Lennar Reports First Quarter 2026 Results
Rhea-AI Summary
Lennar (NYSE: LEN) reported Q1 2026 results for period ended Feb 28, 2026: net earnings of $229M ($0.93 diluted; $0.88 excluding mark-to-market gains), total revenues of $6.6B, deliveries of 16,863 homes, backlog of 15,588 homes valued at $6.0B, and a gross margin on home sales of 15.2%.
The company repurchased 2 million shares for $237M, reported homebuilding cash of $2.1B, and provided Q2 2026 guidance for deliveries of 20,000–21,000 homes and gross margin of 15.5%–16.0%.
Positive
- Deliveries of 16,863 homes in Q1 2026
- Backlog of 15,588 homes valued at $6.0B
- Homebuilding gross margin of 15.2% in Q1
- Repurchased 2 million shares for $237M
Negative
- Revenues from home sales down 13% year-over-year
- Net earnings declined from $520M to $229M year-over-year
- Financial Services operating earnings down to $91M
News Market Reaction – LEN
On the day this news was published, LEN gained 2.62%, reflecting a moderate positive market reaction. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $610M to the company's valuation, bringing the market cap to $23.89B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
LEN is down 2.18% with heavy volume, while key homebuilder peers are also negative (e.g., PHM -1.4%, DHI -1.79%, NVR -1.8%, TOL -2.39%, MTH -1.88%). Only PHM appeared on the momentum scanner, so today’s move screens as more stock-specific than a broad sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 26 | Earnings call notice | Neutral | +2.1% | Announcement of timing and webcast details for Q1 2026 earnings call. |
| Sep 18 | Q3 2025 earnings | Negative | -4.2% | Net earnings and margins declined despite higher orders and revenues. |
| Sep 04 | Earnings call notice | Neutral | +2.8% | Scheduled Q3 2025 earnings release and conference call for investors. |
| Jun 16 | Q2 2025 earnings | Negative | -4.5% | Earnings and home sales revenue fell year over year amid softer pricing. |
| Jun 03 | Earnings call notice | Neutral | +3.4% | Announcement of Q2 2025 earnings release date and webcast access details. |
Earnings-related news has often coincided with notable downside moves, especially when results showed margin pressure or declining EPS, though pre-announcement call notices sometimes saw modest gains.
Over the past few quarters, Lennar’s earnings cycle has featured solid order growth alongside declining EPS and margin compression. Q2 and Q3 2025 results showed lower net earnings and reduced average sales prices despite higher deliveries and strong liquidity. The Q4 2025 report highlighted robust revenues and significant buybacks but a negative immediate price reaction. Ahead of this Q1 2026 release, the company pre-announced its earnings call on Feb 26, 2026, which was followed by a modest 2.11% gain, underscoring active investor focus on results.
Historical Comparison
Recent earnings and earnings-call items for LEN have averaged a modest -0.08 price move, suggesting that historically, this news category produced relatively contained reactions.
Tagged earnings events show a trend of lower net earnings and margins from Q2–Q3 2025 while orders and deliveries remained resilient, setting the backdrop for Q1 2026 results under continued affordability and rate headwinds.
Market Pulse Summary
This announcement highlights Lennar’s Q1 2026 earnings reset, with net earnings of $229M, EPS of $0.93, and gross margin of 15.2% amid ongoing affordability and rate headwinds. New orders grew 1% to 18,515 homes and backlog reached $6.0B, supported by shorter 122-day cycle times and a land-light model. Investors may watch how guidance for 20,000–21,000 deliveries and 15.5–16.0% margins tracks against execution in coming quarters.
Key Terms
mark-to-market gains financial
gross margin financial
sg&a financial
net margin financial
operating earnings financial
revolving credit facility financial
effective income tax rate financial
cycle time technical
AI-generated analysis. Not financial advice.
First Quarter 2026 Highlights
- Net earnings per diluted share of
$0.93 $0.88 - Net earnings of
$229 million - New orders increased
1% year over year to 18,515 homes - Backlog of 15,588 homes with a dollar value of
$6.0 billion - Deliveries decreased
5% year over year to 16,863 homes - Total revenues of
$6.6 billion - Homebuilding operating earnings of
$373 million - Gross margin on home sales of
15.2% - S,G&A expenses as a % of revenues from home sales of
9.8% - Net margin on home sales of
5.3%
- Gross margin on home sales of
- Financial Services operating earnings of
$91 million - Multifamily operating earnings of
$18 million - Lennar Other operating loss of
$5 million - Homebuilding cash and cash equivalents of
$2.1 billion - No outstanding borrowings under the Company's
$3.1 billion - Homebuilding debt to total capital of
15.7% - Repurchased 2 million shares of Lennar common stock for
$237 million
Stuart Miller, Executive Chairman and Chief Executive Officer of Lennar, said, "Our first quarter of fiscal year 2026 was defined by the same persistent headwinds that have challenged the housing market for over three years — high mortgage rates, constrained affordability, cautious consumer sentiment, and geopolitical uncertainty, especially now including the recent conflict in
"During the first quarter, we delivered 16,863 homes, generated 18,515 new orders, and maintained our disciplined, production-first operating strategy. Our average sales price was
"Our strategy has been to actively design around the affordability challenge rather than waiting it out. We have focused on prioritizing volume to create durable scale advantages, delivering that volume at lower prices, and ultimately improving margins. Operationally, our starts pace of 3.4 homes per community per month and sales pace of 3.6 reflect a measured, even-flow approach across our 1,678 active communities. Our cycle time improved to 122 days, our shortest ever, and our inventory turn increased to 2.5 times, reflecting the strength of our land-light model, as well as improved execution across our construction operations and supply chain. Additionally, our construction costs improved just over
"In the second quarter, we expect to deliver approximately 20,000 to 21,000 homes with gross margin improving to
Mr. Miller concluded, "While the broader market remains challenged in the near term, exacerbated by current events, we are continuing to operate with conviction and clarity. The fundamental shortage of housing in America has not been solved — demand is real, deferred, and building. As affordability gradually improves, as rates find a more stable footing, and as the nation begins in earnest to address the regulatory and entitlement barriers that constrain supply, Lennar is extremely well positioned for long-term growth. But, until then, we are building the homes America needs, at the prices the market can absorb, with an operating platform that is continuously improving and becoming more efficient every quarter."
RESULTS OF OPERATIONS
FIRST QUARTER 2026 COMPARED TO FIRST QUARTER 2025
Homebuilding
Revenues from home sales decreased
Gross margins on home sales were
Selling, general and administrative expenses were
Financial Services
Operating earnings for the Financial Services segment were
Ancillary Businesses
Operating earnings for the Multifamily segment were
Tax Rate
In the first quarter of 2026 and 2025, the Company had tax provisions of
Share Repurchases
In the first quarter of 2026, the Company repurchased 2 million shares of its common stock for
Guidance
The following are the Company's expected results of its homebuilding and financial services activities for the second quarter of 2026:
New Orders | 21,000 - 22,000 |
Deliveries | 20,000 - 21,000 |
Average Sales Price | |
Gross Margin % on Home Sales | |
SG&A as a % of Home Sales | |
Financial Services Operating Earnings |
About Lennar
Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar's Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar's homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout
Note Regarding Forward-Looking Statements: Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the homebuilding market and other markets in which we participate, as well as our expected results and guidance. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those anticipated by the forward-looking statements. We wish to caution readers not to place undue reliance on any forward-looking statements, which are expressly qualified in their entirety by this cautionary statement and speak only as of the date made. Important factors that could cause differences between anticipated and actual results include slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities or own a substantial number of single-family homes for rent; decreased demand for our homes, either for sale or for rent, or Multifamily rental apartments; the potential impact of inflation; the impact of increased cost of mortgage financing for homebuyers, increased or continued high interest rates or increased competition in the mortgage industry; supply shortages and increased costs related to construction materials and labor; changes in trade policy affecting our business, including new or increased tariffs, as well as the potential impact of retaliatory tariffs and other penalties that may impact the cost of raw materials and other goods related to our homebuilding businesses; changes in
A conference call to discuss the Company's first quarter earnings will be held at 11:00 a.m. Eastern Time on Friday, March 13, 2026. The call will be broadcast live on the Internet and can be accessed through the Company's website at investors.lennar.com. If you are unable to participate in the conference call, the call will be archived at investors.lennar.com for 90 days. A replay of the conference call will also be available later that day by calling 203-369-1938 and entering 5723593 as the confirmation number.
###
LENNAR CORPORATION AND SUBSIDIARIES Selected Revenues and Operating Information (In thousands, except per share amounts) (unaudited) | |||
First Quarter | |||
2026 | 2025 | ||
Revenues: | |||
Homebuilding | $ 6,298,563 | 7,283,870 | |
Financial Services | 215,555 | 277,077 | |
Multifamily | 82,499 | 63,196 | |
Lennar Other | 22,859 | 7,402 | |
Total revenues | $ 6,619,476 | 7,631,545 | |
Homebuilding operating earnings | $ 373,028 | 809,273 | |
Financial Services operating earnings | 91,313 | 143,483 | |
Multifamily operating earnings (loss) | 17,859 | (23) | |
Lennar Other operating loss | (5,246) | (89,283) | |
Corporate general and administrative expenses | (157,638) | (147,378) | |
Charitable foundation contribution | (16,863) | (17,834) | |
Earnings before income taxes | 302,453 | 698,238 | |
Provision for income taxes | (69,092) | (169,525) | |
Net earnings (including net earnings attributable to noncontrolling interests) | 233,361 | 528,713 | |
Less: Net earnings attributable to noncontrolling interests | 3,978 | 9,187 | |
Net earnings attributable to Lennar | $ 229,383 | 519,526 | |
Basic and diluted average shares outstanding | 244,438 | 262,733 | |
Basic and diluted earnings per share | $ 0.93 | 1.96 | |
Supplemental information: | |||
Interest incurred (1) | $ 54,575 | 31,489 | |
EBIT (2): | |||
Net earnings attributable to Lennar | $ 229,383 | 519,526 | |
Provision for income taxes | 69,092 | 169,525 | |
Interest expense included in: | |||
Costs of homes and land sold | 38,829 | 28,118 | |
Homebuilding other income, net | 3,158 | 3,528 | |
Total interest expense | 41,987 | 31,646 | |
EBIT | $ 340,462 | 720,697 | |
(1) | Amount represents interest incurred related to homebuilding debt. |
(2) | EBIT is a non-GAAP financial measure defined as earnings before interest and taxes. This financial measure has been presented because the Company finds it important and useful in evaluating its performance and believes that it helps readers of the Company's financial statements compare its operations with those of its competitors. Although management finds EBIT to be an important measure in conducting and evaluating the Company's operations, this measure has limitations as an analytical tool as it is not reflective of the actual profitability generated by the Company during the period. Management compensates for the limitations of using EBIT by using this non-GAAP measure only to supplement the Company's GAAP results. Due to the limitations discussed, EBIT should not be viewed in isolation, as it is not a substitute for GAAP measures. |
LENNAR CORPORATION AND SUBSIDIARIES Segment Information (In thousands) (unaudited) | |||
First Quarter | |||
2026 | 2025 | ||
Homebuilding revenues: | |||
Sales of homes | $ 6,272,922 | 7,240,546 | |
Sales of land | 15,158 | 35,326 | |
Other homebuilding | 10,483 | 7,998 | |
Total homebuilding revenues | 6,298,563 | 7,283,870 | |
Homebuilding costs and expenses: | |||
Costs of homes sold | 5,321,614 | 5,888,144 | |
Costs of land sold | 31,311 | 36,077 | |
Selling, general and administrative | 617,495 | 615,739 | |
Total homebuilding costs and expenses | 5,970,420 | 6,539,960 | |
Homebuilding net margins | 328,143 | 743,910 | |
Homebuilding equity in earnings from unconsolidated entities | 38,181 | 35,004 | |
Homebuilding other income, net | 6,704 | 30,359 | |
Homebuilding operating earnings | $ 373,028 | 809,273 | |
Financial Services revenues | $ 215,555 | 277,077 | |
Financial Services costs and expenses | 124,242 | 133,594 | |
Financial Services operating earnings | $ 91,313 | 143,483 | |
Multifamily revenues | $ 82,499 | 63,196 | |
Multifamily costs and expenses | 90,428 | 73,376 | |
Multifamily equity in earnings from unconsolidated entities and other income (expense), net | 25,788 | 10,157 | |
Multifamily operating earnings (loss) | $ 17,859 | (23) | |
Lennar Other revenues | $ 22,859 | 7,402 | |
Lennar Other costs and expenses | 43,684 | 23,564 | |
Lennar Other equity in earnings (loss) from unconsolidated entities and other | 741 | (10,618) | |
Lennar Other gains (losses) from technology investments | 14,838 | (62,503) | |
Lennar Other operating loss | $ (5,246) | (89,283) | |
LENNAR CORPORATION AND SUBSIDIARIES |
Summary of Deliveries, New Orders and Backlog |
(Dollars in thousands, except average sales price) |
(unaudited) |
Lennar's reportable homebuilding segments and all other homebuilding operations not required to be reported separately have divisions located in: |
East: |
Central: |
South Central: |
West: |
Other: Urban divisions |
First Quarter | |||||||||||
2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||
Deliveries: | Homes | Dollar Value | Average Sales Price | ||||||||
East | 4,150 | 4,384 | $ 1,583,951 | 1,696,242 | $ 382,000 | 387,000 | |||||
Central | 3,801 | 3,956 | 1,345,033 | 1,530,193 | 354,000 | 387,000 | |||||
South Central | 5,039 | 4,730 | 1,160,180 | 1,160,523 | 230,000 | 245,000 | |||||
West | 3,868 | 4,756 | 2,251,747 | 2,888,685 | 582,000 | 607,000 | |||||
Other | 5 | 8 | 3,884 | 5,886 | 777,000 | 736,000 | |||||
Total | 16,863 | 17,834 | $ 6,344,795 | 7,281,529 | $ 374,000 | 408,000 | |||||
Of the total homes delivered listed above, 84 homes with a dollar value of | |||||||||||||||
First Quarter | |||||||||||||||
2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||
New Orders: | Active Communities | Homes | Dollar Value | Average Sales Price | |||||||||||
East | 359 | 341 | 4,480 | 4,063 | $ 1,711,647 | 1,561,862 | $ 382,000 | 384,000 | |||||||
Central | 452 | 436 | 4,592 | 4,550 | 1,636,213 | 1,800,195 | 356,000 | 396,000 | |||||||
South Central | 429 | 387 | 5,005 | 4,921 | 1,163,614 | 1,172,861 | 232,000 | 238,000 | |||||||
West | 437 | 418 | 4,431 | 4,811 | 2,622,800 | 2,888,650 | 592,000 | 600,000 | |||||||
Other | 1 | 2 | 7 | 10 | 5,112 | 7,164 | 730,000 | 716,000 | |||||||
Total | 1,678 | 1,584 | 18,515 | 18,355 | $ 7,139,386 | 7,430,732 | $ 386,000 | 405,000 | |||||||
Of the total new orders listed above, 71 homes with a dollar value of | |||||||||||
First Quarter | |||||||||||
2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||
Backlog: | Homes | Dollar Value | Average Sales Price | ||||||||
East | 5,152 | 3,038 | $ 1,897,184 | 1,350,594 | $ 368,000 | 445,000 | |||||
Central | 4,263 | 4,006 | 1,563,856 | 1,667,175 | 367,000 | 416,000 | |||||
South Central | 3,011 | 3,027 | 659,412 | 725,427 | 219,000 | 240,000 | |||||
West | 3,160 | 3,071 | 1,919,087 | 2,021,262 | 607,000 | 658,000 | |||||
Other | 2 | 3 | 1,228 | 1,626 | 614,000 | 542,000 | |||||
Total | 15,588 | 13,145 | $ 6,040,767 | 5,766,084 | $ 388,000 | 439,000 | |||||
Of the total homes in backlog listed above, 66 homes with a backlog dollar value of | |||||||||||
LENNAR CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except per share amounts) (unaudited) | |||
February 28, 2026 | November 30, 2025 | ||
ASSETS | |||
Homebuilding: | |||
Cash and cash equivalents | $ 2,085,384 | 3,441,324 | |
Restricted cash | 27,541 | 25,930 | |
Receivables, net | 960,912 | 1,002,629 | |
Inventories: | |||
Finished homes and construction in progress | 9,547,262 | 8,822,271 | |
Land and land under development | 928,517 | 1,098,961 | |
Inventory owned | 10,475,779 | 9,921,232 | |
Consolidated inventory not owned | 1,646,284 | 1,696,401 | |
Inventory owned and consolidated inventory not owned | 12,122,063 | 11,617,633 | |
Deposits and pre-acquisition costs on real estate | 6,824,948 | 6,383,633 | |
Investments in unconsolidated entities | 1,479,812 | 1,545,370 | |
Goodwill | 3,442,359 | 3,442,359 | |
Other assets | 1,787,517 | 1,794,378 | |
28,730,536 | 29,253,256 | ||
Financial Services | 2,808,039 | 3,377,413 | |
Multifamily | 842,100 | 902,136 | |
Lennar Other | 829,667 | 897,632 | |
Total assets | $ 33,210,342 | 34,430,437 | |
LIABILITIES AND EQUITY | |||
Homebuilding: | |||
Accounts payable | $ 1,737,575 | 1,812,484 | |
Liabilities related to consolidated inventory not owned | 1,447,697 | 1,476,376 | |
Senior notes and other debts payable, net | 4,065,459 | 4,084,686 | |
Other liabilities | 2,353,359 | 2,691,876 | |
9,604,090 | 10,065,422 | ||
Financial Services | 1,390,277 | 2,010,598 | |
Multifamily | 88,547 | 113,361 | |
Lennar Other | 95,165 | 100,447 | |
Total liabilities | 11,178,079 | 12,289,828 | |
Stockholders' equity: | |||
Preferred stock | — | — | |
Class A common stock of | 26,319 | 26,158 | |
Class B common stock of | 3,660 | 3,660 | |
Additional paid-in capital | 5,993,733 | 5,909,726 | |
Retained earnings | 22,577,374 | 22,471,471 | |
Treasury stock | (6,727,316) | (6,457,609) | |
Accumulated other comprehensive income | 5,606 | 6,011 | |
Total stockholders' equity | 21,879,376 | 21,959,417 | |
Noncontrolling interests | 152,887 | 181,192 | |
Total equity | 22,032,263 | 22,140,609 | |
Total liabilities and equity | $ 33,210,342 | 34,430,437 | |
LENNAR CORPORATION AND SUBSIDIARIES Supplemental Data (Dollars in thousands) (unaudited) | |||||
February 28, 2026 | November 30, 2025 | February 28, 2025 | |||
Homebuilding debt | $ 4,065,459 | 4,084,686 | 2,211,272 | ||
Stockholders' equity | 21,879,376 | 21,959,417 | 22,728,038 | ||
Total capital | $ 25,944,835 | 26,044,103 | 24,939,310 | ||
Homebuilding debt to total capital | 15.7 % | 15.7 % | 8.9 % | ||
Homebuilding debt | $ 4,065,459 | 4,084,686 | 2,211,272 | ||
Less: Homebuilding cash and cash equivalents | 2,085,384 | 3,441,324 | 2,283,928 | ||
Net homebuilding debt | $ 1,980,075 | 643,362 | (72,656) | ||
Net homebuilding debt to total capital (1) | 8.3 % | 2.8 % | (0.3) % | ||
(1) | Net homebuilding debt to total capital is a non-GAAP financial measure defined as net homebuilding debt (homebuilding debt less homebuilding cash and cash equivalents) divided by total capital (net homebuilding debt plus stockholders' equity). The Company believes the ratio of net homebuilding debt to total capital is a relevant and a useful financial measure to investors in understanding the leverage employed in homebuilding operations. However, because net homebuilding debt to total capital is not calculated in accordance with GAAP, this financial measure should not be considered in isolation or as an alternative to financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement the Company's GAAP results. |
Contact:
Diane Bessette
Chief Financial Officer
Lennar Corporation
(305) 229-6419
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SOURCE Lennar Corporation