Lennar (LEN) Q4 2025 earnings summary

Executive summary

• Delivered 23,034 homes and sold just over 20,000 in Q4, exceeding delivery goals and meeting low-end sales guidance despite a challenging housing market.

• New orders rose 18% year-over-year in Q4 to 20,018 homes; full-year new orders up 9% to 83,978 homes.

• Maintained volume and grew market share over the past three years, re-engineering the operating platform for efficiency.

• Transitioned to an asset-light model, with less than 5% of land on the balance sheet and inventory reduced from $20B to $12B year-over-year.

• Leadership transition as Co-CEO Jon Jaffe retires, with internal promotions and no external replacement planned.

Financial highlights

• Q4 gross margin declined to 17% due to increased incentives and affordability pressures; SG&A at 7.9%, net margin at 9.1%.

• Q4 total revenues were $9.4B; full-year revenues were $34.2B.

• Q4 net earnings were $490M ($1.93 per diluted share), or $514M ($2.03 per share) excluding adjustments.

• Financial services operating earnings were $133M in Q4 and $610M for the year.

• Repurchased 22M shares valued at $2.7B during the year.

Outlook and guidance

• Q1 2026 guidance: 18,000–19,000 new orders, 17,000–18,000 deliveries, average sales price $365K–$375K.

• Q1 gross margin expected at 15%–16%, SG&A at 9.5%, EPS range $0.80–$1.10.

• Full-year 2026 delivery target of approximately 85,000 homes.

• Financial services earnings expected at $105M–$110M in Q1.