Lennar Corporation Reports Decline in Revenue and Profitability for Third Quarter 2026

Lennar Corporation reported its financial results for the third quarter of 2026, revealing a decline in both revenue and profitability compared to the same period last year. The company generated total revenues of $8.05 billion, down from $8.81 billion in the third quarter of 2025. Homebuilding revenues specifically decreased to $7.76 billion from $8.25 billion, reflecting a 6% drop attributed to a 3% decrease in the average sales price of homes and a 3% decline in the number of homes delivered, which totaled 20,840 for the quarter. Net earnings attributable to Lennar were $283.9 million, or $1.19 per diluted share, significantly lower than the $591 million, or $2.29 per diluted share, reported in the prior year.

The company's financial performance for the nine months ending August 31, 2026, also showed a decrease in revenues, totaling $22.61 billion compared to $24.82 billion in the same period of 2025. Homebuilding revenues for the nine months were $21.67 billion, down from $23.38 billion, driven by a 5% decrease in the average sales price and a 2% decline in the number of homes delivered. Gross margins on home sales fell to 15.5% from 18.0%, primarily due to higher land costs and lower revenue per square foot, although construction costs decreased.

In terms of operational developments, Lennar delivered 20,840 homes in the third quarter, slightly below its guidance range, while new orders totaled 20,879. The company maintained a focus on affordability, which has impacted margins but is expected to enhance volume and market position over time. The average sales price for homes delivered was $372,000, down from $383,000 in the previous year. The company also reported a decrease in sales incentives as a percentage of revenue, indicating a strategic shift to maintain volume without significantly increasing costs.

Lennar's balance sheet showed total assets of $33.38 billion as of August 31, 2026, down from $34.43 billion at the end of the previous fiscal year. Cash and cash equivalents decreased to $1.15 billion from $3.44 billion, reflecting increased investments in inventories and land. The company reported a total debt of $4.30 billion, with a debt-to-total capital ratio of 16.6%, up from 15.7% in the previous period. Looking ahead, Lennar anticipates new orders in the range of 19,500 to 20,500 homes for the fourth quarter, with expected deliveries between 22,000 and 23,000 homes, while maintaining a focus on cost management and operational efficiency.