Lennar First Quarter Results Miss Expectations, Headwinds in Housing Market Persist; Stock Price Declines Slightly

LootboxPhobia · 2026-03-12T23:46:12+00:00

Lennar Corp.'s first quarter earnings missed expectations, with adjusted EPS of $0.88 and revenue of $6.6 billion, both falling short of Wall Street estimates. Home deliveries declined 5%, and home prices fell 8% year-over-year. The company expects sequential improvement in second quarter performance, with deliveries projected between 20,000 and 21,000 units.

LootboxPhobia

2026-03-12 23:46:12

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Miami - Lennar Corp. (NYSE: LEN) reported first-quarter results that fell short of Wall Street expectations, with adjusted earnings per share of $0.88, down $0.07 from the analyst consensus of $0.95. Revenue was $6.6 billion, also below the expected $6.84 billion, down 13% from $7.6 billion in the same period last year. The stock dropped 1.9% after the earnings release.

The homebuilder delivered 16,863 homes this quarter, a 5% decrease year-over-year. The average sales price was $374,000, down 8% from $408,000 last year.

The company attributed the price declines to ongoing market softness and increased use of sales incentives, with an average incentive rate of about 14% this quarter. Gross profit margin on home sales shrank from 18.7% last year to 15.2%, while selling, general, and administrative expenses as a percentage of home sales rose from 8.5% to 9.8%, resulting in a net profit margin of 5.3%.

“Our first quarter of fiscal 2026 continues the persistent headwinds that have troubled the housing market for over three years—high mortgage rates, limited homebuying capacity, cautious consumer sentiment, and geopolitical uncertainties,” said Stuart Miller, Chairman and CEO.

For the second quarter, Lennar expects to deliver 20,000 to 21,000 homes, with a gross profit margin of 15.5% to 16%, and selling, general, and administrative expenses accounting for 8.9% to 9.1%. The midpoint delivery guidance is 20,500 homes, indicating an improvement sequentially as the spring selling season unfolds. The company received 18,515 new orders in the first quarter, a 1% increase year-over-year, with 15,588 homes remaining under contract at quarter-end, valued at $6 billion.

Financial services operating income decreased from $143 million last year to $91 million, due to reduced locked-in loan volume and lower profit per lock-in.

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