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Lennar Corporation
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NYSE: LEN Consumer Discretionary Infra 🔎 Screen
S&P 500
$22.5B
Market Cap
16.5
P/E
10.62
PEG
8.2%
ROCE
8.4%
ROE
0.28
D/E
8.4%
OPM
-37.6%
% from 52W High
19
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for LEN including FX impact
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📈 Price History
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About

Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States.

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⭐ Superinvestors Holding LEN
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Manager Shares Value % of Fund Period
Warren Buffett Berkshire Hathaway Inc 10.10M $877.1M 0.33% Mar 2026
Jim Simons Renaissance Technologies LLC 377.2K $32.8M 0.05% Mar 2026
Warren Buffett Berkshire Hathaway Inc 237.7K $20.0M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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🎙 Management Tone Mixed ↓ Deteriorating 5 quarters Full tone analysis in Intelligence →
Mixed quarter Investor Presentation One-Pager? Q2 2026
Total Revenue
$7.9B
Not disclosed
Homebuilding Operating Earnings
$489M
Not disclosed
Gross Margin on Home Sales
15.6%
Improved sequentially
Net Income
$305M
-36% YoY
What Went Right
  • Gross margin improved sequentially to 15.6% and sales incentives fell to 12.9% from 14.1% in Q1 and 14.5% in Q4 2025, the first meaningful decline in three years.
  • Record-low cycle time of 121 days and construction cost per sq ft down to $81 (-7% YoY, -13% over two years) drove inventory turn up to 2.5x from 1.8x a year ago.
  • Asset-light model showed progress: less than 5% of land on balance sheet, inventory down to 2.1 homes per community from 3.0 in Q1, $1.8B cash and ~$570M returned to shareholders via buybacks and dividends.
What to Watch
  • Net income fell to $305M from $477M a year ago; GAAP EPS dropped to $1.24 from $1.81 ($1.31 ex mark-to-market vs $1.90).
  • Full-year delivery guidance was cut to 82,000-83,000 homes from approximately 85,000, citing elevated interest rates, geopolitical uncertainty and a resurgent inflation reading of 4.2%.
  • Incentives remain elevated at 12.9% vs a normalized 4%-6%, and ACOR rose $237M sequentially to $7.1B as capitalized option maintenance fees continue to build before land-bank volumes reach equilibrium.
Management Guidance
  • Q3 new orders expected at 21,000-22,000 homes.
  • Q3 deliveries expected at 20,500-21,500 homes with ASP of $375,000-$380,000.
  • Q3 gross margin expected to improve to approximately 16%; SG&A expected at 8.8%-9.0%.
  • Q3 EPS expected in the range of $1.20-$1.40, with tax rate ~28% and share count ~238M.
  • Full-year 2026 deliveries moderated to 82,000-83,000 homes.
Investor Lens
The thesis is slightly stronger on execution: cycle time, construction costs, inventory turns and incentives are all moving in the right direction, and the asset-light model continues to generate cash. However, profitability is still well below year-ago levels, and management reduced full-year delivery guidance, confirming the macro backdrop remains a headwind. The key question is whether sequential margin recovery can carry through without a broader demand pickup, especially while mortgage rates remain in the mid-6% range. Overall, the call reinforces a patient, volume-focused strategy but does not yet signal a clear earnings inflection.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Mixed quarter: EPS down to $1.24, but margins improving.
Revenue
Total revenues came in at $7.9B. Deliveries increased 2% YoY to 20,519 homes while new orders decreased 4% to 21,749. The Q2 ASP was $371,500.
Profitability
Net income attributable to Lennar was $305M, down from $477M in the prior-year quarter. GAAP EPS was $1.24 versus $1.81, and $1.31 excluding mark-to-market losses on technology investments.
Margins
Gross margin on home sales improved sequentially to 15.6%, with net margin on home sales at 6.4%. Sales incentives declined to 12.9% from 14.1% in Q1 and 14.5% in Q4 2025, while construction cost per sq ft fell to $81, down 7% YoY. SG&A was 9.2% of home sales revenue.
Balance Sheet
Ended the quarter with $1.8B cash and total liquidity of $4.9B, with no borrowings on the revolver. Homebuilding inventory declined to $10.9B from $11.4B a year ago, and less than 5% of land is on the balance sheet. Homebuilding debt-to-total-capital was 15.8%, and $400M of senior notes were redeemed in June 2026.
Key Risks
Management highlighted persistently elevated mortgage rates in the mid-6% range, a 4.2% headline CPI print that likely puts the Fed on hold, and geopolitical uncertainty as key headwinds. Incentives, although declining, remain very high at 12.9% versus a normalized 4%-6%. The ACOR balance increased to $7.1B as option maintenance fees are still accumulating before land-bank volumes reach equilibrium.
Outlook
Q3 guidance calls for 20,500-21,500 deliveries, ASP of $375,000-$380,000, gross margin of approximately 16%, SG&A of 8.8%-9.0% and EPS of $1.20-$1.40. Full-year 2026 deliveries were adjusted to 82,000-83,000 homes due to current interest-rate and macro uncertainty.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-06-12
Q2 2026 saw strong operational execution with 20,519 homes delivered, improved margins, and declining sales incentives. Guidance for Q3 anticipates continued margin improvement, stable sales pace, and a focus on asset-light strategy amid macroeconomic uncertainty.
Q1 2026 Q1 2026 2026-03-13
Q1 2026 saw steady volume and improved operational efficiency despite a tough housing market, with net income of $229M and gross margin at 15.2%. Guidance for Q2 anticipates stable margins and deliveries, while technology and asset-light strategies continue to drive cost reductions.
Q4 2025 Q4 2025 2025-12-17
Q4 saw strong deliveries and market share gains, but margins declined due to affordability pressures and incentives. The company is well-positioned for future margin recovery, with an asset-light model, improved efficiency, and robust liquidity. Guidance anticipates lower Q1 margins but stable volume.
Q3 2025 Q3 2025 2025-09-19
Third quarter saw strong sales but lower margins due to increased incentives and affordability challenges. Guidance for Q4 and full year deliveries was reduced to stabilize margins, with optimism for demand if mortgage rates fall. Inventory turn and operational efficiency improved.
Q2 2025 Q2 2025 2025-06-17
Q2 saw strong home deliveries and sales despite a challenging market, with margins pressured by incentives and lower prices. Technology investments and an asset-light strategy are driving future efficiencies, while guidance for Q3 and the full year remains steady.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
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