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Nov 30, 2024
Lennar Q4 2024 Earnings Report
Lennar reported Q4 2024 results, with net earnings of $1.1 billion and EPS of $4.06.
Key Takeaways
Lennar's Q4 2024 results showed a decrease in net earnings compared to the prior year, impacted by rising mortgage rates. While demand remained strong, new orders fell short of expectations. The company focused on managing inventory levels and maintaining a strong balance sheet.
Net earnings per diluted share were $4.06, or $4.03 excluding mark-to-market gains on technology investments.
Total revenues reached $9.9 billion, with homebuilding revenues at $9.5 billion.
New orders decreased by 3% to 16,895 homes, while deliveries decreased by 7% to 22,206 homes.
The company repurchased 3 million shares of Lennar common stock for $521 million.
Lennar
Lennar
Lennar Revenue by Segment
Revenue by Segment
Homebuilding Revenue
CapyFin.comFinancial Services Revenue
CapyFin.comMultifamily Revenue
CapyFin.comLennar Other Revenue
CapyFin.com Forward Guidance
The Company expects to deliver between 17,000 and 17,500 homes for the first quarter of 2025 and between 86,000 and 88,000 homes for the full year 2025, including the impact of the Rausch Coleman acquisition. They expect our gross margin in the first quarter to be between 19.0% and 19.25%.
Positive Outlook
- Deliveries between 17,000 and 17,500 homes for Q1 2025.
- Deliveries between 86,000 and 88,000 homes for the full year 2025, including the impact of the Rausch Coleman acquisition.
- Gross margin in the first quarter to be between 19.0% and 19.25%.
- Focus on volume-based strategy of driving sales and cash flow.
- Migration to an asset-light, land-light business model.
Challenges Ahead
- Sales pace lagged expectations as interest rates climbed.
- New orders fell short of expectations to 16,895 homes vs the low end of our guidance of 19,000 homes.
- Housing market proved to be far more challenging as mortgage rates rose almost 100 basis points through the quarter.
- Affordability limitations from higher interest rates impacted results.
- Will not guide to full year gross margin until we have a better sense of market conditions as the year unfolds.
Revenue & Expenses
Visualization of income flow from segment revenue to net income