Lennar Corporation (LEN)

Lennar reported third-quarter 2026 net earnings of $284 million, or $1.19 per diluted share, on 16 September, down from $591 million, or $2.29 per diluted share, a year earlier 2.

The newest filing is a current report: on 15 October 2026 Lennar settled an offering of two $300 million series of senior notes, due 2029 and 2032 3. The company said it intends to use the net proceeds for general corporate purposes 3.

Executive Chairman and Chief Executive Officer Stuart Miller said the $1.19 per share was below expectations and that conditions had deteriorated since the last earnings call 2. He pointed to mortgage rates near 6.8 percent at quarter end and weaker consumer confidence 2.

Deliveries fell 3 percent to 20,840 homes and new orders fell 9 percent to 20,879 homes 2. The company moderated its full-year 2026 delivery target to about 80,000 to 81,000 homes, from 82,000 to 83,000 2.

For the fourth quarter the company expects about 22,000 to 23,000 deliveries at a gross margin of 15.5 to 16.0 percent on home sales 2.

Lennar began as a local Miami homebuilder in 1954, held its initial public offering in 1971 and listed on the New York Stock Exchange in 1972 4.

Growth came largely by buying other builders 4. It bought Pacific Greystone in 1997 and U.S. Home in 2000, which took it into New Jersey, Maryland, Virginia, Minnesota and Colorado 4.

In 2017 it added WCI Communities, a luxury builder in Florida, and in 2018 it acquired CalAtlantic, a builder across 43 metropolitan areas in 19 states that also offered mortgage, title and escrow services 4.

In fiscal 2021 revenue from home sales rose 22 percent to $25.3 billion from $20.8 billion, because deliveries rose 13 percent and the average sales price rose 8 percent 11.

The gross margin on home sales climbed to 26.8 percent from 22.8 percent, because price appreciation outpaced the rise in cost per square foot 11.

In fiscal 2022 revenue from home sales rose 25 percent to $31.8 billion, on 66,399 deliveries at an average price of $480,000 9.

The gross margin reached 27.5 percent, and selling costs fell to 6.2 percent of home-sale revenue from 7.1 percent, which Lennar credited to lower broker commissions, more leverage and its technology efforts 9.

In fiscal 2024 revenue from home sales rose 4 percent to $33.8 billion as deliveries rose 10 percent to 80,210, while the average price fell 5 percent to $423,000 10.

Lennar tied the lower price to pricing to market through more incentives and product mix, and the gross margin slipped to 22.3 percent from 23.3 percent 10.

In February 2025 Lennar completed a taxable spin-off of Millrose Properties, handing about 80 percent of Millrose's common stock to Lennar stockholders 4. It had contributed $5.6 billion in land assets and cash of $1.0 billion to Millrose 4.

In November 2025 an exchange offer disposed of the rest: Lennar received 8,049,594 of its own Class A shares for 33,298,754 Millrose Class A shares 4. The company called the move a step toward becoming an asset-light new home manufacturer 4.

Also in February 2025 Lennar bought Rausch Coleman Homes, which opened markets in Arkansas, Oklahoma, Alabama, Kansas and Missouri 4.

Fiscal 2025 revenue from home sales fell 5 percent to $32.1 billion from $33.8 billion, because the average price fell 8 percent to $391,000, partly offset by 3 percent more deliveries, 82,583 in all 4.

The gross margin on home sales fell to 17.7 percent from 22.3 percent, mainly on lower revenue per square foot and higher land costs, partly offset by lower construction costs 4. Selling costs rose to 8.3 percent of home-sale revenue from 7.3 percent 4.

Homebuilding

Homebuilding produced $32 billion of revenue in fiscal 2025, about 94 percent of the consolidated total 4. It builds single-family attached and detached homes for first-time, move-up, active adult and luxury buyers 4.

In the third quarter of 2026 Lennar delivered 20,840 homes at an average sales price of $372,000, which reflected about 12.0 percent in incentives 2. It was building in 1,713 active communities 2.

In the third quarter the gross margin on home sales was 15.8 percent against 17.5 percent, and selling costs took 9.2 percent of home-sale revenue against 8.2 percent 2.

The company says it competes through its Everything's Included program, which makes premium features standard, and Next Gen homes that give a home within a home for relatives or work 4. The backlog at the end of the quarter was 16,857 homes worth $6.3 billion 2.

Lennar reports four homebuilding regions: West covers eight states from Arizona to Washington, Central ten states from Alabama to Virginia, East Florida, New Jersey and Pennsylvania, and South Central Arkansas, Kansas, Missouri, Oklahoma and Texas 4.

Financial Services

Lennar Mortgage makes home loans, mostly to Lennar's own buyers, and a title business offers title insurance and closing services 4. In fiscal 2025 its financial services subsidiaries provided loans to 84 percent of Lennar buyers who took mortgage financing where the service was offered 4.

It originated about 55,900 loans totaling $20.0 billion in fiscal 2025 4. Segment revenue was $1.2 billion 4. Third-quarter 2026 operating earnings were $129 million, including $39 million of one-time items from a litigation accrual reversal 2.

Multifamily and single-family rentals

Multifamily develops rental apartment communities, mostly through funds and joint ventures 4. Since 2011 it has developed 128 communities with about 39,300 rental units in 20 states 4. Its fiscal 2025 revenue was $680.6 million 4.

In December 2025 Lennar sold a majority interest in its Quarterra subsidiary to TPG Real Estate and kept a minority stake, with TPG making a $1.0 billion strategic commitment 4. The Multifamily segment lost $3 million in the third quarter of 2026 2.

Upward America, which Lennar manages, buys and rents out single-family homes 4. At 30 November 2025 it had bought 4,697 homes in 103 communities for $1.2 billion, and institutions and Lennar had committed $1.0 billion 4.

Technology investments

The Lennar Other segment holds strategic investments in technology companies 4. Their book value was $581.8 million at 30 November 2025 4. In the third quarter of 2026 mark-to-market losses of $53 million on them drove a Lennar Other operating loss of $84 million 2.

Land, offices and how homes get built

Lennar owns little land by design 4. At 30 November 2025 it controlled 98 percent of its homesites through options with land banks, land sellers and joint ventures, up from 82 percent a year earlier 4. In September 2026 it said it owned fewer than 2.5 percent of about 488,000 homesites 2.

It hires independent subcontractors for most land development and home construction and generally owns no heavy equipment 4. Its Miami headquarters is a building of about 213,200 square feet that it bought in December 2023 4.

Construction cost per square foot improved 6 percent over the year, and cycle time reached a record low of 116 days against 126 days a year earlier, the company said 2.

People

Stuart Miller is Executive Chairman, Chief Executive Officer and President 2. Diane Bessette is Chief Financial Officer and Katherine Lee Martin is Chief Legal Officer, a post she took in September 2025 after serving as general counsel at Hertz 4.

On 5 June 2026 Lennar named Jim Parker Chief Operating Officer and David Grove Executive Vice President, Homebuilding; both report to Miller 65. Co-Chief Executive Officer Jonathan Jaffe retired in December 2025 4.

At 30 November 2025 Lennar employed 12,532 people, down from 13,265 a year earlier, of whom 10,182 worked in Homebuilding 4.

Rivals and problems

Lennar says it competes with numerous national, regional and local homebuilders, with resales of existing homes and with rental housing 4. The annual report names no rival builder 4.

Affordability is the main pressure 2. Miller said consumers slowed purchase decisions as rates and affordability weighed, and the 10-K says higher rates led Lennar to cut prices or raise incentives 24. Lennar lists tariffs among its risks 1.

Lennar says it is party to ordinary claims, mostly about homes it sold, and does not expect a material adverse effect 1. Its latest quarterly report reports no change in risk factors since the 2025 annual report 1.

The umbrella, in words

Most homes are sold under the Lennar brand, with Everything's Included and Next Gen as program names 4. LEN X is the name of its technology and investment arm 2.

Exhibit 21 lists the subsidiaries as of 30 November 2025, among them Lennar Mortgage, LLC, Lennar Title Group, LLC, Lennar Title Insurance Corporation, LMF Commercial, LLC and the Rausch Coleman Homes entities 7. The exhibit does not mark which are listed on an exchange 7.

Lennar owns an indirect stake of about 40 percent in FivePoint Holdings, a public developer of master planned communities in California, carried at $585.2 million at 30 November 2025 4. Miller is also the non-employee Executive Chairman of FivePoint, a seat held as a person 4.

Lennar invested in Upward America, with commitments cut from $225 million to $78.1 million and a floor of $50 million 4. Through its Multifamily segment it invested in the CPPIB Fund, carried at $27.9 million, and a joint venture with an institutional investor in which its stated ownership is 4 percent, at 31 August 2026 1.

Lennar also holds limited partner investments in Rialto funds, $131.3 million at 31 August 2026, and an immaterial remainder of Millrose 14.

Control: Class B shares carry ten votes and Class A one vote 4. At 30 November 2025 Miller, directly and through family entities, held about 42 percent of the combined votes 4. At 31 December 2025 there were 215,769,742 Class A and 31,217,013 Class B shares outstanding 4.

Berkshire Hathaway and Warren Buffett reported owning 26,034,436 Class A shares, 12.5 percent of the class, in a Schedule 13G amendment for the event date 30 September 2026 8.

For the fourth quarter of 2026 the company expects 19,500 to 20,500 new orders and 22,000 to 23,000 deliveries at an average sales price of $370,000 to $380,000 2.

It expects a gross margin on home sales of 15.5 to 16.0 percent, selling costs improving toward 8.7 to 9.0 percent and Financial Services operating earnings of $90 million to $95 million 2.

For the full year 2026 the company now targets about 80,000 to 81,000 deliveries, moderated from 82,000 to 83,000 because of rate pressure and weaker market conditions 2.

Miller said in the release that Lennar will keep building homes at prices families can afford, and that the strategy is to leverage scale to improve margins over time 2.

Lennar says a significant portion of the homes in its backlog at 30 November 2025 were expected to be delivered in fiscal year 2026 4.

The first Multifamily fund is being wound down: its partners decided in the second half of fiscal 2024 to liquidate and sell all 38 of its rental projects 4.

At 31 August 2026 Lennar had remaining commitments of $3.6 million to that fund and $9.5 million to its successor, and says it has no plans for additional capital calls 1.

Lennar's land-light plan is meant to raise cash flow and returns, according to the quarterly report, which expects greater cash flow and higher returns on assets and equity from controlling land through options 1.

The Multifamily pipeline stood at 32 potential developments, about $2.8 billion in anticipated development costs, as of 30 November 2025, and TPG's $1.0 billion commitment is meant to speed the Quarterra pipeline 4.

A January 2024 board authorization allows up to an additional $5 billion of stock repurchases with no expiry, and $750.8 million remained at 31 August 2026 1.

On 16 September 2026 it reported $1.2 billion of homebuilding cash and $650 million borrowed under a $3.1 billion revolving credit facility 2.