Lennar Corporation (LEN) Financial Results Summary
QuoteReporter
Lennar Corporation (LEN) Q3 2026: Earnings Decline Amid Market Challenges — Disappointing Quarter
Lennar Corporation (NYSE: LEN) reported its third-quarter results for 2026, revealing a significant decline in earnings compared to the previous year. Net earnings attributable to Lennar were $284 million, or $1.19 per diluted share, down from $591 million, or $2.29 per diluted share in Q3 2025. This represents a decrease of $307 million or -52% year-over-year.
The quarter was disappointing for shareholders, primarily due to the substantial drop in earnings and new orders. The company faced a challenging economic environment characterized by rising mortgage rates and declining consumer confidence, which negatively impacted demand for new homes.
Key Financial Metrics:
- Net Earnings: $284 million in Q3 2026 vs. $591 million in Q3 2025 (down $307 million or -52% YoY)
- Earnings Per Share (EPS): $1.19 in Q3 2026 vs. $2.29 in Q3 2025 (down $1.10 or -48% YoY)
- Total Revenues: $8.0 billion in Q3 2026 vs. $8.8 billion in Q3 2025 (down $800 million or -9% YoY)
- New Orders: 20,879 homes in Q3 2026 vs. 22,974 homes in Q3 2025 (down 2,095 homes or -9% YoY)
- Deliveries: 20,840 homes in Q3 2026 vs. 21,584 homes in Q3 2025 (down 744 homes or -3% YoY)
- Backlog: 16,857 homes valued at $6.3 billion
Operational Highlights:
- Homebuilding Operating Earnings: $502 million in Q3 2026 vs. $759 million in Q3 2025 (down $257 million or -34%)
- Gross Margin on Home Sales: 15.8% in Q3 2026 vs. 17.5% in Q3 2025
- Selling, General and Administrative (SG&A) Expenses: $714 million in Q3 2026 vs. $676 million in Q3 2025 (up $38 million or +6% YoY)
- Financial Services Operating Earnings: $129 million in Q3 2026 vs. $177 million in Q3 2025 (down $48 million or -27%)
Shareholder Returns:
Lennar repurchased 3 million shares of its common stock for $256 million at an average price of $85.49 per share during the quarter. This move reflects the company's commitment to returning value to shareholders despite the challenging market conditions.
Guidance Update:
Looking ahead, Lennar has moderated its full-year 2026 delivery target to approximately 80,000 to 81,000 homes, down from the previous estimate of 82,000 to 83,000 homes. For Q4 2026, the company expects:
- New Orders: 19,500 to 20,500 homes
- Deliveries: 22,000 to 23,000 homes
- Average Sales Price: $370,000 to $380,000
- Gross Margin: Approximately 15.5% to 16.0%
- SG&A as a % of Home Sales: 8.7% to 9.0%
Analyst View:
The results for Q3 2026 are disappointing, reflecting the broader challenges in the housing market, including rising interest rates and decreased consumer confidence. The significant drop in both earnings and new orders indicates that Lennar is facing headwinds that may persist in the near term. While the company is taking steps to manage costs and maintain volume, the outlook for the housing market remains uncertain.
Forward Catalyst:
Investors should closely monitor Lennar's performance in the upcoming quarter, particularly the impact of interest rates on new orders and deliveries. Additionally, any updates on the company's strategic initiatives to navigate the current economic environment will be crucial for assessing its future performance.
Note: All amounts are in thousands.
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | (In thousands, except per share amounts) |
|---|---|
| Three Months Ended August 31, 2026 | Nine Months Ended August 31, 2026 |
| Revenues from Homes: $7,759,000 | Revenues from Homes: $21,674,000 |
| Revenues from Financial Services: $226,000 | Revenues from Financial Services: $678,615,000 |
| Revenues from Multifamily: $38,475 | Revenues from Multifamily: $184,538 |
| Revenues from Other: $22,026 | Revenues from Other: $67,940 |
| Total Revenues: $8,046,000 | Total Revenues: $22,605,000 |
| Operating Earnings: $501,900 | Operating Earnings: $1,364,000 |
| Operating Earnings from Financial Services: $130,300 | Operating Earnings from Financial Services: $322,732 |
| Operating Loss from Multifamily: -$2,869 | Operating Loss from Multifamily: $33,315 |
| Operating Loss from Other: -$83,600 | Operating Loss from Other: -$127,700 |
| General and Administrative Expenses: -$137,000 | General and Administrative Expenses: -$431,600 |
| Charitable Foundation Contributions: -$20,800 | Charitable Foundation Contributions: -$58,222 |
| Earnings Before Income Taxes: $387,000 | Earnings Before Income Taxes: $1,102,000 |
| Provision for Income Taxes: -$101,000 | Provision for Income Taxes: -$275,700 |
| Net Earnings: $285,400 | Net Earnings: $826,977 |
| Net Earnings Attributable to Noncontrolling Interest: -$1,611 | Net Earnings Attributable to Noncontrolling Interest: -$8,946 |
| Net Earnings Attributable to Lennar: $283,800 | Net Earnings Attributable to Lennar: $818,031 |
| Basic and Diluted Average Shares Outstanding: 237,700 | Basic and Diluted Average Shares Outstanding: 240,990 |
| Basic and Diluted Earnings per Share: $1.19 | Basic and Diluted Earnings per Share: $3.36 |
| Supplemental Information EBIT: $444,600 | Supplemental Information EBIT: $1,250,000 |
Note: All amounts are in thousands.
| CONDENSED CONSOLIDATED BALANCE SHEETS | (In thousands) |
|---|---|
| August 31, 2026 | November 30, 2025 |
| ASSETS | |
| Homebuilding: | |
| Cash and Cash Equivalents: $1,150,115 | Cash and Cash Equivalents: $3,441,324 |
| Restricted Cash: $34,093 | Restricted Cash: $25,930 |
| Receivables, net: $924,858 | Receivables, net: $1,002,629 |
| Inventories: | |
| Finished Homes and Construction in Progress: $10,670,269 | Finished Homes and Construction in Progress: $8,822,271 |
| Land and Land Under Development: $865,134 | Land and Land Under Development: $1,098,961 |
| Inventory Owned: $11,535,403 | Inventory Owned: $9,921,232 |
| Consolidated Inventory Not Owned: $1,408,036 | Consolidated Inventory Not Owned: $1,696,401 |
| Inventory Owned and Consolidated: $12,943,439 | Inventory Owned and Consolidated: $11,617,633 |
| Deposits and Pre-Acquisition Costs on Real Estate: $7,327,193 | Deposits and Pre-Acquisition Costs on Real Estate: $6,383,633 |
| Investments in Unconsolidated Entities: $1,470,473 | Investments in Unconsolidated Entities: $1,545,370 |
| Goodwill: $3,442,359 | Goodwill: $3,442,359 |
| Other Assets: $1,803,804 | Other Assets: $1,794,378 |
| Total Assets: $33,378,225 | Total Assets: $34,430,437 |
| LIABILITIES AND EQUITY | |
| Homebuilding: | |
| Accounts Payable: $1,795,955 | Accounts Payable: $1,812,484 |
| Liabilities Related to Consolidated Inventory Not Owned: $1,250,439 | Liabilities Related to Consolidated Inventory Not Owned: $1,476,376 |
| Senior Notes and Other Debts Payable, Net: $4,297,251 | Senior Notes and Other Debts Payable, Net: $4,084,686 |
| Other Liabilities: $2,448,954 | Other Liabilities: $2,691,876 |
| Total Liabilities: $9,792,599 | Total Liabilities: $10,065,422 |
| Financial Services: $1,720,568 | Financial Services: $2,010,598 |
| Multifamily: $76,247 | Multifamily: $113,361 |
| Lennar Other: $92,391 | Lennar Other: $100,447 |
| Total Liabilities: $11,681,805 | Total Liabilities: $12,289,828 |
| Stockholders’ Equity: | |
| Preferred Stock: $0 | Preferred Stock: $0 |
| Class A Common Stock of $0.10 par value: $26,312 | Class A Common Stock of $0.10 par value: $26,158 |
DisclaimerThe content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information. Related Articles Trending Stocks Nasdaq 100 Bull & Bear Radar — October 02, 2026A daily technical sweep of 100 Nasdaq 100 constituents ranked by session performance, enriched with RSI, MA20/MA50/MA200 trend signals, Bloomberg-style… QuoteReporter 5 minOct 2, 2026  Trending Stocks S&P 500 Bull & Bear Radar — October 02, 2026A daily technical sweep of 492 S&P 500 constituents ranked by session performance, enriched with RSI, MA20/MA50/MA200 trend signals, Bloomberg-style… QuoteReporter 5 minOct 2, 2026  Stocks Nasdaq 100 52-Week Highs & Lows Radar: NVIDIA (NVDA), Netflix (NFLX) and moreNasdaq 100 stocks nearest to their 52-week high and low. Bloomberg-style charts, RSI/MA analysis and Grok commentary. MarketsFN Team 6 minOct 2, 2026 |