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Feb 28, 2021

Lennar Q1 2021 Earnings Report

Lennar reported earnings for Q1 2021, which were driven by operational excellence and a technology investment.

Key Takeaways

Lennar reported a strong first quarter in 2021, with net earnings of $1.0 billion, or $3.20 per diluted share. The results were driven by robust market conditions and the performance of their homebuilding and financial services businesses, along with a significant contribution from a technology investment.

Net earnings reached $1.0 billion, or $3.20 per diluted share, significantly up from the previous year.

Deliveries increased by 19% to 12,314 homes.

New orders rose by 26% to 15,570 homes, with a dollar value of $6.5 billion, up 31%.

Revenues increased by 18% to $5.3 billion.

Total Revenue
$5.33B
Previous year: $4.51B
+18.2%
EPS
$2.04
Previous year: $1.27
+60.6%
New Orders
15.57K
Previous year: 12.38K
+25.8%
Homebuilding Debt to Capital
24%
Previous year: 33.6%
-28.6%
Gross Margin on Home Sales
25%
Gross Profit
$1.38B
Previous year: $849M
+63.0%
Cash and Equivalents
$2.4B
Previous year: $785M
+205.7%
Free Cash Flow
$377M
Previous year: $365M
+3.3%
Total Assets
$30.6B
Previous year: $29.2B
+4.7%

Lennar

Lennar

Lennar Revenue by Segment

Forward Guidance

Looking ahead to the second quarter of 2021, Lennar expects to deliver approximately 14,200 - 14,400 homes and anticipates homebuilding margins to remain at 25.0% despite rising material and labor costs.

Positive Outlook

  • Deliver approximately 14,200 - 14,400 homes
  • Homebuilding margins to remain at 25.0%
  • Excellent balance sheet
  • Continued execution of core operating strategies
  • Extremely well positioned for an even stronger 2021

Challenges Ahead

  • Rising material costs
  • Rising labor costs
  • Unspecified risks related to the housing market
  • Unspecified economic conditions
  • Potential impacts from the ongoing coronavirus (COVID-19) pandemic

Revenue & Expenses

Visualization of income flow from segment revenue to net income