Lennar

Lennar (LEN) Q2 2025 Earnings

Reported Jun 16, 2025 at 5:53 PM ET · SEC Source

Q2 25 EPS

$1.81

MISS 6.61%

Est. $1.94

Q2 25 Revenue

$8.38B

BEAT +2.32%

Est. $8.19B

vs S&P Since Q2 25

-46.4%

TRAILING MARKET

LEN -21.6% vs S&P +24.8%

Market Reaction

Did LEN Beat Earnings? Q2 2025 Results

Lennar delivered a disappointing second quarter for fiscal 2025, missing Wall Street expectations as affordability pressures and weakened consumer confidence weighed heavily on results. The homebuilder posted GAAP EPS of $1.81, falling short of the $… Read more Lennar delivered a disappointing second quarter for fiscal 2025, missing Wall Street expectations as affordability pressures and weakened consumer confidence weighed heavily on results. The homebuilder posted GAAP EPS of $1.81, falling short of the $1.94 consensus estimate by 6.70%, while revenue slipped 4.6% year-over-year to $8.38 billion. The central culprit was a sharp compression in home sales gross margin, which fell to 17.8% from 22.6% a year earlier, as Lennar leaned aggressively into pricing incentives, cutting its average sales price 9% to $389,000 per home to keep volume moving. That strategy did sustain modest delivery growth to 20,131 units, and new orders rose 6% to 22,601 homes, but the cost in margin was significant. The broader homebuilding sector has flagged a softer-than-expected spring selling season, with localized weakness in markets like Sacramento and Seattle adding to the headwinds. Looking ahead, management guided Q3 deliveries of 22,000-23,000 homes at an average sales price of $380,000-$385,000, suggesting further near-term price discipline will remain necessary.

Key Takeaways

  • 2% increase in home deliveries to 20,131 homes
  • 6% increase in new orders to 22,601 homes
  • 9% decrease in average sales price to $389,000 driven by affordability incentives
  • Gross margin compressed to 17.8% (18.0% ex-purchase accounting) from 22.6% due to higher land costs and lower revenue per square foot
  • Cycle time improved 12% year-over-year to 132 days
  • Inventory turn improved to 1.8x from 1.6x
  • Financial Services operating earnings increased to $157 million driven by higher profit per locked loan
  • Construction cost savings partially offset margin pressures
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LEN YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

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LEN Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26
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LEN Revenue by Geography

With YoY comparisons, source: SEC Filings

Q2 25 Q2 26

“While we continue to see softness in the housing market due to affordability challenges and a decline in consumer confidence, we adhered to our strategy of driving starts, sales, and closings in order to build long-term efficiencies in our business.”

— Stuart Miller, Q2 2025 Earnings Press Release