Lennar

Lennar (LEN) Q3 2025 Earnings

Reported Sep 18, 2025 at 5:52 PM ET · SEC Source

Q3 25 EPS

$2.29

BEAT +9.32%

Est. $2.09

Q3 25 Revenue

$8.81B

MISS 2.63%

Est. $9.05B

vs S&P Since Q3 25

-44.2%

TRAILING MARKET

LEN -31.8% vs S&P +12.4%

Market Reaction

Did LEN Beat Earnings? Q3 2025 Results

Lennar posted a stronger-than-expected third quarter despite a challenging housing backdrop, reporting GAAP earnings per share of $2.29 against a consensus estimate of $2.09, a beat of 9.57%, even as revenue slipped 6.2% year over year to $8.81 billi… Read more Lennar posted a stronger-than-expected third quarter despite a challenging housing backdrop, reporting GAAP earnings per share of $2.29 against a consensus estimate of $2.09, a beat of 9.57%, even as revenue slipped 6.2% year over year to $8.81 billion. The headline profit figure was aided by $99 million in mark-to-market gains on technology investments, with adjusted EPS coming in at $2.00, underscoring the pressure the company faces from a market that demanded deeper incentives and lower prices to move homes. The average sales price fell to $383,000 from $422,000 a year ago, compressing gross margin on home sales to 17.5% from 22.5%, though new orders climbed 12% to 23,004 homes, signaling resilient underlying demand. Management noted it is deliberately moderating volume to let the market recover, expressing cautious optimism around declining interest rates. For Q4 2025, Lennar guided to 22,000 to 23,000 deliveries at an average sales price of $380,000 to $390,000, with gross margin holding near 17.5%.

Key Takeaways

  • Additional incentives and mortgage rate buydowns to sustain sales momentum in a soft market
  • 9% decrease in average sales price to $383,000 from $422,000 year over year
  • Gross margin compression to 17.5% from 22.5% due to lower revenue per square foot and higher land costs
  • Construction cost decreases partially offsetting margin pressure
  • Record-short cycle time of 126 days reflecting production-first approach
  • Inventory turns improved to 1.9 times
  • Financial Services operating earnings increased to $178 million from $144 million on higher profit per locked loan
  • $99 million in mark-to-market gains on technology investments, primarily Opendoor and Sunnova
  • New orders increased 12% to 23,004 homes
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LEN YoY Financials

Q3 2025 vs Q3 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

“Our third quarter results reflect both the continued pressures of today's housing market and the consistency of Lennar's operating strategy. This quarter, we delivered 21,584 homes and recorded 23,004 new orders. Achieving these results required additional incentives, resulting in a reduced average sales price of $383,000, and our gross margin drifted down to 17.5%, while our SG&A expenses came in at 8.2%, reflecting the soft market conditions.”

— Stuart Miller, Q3 2025 Earnings Press Release