Lennar reported positive growth in deliveries in both the fourth quarter and the full fiscal year. However, in a reflection of current affordability challenges, the builder’s revenue declined in both the fourth quarter and full fiscal year in part due to double digit declines in average sales price and heavy financial incentives.
In the fourth quarter, the average sales price for Lennar ($386,000) was 10.2% lower than in the fourth quarter of 2024. For the full year, the average sales price of homes delivered declined to $391,000 from $423,0000 in 2024. Executive chairman and co-CEO Stuart Miller said the builder maintained approximately 14% in incentives and price adjustments in the quarter.
“Even as interest rates moved slightly lower in our fourth quarter, the overall market remained challenged,” Miller said. “Accordingly, our fourth quarter and full year 2025 results reflect a disciplined commitment to increasing housing supply in a market constrained by affordability challenges, as well as weak consumer confidence.”
In the fourth quarter, revenues from home sales decreased 7% in the fourth quarter to $8.9 billion. A 4% increase in deliveries to 23,034 partially offset the impact of lower average sales price. For the full fiscal year, home sales revenue decreased to $32.1 billion from $33.9 billion. The decline in average sales price was partially offset by an 3% increase in deliveries to 82,583.
“Even as market conditions softened, we prioritized providing supply for a healthier housing market, while driving down costs to support affordability,” Miller said. “Our strategy remains consistent and clear: Maintain volume, adapt to evolving conditions, reduce costs, and support housing affordability.”
Lennar generated fourth quarter profit of $514 million, or $2.04 per share, down from fourth quarter 2024 profit of $1.1 billion, or $4.03 per share. The results fell short of Wall Street profit per share projections of around $2.21. For the full fiscal year, the builder generated a profit of $2.1 billion, or $8.07 per share, down from 2024’s profit per share ($13.86) and Wall Street projections ($8.27).
“During the fourth quarter, we strategically reduced our starts and sales pace to 3.7 and 4.0 homes per community per month, respectively. We continued to utilize incentives, including mortgage rate buydowns, to sustain sales momentum,” said co-CEO and president Jon Jaffe. “Construction cycle times moderated to an average of 127 days, enabling more efficient production. As a result, our inventory turn improved to 2.2 times, supporting both operational efficiency and affordability.”
In the fourth quarter, net new orders increased 18% to 20,018. For the full year, orders increased 9% to 83,978. The builder ended the fiscal year with 13,936 homes in backlog, valued at $5.2 billion.
“While affordability and consumer confidence have remained challenging as interest rates moderated, we have focused on adapting to a new normal as the market finds its footing again,” Miller said.
