Lennar Corporation (NYSE: LEN) reported mixed second-quarter results on Monday, missing on EPS but surpassing revenue estimates. Shares dipped 1.2% in after‑hours trading as investors weighed softer margins against healthy home‐order growth.
Q2 Financial Highlights
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Adjusted EPS: $1.90 vs. $1.94 consensus (miss)
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Revenue: $8.38 billion vs. $8.18 billion consensus (beat)
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Home Deliveries: 20,131 homes (+2% YoY)
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New Orders: 22,601 homes (+6% YoY)
Despite beating on top‑line, Lennar’s average sales price fell 9% to $389,000 (from $426,000), reflecting ongoing affordability headwinds.
Management Commentary
“While we continue to see softness in the housing market due to affordability challenges and a decline in consumer confidence, we adhered to our strategy of driving starts, sales, and closings to build long‑term efficiencies,” said Stuart Miller, Executive Chairman and Co‑CEO.
Margin and Outlook
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Gross Margin: 17.8% (18.0% ex‑purchase accounting) vs. 22.6% in Q2 2024
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Q3 Margin Guidance: ~18%
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New Orders Guidance: 22,000–23,000 homes vs. 23,674 consensus
Lennar repurchased 4.7 million shares for $517 million during the quarter and ended Q2 with $5.4 billion in liquidity and an 11.0% homebuilding debt‑to‑capital ratio.
Dig into Lennar’s detailed financials and quarterly statements: Lennar’s Full Financial Statements API full-financial-statement-as-reported
Credit and Leverage Metrics
With homebuilding debt at 11.0% of total capital and strong liquidity, Lennar maintains a solid balance sheet. Monitor key leverage and coverage ratios over time:
Track Lennar’s debt/EBITDA and interest coverage via: Ratios TTM API ratios-ttm-statement-analysis
Investor Takeaways
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EPS Miss vs. Revenue Beat: Revenue outperformance and order growth are positives, but margin pressure from lower pricing remains a concern.
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Guidance Caution: Q3 order guidance below consensus suggests continued affordability headwinds.
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Balance Sheet Strength: Robust liquidity and conservative leverage support ongoing share repurchases and strategic investments.
By tracking Lennar’s evolving financial ratios and detailed statements, investors can better assess whether order momentum will translate into improved operating margins and earnings in the back half of 2025.
