax mark-to-market gains of $15 million on technology investments, earnings were $218 million, or $0.88 per diluted share. The prior-year quarter included mark-to-market losses of $63 million on those investments.
Why did margins decline in the quarter?
Gross margin on home sales decreased to 15.2% from 18.7%, primarily due to lower revenue per square foot and higher land costs, partly offset by lower construction costs. SG&A rose to 9.8% of home sales revenue from 8.5%, mainly because lower revenues provided less leverage. Management cited high mortgage rates, constrained affordability, and cautious consumer sentiment.
How are demand and pricing trending?
New orders rose 1% year over year to 18,515 homes, while deliveries fell 5% to 16,863 homes. The average sales price of homes delivered declined to $374,000 from $408,000, reflecting weak market conditions and increased sales incentives, which management put at approximately 14%. Backlog ended the quarter at 15,588 homes worth $6.0 billion.
What is the company's financial position and capital return activity?
Homebuilding cash and cash equivalents were $2.1 billion at February 28, 2026, down from $3.4 billion at November 30, 2025. Homebuilding debt to total capital was 15.7%, and there were no outstanding borrowings under the $3.1 billion revolving credit facility. During the quarter, Lennar repurchased 2 million shares for $237 million.
What does Lennar expect for the second quarter of 2026?
Lennar expects new orders of 21,000 to 22,000 homes, deliveries of 20,000 to 21,000 homes, and an average sales price of $370,000 to $375,000. It anticipates gross margin on home sales of 15.5% to 16.0%, SG&A of 8.9% to 9.1% of home sales, and Financial Services operating earnings of $100 million to $110 million.
04—Continue