2Q25 Revenue: $8.38B, -4.4% YoY, beat estimates by $190M
2Q25 Non-GAAP EPS: $1.90, miss estimates by $0.04
3Q25 Guidance: Expect to deliver 22,000 to 23,000 homes, compared with analysts’ average estimate of 23,174 homes. The company expects an average sales price of between $380,000 – $385,000 and an approximate 18% gross margin on home sales
Comment: Lennar Corp reported stronger than expected second quarter revenue of US$8.38bn, driven by the company’s aggressive use of buyer incentives such as mortgage rate buydowns, price reductions and cost adjustments to sustain sales momentum despite higher interest rates and weakening consumer confidence. While Lennar delivered 20,131 homes, surpassing last year’s performance, the average sales price fell to US$389,000, reflecting continued affordability challenges in the housing market. Profit margins held steady at 18%, but earnings per share nearly halved from the prior year due to pricing pressures. The company currently has a backlog of 15,538 homes with a total value of US$6.5bn. Looking ahead, Lennar expects to deliver between 22,000 and 23,000 homes in the third quarter. Lennar’s proactive pricing strategies and continued focus on affordability position the company to maintain steady sales volumes in a high-interest-rate environment. As mortgage rates potentially moderate in the coming quarters, Lennar is well positioned to capture additional demand, preserve its market share and stabilize profitability through its volume driven approach. 3Q25recommended trading range: $100 to $120. Neutral Outlook.
