Lennar grew orders and maintained a relatively consistent delivery pace in the fiscal third quarter. However—in a reflection of current market challenges—achieving these results relied on an increased use of financing incentives and lower average sales prices. The builder’s third quarter average sales price of $383,000 was 9.2% lower than the same period in 2024.
In the period, Lennar reported total revenues of $8.8 billion and profit per share of $2.29, both down compared to the prior year period and below consensus Wall Street projections.
Stuart Miller, executive chairman and co-CEO of Lennar, said interest rates declined toward the end of the quarter. This trend, coupled with the Fed’s rate cut at its September meeting, gives the builder optimism that demand conditions will improve in the fourth quarter.
Quarter By the Numbers
- Home sale revenue decreased 9% in the third quarter to $8.2 billion, driven by the decrease in average sales price.
- New home deliveries in the quarter were 21,584, essentially unchanged from the 21,516 deliveries in the third quarter of 2024.
- New orders in the quarter increased 12% to 23,004 homes. Lennar ended the period with a backlog of 16,953 homes.
What They’re Saying
“While our current results reflect incentives and price adjustments to match market conditions, our scale and technology investments are building the foundation for structural cost efficiencies. Backed by a strong balance sheet and disciplined execution, we remain confident in our ability to build margin as conditions stabilize.” — Miller
“While the short term road ahead may be a little choppy, we are very optimistic about our future. We are well aware that our numbers are not where we would like them to be, but neither are market conditions. We are well-situated with a strong and growing national presence, growing community count, and growing volume. We have continued to drive production to meet the housing shortage that we all know persists. We have positioned our company to evolve and create efficiencies and technologies that will make us a better company today and into the future.” — Miller
“Inventory turns improved to 1.9 times, and cycle time improved to 126 days, the shortest cycle time we’ve ever experienced. This reflects the impact of our production-first approach and continued successful negotiations with our trade partners. These efficiency gains, together with our digital marketing and land-management initiatives, position us to deliver consistent volume, support affordability, and drive further improvements on cost structure.” — Jon Jaffe, co-CEO and president
“Over the last 11 quarters, we have achieved cost reductions in ten of them. The average decrease in each of the 11 quarters is $1.50 per square foot. Direct construction costs in the third quarter were down approximately 1% from the second quarter and 3% year over year, reaching the lowest construction cost for our company since the third quarter of 2021.” — Jaffe
