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May 31, 2023

Lennar Q2 2023 Earnings Report

Reported second quarter 2023 results, showing a decrease in net earnings per diluted share compared to the previous year, but an increase in home deliveries and new orders.

Key Takeaways

Lennar Corporation reported second quarter net earnings of $872 million, or $3.01 per diluted share. The company saw an increase in home deliveries and new orders, but a decrease in average sales price. The homebuilding gross margin started to bounce back to 22.5%.

Net earnings per diluted share were $3.01 ($2.94, excluding mark-to-market gains on technology investments).

Total revenues reached $8.0 billion.

Deliveries of 17,074 homes were completed.

New orders of 17,885 homes were placed, with a dollar value of $8.2 billion.

Total Revenue
$8.05B
Previous year: $8.36B
-3.8%
EPS
$2.94
Previous year: $4.69
-37.3%
New Orders
17.89K
Previous year: 17.79K
+0.5%
Gross Profit
$1.7B
Previous year: $1.97B
-13.9%
Cash and Equivalents
$4B
Previous year: $1.31B
+204.6%
Free Cash Flow
$635M
Previous year: $120M
+429.9%
Total Assets
$36.9B
Previous year: $34.3B
+7.4%

Lennar

Lennar

Lennar Revenue by Segment

Forward Guidance

Looking ahead to the third quarter, Lennar expects to deliver between 17,750 to 18,250 homes with a gross margin between 23.5% to 24.0%. For the full year 2023, the company expects to deliver between 68,000 to 70,000 homes.

Positive Outlook

  • Deliver between 17,750 to 18,250 homes in Q3 2023.
  • Gross margin between 23.5% to 24.0% in Q3 2023.
  • Deliver between 68,000 to 70,000 homes for the full year 2023.
  • S,G&A as a % of Home Sales of 6.7% - 6.8%.
  • Financial Services Operating Earnings of $100 million - $105 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income