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Feb 28, 2025
Lennar Q1 2025 Earnings Report
Lennar reported solid Q1 2025 results with revenue growth, strong home deliveries, and continued operational efficiencies despite challenging market conditions.
Key Takeaways
Lennar posted total revenues of $7.63 billion in Q1 2025, with net earnings of $520 million and EPS of $1.96. Home deliveries increased by 6% year-over-year to 17,834 homes. The company maintained a gross margin on home sales of 18.7% and SG&A expenses at 8.5% of home sales revenue. New orders increased slightly by 1% to 18,355 homes, reflecting continued demand despite affordability challenges.
Total revenues reached $7.63 billion, up from $7.31 billion last year.
Delivered 17,834 homes, a 6% year-over-year increase.
Gross margin on home sales was 18.7%, in line with expectations.
Homebuilding debt to total capital ratio remained low at 8.9%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Lennar expects Q2 2025 home deliveries between 19,500 and 20,500, new orders between 22,500 and 23,500, and gross margins around 18%, with SG&A expenses between 8.0% and 8.2% of home sales revenue.
Positive Outlook
- Expected deliveries of 19,500 to 20,500 homes in Q2 2025.
- New orders forecasted between 22,500 and 23,500 homes.
- Anticipated gross margin on home sales of approximately 18%.
- SG&A expenses targeted between 8.0% and 8.2%.
- Financial services operating earnings projected between $135 million and $145 million.
Challenges Ahead
- Higher interest rates and inflation continue to impact affordability.
- Decline in average sales price due to market softness.
- Potential continued pressure on net margins.
- Challenging macroeconomic environment could constrain demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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