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Aug 31, 2025
Lennar Q3 2025 Earnings Report
Lennar reported a decline in earnings and revenue compared to the prior year, but maintained operational stability amid housing market pressures.
Key Takeaways
Lennar delivered 21,584 homes in Q3 2025 and generated $8.8B in revenue, with EPS of $2.29. Net income fell by nearly half compared to Q3 2024, but new orders rose and operational cycle time improved to an all-time low.
Net income dropped to $591M from $1.16B a year ago.
New orders increased to 23,004 homes, a 12% gain YoY.
Average sales price dropped to $383,000 amid use of incentives.
Cycle time improved to a record low of 126 days.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Lennar expects flat gross margins and slightly lower new orders in Q4, while maintaining discipline in inventory and costs.
Positive Outlook
- Q4 new orders expected at 20,000 to 21,000 homes.
- Q4 deliveries forecasted at 22,000 to 23,000 homes.
- Gross margin expected to remain at 17.5%.
- Inventory turns improved to 1.9 times.
- Cycle time shortened to 126 days.
Challenges Ahead
- Interest rates remained elevated for much of the quarter.
- Average sales price continues to decline due to market pressure.
- Increased use of incentives like mortgage rate buydowns.
- Multifamily segment posted a $16M operating loss.
- SG&A expenses rose as a % of home sales revenue.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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