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May 31, 2024

Lennar Q2 2024 Earnings Report

Lennar's Q2 2024 results were reported, demonstrating increased earnings and strong operating performance despite evolving market conditions.

Key Takeaways

Lennar reported a strong second quarter with increased net earnings, new orders, and deliveries. The company's focus on consistent production pace and strategic capital allocation contributed to a robust balance sheet and positive outlook.

Net earnings per diluted share increased by 15% to $3.45.

New orders rose by 19% to 21,293 homes, and deliveries increased by 15% to 19,690 homes.

Homebuilding gross margin was 22.6%, and the net margin on home sales reached 15.1%.

The company repurchased $603 million of common stock and repaid $554 million of senior notes, maintaining a strong liquidity position.

Total Revenue
$8.77B
Previous year: $8.05B
+9.0%
EPS
$3.38
Previous year: $2.94
+15.0%
New Orders
21.29K
Previous year: 17.89K
+19.1%
Homebuilding Debt to Capital
7.7%
Gross Profit
$1.9B
Previous year: $1.7B
+11.8%
Cash and Equivalents
$3.6B
Previous year: $4B
-10.2%
Free Cash Flow
$203M
Previous year: $635M
-68.0%
Total Assets
$38.7B
Previous year: $36.9B
+4.9%

Lennar

Lennar

Lennar Revenue by Segment

Forward Guidance

The Company's expected results of its homebuilding and financial services activities for the third quarter of 2024:

Positive Outlook

  • Deliveries between 20,500 and 21,000 homes
  • Gross Margin % on Home Sales about 23.0%
  • S,G&A as a % of Home Sales 7.3% - 7.5%
  • Financial Services Operating Earnings between $135 million - $140 million
  • Focused on delivering 80,000 homes for the full year, with a margin that remains consistent with last year's margin

Revenue & Expenses

Visualization of income flow from segment revenue to net income