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Aug 31, 2023

Lennar Q3 2023 Earnings Report

Lennar reported third quarter results with increased deliveries and new orders.

Key Takeaways

Lennar Corporation reported a net earnings of $1.1 billion, or $3.87 per diluted share, for the third quarter of 2023. Deliveries increased by 8% to 18,559 homes, and new orders rose by 37% to 19,666 homes. The company's homebuilding gross margin was 24.4%, and it ended the quarter with $3.9 billion in homebuilding cash and cash equivalents.

Net earnings per diluted share were $3.87, or $3.91 excluding mark-to-market losses on technology investments.

Deliveries increased 8% to 18,559 homes.

New orders increased 37% to 19,666 homes.

Homebuilding debt to total capital was 11.5%, the lowest in company history.

Total Revenue
$8.73B
Previous year: $8.93B
-2.3%
EPS
$3.91
Previous year: $5.18
-24.5%
Home Deliveries
18.56K
New Orders
19.67K
Previous year: 14.37K
+36.9%
Homebuilding Debt to Capital
11.5%
Previous year: 15%
-23.3%
Gross Profit
$2B
Previous year: $2.5B
-20.0%
Cash and Equivalents
$3.9B
Previous year: $1.3B
+200.0%
Free Cash Flow
$930M
Previous year: $482M
+92.8%
Total Assets
$37.4B
Previous year: $35.3B
+5.9%

Lennar

Lennar

Lennar Revenue by Segment

Forward Guidance

For the fourth quarter of 2023, Lennar expects to deliver between 21,500 to 22,500 homes with a gross margin between 24.4% to 24.6%.

Positive Outlook

  • Deliver between 21,500 to 22,500 homes
  • Gross margin between 24.4% to 24.6%
  • S,G&A as a % of Home Sales 6.7% - 6.9%
  • Financial Services Operating Earnings $130 million - $135 million
  • Continue to fortify balance sheet with significant liquidity

Revenue & Expenses

Visualization of income flow from segment revenue to net income