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May 31, 2022

Lennar Q2 2022 Earnings Report

Lennar reported second quarter earnings, demonstrating strength and excellent performance.

Key Takeaways

Lennar Corporation reported a strong second quarter with net earnings of $1.3 billion, or $4.49 per diluted share, compared to $831.4 million, or $2.65 per diluted share for the second quarter last year. Total revenues increased 30% to $8.4 billion. The company's homebuilding gross margin was 29.5% and S,G&A was 6.1%, leading to a 23.4% net margin.

Net earnings per diluted share increased 69% to $4.49.

Total revenues increased 30% to $8.4 billion.

Homebuilding gross margin improved 340 basis points to 29.5%.

Homebuilding S,G&A expenses as a % of revenues from home sales improved 150 bps to 6.1%.

Total Revenue
$8.36B
Previous year: $6.43B
+30.0%
EPS
$4.69
Previous year: $2.95
+59.0%
New Orders
17.79K
Previous year: 17.16K
+3.7%
Homebuilding Debt to Capital
17.7%
Previous year: 23.1%
-23.4%
Gross Margin on Home Sales
29.5%
Previous year: 26.1%
+13.0%
Gross Profit
$1.97B
Previous year: $1.6B
+23.4%
Cash and Equivalents
$1.31B
Previous year: $2.6B
-49.4%
Free Cash Flow
$120M
Previous year: $317M
-62.2%
Total Assets
$34.3B
Previous year: $31.2B
+9.9%

Lennar

Lennar

Lennar Revenue by Segment

Forward Guidance

For the third quarter, Lennar expects deliveries between 17,000 to 18,500 homes and gross margins between 28.5% – 29.5%. For the full year, the company will leave delivery expectations at approximately 68,000 homes.

Positive Outlook

  • Deliveries between 17,000 to 18,500 homes
  • Gross margins between 28.5% – 29.5%
  • Average Sales Price Slightly higher than Q2 2022
  • S,G&A as a % of Home Sales 6.0% - 6.5%
  • Financial Services Operating Earnings $70 million - $75 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income