Lennar Corporation Class BLEN
Scheduled
Lennar Corporation Class B 2026 Q3 Earnings Call
Review the key takeaways and the transcript of this earnings call.
PeriodQ3 2026
Key takeaways
- Lennar delivered 20,840 homes in the third quarter of 2026, within its guidance range of 20,500 to 21,500, and generated 20,879 new orders, just below its range of 21,000 to 22,000.
- Average sales price was $372,000, sales incentives on deliveries were 12%, gross margin improved sequentially to 15.8%, net margin was 6.6%, and earnings per share was $1.19 on a GAAP basis and $1.23 excluding one-time items.
- Net earnings were 284 million dollars, financial services earnings were 129 million dollars, and SG&A was 9.2% versus the expected range of 8.8 to 9%.
- Lennar started just under 21,000 homes and operated 1,713 active communities, with starts and sales both at 4.1 homes per community per month.
- Construction cost was approximately $80 per square foot, down 6% from a year ago and down 14% from the fourth quarter of 2023, while construction cycle time improved to a record 116 days.
- Completed unsold inventory declined to 1.8 homes per community from 2.1 in the second quarter and 3 in the first quarter.
- Lennar owned roughly 2% of its home sites and controlled the rest through third parties, with 11,800 home sites owned and 476,000 controlled; 86% of homes delivered came from Land Bank land.
- Deposits and pre-acquisition costs ended the quarter at 7.3 billion dollars, up 265 million sequentially.
- The company ended the quarter with 1.2 billion of cash, total liquidity of 3.6 billion, homebuilding debt to total capital of 16.6%, and 650 million dollars drawn on its revolver.
- Lennar paid down 400 million dollars of senior debt, repurchased 3 million shares for 256 million dollars, and paid 119 million in dividends.
- The housing market remained constrained by higher interest rates, inflation, moderating consumer confidence, and increased resale supply, particularly in Texas and Florida.
- The 30-year fixed rate increased from between 6.4 and 6.5 percent at the prior call to approximately 7 percent, while the 10-year Treasury was hovering around 5 percent.
- Labor availability became more constrained in certain geographies because of immigration enforcement and data center construction, although Lennar said scale and efficiencies continued to offset labor cost increases.
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