Lennar (LEN - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended August 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on September 16. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis homebuilder is expected to post quarterly earnings of $1.30 per share in its upcoming report, which represents a year-over-year change of -35%.
Revenues are expected to be $8.33 billion, down 5.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Lennar?For Lennar, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -7.34%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Lennar will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Lennar would post earnings of $1.23 per share when it actually produced earnings of $1.31, delivering a surprise of +6.50%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Lennar doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Lennar Corporation is trading at a deep discount, 12% below its 200-day SMA and at 0.98x P/B, amid widespread sector downgrades. Despite weaker ROE (7.24%) and ROIC (5.83%) versus D.R. Horton, LEN is seeing substantial institutional accumulation in dark pools near its lows. LEN's low debt/equity ratio (0.29) and 2.28% yield support a patient holding strategy while the market remains bearish.
Valuation Assessment of Lennar Corp LENOn September 08, 2026, Lennar Corp (LEN) shares fell 3.8%, closing at $80.37. The stock has experienced significant volatility, with a 52-week high of $144.24 and a low of $79.83.
GF Value™ verdict: Current price is $80.37 vs GF Value™ of $126.79, indicating a 36.6% upside potential.GF Score™: 68/100, suggesting an above-average overall rating.Notable signal: No insider transactions have occurred in the past 12 months.Is LEN Overvalued or Undervalued?According to GF Value™, which provides a proprietary intrinsic value estimate based on historical trading multiples, past business growth, and future performance estimates, Lennar Corp is currently undervalued. The GF Value™ for LEN stands at $126.79, suggesting a significant margin of safety with the stock trading at 36.6% below this fair value. However, the GF Valuation label indicates that LEN might be a "Possible Value Trap," urging caution for potential investors. This label highlights the importance of considering not just the valuation, but also the sustainability of the company's earnings and dividends.
The current valuation reflects broader market sentiments and ongoing challenges within the homebuilding sector, which could impact future performance. Thus, while the current price presents a potentially attractive opportunity, investors should weigh the risks associated with market volatility and the company's financial health.
How Does LEN's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)12.6x8.7xForward P/E12.3xN/ALennar Corp's current P/E ratio of 12.6x is significantly above its 5-year median of 8.7x, suggesting that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict, indicating that while the stock is currently undervalued based on GF Value™, the elevated P/E ratio could suggest overvaluation risks based on historical trends.
What Does LEN's GF Score™ Tell Us?The GF Score™ provides a comprehensive assessment of a company's overall performance across multiple dimensions, including financial strength, profitability, growth, valuation, and momentum. Lennar Corp's score of 68/100 indicates that the company is above average in its overall performance, but there are areas that require attention.
MetricRatingGF Score™68Financial Strength5/10Profitability8/10Growth3/10Valuation4/10Momentum4/10The strongest aspect of LEN's GF Score™ is its profitability rank of 8/10, suggesting robust profit generation capabilities. However, its growth rank of 3/10 indicates potential challenges in expanding revenue and earnings. The financial strength rating of 5/10 suggests moderate stability, while valuation and momentum ranks of 4/10 imply that the stock's current price performance may not be optimal for growth investors.
What Are Gurus and Insiders Doing with LEN?Currently, 12 gurus hold shares of Lennar Corp, with 8 adding to their positions and 5 trimming their holdings in recent quarters. This activity indicates a generally positive sentiment among institutional investors, with many believing in the long-term value of the stock despite recent price declines.
Notably, there have been no insider transactions in the past 12 months, which may suggest that insiders are not currently buying or selling shares, potentially indicating confidence in the company's future prospects or a wait-and-see approach given the current market conditions. This lack of insider buying could be a cautious signal for investors, as insider purchases are often viewed as a bullish indicator.
What This Means for InvestorsBased on the GF Value™ assessment, Lennar Corp is currently undervalued, trading significantly below its estimated fair value of $126.79. However, potential investors should consider the dividend sustainability, given the company's financial health and recent market performance. The current valuation presents an opportunity, but it is essential to weigh the risks associated with market volatility and the company's growth prospects.
For further details on Lennar Corp LEN, please visit the Lennar Corp (LEN) stock page for comprehensive insights.
Frequently Asked QuestionsWhat is LEN's GF Score™?
LEN's GF Score™ is 68/100, indicating that the company is performing above average compared to its peers across several key metrics.
Is LEN overvalued or undervalued?
LEN is currently undervalued, with a GF Value™ of $126.79 compared to its current price of $80.37, suggesting a significant upside potential.
What is LEN's P/E ratio?
LEN's P/E ratio is 12.6x, which is substantially higher than its 5-year median P/E of 8.7x, indicating that the stock is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
In the latest trading session, Lennar (LEN - Free Report) closed at $80.37, marking a -3.84% move from the previous day. This move lagged the S&P 500's daily loss of 0.58%. Meanwhile, the Dow lost 1.18%, and the Nasdaq, a tech-heavy index, lost 0.32%.
Shares of the homebuilder witnessed a loss of 2.36% over the previous month, beating the performance of the Construction sector with its loss of 7.66%, and underperforming the S&P 500's loss of 0.36%.
Investors will be eagerly watching for the performance of Lennar in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on September 16, 2026. The company's earnings per share (EPS) are projected to be $1.31, reflecting a 34.5% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $8.33 billion, showing a 5.42% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.48 per share and a revenue of $32.27 billion, demonstrating changes of -32.01% and -5.6%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Lennar. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Lennar is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, Lennar is presently trading at a Forward P/E ratio of 15.25. For comparison, its industry has an average Forward P/E of 13.59, which means Lennar is trading at a premium to the group.
It's also important to note that LEN currently trades at a PEG ratio of 2.79. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 2.68.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow LEN in the coming trading sessions, be sure to utilize Zacks.com.
Lennar (NYSE:LEN – Get Free Report) is expected to release its Q3 2026 results after the market closes on Wednesday, September 16th. Analysts expect Lennar to post earnings of $1.29 per share and revenue of $8.3069 billion for the quarter. Interested persons may visit the the company’s upcoming Q3 2026 earning results page for the latest details on the call scheduled for Thursday, September 17, 2026 at 11:00 AM ET.
Lennar (NYSE:LEN – Get Free Report) last released its quarterly earnings results on Thursday, June 11th. The construction company reported $1.31 EPS for the quarter, beating analysts’ consensus estimates of $1.24 by $0.07. Lennar had a net margin of 4.93% and a return on equity of 7.08%. The company had revenue of $7.94 billion for the quarter, compared to analyst estimates of $8.08 billion. During the same quarter last year, the firm posted $1.81 earnings per share. The company’s quarterly revenue was down 5.2% compared to the same quarter last year. On average, analysts expect Lennar to post $6 EPS for the current fiscal year and $6 EPS for the next fiscal year.
Lennar Price Performance Shares of Lennar stock opened at $80.56 on Wednesday. The company has a current ratio of 4.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.19. The firm has a fifty day simple moving average of $85.29 and a 200-day simple moving average of $90.27. The stock has a market capitalization of $19.41 billion, a price-to-earnings ratio of 12.61, a PEG ratio of 2.78 and a beta of 1.39. Lennar has a 1-year low of $79.82 and a 1-year high of $141.84.
Lennar Announces Dividend The company also recently announced a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Friday, July 10th were issued a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 2.5%. The ex-dividend date was Friday, July 10th. Lennar’s dividend payout ratio (DPR) is 31.30%. Wall Street Analysts Forecast Growth A number of equities research analysts have issued reports on the stock. UBS Group decreased their price target on shares of Lennar from $107.00 to $94.00 and set a “neutral” rating for the company in a report on Tuesday, June 16th. Evercore lifted their price objective on Lennar from $82.00 to $87.00 and gave the stock an “underperform” rating in a research note on Monday, June 15th. Argus set a $108.00 price objective on Lennar in a research report on Thursday, July 9th. Royal Bank Of Canada lowered their target price on Lennar from $88.00 to $85.00 and set an “underperform” rating on the stock in a report on Monday, June 15th. Finally, JPMorgan Chase & Co. dropped their price target on Lennar from $80.00 to $77.00 and set an “underweight” rating on the stock in a research report on Tuesday, June 16th. One equities research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and ten have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Reduce” and an average target price of $92.13.
Get Our Latest Report on LEN
Institutional Investors Weigh In On Lennar Several hedge funds have recently made changes to their positions in LEN. DV Equities LLC bought a new position in Lennar during the fourth quarter valued at about $31,000. Quarry LP acquired a new stake in shares of Lennar during the 4th quarter worth approximately $41,000. IFC & Insurance Marketing Inc. acquired a new stake in shares of Lennar during the 4th quarter worth approximately $45,000. Cary Street Partners Financial LLC bought a new stake in shares of Lennar during the second quarter valued at approximately $47,000. Finally, EFG International AG acquired a new position in shares of Lennar in the fourth quarter valued at $62,000. Institutional investors own 81.10% of the company’s stock.
Lennar Company Profile (Get Free Report)
Lennar Corporation (NYSE: LEN) is a U.S.-based homebuilder and real estate company that designs, constructs and sells residential housing. The company offers a range of product types including single-family detached homes, townhomes and condominiums, serving buyers from entry-level and first-time purchasers to move-up, active-adult and luxury segments. Lennar also develops master-planned communities and manages land acquisition and entitlement activities that support its homebuilding operations.
In addition to home construction and sales, Lennar provides a suite of ancillary services intended to streamline the purchase process and capture additional value.
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B. Metzler seel. Sohn & Co. AG lifted its position in shares of Lennar Corporation (NYSE:LEN – Free Report) by 24.3% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 50,249 shares of the construction company’s stock after purchasing an additional 9,830 shares during the quarter. B. Metzler seel. Sohn & Co. AG’s holdings in Lennar were worth $4,547,000 at the end of the most recent reporting period.
Several other hedge funds have also bought and sold shares of the business. Nan Shan Life Insurance Co. Ltd. raised its stake in shares of Lennar by 6,292.5% in the second quarter. Nan Shan Life Insurance Co. Ltd. now owns 328,000 shares of the construction company’s stock worth $29,681,000 after purchasing an additional 322,869 shares during the last quarter. Proficio Capital Partners LLC purchased a new position in shares of Lennar during the second quarter valued at approximately $363,000. BTG Pactual Asset Management US LLC bought a new stake in Lennar during the second quarter worth $308,000. Greenleaf Trust raised its position in Lennar by 29.1% in the 2nd quarter. Greenleaf Trust now owns 6,031 shares of the construction company’s stock valued at $546,000 after buying an additional 1,361 shares during the last quarter. Finally, New Mexico Educational Retirement Board lifted its stake in Lennar by 1.9% during the 2nd quarter. New Mexico Educational Retirement Board now owns 10,760 shares of the construction company’s stock valued at $974,000 after acquiring an additional 200 shares in the last quarter. Institutional investors and hedge funds own 81.10% of the company’s stock.
Lennar Stock Up 0.9% LEN stock opened at $84.37 on Friday. The stock has a fifty day moving average of $85.83 and a 200-day moving average of $91.10. Lennar Corporation has a fifty-two week low of $79.82 and a fifty-two week high of $144.24. The company has a market capitalization of $20.32 billion, a price-to-earnings ratio of 13.20, a PEG ratio of 2.78 and a beta of 1.39. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.91 and a current ratio of 4.91.
Lennar (NYSE:LEN – Get Free Report) last announced its quarterly earnings results on Thursday, June 11th. The construction company reported $1.31 earnings per share for the quarter, beating the consensus estimate of $1.24 by $0.07. Lennar had a return on equity of 7.08% and a net margin of 4.93%.The company had revenue of $7.94 billion during the quarter, compared to analysts’ expectations of $8.08 billion. During the same period in the previous year, the business earned $1.81 earnings per share. The firm’s quarterly revenue was down 5.2% compared to the same quarter last year. As a group, equities research analysts predict that Lennar Corporation will post 5.52 earnings per share for the current year. Lennar Dividend Announcement The business also recently announced a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were given a dividend of $0.50 per share. The ex-dividend date was Friday, July 10th. This represents a $2.00 annualized dividend and a yield of 2.4%. Lennar’s payout ratio is presently 31.30%.
Analyst Ratings Changes Several analysts have recently issued reports on the stock. Barclays reduced their target price on shares of Lennar from $80.00 to $79.00 and set an “underweight” rating for the company in a research note on Monday, June 15th. The Goldman Sachs Group reaffirmed a “neutral” rating on shares of Lennar in a research report on Friday, June 5th. Argus set a $108.00 price objective on shares of Lennar in a research note on Thursday, July 9th. Royal Bank Of Canada dropped their target price on shares of Lennar from $88.00 to $85.00 and set an “underperform” rating on the stock in a research report on Monday, June 15th. Finally, Zacks Research downgraded Lennar from a “hold” rating to a “strong sell” rating in a research note on Tuesday, June 16th. One investment analyst has rated the stock with a Buy rating, seven have given a Hold rating and ten have issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Reduce” and an average price target of $92.13.
Get Our Latest Report on LEN
Lennar Company Profile (Free Report)
Lennar Corporation (NYSE: LEN) is a U.S.-based homebuilder and real estate company that designs, constructs and sells residential housing. The company offers a range of product types including single-family detached homes, townhomes and condominiums, serving buyers from entry-level and first-time purchasers to move-up, active-adult and luxury segments. Lennar also develops master-planned communities and manages land acquisition and entitlement activities that support its homebuilding operations.
In addition to home construction and sales, Lennar provides a suite of ancillary services intended to streamline the purchase process and capture additional value.
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MIAMI, Sept. 2, 2026 /PRNewswire/ -- Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's largest homebuilders, announced today that the Company will release its third quarter 2026 earnings after the market closes on September 16, 2026.
In the latest trading session, Lennar (LEN - Free Report) closed at $84.11, marking a -2.57% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.33%. Meanwhile, the Dow lost 0.7%, and the Nasdaq, a tech-heavy index, lost 0.12%.
The homebuilder's stock has climbed by 4.83% in the past month, exceeding the Construction sector's loss of 4.75% and the S&P 500's gain of 3.87%.
Market participants will be closely following the financial results of Lennar in its upcoming release. The company's upcoming EPS is projected at $1.31, signifying a 34.50% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $8.33 billion, reflecting a 5.42% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.46 per share and a revenue of $32.27 billion, representing changes of -32.26% and -5.6%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Lennar. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lennar presently features a Zacks Rank of #4 (Sell).
Digging into valuation, Lennar currently has a Forward P/E ratio of 15.82. This indicates a premium in contrast to its industry's Forward P/E of 14.35.
We can also see that LEN currently has a PEG ratio of 2.9. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 2.9.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Lennar (LEN - Free Report) ended the recent trading session at $88.16, demonstrating a +1.31% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.28% for the day. On the other hand, the Dow registered a gain of 0.26%, and the technology-centric Nasdaq decreased by 0.77%.
Coming into today, shares of the homebuilder had gained 2.81% in the past month. In that same time, the Construction sector lost 1.81%, while the S&P 500 gained 2.31%.
Market participants will be closely following the financial results of Lennar in its upcoming release. In that report, analysts expect Lennar to post earnings of $1.31 per share. This would mark a year-over-year decline of 34.5%. Alongside, our most recent consensus estimate is anticipating revenue of $8.33 billion, indicating a 5.42% downward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.46 per share and a revenue of $32.27 billion, signifying shifts of -32.26% and -5.6%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Lennar. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Lennar is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at its valuation, Lennar is holding a Forward P/E ratio of 15.94. Its industry sports an average Forward P/E of 14.47, so one might conclude that Lennar is trading at a premium comparatively.
Meanwhile, LEN's PEG ratio is currently 2.92. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 2.92.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 104, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Lennar (LEN - Free Report) closed the most recent trading day at $84.94, moving -1.85% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.69%. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq depreciated by 1.33%.
The homebuilder's stock has climbed by 4.39% in the past month, exceeding the Construction sector's gain of 2.1% and the S&P 500's gain of 3.96%.
The investment community will be paying close attention to the earnings performance of Lennar in its upcoming release. The company is expected to report EPS of $1.31, down 34.5% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $8.33 billion, reflecting a 5.42% fall from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.46 per share and revenue of $32.27 billion, indicating changes of -32.26% and -5.6%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Lennar. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Lennar boasts a Zacks Rank of #4 (Sell).
From a valuation perspective, Lennar is currently exchanging hands at a Forward P/E ratio of 15.86. Its industry sports an average Forward P/E of 14.58, so one might conclude that Lennar is trading at a premium comparatively.
We can also see that LEN currently has a PEG ratio of 2.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 2.9 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 102, finds itself in the top 42% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
LAS VEGAS, Aug. 14, 2026 (GLOBE NEWSWIRE) -- World Street Intelligence News Commentary - The United States is estimated to be short around five million homes, and the reason is not a mystery. Building a house is still done essentially the way it was a century ago: piece by piece, outdoors, on-site, by skilled labor that is increasingly scarce and expensive, exposed to weather and delays at every step. Nearly every other complex product a modern economy makes, cars, phones, appliances, is built on an assembly line, where standardization and scale drive costs down year after year. Housing never made that leap. A small group of companies is betting that it finally can, and that the factory, not the construction site, is where the affordability crisis gets solved. Companies mentioned in today's commentary include: BOXABL Inc. (Nasdaq: BXBL), Cavco Industries, Inc. (Nasdaq: CVCO), Champion Homes, Inc. (NYSE: SKY), D.R. Horton, Inc. (NYSE: DHI), and Lennar Corporation (NYSE: LEN).
The idea is deceptively simple and enormously hard to execute. If a home could be mass-produced in a controlled factory environment, the logic of manufacturing would take over: repeatable processes, bulk materials, quality control, and no weather delays, all compounding into lower costs and faster delivery. The obstacles have always been just as real, from the sheer size and weight of a house to the patchwork of local building codes and the challenge of moving a finished structure to its site. But labor shortages, rising construction costs, and a deepening affordability crisis have given the factory-built approach a fresh urgency, and the companies furthest along are drawing new attention.
One of the most closely watched names in that push is BOXABL Inc. (Nasdaq: BXBL), a North Las Vegas company that builds modular housing units designed to be mass-produced in a factory and folded out on-site in about an hour. Over the past year the story around BOXABL has evolved, from a much-discussed startup with a viral product into a public company pursuing the industrial scale-up that the entire factory-built housing idea has always demanded. This is a look at that sector, why building homes like cars has become one of the more compelling ideas in housing, and the established companies whose scale defines the market BOXABL is trying to enter.
Housing's Missing Assembly Line
To understand why factory-built housing matters, start with what makes conventional homebuilding so stubbornly expensive. A site-built home is assembled outdoors over months, dependent on the availability of skilled trades, vulnerable to weather, and difficult to standardize because every project is effectively custom. Labor is a growing constraint, materials costs have climbed, and new trade policies have pushed tariffs on construction inputs sharply higher, adding thousands of dollars to the cost of a typical new home. The result is a system that struggles to deliver affordable housing at the scale the country needs.
Factory-built housing flips the model. By moving construction indoors onto a production line, manufacturers can standardize designs, buy materials in bulk, control quality, and build regardless of the weather, the same advantages that made manufacturing transform every other major industry. The factory-built segment already includes manufactured and modular homes that cost meaningfully less per square foot than site-built houses. The unrealized promise, the one BOXABL and others are chasing, is to push that logic further: toward true mass production of housing at a scale that could bend the affordability curve rather than merely trim it.
The Company Building Homes Like Products
BOXABL's central idea is to treat a home as a manufactured product rather than a construction project. Its flagship unit, the Casita, is a 361-square-foot studio with a full kitchen, bathroom, and utilities that ships and unfolds on-site in under an hour, and the company also offers a smaller 120-square-foot Baby Box. Beyond those, BOXABL is developing stackable and connectable modules designed to combine into townhomes, multifamily buildings, and larger single-family homes, an approach meant to turn a single standardized module into a building block for many kinds of housing. More detail is available through the company's website.
The company's trajectory reflects unusual public enthusiasm for the idea. Since its inception in 2017, BOXABL has raised over $230 million from more than 50,000 investors, a striking level of grassroots interest for a hardware company, and it began trading on the Nasdaq under the ticker BXBL on July 20, 2026. The appeal is the vision: a home that rolls off a line and sets up in an hour speaks directly to the frustration that housing costs too much and takes too long. The challenge, as with any manufacturing business, is turning that vision into repeatable, high-volume production, which is the work now in front of the company.
Opening the Door to Partners
In its most recent move, BOXABL signaled how it intends to accelerate that scale-up: through partnerships rather than building every capability from scratch. On August 13, 2026, the company announced the launch of a new section of its website inviting mergers, acquisitions, joint ventures, land contributions, talent additions, and technology or intellectual-property deals across the housing value chain, and said it is open to evaluating M&A opportunities more broadly where a combination could accelerate its mission.
The company framed the effort around four areas, companies, land, talent, and inventions, and described talent in particular as the real reason it does deals, noting that hands-on operating experience in building, moving, selling, and financing housing cannot be bought off a shelf. “Housing is too expensive right now, and every year we spend inventing something that already exists is a year homes stay unaffordable,” said Galiano Tiramani, BOXABL Founder and Co-CEO, adding that when someone has already solved part of the problem, the fastest path is to bring them in rather than start over in-house. The company noted that any submissions are non-binding and that transactions would be subject to due diligence and definitive agreements. It is a notable signal of intent from a company trying to assemble the full set of capabilities that mass-producing housing requires.
The Countdown: An Affordability Crisis That Won't Wait
The pressure driving interest in factory-built housing is structural and intensifying. The estimated shortage of around five million homes is not closing on its own; homeowners locked into low mortgage rates are reluctant to sell, leaving newly built inventory as one of the only sources of move-in-ready supply, while elevated mortgage rates and high prices keep ownership out of reach for many. Every force pressing on housing, scarce labor, high material and financing costs, and a persistent supply gap, points toward the need for a faster, cheaper way to build.
That is the backdrop that gives the factory-built approach its urgency. It is not a countdown to a single date but a steadily worsening shortage that makes any credible path to cheaper, faster housing more valuable each year. Manufacturers that can demonstrate real cost and speed advantages stand to benefit from policy attention, from builders and developers seeking solutions, and from buyers priced out of the traditional market. BOXABL is one company positioning for that opening, alongside far larger and more established players already operating at scale in the factory-built space.
The Companies Already Building at Scale
The clearest way to size up the opportunity and the competition is to look at the companies already operating in factory-built and broader residential construction, because they define the market's scale and economics. The four below are referenced solely as market and sector context. Two are established factory-built housing manufacturers and two are among the largest site-built homebuilders in the country. They are vastly larger and more established than BOXABL, are not peers, competitors, or financial comparables of BOXABL Inc., and their results are not indicative of BOXABL's prospects. BOXABL is an early-stage, recently public company in the process of scaling production; the companies below are large, established, revenue-generating enterprises. All figures are approximate and subject to change.
Cavco Industries, Inc. (Nasdaq: CVCO)
Cavco Industries is one of the largest producers of factory-built housing in the United States, designing and building manufactured and modular homes under brands including Cavco, Fleetwood, and Palm Harbor, alongside a financial-services arm that provides mortgages and insurance. It is the clearest example of the factory-built housing model operating profitably at scale, and it represents the established end of the sector BOXABL is trying to enter with a more radically standardized product.
Cavco has been performing strongly, reporting fiscal 2026 revenue of roughly $2.24 billion, up more than 11%, with record shipments, a sharply higher backlog, and a stock up around 30% over the past year, and analysts have pointed to an affordability-challenged and underbuilt housing market as a tailwind. It is referenced to illustrate the scale, profitability, and momentum of the established factory-built housing market, a mature, at-scale business that stands in sharp contrast to BOXABL's early-stage production ramp, but that validates the underlying demand for factory-built homes.
Champion Homes, Inc. (NYSE: SKY)
Champion Homes is another of the largest factory-built housing manufacturers in North America, producing manufactured and modular homes across a broad network of plants and brands. Formerly known as Skyline Champion, it is a core name in the modular and manufactured housing industry, and like Cavco it demonstrates that building homes in factories is an established, sizable business rather than an experimental one, the industry backdrop against which BOXABL's more standardized, mass-production approach is being judged.
Champion operates at national scale in the factory-built segment and is frequently grouped with Cavco as one of the two dominant public manufactured-and-modular housing companies, giving it a very different scale and maturity profile from an early-stage entrant. It is included to represent the competitive and market context of the established modular housing industry, a large, experienced manufacturer whose position highlights both the opportunity BOXABL is pursuing and the scale it would need to reach to compete.
D.R. Horton, Inc. (NYSE: DHI)
D.R. Horton is the largest homebuilder in the United States by volume, operating across more than thirty states with a particular focus on the entry-level and affordable segments of the market. It represents the demand side of the housing equation that factory-built approaches aim to serve more cheaply: the vast market for affordable, move-in-ready homes. As the dominant builder of entry-level housing, D.R. Horton illustrates the enormous scale of the affordability-focused market BOXABL's factory model is ultimately targeting.
D.R. Horton builds and sells homes at a scale measured in tens of billions of dollars in annual revenue, using its size to offer affordable options across a broad geographic footprint while navigating high mortgage rates and the incentives needed to keep entry-level homes within reach. It is referenced to illustrate the size and dynamics of the site-built affordable-housing market, the very market whose cost and supply challenges create the opening that factory-built manufacturers like BOXABL are trying to address, at a scale far beyond BOXABL's current stage.
Lennar Corporation (NYSE: LEN)
Lennar is one of the largest homebuilders in the United States, operating across more than two dozen states with a business that spans homebuilding, mortgage lending, and title services, and a strategic emphasis on technology-driven, more efficient construction. It represents both the scale of the traditional homebuilding market and the industry's own push toward efficiency, making it a useful benchmark for the demand and the cost pressures that factory-built housing seeks to address from a different direction.
Lennar delivered well over 80,000 homes in a recent year with revenue near $34 billion, using a land-light strategy and a large multi-state footprint to serve buyers from first-time owners to luxury clients. It is included to represent the scale and strategic direction of the largest site-built homebuilders, an enormous, established enterprise whose efficiency initiatives underscore the same cost pressures BOXABL is attacking through factory production, and whose size stands in sharp contrast to BOXABL's early-stage position.
Why the Market Hasn't Caught Up Yet
Factory-built housing occupies an odd spot in the market's imagination: intuitively appealing, obviously needed, and yet perpetually treated as a someday idea. That skepticism is the first reason a company like BOXABL can generate enormous public interest without the sector being broadly understood by investors. The industry has a long history of ambitious factory-housing ventures that struggled to scale, and that memory trains observers to treat bold claims cautiously, especially from a company still building out its production.
There are structural reasons too. BOXABL is an early-stage, recently public company whose value rests on executing an industrial scale-up that lies ahead rather than on current earnings, which is inherently harder to assess than an established manufacturer with steady revenue. Its most standardized, mass-production vision is also less familiar than the established manufactured-housing model that companies like Cavco and Champion already run profitably. Compress the picture and it reads plainly: a country short millions of homes, a construction model that has resisted the assembly-line efficiency that transformed every other industry, a company with a viral product and an unusually large base of individual investors now pursuing partnerships to scale, and an established factory-built sector proving the underlying demand is real. Whether BOXABL converts that into high-volume production is genuinely unproven, and this is a description of a company and its sector, not a prediction about its stock. But the gap between how urgently the country needs cheaper housing and how underdeveloped mass-produced housing remains is exactly what makes the sector worth understanding now.
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Article Sources:
[1] BOXABL Inc., “BOXABL Inc. Opens the Door to Mergers, Acquisitions, and Partnerships Across the Housing Industry,” PR Newswire, August 13, 2026, and BOXABL company disclosures and website (product specifications, funding history, and Nasdaq listing via business combination with FG Merger II Corp).
[2] Public disclosures and market data of the referenced companies (Cavco Industries, Champion Homes, D.R. Horton, Lennar) as cited in the body of this article.
[3] Industry sources on the U.S. housing shortage, construction costs, and factory-built housing.
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Cautionary Note Regarding Forward-Looking Statements and Recent Public Listing. BOXABL Inc. recently completed its business combination with FG Merger II Corp and began trading on the Nasdaq on July 20, 2026; as a result it has a limited history as a publicly traded company, and recently listed companies can experience heightened share-price volatility and risks associated with the post-combination period. BOXABL is an early-stage company that has not demonstrated the ability to mass-produce housing at commercial scale, and statements regarding production, scale-up, partnerships, mergers and acquisitions, and affordability objectives describe goals, not achieved results. The partnership and M&A program described is an invitation for expressions of interest; any resulting transaction would be non-binding until definitive agreements are executed and is subject to due diligence, financing, and applicable approvals, and there is no assurance that any transaction will result. This publication may contain forward-looking statements. Forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties, including manufacturing, commercialization, regulatory, competitive, supply-chain, and financing risks. Actual results may differ materially. Readers should refer to BOXABL Inc.'s filings with the U.S. Securities and Exchange Commission at www.sec.gov for a full discussion of risk factors.
Cautionary Note Regarding Referenced Companies. References to Cavco Industries, Inc., Champion Homes, Inc., D.R. Horton, Inc., and Lennar Corporation are provided solely as market and sector context. Those companies are not peers, competitors, or financial comparables of BOXABL Inc., and differ substantially in size, stage, capitalization, operations, and business model. Their results and share performance describe those companies only, are not indicative of BOXABL Inc.'s prospects or results, and must not be relied upon in evaluating the profiled company. No partnership, affiliation, or endorsement is implied.
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In the latest close session, Lennar (LEN - Free Report) was down 2.93% at $85.60. The stock's change was less than the S&P 500's daily loss of 0.06%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 0.32%.
The homebuilder's stock has climbed by 4.64% in the past month, exceeding the Construction sector's loss of 0% and the S&P 500's gain of 3.42%.
The investment community will be closely monitoring the performance of Lennar in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.31, marking a 34.5% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.33 billion, down 5.42% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.46 per share and a revenue of $32.27 billion, representing changes of -32.26% and -5.6%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Lennar. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. Right now, Lennar possesses a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Lennar is presently being traded at a Forward P/E ratio of 16.16. This valuation marks a premium compared to its industry average Forward P/E of 14.93.
One should further note that LEN currently holds a PEG ratio of 2.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 2.96.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 190, finds itself in the bottom 23% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
On August 07, 2026, Lennar Corp (LEN) shares rose 4.0% to a current price of $88.18. This movement comes amid a 52-week range of $79.83 to $144.24, highlighting
On August 06, 2026, Lennar Corp (LEN) shares fell by 3.5%, bringing the current price to $84.82. The stock has traded within a 52-week range of $79.83 to $144.2
Berkshire Hathaway’s Q1 2026 13F told a clear story: Greg Abel is deploying capital aggressively. Three names in particular saw heavy accumulation, and each carries a data-driven thesis that helps explain why the world’s most patient institutional investor is deploying capital right now. Remember, 13F holdings are point-in-time snapshots as of quarter end, not real-time positions. But the pattern of buying tells you where conviction sat as of Q1.
Post-annual-meeting, investors are still parsing Abel’s early portfolio fingerprints. Here are the three stocks that stood out, and the numbers behind why smart money is quietly building positions in August.
Delta Air Lines (NYSE: DAL) Delta Air Lines (NYSE:DAL | DAL Price Prediction) is the boldest signal in the filing. Berkshire initiated a brand new 39.8 million share position worth roughly $2.6 billion, a notable reversal given the firm famously exited all airlines during COVID. The stock is responding: shares closed at $92.77 on August 4, up 34.71% year-to-date and 78.55% over the past year.
The Q2 2026 earnings report supports the accumulation thesis. Delta posted adjusted EPS of $1.56 against a $1.50 consensus, its fifth consecutive quarterly beat. High-margin revenue streams are the story: premium product revenue rose 17%, loyalty revenue jumped 19%, and American Express remuneration hit $2.40 billion, up 16% year-over-year. Diversified high-margin revenue now sits at 61% of total.
Management affirmed a full-year 2026 EPS range of $6.50 to $7.50 with $3 to $4 billion in free cash flow, and announced a 15% dividend increase starting the September quarter. CEO Ed Bastian framed the setup directly: "Delta is executing from a position of strength…affirming the guidance…to grow earnings by 20 percent, overcoming a multi-billion dollar fuel headwind." Analyst consensus is 96% bullish across 25 buy ratings against a single sell.
Risk: Non-fuel unit costs climbed 6.8% year-over-year, above the long-term target, and operating margin compressed 4.5 points to 8.8%. Fuel volatility remains the wildcard.
Alphabet (NASDAQ: GOOGL) Alphabet (NASDAQ:GOOGL) saw the most aggressive positioning of the three. Berkshire increased its GOOGL shares held by 204% and simultaneously initiated a brand new Class C position in the same quarter. Shares trade at $377.65, up 20.81% year-to-date and 94.18% over the past year.
Q2 2026 was a genuine blowout. Google reported EPS of $9.11 against a $3.04 consensus, its 11th consecutive EPS beat, on revenue of $119.80 billion, up 24.2% year-over-year. Google Cloud is the accelerator, with revenue accelerating to 82% growth at $24.77 billion and operating income doubling. Nearly 90% of the Fortune 100 now use Gemini Enterprise, and Gemini models process 22 billion API tokens per minute with 950 million monthly active users on the Gemini App.
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CEO Sundar Pichai captured the setup: "Q2 was an amazing quarter, with Alphabet revenues growing 24% year-over-year and Google Cloud revenues accelerating to 82% growth, driven by demand for AI infrastructure and AI solutions." Operating margin expanded to 34%, and the stock still trades at a P/E of just 17. Analyst sentiment sits at 91% bullish with zero bearish ratings across 64 analysts.
Risk: Capex is the swing factor. Q2 capex hit $44.92 billion, doubling year-over-year, pushing free cash flow to negative $5.86 billion. Long-term debt rose from $46.5 billion to $98.2 billion, and buybacks were suspended in Q2.
Lennar (NYSE: LEN) Lennar (NYSE:LEN) is the contrarian pick. Berkshire raised its Lennar stake by 43.24% in Q1, buying into weakness. Shares trade at $87.02, down 14.03% year-to-date and 25.27% over one year. Analysts are cautious: 44% bearish versus 11% bullish. That is precisely the setup Berkshire tends to like.
The insider signal reinforces the thesis. On July 10, 2026, eight Lennar directors executed synchronized share purchases at $84.27, following larger May accumulations by directors Olivera and Sonnenfeld at $89.78. Coordinated board-level buying rarely happens by accident.
Operationally, Lennar is engineering leverage into the eventual housing recovery. Construction cycle time hit a record-low 121 days, construction costs are down 13% over the last several years, and the asset-light model keeps less than 5% of land on the balance sheet. Management repurchased 5 million shares for $447 million at an average of $89.35 in Q2. CEO Stuart Miller framed the inflection: "the gap between our current incentive levels of 12.9% and normalized levels of 4% to 6% is narrowing for the first time in three years." June housing starts also rebounded to 1,427 thousand annualized units, up 19.0% from May.
Risk: Q2 EPS came in at $1.24, down from $1.81 a year earlier, and gross margin on home sales compressed to 15.6% from 17.8%. If mortgage rates stay elevated and the 4.2% inflation reading proves sticky, the recovery timeline stretches further out.
What to Watch Next Three positions, three distinct theses: a cyclical rerating in Delta, an AI capex flywheel at Google, and a contrarian housing entry in Lennar. The common thread is timing. Berkshire moved aggressively when consensus was cautious, and each name now offers a measurable data point supporting the case. Keep an eye on the stocks as Q3 earnings roll in.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Google didn't make the cut. Grab the names FREE today.
Lennar (LEN - Free Report) ended the recent trading session at $87.02, demonstrating a +2.14% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 1.79%. Meanwhile, the Dow gained 1.71%, and the Nasdaq, a tech-heavy index, added 2.59%.
Coming into today, shares of the homebuilder had lost 2.8% in the past month. In that same time, the Construction sector lost 3.64%, while the S&P 500 gained 1.72%.
The upcoming earnings release of Lennar will be of great interest to investors. On that day, Lennar is projected to report earnings of $1.31 per share, which would represent a year-over-year decline of 34.5%. In the meantime, our current consensus estimate forecasts the revenue to be $8.33 billion, indicating a 5.42% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.46 per share and a revenue of $32.27 billion, representing changes of -32.26% and -5.6%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Lennar. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. Lennar is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, Lennar is currently trading at a Forward P/E ratio of 15.61. This represents a premium compared to its industry average Forward P/E of 14.17.
One should further note that LEN currently holds a PEG ratio of 2.86. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 2.86.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 32% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
In the latest close session, Lennar (LEN - Free Report) was down 3.53% at $84.56. The stock's change was less than the S&P 500's daily loss of 1.52%. Meanwhile, the Dow experienced a drop of 2.19%, and the technology-dominated Nasdaq saw a decrease of 1.74%.
Shares of the homebuilder have depreciated by 3.14% over the course of the past month, outperforming the Construction sector's loss of 8.26%, and lagging the S&P 500's gain of 1.92%.
The upcoming earnings release of Lennar will be of great interest to investors. The company is predicted to post an EPS of $1.31, indicating a 34.5% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.33 billion, down 5.42% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.46 per share and a revenue of $32.27 billion, demonstrating changes of -32.26% and -5.6%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Lennar. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.22% lower. Lennar currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note Lennar's current valuation metrics, including its Forward P/E ratio of 16.06. This valuation marks a premium compared to its industry average Forward P/E of 14.65.
Meanwhile, LEN's PEG ratio is currently 2.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 2.94 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
California Public Employees Retirement System lifted its holdings in shares of Lennar Corporation (NYSE:LEN – Free Report) by 2.3% in the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 313,354 shares of the construction company’s stock after buying an additional 7,103 shares during the period. California Public Employees Retirement System owned about 0.13% of Lennar worth $27,212,000 as of its most recent filing with the SEC.
Several other large investors have also bought and sold shares of the business. Lazard Asset Management LLC grew its position in Lennar by 7.1% in the second quarter. Lazard Asset Management LLC now owns 1,278 shares of the construction company’s stock valued at $141,000 after acquiring an additional 85 shares during the last quarter. Rossby Financial LCC boosted its stake in shares of Lennar by 9.1% in the 4th quarter. Rossby Financial LCC now owns 1,059 shares of the construction company’s stock valued at $109,000 after purchasing an additional 88 shares in the last quarter. New Mexico Educational Retirement Board boosted its stake in shares of Lennar by 1.0% in the 4th quarter. New Mexico Educational Retirement Board now owns 10,560 shares of the construction company’s stock valued at $1,086,000 after purchasing an additional 100 shares in the last quarter. KDT Advisors LLC grew its holdings in shares of Lennar by 2.7% during the 3rd quarter. KDT Advisors LLC now owns 4,654 shares of the construction company’s stock valued at $587,000 after purchasing an additional 123 shares during the last quarter. Finally, Orion Porfolio Solutions LLC increased its position in Lennar by 0.7% during the 4th quarter. Orion Porfolio Solutions LLC now owns 17,725 shares of the construction company’s stock worth $1,822,000 after purchasing an additional 130 shares in the last quarter. 81.10% of the stock is owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth LEN has been the topic of a number of research analyst reports. Truist Financial cut their target price on shares of Lennar from $95.00 to $90.00 and set a “hold” rating on the stock in a research report on Tuesday, March 31st. Weiss Ratings reiterated a “sell (d+)” rating on shares of Lennar in a report on Thursday, June 11th. BTIG Research set a $67.00 price target on Lennar in a research note on Monday, June 15th. Seaport Research Partners reissued a “sell” rating and set a $74.00 price objective (down from $140.00) on shares of Lennar in a report on Tuesday, April 7th. Finally, Royal Bank Of Canada lowered their target price on Lennar from $88.00 to $85.00 and set an “underperform” rating for the company in a report on Monday, June 15th. One investment analyst has rated the stock with a Buy rating, seven have given a Hold rating and ten have assigned a Sell rating to the stock. According to MarketBeat.com, Lennar has a consensus rating of “Reduce” and an average target price of $92.80.
View Our Latest Stock Report on Lennar
Lennar Trading Down 1.3% LEN opened at $81.86 on Wednesday. The company has a debt-to-equity ratio of 0.19, a current ratio of 4.91 and a quick ratio of 0.91. Lennar Corporation has a fifty-two week low of $81.18 and a fifty-two week high of $144.24. The company’s 50 day moving average price is $88.07 and its two-hundred day moving average price is $97.52. The firm has a market capitalization of $19.72 billion, a price-to-earnings ratio of 12.81, a PEG ratio of 2.75 and a beta of 1.38.
Lennar (NYSE:LEN – Get Free Report) last released its quarterly earnings results on Thursday, June 11th. The construction company reported $1.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.24 by $0.07. Lennar had a net margin of 4.93% and a return on equity of 7.08%. The firm had revenue of $7.94 billion during the quarter, compared to the consensus estimate of $8.08 billion. During the same quarter last year, the firm earned $1.81 earnings per share. The company’s revenue for the quarter was down 5.2% on a year-over-year basis. As a group, research analysts predict that Lennar Corporation will post 5.52 earnings per share for the current year.
Lennar Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be issued a dividend of $0.50 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.00 annualized dividend and a yield of 2.4%. Lennar’s payout ratio is presently 31.30%.
Lennar Profile (Free Report)
Lennar Corporation (NYSE: LEN) is a U.S.-based homebuilder and real estate company that designs, constructs and sells residential housing. The company offers a range of product types including single-family detached homes, townhomes and condominiums, serving buyers from entry-level and first-time purchasers to move-up, active-adult and luxury segments. Lennar also develops master-planned communities and manages land acquisition and entitlement activities that support its homebuilding operations.
In addition to home construction and sales, Lennar provides a suite of ancillary services intended to streamline the purchase process and capture additional value.
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When Berkshire Hathaway moves aggressively into three names in a single quarter, allocators pay attention. Greg Abel’s team, per the Q1 2026 13F, built or expanded positions in an airline, a mega-cap platform, and a homebuilder. Patient institutional capital is leaning into cyclicals and cash generators trading below what the underlying earnings power can support. Here is how the trio looks in July, with tool-verified data driving each thesis.
Delta Air Lines: A Cash Machine Absorbing a Fuel Shock Delta Air Lines (NYSE:DAL | DAL Price Prediction) is the boldest signal in the filing. Berkshire re-entering a legacy carrier is the kind of move that only makes sense if the underlying earnings trajectory has structurally changed. Delta’s numbers say it has.
Q2 2026 delivered adjusted EPS of $1.56 versus a $1.50 consensus, the fifth consecutive EPS beat. Delta produced $1.4 billion in pre-tax profit while absorbing the highest quarterly fuel expense in company history, $4.41 billion at $3.93 per gallon. Premium ticket revenue rose 17%, loyalty revenue jumped 19%, and American Express remuneration hit $2.40 billion, up 16%. Diversified, high-margin revenue streams now account for 61% of the total, which is why Delta absorbed a 77% year-over-year fuel expense increase and still guided FY2026 EPS to $6.50 to $7.50 with roughly 20% earnings growth. Management also announced a 15% dividend increase beginning the September quarter.
Shares traded around $86.19 on July 16, up more than 55% over the past year. The Street is aligned: 96% bullish, with 25 Buy or Strong Buy ratings against a single Sell rating, and an analyst target of $99.56. That is roughly 14x trailing earnings for a business generating record free cash flow at scale.
Risk: Operating margin compressed 4.5 points to 8.8%, and non-fuel unit costs rose 6.8% YoY, above the long-term target. If fuel stays elevated into 2027, the 20% earnings growth story slips.
Alphabet: Cloud Backlog Doubled, Yet the Stock Trades Like Value Alphabet (NASDAQ:GOOGL) is the AI infrastructure trade Berkshire evidently wants to own. Q1 2026 was a blowout: EPS of $5.11 versus a $2.63 estimate, revenue of $109.90 billion (+21.8% YoY). Google Cloud posted $20.03 billion in revenue, up 63%, and Sundar Pichai flagged that “Google Cloud revenues grew 63% with backlog nearly doubling quarter on quarter to over $460 billion.”
Search remains the cash engine: $60.40 billion in revenue, up 19%. Paid subscriptions crossed 350 million, Gemini processes 16 billion tokens per minute, and Waymo now runs more than 500,000 fully autonomous rides per week. Operating income expanded 30% to $39.70 billion, with an operating margin of 36.1%.
On July 16, shares traded around $373.61, up more than 104% over the trailing year yet still below the 52-week high of $408.37. Analysts sit at $431.91, with 57 Buy or Strong Buy ratings, seven Hold ratings and zero Sell ratings. At a forward P/E near 25 for a business compounding earnings at 82% year over year, the setup is asymmetric.
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Risk: FY2026 CapEx guidance of $175 to $185 billion is straining free cash flow, which fell 46.6% YoY in Q1. If AI monetization lags the buildout, that gap widens before it closes.
Lennar: The Contrarian Housing Bet Lennar (NYSE:LEN) is the deep-value leg. Shares are down more than 17% year to date and more than 20% over the past year, trading at roughly 0.94x book value. Berkshire buying here is a bet that the mortgage-rate freeze on affordability is thawing.
Q2 fiscal 2026 delivered EPS of $1.24 on revenue of $7.94 billion, with gross margin on home sales of 15.6%, up sequentially from the Q1 trough. CEO Stuart Miller framed the margin catalyst directly: “The gap between our current incentive levels of 12.9% and normalized levels of 4% to 6% is narrowing for the first time in three years as the mismatch between higher home prices with higher interest rates and household income is narrowing.” That is the margin recovery catalyst, and base-case modeling puts the stock at $95.50 within a year, a 15.28% return, with a bull case at $113.51.
Operationally, Lennar is running the leanest homebuilder in the market: construction cycle time of 121 days, down from 132, construction costs down 13% over several years, and less than 5% of land on the balance sheet. The company bought back 5 million shares at an average $89.35 for $447 million in Q2. Miller added: “Demand is real, deferred, and building. Lennar is positioned better than at any point in recent history to capture demand as conditions normalize.”
Risk: Analyst sentiment is genuinely mixed: only 11% bullish, 44% bearish, with five Strong Sell ratings. Miller cited “a resurgent inflation reading of 4.2% driven by higher energy prices,” and if rates stay pinned, the incentive-normalization thesis stalls.
What to Watch Next The through-line: three cyclicals with self-help stories, buying back stock, and generating cash before their end markets fully re-rate. Watch Delta’s Q3 EPS against the $2.00 to $2.50 guide, Alphabet’s next capex commentary, and Lennar’s Q3 gross margin against the ~16% target. If each hits, Berkshire’s Q1 build will look early rather than lucky.
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Key Takeaways New housing law aims to boost supply through zoning reforms and lower building costs. Homebuilders may benefit as federal incentives support new housing development. ITB and XHB offer exposure to housing stocks poised to gain from the legislation. The first major federal housing affordability legislation in nearly 30 years has officially become law, concluding months of congressional negotiations and an unusual legislative process that saw President Donald Trump decline to sign the measure, as quoted on Yahoo Finance.
Although President Trump chose not to sign the legislation, he also did not veto it. Under a constitutional provision, if the president neither signs nor vetoes a bill within 10 days while Congress remains in session, the legislation automatically becomes law. As a result, the housing bill took effect without the president's signature.
The act is designed to improve housing affordability by encouraging new home construction, expanding financing options, and reducing barriers to housing development.
Key Measures to Boost Housing SupplyThe legislation includes a broad range of initiatives aimed at increasing the nation's housing stock and lowering development costs. Key provisions include grants for local governments that ease restrictive zoning rules and promote housing construction.
Other measures include faster environmental review procedures for eligible housing projects, lower construction costs for manufactured homes, and restrictions on large institutional investors purchasing single-family homes.
Lawmakers hope these measures will help ease the nation's ongoing housing shortage and improve affordability.
Housing Industry Welcomes the LegislationThe new law has been widely welcomed across the housing sector. Note that the median U.S. home price recently reached an all-time high of $440,600. Sales of new single-family homes in the United States dropped 7.3% sequentially to a seasonally adjusted annualized rate of 580 thousand in May 2026, the lowest in four months.
New home sales declined for a second month in a row, as higher mortgage rates weighed on buyers. Meanwhile, housing supply rose to 496,000 units, equivalent to 10.3 months of supply at the last sales rate, the highest level since 2009, per Trading Economics.
Stocks & ETFs in Focus D.R. Horton Inc. (DHI - Free Report) , Meritage Homes Corporation (MTH - Free Report) , Lennar Corporation (LEN - Free Report) and Beazer Homes USA (BZH - Free Report) should be well-positioned under the new law.
The housing industry also appears attractively valued. It trades at a forward price-to-earnings ratio of 14.75X versus 18.45X for the S&P 500. Its price-to-book ratio is equally attractive at 1.07X compared with 3.80X for the S&P 500.
Some government support was likely needed for housing companies, as the industry's earnings are projected to decline 14.66%, compared with the S&P 500's projected earnings growth of 10.05%.
The industry is also facing margin pressure, with a net margin of 6.09% compared with the S&P 500's net margin of 12.93%.
Against this backdrop, investors can consider ETFs such as the iShares U.S. Home Construction ETF (ITB - Free Report) and the SPDR S&P Homebuilders ETF (XHB - Free Report) .
Should the housing market cool or continue to climb in 2026? Deciding between industry giants Lennar (LEN 0.36%) and NVR (NVR +0.21%) requires understanding how scale and land strategies impact long-term returns.
Lennar operates as a diversified powerhouse with a massive national footprint and a growing financial services arm. NVR focuses on a unique land-light model that prioritizes capital efficiency and risk mitigation over direct land ownership. Both companies offer distinct ways to gain exposure to the residential construction industry.
The case for LennarLennar builds homes across 30 states, catering to a wide range of buyers from first-time homeowners to luxury seekers. The company also provides mortgage financing, title, and closing services through its financial services segment. This integrated approach allows it to capture more value from every home sale in the consumer discretionary sector while managing a complex national supply chain.
In FY 2025, revenue reached nearly $32.7 billion, representing a decrease of approximately 4.2% compared to the prior year. The company reported net income of close to $1.6 billion during this period, down from higher levels in previous years. This resulted in a net margin of roughly 5%, which reflects the percentage of revenue remaining after all expenses are paid.
As of its November 2025 balance sheet, the current ratio is approximately 3.1x. This metric measures a company's ability to cover its short-term debts with its current assets. The debt-to-equity ratio, which compares total debt to the value of shareholder equity, is about 0.3x. Note that stock-based compensation represented roughly 75.4% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for NVRNVR builds and sells homes under brands like Ryan Homes, NVHomes, and Heartland Homes across 16 states and Washington, D.C. Unlike many traditional builders, it typically does not buy land for future development. Instead, it uses fixed-price lot purchase agreements to control sites, which minimizes the capital tied up in real estate and provides significant flexibility during market shifts.
During FY 2025, NVR generated revenue of approximately $9.6 billion, a slight decline of about 4.9% year-over-year. Net income for the fiscal year was close to $1.4 billion, demonstrating consistent profitability despite broader market headwinds. The company achieved a healthy net margin of roughly 13%, which is the portion of total sales that remains as profit after all costs are considered.
Based on its December 2025 balance sheet, the current ratio is roughly 4.0x. Its debt-to-equity ratio is approximately 0.3x, indicating a similar balance of debt and equity to its peer. Free cash flow, which is the cash a company generates after accounting for the money spent on equipment and buildings, reached nearly $1.1 billion.
Risk profile comparisonLennar faces significant risks related to the cyclical nature of the housing market, where employment levels and consumer confidence drive demand. Rising interest rates pose a direct threat by increasing mortgage costs and making homes less affordable for potential buyers. Furthermore, its reliance on third-party land banks like Millrose could lead to site access issues if those entities face financial distress or cannot secure funding.
NVR is also sensitive to interest rate fluctuations that affect mortgage banking profitability and buyer volume. While its land-light model limits downside, the company relies heavily on independent subcontractors for actual construction work. Any failures by these partners or disruptions caused by competitors like D.R. Horton could lead to warranty claims and higher repair costs. The company also must navigate a tightening of credit standards, which could prevent customers from qualifying for mortgage loans.
Valuation comparisonLennar appears more attractive on a price-to-sales basis, while NVR trades at a higher multiple of its future earnings estimates.
MetricLennarNVRSector BenchmarkForward P/E16.66x18.8x29.5xP/S ratio0.7x2.1xSector benchmark uses the SPDR XLY sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
The real differentiator here isn't geography or product mix — it's how each company thinks about risk. Lennar's spin-off of Millrose Properties in early 2025 was the most visible expression of its land-light ambitions: billions in inventory moved off the balance sheet, converted into optioned homesites. It's a smart strategic move, but Lennar now lists Millrose as its largest land bank partner — meaning its land-light strategy depends on an entity it no longer controls. That's a different animal from NVR's model, where option deposits cap downside to forfeitable cash and nothing more. The Q1 2026 results show where that difference shows up. Lennar is burning margin to maintain volume, running sales incentives well above its historical norm, and its recovery depends on rates coming down. NVR posted meaningfully higher gross margins in the same environment and returned an extraordinary amount of capital to shareholders in the same quarter. That margin resilience isn't cyclical. It's the product of a discipline NVR has maintained through every housing downturn since the early 1990s. Lennar deserves credit for attempting the transition seriously, and if rates drop and incentive spending normalizes, its scale makes it an interesting recovery play. But NVR doesn't need conditions to improve to protect your downside. The road back to a housing boom is likely long and uneven, and NVR may not be the hottest name when things finally pop — but it's the one most likely to come out the other side in the best shape. For a long-term hold, that's the one I'd buy.
The American starter home, once a symbol of accessible homeownership, has crossed into seven-figure territory in a growing number of metros. According to Katie Hubbard, president of U.S. Capital Markets at Walton Global, 268 U.S. cities now have entry-level homes priced at $1 million, concentrated mostly in California and New York. According to Zillow, the number of U.S. cities where the typical starter home carries a $1 million price tag has climbed from 80 in 2020 to 268 today.
In a recent Bloomberg Businessweek segment, Hubbard, whose firm she describes as managing $4.4 billion in land assets across 90-plus countries, walked through why affordability continues to deteriorate even as builders are growing more confident in housing demand.
Why Builders Are More Optimistic Than Headlines Suggest Hubbard argues homebuilders are more bullish than recent figures suggest. She pointed to new home sales of 583,000, down 7%, but noted builders are aggressively buying finished lots and shifting away from speculative building toward build-to-order. The result is fewer starts overall, with builders targeting buyers who can afford the monthly payment. She added that higher-end homes around $950,000 are selling well, often to cash buyers, which helps explain why median price points keep climbing while volumes soften.
On the regulatory side, Hubbard contends federal legislation has limited power to fix supply. She cited institutional investors owning less than 1% of single-family homes, down from a peak of 3% in 2022, a figure she says undermines a premise behind a bill Trump declined to sign.
The real bottleneck, in her view, is local zoning, where approvals can take 3-5 years and add thousands of dollars per home. Hubbard described that drag as “more significant to housing affordability than a 50 basis point rate cut.” She pointed to Texas, Florida, and the Carolinas dominating new construction thanks to lighter regulation.
How Lennar Is Navigating Today’s Housing Market Hubbard singled out homebuilder Lennar (NYSE:LEN | LEN Price Prediction) as the clearest illustration of how big builders are responding, noting the company is delivering 20,000 homes per quarter by deliberately compressing margins to maintain volume.
In its Q2 fiscal 2026 report, Lennar posted revenue of $7.94 billion and EPS of $1.24, with gross margin on home sales of 15.6%, compressed from 17.8% a year earlier. Average sales price fell to $371,000, well below the $1 million starter-home benchmark Hubbard cited.
Lennar’s CEO, Stuart Miller, framed the trade-off directly: “Our strategy consistently has been to execute around the affordability challenge rather than wait it out. We have prioritized volume to create durable scale advantages, to deliver that volume at lower prices, and ultimately improve margins.” Lennar is leaning on buyer incentives, which are running at 12.9% versus a normalized range of 4% to 6%, alongside rate buydowns to keep monthly payments within reach.
Why Housing Affordability Remains Under Pressure The challenges Hubbard described are visible across today’s housing market. The 10-year Treasury yield stood at 4.50% as of June 23, 2026, ranking in the 94th percentile over the past year and keeping mortgage rates elevated. On Lennar’s earnings call, CEO Stuart Miller said the average 30-year fixed mortgage rate remains between 6.4% and 6.5%.
At a 6.5% mortgage rate, he noted, a household earning the median family income is spending more than 30% of its gross income on housing. Meanwhile, consumer sentiment fell to 49.8 in April 2026, approaching recessionary territory, while housing starts declined to 1.18 million units in May, consistent with Hubbard’s view that builders are pulling back on speculative construction.
Homebuilders like Lennar illustrate both the opportunity and the challenge in this industry. The stock traded at $93.30 as of June 25, 2026, down 8.71% year-to-date and 15.24% over the past year, while trading at a trailing P/E of 14. The company continues to sacrifice margins to keep home sales moving, even as high mortgage rates, restrictive zoning, and weak consumer confidence weigh on affordability. Hubbard argues that local zoning reform, not federal legislation, will ultimately determine how quickly new housing supply can increase or whether the list of 268 U.S. cities with $1 million starter homes will continue to grow.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's leading homebuilders, announced that its Board of Directors has declared a quarterly cash dividend of $0.50 per share for both Class A and Class B common stock payable on July 24, 2026 to holders of record at the close of business on July 10, 2026.
About Lennar
Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar's Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar's homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout the United States. Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties. LENX drives Lennar's technology, innovation and strategic investments. For more information about Lennar, please visit www.lennar.com.
On June 24, 2026, Lennar Corp (LEN) shares rose 6.4% to $92.95. This movement in the stock comes amid a 52-week range of $81.18 to $144.24, signaling a notewort
The number jumped out at me the moment I saw it. Lennar's (LEN +6.15%) average sales price for homes delivered in the second quarter of 2026 was $371,000 -- a price the company hasn't seen since the first quarter of 2017, when it averaged $365,000.
That's not a small number to sit with here. It means that one of America's largest homebuilders just rolled back its prices by nearly a decade in nominal terms. In a country where the median existing home now sits above $412,000, let's get into the signal this is sending.
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How Lennar got here This didn't happen because the housing market collapsed. Lennar delivered 20,519 homes in Q2 2026 -- a 2% year-over-year increase -- and maintained full-year delivery guidance of 82,000 to 83,000 homes. It happened because Lennar deliberately chose to compete on price, rather than wait for conditions to improve.
CEO Stuart Miller was direct about the math in the earnings release: The $371,000 price reflected approximately 12.9% in incentives, along with base price adjustments to keep volume moving. That incentive level is high by historical standards -- the company's normalized range is 4% to 6% -- but Miller noted that it's narrowing for the first time in three years as the gaps between elevated mortgage rates, home prices, and household incomes start to close.
The goal is volume now, margin recovery later. It's a patient strategy, and the operational data supports it -- construction costs are down 13% over the past two years, and cycle times have hit a record low of 121 days.
Image source: Getty Images.
The rate cut problem Lower home prices are not, by themselves, a solution to the affordability crisis. They're one part of a much harder equation.
The 30-year fixed mortgage rate sits at roughly 6.47% as of this week. Qualifying for a mortgage on the median existing home at today's rates requires an annual household income of approximately $95,000 -- well above what most first-time buyers earn. First-time buyers now represent just 21% of the market, the lowest share in 44 years. The NAHB estimates a nationwide shortage of roughly 1.2 million housing units. There is no shortage of demand -- there is a shortage of buyers who can afford to act on it.
Here's where Lennar's price reduction becomes relevant in a way that a simple headline misses: a $371,000 home financed at 6.47% on a 30-year real estate mortgage carries a monthly principal and interest payment of roughly $2,340. The same home priced at $412,000 -- the median existing resale -- carries a payment closer to $2,600. That $260 monthly difference won't solve the affordability crisis, but it represents real purchasing power for buyers stretching to qualify. Think of it as a builder clearing a path through a thicket that policy alone can't cut through fast enough.
What Lennar expects next -- and the investor takeaway Lennar guided for third-quarter 2026 average home prices in the range of $375,000 to $380,000, with gross margin improving to approximately 16% as incentive levels moderate and cost discipline compounds. That modest price increase suggests that the company believes the floor is in -- that it has reached a price point where demand is sufficient, and margin recovery can begin without chasing buyers away.
The gap between today's builder prices and existing resale inventory is now wide enough that new construction is increasingly the most accessible entry point for buyers who want to own. That's an unusual dynamic -- new homes are traditionally priced at a premium to existing ones -- and it reflects how much builders have absorbed to keep the market moving.
For Lennar shareholders, the compressed margin cycle is painful, but the logic behind it is sound. Miller used the phrase "execute around the affordability challenge" on the earnings call, rather than "wait it out." That posture -- active adaptation rather than passive patience -- is what separates a resilient operator from one that just hopes conditions normalize.
For the broader housing market, Lennar's pricing is a pressure valve. The structural shortage won't be solved by incentives. However, a major national builder consistently delivering homes under $400,000 in a world where resale inventory sits well above that is a real, meaningful development for the buyers who need it most.
Key Takeaways LEN delivered 20,519 homes in Q2 FY2026, up 2%, while new orders totaled 21,749 homes.Lennar's average delivered-home sales price fell 5% to $371,000, pressuring profitability.LEN guides Q3 gross margin near 16% and cut FY2026 deliveries to about 82,000-83,000 homes. Lennar Corporation (LEN - Free Report) is still closing homes at a large scale, but the investment debate has shifted from volume to economics. Deliveries remain steady, while affordability pressure keeps pricing and margins under strain.
That mix makes 2026 a test of execution. LEN is preserving activity in a difficult housing market, but weaker revenue per home is limiting near-term stock appeal.
How LEN Is Managing a Tough Housing MarketElevated mortgage rates, affordability constraints and cautious consumer behavior continue to shape demand. Management noted mortgage rates in the mid-to-upper 6% range during the second quarter of fiscal 2026, with affordability still the defining challenge for buyers.
Lennar’s answer has been a volume-focused strategy. The company is using pricing adjustments and incentives to sustain sales activity and protect market share, even though that approach weighs on profitability and revenue momentum.
D.R. Horton, Inc. (DHI - Free Report) remains a relevant comparison because it also competes at national scale in entry-level and move-up housing. PulteGroup, Inc. (PHM - Free Report) provides another useful peer reference, given its broad U.S. homebuilding footprint and exposure to similar buyer affordability pressures.
Lennar Home Sales Still Show ScaleLennar delivered 20,519 homes in the second quarter of fiscal 2026, up 2% from the prior-year period and within management’s guidance range of 20,000-21,000 homes. New orders totaled 21,749 homes, down 4% year over year but still near the company’s operating targets.
That production consistency matters. It shows that LEN is not facing a collapse in activity, even as buyers remain selective. Steady closings and orders help investors evaluate execution, backlog conversion and market-share retention in a softer housing backdrop.
Backlog also offered some support. Lennar ended the quarter with 16,818 homes in backlog, up from 15,538 a year earlier, while backlog value rose to $6.61 billion from $6.48 billion.
Why LEN Pricing Keeps Pressure on ProfitsThe main pressure point is pricing. The average sales price of homes delivered fell 5% year over year to $371,000 from $389,000, reflecting continued market weakness and affordability-driven adjustments.
Gross margin on home sales declined to 15.6% from 17.8% a year earlier. Lower revenue per square foot and higher land costs offset some benefits from reduced construction costs, showing that LEN’s top-line pressure is tied more to weaker economics per home than to a sharp volume decline.
Incentives remain part of the story. Average sales price in the quarter reflected roughly 12.9% in incentives, along with base price adjustments needed to sustain volume.
Lennar’s Land Model Offers Some ProtectionLennar’s asset-light land strategy gives the company more flexibility than a traditional land-heavy model. At the end of the second quarter, about 98% of homesites were controlled through third parties, while only about 2% were owned.
Less than 5% of land remained on the balance sheet. Lennar controlled roughly 484,000 homesites and owned about 11,000, a structure designed to reduce capital intensity and limit balance-sheet risk through uneven housing cycles.
This model does not eliminate margin pressure. It can, however, help LEN preserve liquidity, adjust more quickly to changing demand and support market-share growth without tying up as much capital in land.
LEN Signals to Watch NextThe bottom line is that LEN’s scale remains intact, but investors still need evidence that volume can translate into better earnings power. Third-quarter guidance calls for 20,500-21,500 deliveries, 21,000-22,000 new orders and gross margin on home sales of roughly 16%.
Management also reduced its full-year fiscal 2026 delivery target to approximately 82,000-83,000 homes, citing pressure on interest rates and geopolitical uncertainty. That makes pricing, incentives and margin recovery the key signals to watch.
LEN currently carries a Zacks Rank #5 (Strong Sell). It also has weak Style Scores, including a Value Score of D, Growth Score of F, Momentum Score of D and VGM Score of F.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Rank reflects unfavorable earnings estimate revision trends over the one- to three-month horizon. The weak Style Scores indicate that LEN does not currently screen well across value, growth and momentum characteristics, reinforcing that operational scale has not yet translated into stronger near-term stock appeal.
LEN looks cheap on valuation metrics after its pullback, but falling earnings, estimate cuts and housing-market pressure keep the value-trap debate alive.
Key Takeaways LEN delivered 20,519 homes in Q2 FY2026, while average selling price fell 5% to $371,000.Lennar is investing in technology to improve land operations, sales conversion and efficiency.LEN cut construction costs and cycle times, but margins remain below year-ago levels. Lennar Corporation (LEN - Free Report) is navigating a housing market where affordability matters more than pricing power. Buyers remain stretched, mortgage rates have stayed in the mid-to-upper 6% range and demand remains uneven.
That backdrop is pushing Lennar toward volume discipline, cost control, land flexibility and technology investment. Those same conditions are keeping margins under pressure.
LEN Is Built for an Affordability CycleLennar’s strategy fits a market that rewards attainable pricing. In the second quarter of fiscal 2026, the company delivered 20,519 homes, up 2% year over year, even as new orders declined 4% to 21,749 homes.
Pricing flexibility remains central to that approach. Average selling prices on homes delivered fell 5% year over year to $371,000, reflecting weak demand and affordability support.
Even-flow production also matters. By matching starts, sales and closings, Lennar aims to protect market share and improve inventory efficiency rather than wait for higher prices.
D.R. Horton (DHI - Free Report) and PulteGroup (PHM - Free Report) face the same affordability-sensitive homebuilding cycle. Their inclusion in Lennar’s peer set reinforces that the pressure reflects broader demand friction.
Lennar Technology Push Aims to Lift EfficiencyLennar is trying to make the affordability cycle more manageable through technology. The company is investing in digital marketing, lead generation and customer conversion capabilities to improve responsiveness.
Its technology effort extends beyond the customer interface. Lennar is developing a technology-enabled land operating system intended to improve diligence, land acquisition and administration and reduce costs.
The goal is to operate more like a manufacturing homebuilder, with better data across land, product, construction, sales and customer experience. Payoff is longer term.
Technology spending can help execution, but adds near-term expense while revenue per home is under pressure.
LEN Costs and Cycle Times Are ImprovingLennar’s efficiency gains are the clearest counterweight to the pricing challenge. Construction cost per square foot declined to $81 in the second quarter and has fallen 13% over the past two years.
Cycle time improved to a record-low 121 days from 132 days a year earlier. Faster builds help reduce capital tied up in inventory and support more predictable delivery schedules.
Inventory turns improved to 2.5 times from 1.8 times a year ago. That matters because Lennar’s model depends on turning homesites and finished homes quickly enough to preserve activity in a weaker pricing environment.
Its land-light structure adds flexibility. At the end of the quarter, roughly 98% of homesites were controlled through third parties, while only about 2% were owned.
Lennar Margins Show the Industry Trade-OffThe margin picture shows why the stock remains pressured despite operational progress. Home sales gross margin improved sequentially to 15.6%, and incentives declined to 12.9% from 14.1% in the prior quarter.
Still, profitability remains well below last year’s level. Gross margin was 17.8% in the year-ago quarter, reflecting lower revenue per square foot and higher land costs, partly offset by lower construction costs.
Selling, general and administrative expenses remain elevated. They represented 9.2% of home sales revenues in the second quarter, up from 8.8% a year earlier, mainly because of lower revenue leverage and higher marketing and selling expenses.
This is the core industry trade-off. Builders can keep activity moving with incentives, price adjustments and faster turns, but profit per home can remain under pressure.
What LEN Ratings Say About This TrendThe bottom line is that Lennar’s operating model is improving, but the market is still focused on earnings and margin pressure. Lower construction costs, faster cycle times and a land-light model are positives, yet they have not fully offset affordability headwinds.
LEN currently carries a Zacks Rank #5 (Strong Sell). That ranking reflects weaker earnings estimate trends over the one-to-three-month horizon, which keeps the stock’s near-term setup cautious.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Scores also lean negative. LEN has a VGM Score of F, Value Score of D, Growth Score of F and Momentum Score of D. Since Style Scores complement the Zacks Rank, those weak grades suggest the stock lacks support across valuation, growth and momentum characteristics.
Lennar’s efficiency trends matter, but the current ratings show that those positives have not yet outweighed the pressure from lower pricing, elevated expenses and a difficult housing cycle.
Homebuilding stocks have been in a rut for quite some time. The SPDR S&P Homebuilders ETF NYSEARCA: XHB is a commonly used proxy for this industry's performance. The fund has greatly underperformed the general market, with returns of 10% in 2024, -0.7% in 2025, and a single-digit return in 2026. Low housing affordability, driven partially by elevated interest rates, has led to steeply declining revenues and earnings across the industry.
Investors just got their latest look at the status of the housing market. Lennar NYSE: LEN, one of the country’s top homebuilders and a Berkshire Hathaway NYSE: BRK.B portfolio company, recently reported earnings. Lennar’s report was decidedly mixed, but multiple important variables showed signs of improvement. It is possible the worst is over for Lennar, but homebuilders generally continue to face a difficult macro backdrop.
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Lennar’s Mixed Report: Sales Miss, EPS Beat, Delivery Guidance DownIn its fiscal Q2 2026, Lennar reported revenue of $7.94 billion, equating to a year-over-year (YOY) decline of 5.2%. (Note that Lennar’s fiscal reporting period is slightly ahead of the standard reporting period used by many firms.) The figure significantly missed Wall Street estimates, which called for sales of $8.08 billion.
Lennar Today
$89.86 +0.11 (+0.12%)
As of 06/16/2026 03:59 PM Eastern
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52-Week Range$81.18▼
$144.24Dividend Yield2.23%
P/E Ratio14.06
Price Target$95.07
Still, the 5.2% decline marks a substantial improvement over the prior quarter, when sales tanked 13.3% YOY. That quarter was Lennar’s weakest sales growth since the aftermath of the Great Financial Crisis. This helps highlight the severity of Lennar's stunted growth over recent quarters. In this context, it is good to see that growth is moving closer to 0%, despite the sales miss.
Another silver lining is the fact that Lennar beat estimates on earnings per share (EPS). The figure came in at $1.31, dropping nearly 28% YOY, but was better than the $1.24 anticipated. On the other hand, Lennar reduced its outlook for full-year home deliveries. The company now expects to deliver 82,500 homes at the midpoint, down 2.9% from prior expectations of 85,000 deliveries. Illustrating the difficult economic environment Lennar is operating in, the company attributed this decrease to “current pressure on interest rates and geopolitical uncertainty.”
Lennar Makes Solid Progress on Gross Margin and IncentivesUnder the surface, one solid positive was the improvement in Lennar’s gross margin. Like sales growth, gross margin improved from a multi-year trough seen last quarter, rising sequentially from 15.2% to 15.6%. This came partially due to the firm offering fewer incentives to homebuyers. Its sales incentives rate came down to 12.9%, compared to 14.1% last quarter. This was likely a key reason why revenue was worse than expected, but earnings were better than expected. Fewer incentives translate to fewer sales but increase profitability.
Critically, Lennar noted, “After three years of incentive levels that have been generally increasing, we're starting to see the first real and potentially sustainable decline.” This indicates that underlying demand is improving to a point where Lennar may be able to reverse the trend in its incentives and still entice buyers.
Nonetheless, the company clearly remains cautious, calling this reversal “potentially sustainable” and lowering its delivery outlook. Still, Lennar is forecasting another improvement in gross margin next quarter, guiding for 16%. It also notes, “we expect sequential margin improvement quarter-to-quarter as the year progresses," indicating further increases.
At the midpoint, the firm is guiding for EPS of $1.30 next quarter, holding the figure essentially flat versus its latest report.
Lennar: Rate Headwinds Cast a Cloud Over Sustained Recovery HopesShares fell 4.9% the day after Lennar’s report, indicating that despite some underlying improvements, management’s cautious stance did not inspire investors. Notably, 30-year fixed mortgage rates now sit near 6.5%, their highest level since September 2025. This is likely one of the key factors Lennar was referring to when lowering its delivery outlook. During the company’s prior report, rates were significantly lower, near 6.1%. This subsequent increase puts further pressure on affordability in an already depressed market.
Lennar Corporation (LEN) Price Chart for Wednesday, June, 17, 2026
Adding insult to injury, Evercore, Royal Bank of Canada, and Bank of America all issued Underperform ratings on Lennar after its report. The highest updated target among them is $87, which projects downside in shares and is considerably below the MarketBeat consensus price target of about $95.
Taking all this data into account, it's difficult to be overly optimistic about Lennar’s outlook at this point. Gross margin and incentives will be important to watch going forward, with increases in the former and decreases in the latter being positive signals. Management taking a more confident stance on the sustainability of incentive decreases would also help change the narrative around Lennar stock.
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Lennar Corp (NYSE:LEN) posted mixed second-quarter results, after the closing bell on Thursday.
Lennar reported quarterly adjusted earnings of $1.31 per share, which beat the Street consensus estimate of $1.25, according to Benzinga Pro data. Quarterly revenue came in at $7.94 billion, missing the analyst estimate of $8.02 billion.
"Our second quarter of fiscal year 2026 was defined by the same stubborn headwinds that have challenged the housing market for the past several years — persistently elevated mortgage rates, constrained affordability, and cautious consumer sentiment, exacerbated by geopolitical uncertainty, creating a resurgent inflation reading of 4.2% driven by higher energy prices," said Stuart Miller, CEO of Lennar.
Lennar shares rose 1.5% to trade at $91.63 on Monday.
These analysts made changes to their price targets on Lennar following earnings announcement.
Evercore ISI Group analyst Stephen Kim maintained Lennar with an Underperform rating and raised the price target from $82 to $87. Wells Fargo analyst Sam Reid maintained the stock with an Equal-Weight rating and lowered the price target from $90 to $85. Barclays analyst Matthew Bouley maintained the stock with an Underweight rating and lowered the price target from $80 to $79. Considering buying LEN stock? Here’s what analysts think:
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Key Takeaways Lennar lowered full-year delivery guidance as mortgage rates and macro uncertainty weigh on buyers.LEN said incentives eased for the first real time after three years of steady increases.Lennar cited lower costs, faster cycle times and tighter inventory as drivers of margin repair. Lennar Corporation (LEN - Free Report) used its second-quarter 2026 earnings call to argue that its operating model is starting to show through a difficult housing backdrop. Management pointed to lower incentives, faster cycle times and tighter inventory as early evidence that margins can recover even with affordability still under pressure.
The company paired that message with a more guarded volume outlook, lowering full-year delivery guidance as mortgage rates and macro uncertainty continue to weigh on buyer urgency.
LEN Sees Incentives Finally Start to EaseExecutive chairman, CEO and president Stuart Miller said the clearest change in the quarter was the sales incentive rate on deliveries, which fell to 12.9% from 14.1% in the prior quarter and 14.5% in the fourth quarter of 2025.
He said that marked the first real decline in incentives after three years of steady increases. Miller framed that shift as a potential early sign of margin recovery, even though he stressed that affordability remains strained and the market is still uneven.
That backdrop shaped the quarter’s mixed headline results. Adjusted earnings per share of $1.31 beat the Zacks Consensus Estimate of $1.23, delivering a surprise of 6.5%. However, revenues of $7.94 billion missed the Zacks Consensus Estimate of $8.07 billion by 1.6%.
Lennar Balances Demand With a More Careful PaceMiller said mortgage rates stayed in the mid- to upper-6% range during the quarter, keeping monthly payments elevated for buyers. He also described traffic as inconsistent, with interest still present but decisions taking longer.
That caution showed up in guidance. CFO Diane Bessette projected third-quarter deliveries of 20,500 to 21,500 homes and new orders of 21,000 to 22,000 homes, while full-year delivery guidance was reduced to 82,000-83,000 homes.
In the analyst Q&A, a JPMorgan analyst pressed management on why Lennar lowered closing expectations instead of sacrificing more price or margin to preserve prior volume goals. Miller said the company chose prudence, arguing that inventory discipline and start pace mattered more than pushing aggressively into a market he called erratic.
LEN Leans Harder Into Its Asset-Light ModelManagement spent much of the call reinforcing Lennar’s land-light transformation. Miller said less than 5% of land is now on the balance sheet, while Bessette said the company owns 2% of homesites and controls 98% through third parties.
Bessette said that structure lowers balance sheet risk and supports a more capital-efficient growth model. The company ended the quarter with 11,000 owned homesites, 484,000 controlled homesites, $1.8 billion in cash and total liquidity of $4.9 billion.
Analysts focused heavily on ACORE and land banking costs. Management said the build-in capitalized option maintenance fees reflect the transition to a broader multiyear off-balance-sheet land platform, not an overstatement of earnings, while also acknowledging that most land bank structures still require current pay.
Lennar Touts Cost Gains and Core ProductChief operating officer Jim Parker and executive vice president of Homebuilding David Grove said Lennar is pushing more standardized core products across divisions. They described smaller, easier-to-build homes as a key lever for better returns, faster turns and lower costs.
The operating metrics supported that argument. Construction cost per square foot fell to $81, down 7% from a year earlier, while cycle time improved to a record 121 days from 132 days a year ago. Inventory also fell to just above two homes per community from three in the first quarter.
Management tied those gains directly to cash generation. Miller said lower cycle times and lower cost per square foot should continue to lift inventory turns, which improved to 2.5x from 1.8x a year ago.
LEN Says Technology Work Should Lower OverheadTechnology was another central theme. Miller said Lennar’s foundational systems have required heavy updating and included some missteps, but he argued that the work is setting up future reductions in SG&A and corporate overhead.
Grove said the technology effort is also intended to improve the customer experience. He linked the company’s digital funnel, faster engagement and stronger conversion to a broader effort to make Lennar’s buying process more efficient and more attractive to payment-sensitive buyers.
That efficiency case also shaped margin guidance. Bessette said third-quarter gross margin should be about 16%, with SG&A at 8.8% to 9.0%, while Miller told analysts the expected improvement is driven more by core product and operating execution than by a sharp assumed drop in incentives.
Lennar Keeps a Measured but Constructive ToneThe call’s closing tone was controlled rather than celebratory. Miller argued that housing demand remains real, supply remains structurally short, and government attention to affordability has intensified, even as near-term macro pressures remain unresolved.
He repeatedly returned to consistency as the company’s edge. Across prepared remarks and Q&A, management emphasized even-flow production, disciplined inventory, lower land intensity and gradual margin repair instead of betting on a quick rebound in housing conditions.
Zacks Signals Still Point to CautionLEN carries a Zacks Rank #4 (Sell), along with a Value Score of C, Growth Score of F, Momentum Score of B and VGM Score of D. Under the Zacks framework, Style Scores are meant to complement the Zacks Rank, not override it.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
That matters here because a weaker Zacks Rank tempers the usefulness of any stronger individual style reading. The current Momentum Score stands out, but the overall setup remains cautious, and the Zacks Rank can still change as earnings estimate revisions move after the quarter.
Key Takeaways Lennar beat EPS estimates with $1.31 per share, though earnings and revenues declined year over year.Home deliveries rose 2%, but a 5% drop in average selling price weighed on homebuilding revenues.Backlog homes increased, while Lennar lowered its full-year delivery target amid market uncertainty. Lennar Corporation (LEN - Free Report) reported mixed second-quarter fiscal 2026 results, with adjusted earnings topping the Zacks Consensus Estimate while revenues missed the same. Year over year, both metrics declined, given ongoing softness in housing demand and a lower average sales price (ASP) for homes delivered.
LEN stock trickled down 2.5% during yesterday’s after-hours trading session, post the earnings announcement.
LEN’s Quarterly NumbersLennar’s adjusted earnings of $1.31 per share beat the Zacks Consensus Estimate of $1.23 by 6.5% but declined 31.1% from $1.90 in the year-ago quarter.
Total revenues of $7.94 billion missed the consensus estimate of $8.07 billion by 1.6% and fell 5.2% year over year. Results reflected pressure from lower home prices and affordability constraints.
Lennar’s Homebuilding MetricsHomebuilding revenues declined 2% year over year to $7.62 billion from $7.84 billion. Revenues from home sales were $7.60 billion, down from $7.79 billion in the year-ago quarter, as lower pricing offset higher closings.
Home deliveries increased 2% to 20,519 homes from 20,131 homes a year ago and were within management’s guidance of 20,000-21,000 homes. The ASP of homes delivered fell 5% to $371,000 from $389,000, reflecting continued weakness in the housing market.
New orders decreased 4% year over year to 21,749 homes from 22,601 homes. The dollar value of new orders fell to $8.21 billion from $8.58 billion, while the ASP of new orders was $377,000 compared with $379,000 a year ago.
Backlog at quarter-end increased to 16,818 homes from 15,538 homes. The backlog dollar value rose to $6.61 billion from $6.48 billion, though the ASP in backlog declined to $393,000 from $417,000.
Gross margin on home sales was 15.6%, down from 17.8% in the year-ago quarter. The decline was due to lower revenue per square foot and higher land costs, partially offset by reduced construction costs as the company continued to pursue cost-saving initiatives. Meanwhile, as a percentage of home sales, SG&A expenses increased to 9.2% from 8.8%, mainly due to lower revenue leverage and higher marketing and selling expenses.
Other Segmental Highlights of LENFinancial Services revenues declined to $236.9 million from $298.1 million a year ago. Operating earnings for the segment decreased to $101.1 million from $157.3 million, primarily due to lower profit per locked loan in the mortgage business.
Lennar Multifamily revenues were $63.6 million, significantly down from $230.3 million in the prior-year quarter. But the segment generated operating earnings of $18.3 million against an operating loss of $14.8 million a year ago.
Lennar Other revenues rose to $23.1 million from $5.2 million, while the operating loss narrowed to $38.9 million from $52.9 million.
Lennar’s Balance SheetLennar ended the fiscal second quarter with homebuilding cash and cash equivalents of $1.82 billion. The company had no outstanding borrowings under its $3.1 billion revolving credit facility at quarter-end.
Homebuilding debt to total capital was 15.8% compared with 11% a year ago. During the fiscal second quarter, the homebuilder repurchased 5 million shares for $447 million at an average price of $89.35 and, after May 31, 2026, redeemed $400 million of 5.25% senior notes due in June 2026.
LEN’s Outlook for Fiscal Q3 2026For the third quarter of fiscal 2026, Lennar expects home deliveries in the range of 20,500-21,500 homes and new orders between 21,000 and 22,000 homes. The company expects the ASP to be between $375,000 and $380,000. Gross margin on home sales is expected to be approximately 16%, while SG&A expenses are projected between 8.8% and 9% of home sales.
Financial Services operating earnings are expected in the range of $95-$100 million. Management also moderated its full-year fiscal 2026 delivery target to approximately 82,000-83,000 homes, citing pressure on interest rates and geopolitical uncertainty.
LEN’s Zacks Rank & Stocks to ConsiderLennar currently carries a Zacks Rank #4 (Sell).
Here are some better-ranked stocks from the Construction sector.
Comfort Systems USA, Inc. (FIX - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comfort Systems delivered a trailing four-quarter earnings surprise of 39.3%, on average. The Zacks Consensus Estimate for Comfort Systems’ 2026 sales and EPS indicates improvements of 30.5% and 49.2%, respectively, from a year ago.
Quanta Services, Inc. (PWR - Free Report) currently sports a Zacks Rank of 1. Quanta delivered a trailing four-quarter earnings surprise of 10.3%, on average.
The Zacks Consensus Estimate for Quanta’s 2026 sales and EPS implies an increase of 21.5% and 29.7%, respectively, from a year ago.
Dycom Industries, Inc. (DY - Free Report) presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 25%, on average.
The Zacks Consensus Estimate for Dycom’s fiscal 2027 sales and EPS indicates growth of 34.8% and 30.3%, respectively, from the prior-year levels.
Wall Street heads into a big week after a sharp selloff rattled investors, with inflation data, Apple's annual developer conference and the highly anticipated SpaceX initial public offering set to dominate market attention.
Stocks ended last week under pressure after a stronger-than-expected US jobs report fueled concerns that the Federal Reserve may need to keep interest rates higher for longer. The Nasdaq suffered its biggest one-day decline in a year on Friday, falling nearly 5%, while the S&P 500 snapped a nine-week winning streak.
The spotlight now turns to Wednesday's Consumer Price Index report, which is expected to show inflation accelerating in May. Economists forecast annual headline CPI to rise to around 4.2%, while core inflation is expected to edge higher to 2.9%. Thursday's Producer Price Index report will provide another gauge of price pressures facing the economy.
"A hotter-than-expected CPI release could trigger another selloff in stocks, while a cooler reading could see stocks bounce sharply,” said Kathleen Brooks, research director at XTB.
The inflation reports arrive after May payrolls increased by 172,000, well above expectations, reinforcing the view that the US economy remains resilient despite elevated borrowing costs. Deutsche Bank said the latest labor market data showed little evidence of deterioration and suggested Federal Reserve officials may become increasingly focused on inflation risks rather than employment concerns.
Rising inflation expectations have already prompted a dramatic shift in rate forecasts. Markets are now pricing in a meaningful possibility of another Fed rate hike before year-end, helping push Treasury yields sharply higher and weighing on high-growth technology shares.
Investors will also be watching Apple Inc (NASDAQ:AAPL, XETRA:APC)'s Worldwide Developers Conference, which begins Monday. The event is expected to feature updates to Apple Intelligence, Siri and the company's broader artificial intelligence strategy. With Apple facing increasing scrutiny over its AI progress compared with rivals, the conference could prove a key catalyst for the stock.
The technology sector will remain under the microscope throughout the week. Earnings from Oracle Corp (NYSE:ORCL, XETRA:ORC), Adobe Inc (NASDAQ:ADBE) and homebuilder Lennar Corp (NYSE:LEN) are expected to provide fresh insight into enterprise software demand and housing market conditions.
Meanwhile, capital markets are preparing for one of the largest public offerings in history. SpaceX is expected to begin trading on Friday after seeking to raise approximately $75 billion at a valuation approaching $1.8 trillion. The deal is widely viewed as a major test of investor appetite for high-profile growth companies following recent volatility in the technology sector.
Despite the market's recent pullback, Brooks said demand for the offering is likely to remain strong.
"Even with the selloff in tech, we still expect the SpaceX IPO later this week to generate much excitement," she said, adding that investors increasingly appear willing to buy into long-term growth themes rather than traditional business models alone.
With inflation concerns, interest rate expectations and major corporate events all converging, analysts say the coming week could help determine whether last week's market selloff proves to be a temporary pause or the beginning of a broader rotation away from technology and toward sectors expected to benefit from stronger growth and persistent inflation.
Wall Street analysts forecast that Lennar (LEN - Free Report) will report quarterly earnings of $1.23 per share in its upcoming release, pointing to a year-over-year decline of 35.3%. It is anticipated that revenues will amount to $8.09 billion, exhibiting a decrease of 3.5% compared to the year-ago quarter.
Over the last 30 days, there has been a downward revision of 1.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain Lennar metrics that are commonly tracked and forecasted by Wall Street analysts.
The consensus estimate for 'Revenue- Financial Services' stands at $270.68 million. The estimate indicates a change of -9.2% from the prior-year quarter.
The average prediction of analysts places 'Revenue- Homebuilding- Sales of homes' at $7.62 billion. The estimate indicates a change of -2.2% from the prior-year quarter.
Analysts' assessment points toward 'Revenue- Multifamily' reaching $116.68 million. The estimate indicates a change of -49.3% from the prior-year quarter.
It is projected by analysts that the 'Revenue- Homebuilding' will reach $7.63 billion. The estimate points to a change of -2.7% from the year-ago quarter.
The consensus among analysts is that 'Deliveries - Average sales price - Total' will reach $372.83 . Compared to the present estimate, the company reported $389.00 in the same quarter last year.
According to the collective judgment of analysts, 'Active Communities - Total' should come in at 1,762 . Compared to the current estimate, the company reported 1,617 in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Backlog - Homes' of 16,884 . Compared to the current estimate, the company reported 15,538 in the same quarter of the previous year.
Analysts predict that the 'Deliveries - Homes' will reach 20,381 . Compared to the present estimate, the company reported 20,131 in the same quarter last year.
Based on the collective assessment of analysts, 'New orders - Homes' should arrive at 21,677 . The estimate is in contrast to the year-ago figure of 22,601 .
Analysts forecast 'New orders - Average sales price - Total' to reach $368.80 . The estimate compares to the year-ago value of $379.00 .
The combined assessment of analysts suggests that 'Deliveries - Dollar Value - Total' will likely reach $7.62 billion. Compared to the present estimate, the company reported $7.84 billion in the same quarter last year.
Analysts expect 'Backlog - Average sales price - Total' to come in at $387.65 . The estimate compares to the year-ago value of $417.00 .
View all Key Company Metrics for Lennar here>>>
Over the past month, Lennar shares have recorded returns of +2.4% versus the Zacks S&P 500 composite's +1.9% change. Based on its Zacks Rank #4 (Sell), LEN will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Lennar Corporation (NYSE:LEN) will release earnings for its second quarter after the closing bell on Thursday, June 11.
Analysts expect the home construction company to report quarterly earnings of $1.24 per share. That’s down from $1.90 per share in the year-ago period. The consensus estimate for Lennar's quarterly revenue is $8.07 billion. It reported $8.38 billion last year, according to Benzinga Pro.
With the recent buzz around Lennar, some investors may be eyeing potential gains from the company's dividends too. As of now, Lennar has an annual dividend yield of 2.16%. Its quarterly dividend amount is 50 cents per share ($2.00 a year). So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $277,680 or around 3,000 shares. For a more modest $100 per month or $1,200 per year, you would need $55,536 or around 600 shares.
To CalculateDivide the desired annual income ($6,000 or $1,200) by the dividend ($2.00 in this case). So, $6,000 / $2.00 = 3,000 ($500 per month), and $1,200 / $2.00 = 600 shares ($100 per month).
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
Lennar Price ActionShares of Lennar gained 2% to close at $92.56 on Tuesday.
Ahead of quarterly earnings, Keefe, Bruyette & Woods analyst Jade Rahmani, on Tuesday, downgraded Lennar from Market Perform to Underperform and lowered the price target from $97 to $86.
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Key Takeaways Lennar is expected to report Q2 EPS of $1.23 and revenues of $8.07B, both down year over year.Lower home selling prices and affordability challenges are expected to pressure revenue and margins.New orders are projected to decline, while backlog units are expected to increase year over year. Lennar Corporation (LEN - Free Report) is set to report its second-quarter fiscal 2026 results on June 11, after the closing bell.
In the last reported quarter, the company’s adjusted earnings and total revenues missed the Zacks Consensus Estimate by 8.3% and 3.1%, respectively. On a year-over-year basis, the metrics moved down 58.9% and 13.2%, respectively.
Lennar’s earnings missed estimates in each of the trailing four quarters, with a negative average surprise of 6.3%.
How are Estimates Placed for LEN Stock?The Zacks Consensus Estimate for earnings per share (EPS) has moved south to $1.23 from $1.24 over the past seven days. The estimated figure indicates a decline of 35.3% from earnings of $1.90 per share reported in the year-ago quarter.
The consensus mark for total revenues is pegged at $8.07 billion, indicating a 3.6% decline from the year-ago figure of $8.38 billion.
Factors Likely to Shape Lennar’s Q2 ResultsRevenues
The fiscal second quarter of Lennar is expected to have witnessed a downturn in its top-line performance due to the ongoing affordability issues faced by homebuyers in the United States, given the sudden spike in mortgage rates. As of Freddie Mac, the 30-year fixed mortgage rate ranged between 6.00% and 6.53% between March 2025 and May 2026. Besides inflated rates, U.S. homebuyers struggle with lower income opportunities and growing global uncertainties, which are underlying reasons for the struggling housing market of the country.
During the quarter, even though the home sales volume is likely to have normalized to some extent, the reduced average selling price (ASP) on home sales pressured the revenues down. Besides, even if Lennar engaged in extensive incentive offerings to ease the financial pressures of the potential buyers in the quarter, the softness in demand is expected to have lingered.
For the fiscal second quarter, Lennar expects home deliveries between 20,000 units and 21,000 units, with ASP on homes delivered between $370,000 and $375,000. These values compare with 20,131 homes sold in the year-ago quarter at an ASP of $389,000.
Our model expects home deliveries for the quarter to be 20,316 units at an ASP of $372,870, indicating a year-over-year improvement of 0.9% and a decline of 4.1%, respectively. Besides, our model predicts Homebuilding revenues (contributed 95.2% to first-quarter fiscal 2026 revenues) to decline 2.6% year over year to $7.64 billion.
Nonetheless, LEN’s technology-driven transformation efforts to unlock scalable efficiencies, reduce customer acquisition costs and modernize its entire operating model are expected to have eased the pressures to some extent in the fiscal second quarter.
Earnings & Margins
The company’s bottom line is expected to have weakened significantly during the fiscal second quarter compared with a year ago because of its increased incentive offerings and lower home delivery ASP implemented to boost sales volume. In an inflated mortgage rate scenario and lower household income opportunities, Lennar chose the path of sacrificing its margins to boost home delivery numbers, which is likely to be adverse in the near term.
For the fiscal second quarter, Lennar expects the home sales gross margin to be between 15.5% and 16%, down from 17.8% reported a year ago. It also expects EPS in the range of $1.10-$1.40 for the quarter to be reported.
Moreover, Lennar’s technology investments are likely to have put pressure on the margins as the near-term efficiency yielded from them is immaterial and represents a significant drag on operating leverage. Heightened investments, alongside higher marketing and selling expenses, are expected to have increased the selling, general and administrative (SG&A) expenses of the company in the quarter to be reported. Lennar expects SG&A expenses (as a percentage of home sales) to be between 8.9% and 9.1%, up year over year from 8.8%.
Orders & Backlog
For the fiscal second quarter, LEN expects new home orders between 21,000 units and 22,000 units, down from 22,601 units reported a year ago. Our model predicts the same metric to be 21,908 units, reflecting a 3.1% year-over-year decline.
We expect backlog units to be up 10.6% year over year to 17,180 units, with potential housing revenues up 2.6% to $6.65 billion.
What Our Model Unveils for LennarOur proven model does not conclusively predict an earnings beat for Lennar this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
LEN’s Earnings ESP: The company has an Earnings ESP of -3.25%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
LEN’s Zacks Rank: The stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable CombinationHere are some companies in the Zacks Construction sector, which per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.
Sterling Infrastructure, Inc. (STRL - Free Report) has an Earnings ESP of +9.90% and a Zacks Rank of 1.
Sterling’s earnings topped estimates in each of the last four quarters, with an average surprise of 29.1%. The company’s earnings for the second quarter of 2026 are expected to rise 76.6%.
Comfort Systems USA, Inc. (FIX - Free Report) currently has an Earnings ESP of +3.20% and a Zacks Rank of 1.
Comfort Systems’ earnings beat estimates in each of the last four quarters, the average surprise being 39.3%. The company’s earnings for the second quarter of 2026 are expected to grow 59%.
Quanta Services, Inc. (PWR - Free Report) currently has an Earnings ESP of +1.66% and a Zacks Rank of 1.
Quanta’s earnings have topped in each of the trailing four quarters, the average surprise being 10.3%. The company’s earnings for the second quarter of 2026 are expected to grow 31.9%.
Homebuilder Lennar Corp (NYSE:LEN) reports second-quarter financial results Thursday after market close and looks to reverse recent downside for the stock.
Here are the earnings estimates and key items to watch.
Lennar Q2 Earnings EstimatesAnalysts expect Lennar to report second-quarter revenue of $8.08 billion, down from $8.38 billion, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in six of the last 10 quarters, but missed estimates in the most recently reported first quarter.
Analysts expect Lennar to report second-quarter earnings per share of $1.24, down from $1.90 in last year's second quarter.
The company has missed analyst estimates for earnings per share in four straight quarters and missed estimates in five of the last 10 quarters overall.
Key Items to WatchBerkshire Hathaway took a stake in Lennar Class A shares in the second quarter of 2025 and owns Class A and Class B shares. Under Buffett's leadership at the time, Berkshire Hathaway also bought DR Horton shares in the second quarter of 2025, but later sold that homebuilder.
Lennar is now the big homebuilder bet from Berkshire Hathaway, with the conglomerate adding to its position in the first quarter of 2026, the first quarter with Abel as the CEO.
In the first quarter, Lennar posted a double miss with revenue and earnings per share both missing consensus estimates. The company reported that new orders were up only 1% year-over-year to 18,515 homes as well. Deliveries were down 5% year-over-year in the first quarter to 16,863 homes.
The company ended the second quarter with a backlog of 15,588 homes.
Lennar CEO Stuart Miller said the first quarter came with headwinds for the housing market, like high mortgage rates, affordability, and geopolitical uncertainty.
Keefe, Bruyette & Woods recently downgraded the stock from Market Perform to Underperform and lowered the price target from $97 to $86.
Lennar's earnings report could provide clues for investors and analysts on how the housing market is doing and what mortgage rates mean for demand.
Lennar Stock Price ActionLennar shares were down 1.62% at $91.06 on Wednesday versus a 52-week trading range of $81.18 to $144.24. Lennar stock is down 11.8% year-to-date in 2026 and down 20.1% over the last 52 weeks. The stock trades near a three-year low.
Photo: Shutterstock
Market News and Data brought to you by Benzinga APIs
Lennar Corporation (NYSE:LEN) will release earnings for its second quarter after the closing bell on Thursday, June 11.
Analysts expect the home construction company to report quarterly earnings of $1.25 per share. That's down from $1.90 per share in the year-ago period. The consensus estimate for Lennar’s quarterly revenue is $8.02 billion. It reported $8.38 billion last year, according to Benzinga Pro.
The company has beaten analyst estimates for revenue in six of the last 10 quarters, but missed estimates in the most recently reported first quarter.
Lennar shares fell 0.9% to close at $148.69 on Wednesday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period.
Considering buying LEN stock? Here’s what analysts think:
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Market News and Data brought to you by Benzinga APIs
Net earnings per diluted share of $1.24 ($1.31 excluding mark-to-market losses on technology investments) Net earnings of $305 million New orders decreased 4% year over year to 21,749 homes Backlog of 16,818 homes with a dollar value of $6.6 billion Deliveries increased 2% year over year to 20,519 homes Total revenues of $7.9 billion Homebuilding operating earnings of $489 million Gross margin on home sales of 15.6% S,G&A expenses as a % of revenues from home sales of 9.2% Net margin on home sales of 6.4% Financial Services operating earnings of $100 million Multifamily operating earnings of $18 million Lennar Other operating loss of $39 million Homebuilding cash and cash equivalents of $1.8 billion No outstanding borrowings under the Company's $3.1 billion revolving credit facility Homebuilding debt to total capital of 15.8% Repurchased 5 million shares of Lennar common stock for $447 million Redeemed $400 million of 5.25% senior notes due in June 2026, subsequent to May 31, 2026 , /PRNewswire/ -- Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's leading homebuilders, today reported results for its second quarter ended May 31, 2026. Second quarter net earnings attributable to Lennar in 2026 were $305 million, or $1.24 per diluted share, compared to second quarter net earnings attributable to Lennar in 2025 of $477 million, or $1.81 per diluted share. Excluding pretax mark-to-market losses of $23 million and $29 million on technology investments, respectively, second quarter net earnings attributable to Lennar in 2026 were $322 million, or $1.31 per diluted share compared to $499 million or $1.90 per diluted share in the second quarter of 2025.
Stuart Miller, Executive Chairman, Chief Executive Officer and President of Lennar, said, "Our second quarter of fiscal year 2026 was defined by the same stubborn headwinds that have challenged the housing market for the past several years – persistently elevated mortgage rates, constrained affordability, and cautious consumer sentiment, exacerbated by geopolitical uncertainty creating a resurgent inflation reading of 4.2% driven by higher energy prices. Against that backdrop, our team delivered results that demonstrate the strength and resilience of our operating platform.
"We delivered 20,519 homes, within our guidance of 20,000 to 21,000, generated 21,749 new orders and produced earnings per share of $1.31 excluding mark-to-market losses. Our average sales price was $371,000, reflecting approximately 12.9% in incentives, along with base price adjustments necessary to sustain volume in a market where affordability remains the defining constant. Our gross margin improved sequentially to 15.6% while our net margin increased to 6.4%."
"Our continued focus on operational execution is reflected across numerous key metrics. Our construction costs improved another 2% sequentially and 13% over the last several years. Our cycle time reached a new record low of 121 days, down from 122 days last quarter and 132 days a year ago. We reduced our inventory to 2.1 homes per community from 3 homes per community last quarter, and our inventory turn stands at 2.5 times. Less than 5% of our land is on our balance sheet and our total owned homebuilding inventory has declined from $11.4 billion a year ago to $10.9 billion today. Finally, we ended the quarter with $1.8 billion in cash as we purchased 5 million shares of stock for $447 million."
"Looking ahead to the third quarter of 2026, we expect to deliver approximately 20,500 to 21,500 homes with gross margin improving to approximately 16% as volume increases, incentive levels continue to moderate, and our cost discipline continues to gain traction. We expect our average sales price to be in the range of approximately $375,000 to $380,000 and our SG&A to improve toward 8.8% to 9.0%. Given current pressure on interest rates and geopolitical uncertainty we are moderating our target full-year 2026 deliveries to approximately 82,000 to 83,000 homes."
"In order to help clearly communicate our operating strategy and operating model, we are pleased to announce the publication of a new Investor Deck on the Lennar Investor Relations website tomorrow morning. This deck has been designed to give investors a current view of Lennar's transformation, our asset-light operating model, our technology platform, and our path to margin recovery and long-term value creation. We believe it provides important context for understanding not just where we are today, but where we are going, and why we remain so confident about Lennar's long-term position."
Mr. Miller concluded, "Our strategy consistently has been to execute around the affordability challenge rather than wait it out. We have prioritized volume to create durable scale advantages, to deliver that volume at lower prices, and ultimately improve margins. Our costs are down materially over the past two years, volume is holding, our asset-light balance sheet is functioning extremely well and improving, and our technology initiatives are defining a new Lennar. Additionally, the gap between our current incentive levels of 12.9% and normalized levels of 4% to 6% is narrowing for the first time in three years as the mismatch between higher home prices with higher interest rates and household income is narrowing, as wages drift higher and employment remains strong. The fundamental shortage of housing in America has not been solved. Demand is real, deferred, and building. Lennar is positioned better than at any point in recent history to capture demand as conditions normalize. We remain deeply committed to building the homes America needs, at prices families can afford, and to generating the returns our shareholders deserve."
RESULTS OF OPERATIONS
SECOND QUARTER 2026 COMPARED TO SECOND QUARTER 2025
Homebuilding
Revenues from home sales decreased 2% in the second quarter of 2026 to $7.6 billion from $7.8 billion in the second quarter of 2025. Revenues were lower primarily due to a 5% decrease in the average sales price of homes delivered, partially offset by a 2% increase in the number of home deliveries. New home deliveries were 20,519 homes in the second quarter of 2026, compared to 20,131 homes in the second quarter of 2025. The average sales price of homes delivered was $371,000 in the second quarter of 2026, compared to $389,000 in the second quarter of 2025. The decrease in average sales price of homes delivered in the second quarter of 2026 compared to the same period last year was primarily due to continued weakness in the market.
Gross margins on home sales were $1.2 billion, or 15.6%, in the second quarter of 2026, compared to $1.4 billion, or 17.8%, in the second quarter of 2025. During the second quarter of 2026, gross margins decreased primarily due to lower revenue per square foot and higher land costs year over year, which were partially offset by a decrease in construction costs, reflecting the Company's continued focus on cost-saving initiatives.
Selling, general and administrative expenses were $698 million in the second quarter of 2026, compared to $689 million in the second quarter of 2025. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 9.2% in the second quarter of 2026, from 8.8% in the second quarter of 2025, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses.
Financial Services
Operating earnings for the Financial Services segment were $100 million in the second quarter of 2026, compared to $157 million in the second quarter of 2025, both amounts are net of noncontrolling interest. The decrease in operating earnings was primarily due to lower profit per locked loan in the mortgage business.
Ancillary Businesses
Operating earnings for the Multifamily segment were $18 million in the second quarter of 2026, compared to an operating loss of $15 million in the second quarter of 2025. Operating loss for the Lennar Other segment was $39 million in the second quarter of 2026, compared to an operating loss of $53 million in the second quarter of 2025. The Lennar Other operating loss for both second quarters of 2026 and 2025 was primarily driven by mark-to-market losses of $23 million and $29 million, respectively, on the Company's technology investments.
Tax Rate
In the second quarter of 2026 and 2025, the Company had tax provisions of $105 million and $160 million, which resulted in an overall effective income tax rate of 25.6% and 25.1%, respectively. For both periods, the Company's effective income tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits.
Share Repurchases
In the second quarter of 2026, the Company repurchased 5 million shares of its common stock for $447 million at an average share price of $89.35.
Guidance
The following are the Company's expected results of its homebuilding and financial services activities for the third quarter of 2026:
New Orders
21,000 - 22,000
Deliveries
20,500 - 21,500
Average Sales Price
$375,000 - $380,000
Gross Margin % on Home Sales
Approximately 16%
SG&A as a % of Home Sales
8.8% - 9.0%
Financial Services Operating Earnings
$95 million - $100 million
About Lennar
Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar's Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar's homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout the United States. Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties. LENX drives Lennar's technology, innovation and strategic investments. For more information about Lennar, please visit www.lennar.com.
Note Regarding Forward-Looking Statements: Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the homebuilding market and other markets in which we participate, as well as our expected results and guidance. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those anticipated by the forward-looking statements. We wish to caution readers not to place undue reliance on any forward-looking statements, which are expressly qualified in their entirety by this cautionary statement and speak only as of the date made.
Important factors that could cause differences between anticipated and actual results include slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities or own a substantial number of single-family homes for rent; decreased demand for our homes, either for sale or for rent, or Multifamily rental apartments; the potential impact of inflation; the impact of increased cost of mortgage financing for homebuyers, increased or continued high interest rates or increased competition in the mortgage industry; supply shortages and increased costs related to construction materials and labor; changes in trade policy affecting our business, including new or increased tariffs, as well as the potential impact of retaliatory tariffs and other penalties that may impact the cost of raw materials and other goods related to our homebuilding businesses; changes in U.S. and foreign governmental laws, regulations and policies, including retaliatory policies against the United States, that may impact our business operations; cost increases related to real estate taxes and insurance; the effect of increased interest rates with regard to our funds' borrowings or the willingness of the funds to invest in new projects; reductions in the market value of our investments in public companies; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies, including our land light strategy; problems exercising options to purchase homesites; a decline in the value of the land and home inventories we maintain and resulting possible future writedowns of the carrying value of our real estate assets; the forfeiture of deposits and pre-acquisition costs on real estate related to land purchase options we decide not to exercise; the potential negative impact to our business from public health issues; labor shortages and/or a decrease in the number of potential homebuyers due to increased enforcement of restrictions on immigration; possible unfavorable outcomes in legal proceedings; conditions in the capital, credit and financial markets; changes in laws, regulations or the regulatory environment affecting our business; and the other risks and uncertainties described in our filings from time to time with the Securities and Exchange Commission, including those included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Annual Report on Form 10-K filed on January 28, 2026 and Quarterly Reports on Form 10-Q.
We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
A conference call to discuss the Company's second quarter earnings will be held at 11:00 a.m. Eastern Time on Friday, June 12, 2026. The call will be broadcast live on the Internet and can be accessed through the Company's website at investors.lennar.com. If you are unable to participate in the conference call, the call will be archived at investors.lennar.com for 90 days. A replay of the conference call will also be available later that day by calling 203-369-1938 and entering 5723593 as the confirmation number.
LENNAR CORPORATION AND SUBSIDIARIES
Selected Revenues and Operating Information
(In thousands, except per share amounts)
(unaudited)
Three Months Ended
Six Months Ended
May 31,
May 31,
2026
2025
2026
2025
Revenues:
Homebuilding
$ 7,616,314
7,843,862
13,914,877
15,127,732
Financial Services
236,939
298,098
452,494
575,175
Multifamily
63,564
230,305
146,063
293,501
Lennar Other
23,055
5,237
45,914
12,639
Total revenues
$ 7,939,872
8,377,502
14,559,348
16,009,047
Homebuilding operating earnings
$ 489,371
728,234
862,399
1,537,507
Financial Services operating earnings
101,103
157,280
192,416
300,763
Multifamily operating earnings (loss)
18,325
(14,754)
36,184
(14,777)
Lennar Other operating loss
(38,944)
(52,895)
(44,190)
(142,178)
Corporate general and administrative expenses
(136,149)
(155,853)
(293,787)
(303,231)
Charitable foundation contribution
(20,519)
(20,131)
(37,382)
(37,965)
Earnings before income taxes
413,187
641,881
715,640
1,340,119
Provision for income taxes
(105,058)
(160,061)
(174,150)
(329,586)
Net earnings (including net earnings attributable to noncontrolling interests)
308,129
481,820
541,490
1,010,533
Less: Net earnings attributable to noncontrolling interests
3,357
4,371
7,335
13,558
Net earnings attributable to Lennar
$ 304,772
477,449
534,155
996,975
Basic and diluted average shares outstanding
240,776
260,286
242,607
261,510
Basic and diluted earnings per share
$ 1.24
1.81
2.17
3.77
Supplemental information:
Interest incurred (1)
$ 56,881
41,846
111,456
73,335
EBIT (2):
Net earnings attributable to Lennar
$ 304,772
477,449
534,155
996,975
Provision for income taxes
105,058
160,061
174,150
329,586
Interest expense included in:
Costs of homes and land sold
52,574
33,525
91,448
61,775
Homebuilding other income, net
2,710
3,655
5,823
7,051
Total interest expense
55,284
37,180
97,271
68,826
EBIT
$ 465,114
674,690
805,576
1,395,387
(1)
Amount represents interest incurred related to homebuilding debt.
(2)
EBIT is a non-GAAP financial measure defined as earnings before interest and taxes. This financial measure has been presented because the Company finds it important and useful in evaluating its performance and believes that it helps readers of the Company's financial statements compare its operations with those of its competitors. Although management finds EBIT to be an important measure in conducting and evaluating the Company's operations, this measure has limitations as an analytical tool as it is not reflective of the actual profitability generated by the Company during the period. Management compensates for the limitations of using EBIT by using this non-GAAP measure only to supplement the Company's GAAP results. Due to the limitations discussed, EBIT should not be viewed in isolation, as it is not a substitute for GAAP measures.
LENNAR CORPORATION AND SUBSIDIARIES
Segment Information
(In thousands)
(unaudited)
Three Months Ended
Six Months Ended
May 31,
May 31,
2026
2025
2026
2025
Homebuilding revenues:
Sales of homes
$ 7,595,039
7,788,275
13,867,961
15,028,821
Sales of land
12,401
43,195
27,559
78,521
Other homebuilding
8,874
12,392
19,357
20,390
Total homebuilding revenues
7,616,314
7,843,862
13,914,877
15,127,732
Homebuilding costs and expenses:
Costs of homes sold
6,412,619
6,402,532
11,734,233
12,290,676
Costs of land sold
21,544
56,173
52,855
92,250
Selling, general and administrative
698,395
688,847
1,315,890
1,304,586
Total homebuilding costs and expenses
7,132,558
7,147,552
13,102,978
13,687,512
Homebuilding net margins
483,756
696,310
811,899
1,440,220
Homebuilding equity in earnings from unconsolidated entities
2,670
17,716
40,851
52,720
Homebuilding other income, net
2,945
14,208
9,649
44,567
Homebuilding operating earnings
$ 489,371
728,234
862,399
1,537,507
Financial Services revenues
$ 236,939
298,098
452,494
575,175
Financial Services costs and expenses
135,836
140,818
260,078
274,412
Financial Services operating earnings
$ 101,103
157,280
192,416
300,763
Multifamily revenues
$ 63,564
230,305
146,063
293,501
Multifamily costs and expenses
72,788
254,677
163,216
328,053
Multifamily equity in earnings from unconsolidated entities and other income, net
27,549
9,618
53,337
19,775
Multifamily operating earnings (loss)
$ 18,325
(14,754)
36,184
(14,777)
Lennar Other revenues
$ 23,055
5,237
45,914
12,639
Lennar Other costs and expenses
43,726
30,025
87,410
53,589
Lennar Other equity in earnings (loss) from unconsolidated entities and other
4,979
1,333
5,720
(9,285)
Lennar Other losses from technology investments
(23,252)
(29,440)
(8,414)
(91,943)
Lennar Other operating loss
$ (38,944)
(52,895)
(44,190)
(142,178)
LENNAR CORPORATION AND SUBSIDIARIES
Summary of Deliveries, New Orders and Backlog
(Dollars in thousands, except average sales price)
(unaudited)
Lennar's reportable homebuilding segments and all other homebuilding operations not required to be reported separately have divisions located in:
East: Florida, New Jersey and Pennsylvania
Central: Alabama, Georgia, Illinois, Indiana, Maryland/Virginia, Minnesota, North Carolina, South Carolina and Tennessee
South Central: Arkansas, Kansas, Oklahoma and Texas
West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington
Other: Urban divisions
Three Months Ended May 31,
2026
2025
2026
2025
2026
2025
Deliveries:
Homes
Dollar Value
Average Sales Price
East
4,761
4,742
$ 1,757,118
1,766,459
$ 369,000
373,000
Central
4,606
4,538
1,662,594
1,743,304
361,000
384,000
South Central
6,286
6,174
1,463,140
1,505,750
233,000
244,000
West
4,863
4,669
2,758,154
2,818,980
567,000
604,000
Other
3
8
1,897
4,834
632,000
604,000
Total
20,519
20,131
$ 7,642,903
7,839,327
$ 371,000
389,000
Of the total homes delivered listed above, 73 homes with a dollar value of $48 million and an average sales price of $656,000 represent homes from
unconsolidated entities for the three months ended May 31, 2026, compared to 113 homes with a dollar value of $51 million and an average sales
price of $452,000 for the three months ended May 31, 2025.
As of May 31,
Three Months Ended May 31,
2026
2025
2026
2025
2026
2025
2026
2025
New Orders:
Active Communities
Homes
Dollar Value
Average Sales Price
East
346
340
5,064
5,604
$ 1,929,424
1,978,078
$ 381,000
353,000
Central
462
443
5,218
5,266
1,896,583
1,987,955
363,000
378,000
South Central
433
391
6,293
6,626
1,475,500
1,607,319
234,000
243,000
West
441
441
5,173
5,098
2,906,234
2,997,528
562,000
588,000
Other
1
2
1
7
668
4,383
668,000
626,000
Total
1,683
1,617
21,749
22,601
$ 8,208,409
8,575,263
$ 377,000
379,000
Of the total new orders listed above, 57 homes with a dollar value of $31 million and an average sales price of $542,000 represent homes in five active
communities from unconsolidated entities for the three months ended May 31, 2026, compared to 141 homes with a dollar value of $70 million and an
average sales price of $495,000 in 10 active communities for the three months ended May 31, 2025.
Six Months Ended May 31,
2026
2025
2026
2025
2026
2025
Deliveries:
Homes
Dollar Value
Average Sales Price
East
8,911
9,126
$ 3,341,069
3,462,701
$ 375,000
379,000
Central
8,407
8,494
3,007,627
3,273,497
358,000
385,000
South Central
11,325
10,904
2,623,320
2,666,273
232,000
245,000
West
8,731
9,425
5,009,901
5,707,665
574,000
606,000
Other
8
16
5,780
10,720
723,000
670,000
Total
37,382
37,965
$ 13,987,697
15,120,856
$ 374,000
398,000
Of the total homes delivered listed above, 157 homes with a dollar value of $120 million and an average sales price of $763,000 represent homes from
unconsolidated entities for the six months ended May 31, 2026, compared to 193 homes with a dollar value of $92 million and an average sales price of
$477,000 for the six months ended May 31, 2025.
Six Months Ended May 31,
2026
2025
2026
2025
2026
2025
New Orders:
Homes
Dollar Value
Average Sales Price
East
9,544
9,667
$ 3,641,071
3,539,940
$ 382,000
366,000
Central
9,810
9,816
3,532,795
3,788,150
360,000
386,000
South Central
11,298
11,547
2,639,114
2,780,180
234,000
241,000
West
9,604
9,909
5,529,034
5,886,178
576,000
594,000
Other
8
17
5,781
11,547
723,000
679,000
Total
40,264
40,956
$ 15,347,795
16,005,995
$ 381,000
391,000
Of the total new orders listed above, 128 homes with a dollar value of $62 million and an average sales price of $485,000 represent homes from
unconsolidated entities for the six months ended May 31, 2026, compared to 242 homes with a dollar value of $130 million and an average sales price of
$536,000 for the six months ended May 31, 2025.
At May 31,
2026
2025
2026
2025
2026
2025
Backlog:
Homes
Dollar Value
Average Sales Price
East
5,455
3,900
$ 2,069,490
1,562,457
$ 379,000
401,000
Central
4,875
4,706
1,797,844
1,905,125
369,000
405,000
South Central
3,018
3,430
671,772
815,681
223,000
238,000
West
3,470
3,500
2,067,167
2,200,051
596,000
629,000
Other
—
2
—
1,176
—
588,000
Total
16,818
15,538
$ 6,606,273
6,484,490
$ 393,000
417,000
Of the total homes in backlog listed above, 50 homes with a backlog dollar value of $28 million and an average sales price of $568,000 represent the
backlog from unconsolidated entities at May 31, 2026, compared to 128 homes with a backlog dollar value of $101 million and an average sales price
of $792,000 at May 31, 2025.
LENNAR CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
(unaudited)
May 31, 2026
November 30, 2025
ASSETS
Homebuilding:
Cash and cash equivalents
$ 1,816,248
3,441,324
Restricted cash
29,204
25,930
Receivables, net
978,796
1,002,629
Inventories:
Finished homes and construction in progress
10,093,878
8,822,271
Land and land under development
801,156
1,098,961
Inventory owned
10,895,034
9,921,232
Consolidated inventory not owned
1,488,684
1,696,401
Inventory owned and consolidated inventory not owned
12,383,718
11,617,633
Deposits and pre-acquisition costs on real estate
7,061,935
6,383,633
Investments in unconsolidated entities
1,478,719
1,545,370
Goodwill
3,442,359
3,442,359
Other assets
1,785,201
1,794,378
28,976,180
29,253,256
Financial Services
3,123,509
3,377,413
Multifamily
801,356
902,136
Lennar Other
800,410
897,632
Total assets
$ 33,701,455
34,430,437
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable
$ 1,784,916
1,812,484
Liabilities related to consolidated inventory not owned
1,312,689
1,476,376
Senior notes and other debts payable, net
4,047,487
4,084,686
Other liabilities
2,470,608
2,691,876
9,615,700
10,065,422
Financial Services
2,151,670
2,010,598
Multifamily
76,768
113,361
Lennar Other
91,591
100,447
Total liabilities
11,935,729
12,289,828
Stockholders' equity:
Preferred stock
—
—
Class A common stock of $0.10 par value
26,309
26,158
Class B common stock of $0.10 par value
3,660
3,660
Additional paid-in capital
6,020,306
5,909,726
Retained earnings
22,759,089
22,471,471
Treasury stock
(7,194,402)
(6,457,609)
Accumulated other comprehensive income
5,676
6,011
Total stockholders' equity
21,620,638
21,959,417
Noncontrolling interests
145,088
181,192
Total equity
21,765,726
22,140,609
Total liabilities and equity
$ 33,701,455
34,430,437
LENNAR CORPORATION AND SUBSIDIARIES
Supplemental Data
(Dollars in thousands)
(unaudited)
May 31, 2026
November 30, 2025
May 31, 2025
Homebuilding debt
$ 4,047,487
4,084,686
2,791,987
Stockholders' equity
21,620,638
21,959,417
22,579,080
Total capital
$ 25,668,125
26,044,103
25,371,067
Homebuilding debt to total capital
15.8 %
15.7 %
11.0 %
Homebuilding debt
$ 4,047,487
4,084,686
2,791,987
Less: Homebuilding cash and cash equivalents
1,816,248
3,441,324
1,168,143
Net homebuilding debt
$ 2,231,239
643,362
1,623,844
Net homebuilding debt to total capital (1)
9.4 %
2.8 %
6.7 %
(1)
Net homebuilding debt to total capital is a non-GAAP financial measure defined as net homebuilding debt (homebuilding debt less homebuilding cash and cash equivalents) divided by total capital (net homebuilding debt plus stockholders' equity). The Company believes the ratio of net homebuilding debt to total capital is a relevant and a useful financial measure to investors in understanding the leverage employed in homebuilding operations. However, because net homebuilding debt to total capital is not calculated in accordance with GAAP, this financial measure should not be considered in isolation or as an alternative to financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement the Company's GAAP results.
LEN stock is moving. Watch the price action here. Lennar Q2 Details Lennar reported quarterly adjusted earnings of $1.31 per share, which beat the Street consensus estimate of $1.25, according to Benzinga Pro data.
Quarterly revenue came in at $7.94 billion, missing the analyst estimate of $8.02 billion.
Lennar reported the following second-quarter highlights:
New orders decreased 4% year over year to 21,749 homes Backlog of 16,818 homes with a dollar value of $6.6 billion Deliveries increased 2% year over year to 20,519 homes Homebuilding operating earnings of $489 million Gross margin on home sales of 15.6% SG&A expenses as a percentage of revenues from home sales of 9.2% Net margin on home sales of 6.4% “Our second quarter of fiscal year 2026 was defined by the same stubborn headwinds that have challenged the housing market for the past several years — persistently elevated mortgage rates, constrained affordability, and cautious consumer sentiment, exacerbated by geopolitical uncertainty, creating a resurgent inflation reading of 4.2% driven by higher energy prices,” said Stuart Miller, CEO of Lennar.
“Against that backdrop, our team delivered results that demonstrate the strength and resilience of our operating platform,” Miller added.
LEN Stock Price Activity: According to data from Benzinga Pro, Lennar stock was down 1.69% to $93.35 in Thursday's extended trading.
Photo: Shutterstock
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Lennar (LEN - Free Report) came out with quarterly earnings of $1.31 per share, beating the Zacks Consensus Estimate of $1.23 per share. This compares to earnings of $1.9 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +6.50%. A quarter ago, it was expected that this homebuilder would post earnings of $0.96 per share when it actually produced earnings of $0.88, delivering a surprise of -8.33%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Lennar, which belongs to the Zacks Building Products - Home Builders industry, posted revenues of $7.94 billion for the quarter ended May 2026, missing the Zacks Consensus Estimate by 1.64%. This compares to year-ago revenues of $8.38 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Lennar shares have lost about 12.6% since the beginning of the year versus the S&P 500's gain of 6.2%.
What's Next for Lennar?While Lennar has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Lennar was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.65 on $8.66 billion in revenues for the coming quarter and $5.87 on $32.64 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Home Builders is currently in the bottom 8% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, KB Home (KBH - Free Report) , is yet to report results for the quarter ended May 2026. The results are expected to be released on June 23.
This homebuilder is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of -70.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
KB Home's revenues are expected to be $1.09 billion, down 28.7% from the year-ago quarter.
For the quarter ended May 2026, Lennar (LEN - Free Report) reported revenue of $7.94 billion, down 5.2% over the same period last year. EPS came in at $1.31, compared to $1.90 in the year-ago quarter.
The reported revenue represents a surprise of -1.64% over the Zacks Consensus Estimate of $8.07 billion. With the consensus EPS estimate being $1.23, the EPS surprise was +6.5%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Lennar performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Deliveries - Average sales price - Total: $371.00 versus the four-analyst average estimate of $372.83.Active Communities - Total: 1,683 versus 1,762 estimated by four analysts on average.Backlog - Homes: 16,818 compared to the 16,889 average estimate based on three analysts.Deliveries - Homes: 20,519 versus 20,314 estimated by three analysts on average.New orders - Homes: 21,749 versus the three-analyst average estimate of 21,615.Revenue- Financial Services: $236.94 million compared to the $270.68 million average estimate based on five analysts. The reported number represents a change of -20.5% year over year.Revenue- Homebuilding- Sales of homes: $7.6 billion versus the five-analyst average estimate of $7.6 billion. The reported number represents a year-over-year change of -2.5%.Revenue- Multifamily: $63.56 million versus $116.68 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -72.4% change.Revenue- Homebuilding: $7.62 billion compared to the $7.61 billion average estimate based on three analysts. The reported number represents a change of -2.9% year over year.Revenue- Homebuilding- Sales of land: $12.4 million compared to the $32.9 million average estimate based on three analysts. The reported number represents a change of -71.3% year over year.Revenue- Lennar Other: $23.06 million versus the two-analyst average estimate of $7.49 million. The reported number represents a year-over-year change of +340.2%.Revenue- Homebuilding- Other homebuilding: $8.87 million versus $10 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -28.4% change.View all Key Company Metrics for Lennar here>>>
Shares of Lennar have returned +5.7% over the past month versus the Zacks S&P 500 composite's -1.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Published in earnings earnings-estimates-revisions earnings-surprise
Lennar remains a 'sell' as weak housing demand, persistent affordability issues, and elevated rates limit near-term upside. LEN's Q2 saw earnings down 30% YoY, gross margins compressed to 15.6%, and incentives elevated at 12.9% to sustain volumes. Backlog and inventory reductions provide near-term delivery visibility, but full-year guidance was cut to 82-83,000 homes, reflecting ongoing market softness.
1. SpaceX Set to Open Higher on IPO Debut Early shadow market trading indicates the SpaceX (SPCX +23.92%) stock price could surge at least 35% after the market opens today, with retail investors alone submitting more than $100 billion in orders at the Thursday deadline, as final indications imply strong appetite for the company.
All 555,555,555 shares sold at $135 apiece: The WSJ reports BlackRock (BLK +1.41%) put in an order to buy at least $5 billion worth of stock, with a separate family office alone requesting $1 billion. Polymarket traders have assigned a 70% probability of the stock closing above a $2 trillion market cap today. "Space is hot right now for the same reason tech software got hot in the late 1990s": Fool contributing analyst Lou Whiteman explained, "as the cost comes down, things that weren't practical due to expense just a few years ago become feasible. And entrepreneurs are likely to think of all-new ways to use space that wouldn't have been possible when costs were higher." 2. Nvidia Opens Vera CPU Orders in China Reuters reports Nvidia (NVDA +0.13%) has informed Chinese clients of pending availability of Vera CPUs, with AI processor orders to be available as soon as August.
The Chinese market once accounted for over 20% of Nvidia's data center revenue: The move would aim to kick-start China sales and provide an alternative from the stalling progress on the powerful H200 chip, with reported demand for the Vera processors according to domestic sources. "Their local ecosystem of chip companies are doing quite well, because we've evacuated that market": Speaking in late May, Nvidia CEO Jensen Huang explained how China had large demand, but tight U.S. chip export restrictions meant the Stock Advisor Foundational Stock had largely conceded it. 3. ADBE, LEN, and RH Earnings Disappoint Adobe (ADBE 7.65%) fell around 5% ahead of the market open after the sudden departure of its CFO, Dan Durn, overshadowed a strong quarterly earnings beat. In the short term, the Team Rule Breakers recommendation expects revenue pressure as it focuses on a "freemium" model. RH (RH 3.03%) dropped about 1% in pre-market trading following a mixed bag of results. Also recommended by Team Rule Breakers, revenue for the quarter fell by 1.7% versus the same period last year, although management raised the full-year outlook based on opening new galleries. Lennar (LEN 4.47%) moved over 2% lower before the opening bell, pointing to "elevated mortgage rates and cautious consumer sentiment" in the quarterly earnings report as a factor in the 31% drop in earnings per share. 4. Rocket Lab Pops on Nasdaq 100 Promotion The quarterly Nasdaq 100 rebalance sees Rocket Lab (RKLB 9.56%) promoted alongside four others, with Zscaler (ZS +2.37%) a notable removal. All changes take effect prior to the market open on Monday June 22.
Rocket Lab pops around 6% in pre-market trading: The news carried the promoted stocks higher overnight, with the Stock Advisor rec by Team Hidden Gems now up an impressive 122% since the July 2025 selection. Rotation shows current market winners and losers: The rebalance shows the investor pivot toward AI infrastructure and cloud computing, replacing more mature consumer-facing telecoms and older software firms. 5. Your Take How are you playing the space economy theme, if at all? Pure plays like Rocket Lab? Diversified aerospace like Boeing (BA 0.49%)? Component suppliers like the ones serving SpaceX? Or are you sitting it out?
Debate with friends and family, or become a member to hear what your fellow Fools are saying!
This image and article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, BlackRock, Boeing, Lennar, Nvidia, Rocket Lab, and Zscaler. The Motley Fool recommends RH and recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.
Q2 EPS fell to $1.31 and gross margin compressed to 15.6% Summary
Lennar cut its full-year delivery target to 82,000-83,000 homes as mortgage rates, affordability pressure, and geopolitical uncertainty weigh on new orders and margins.
Lennar Corporation LEN fell 2.37% in premarket after reporting Q2 2026 EPS of $1.24, or $1.31 excluding mark-to-market losses on technology investments, down from $1.81 a year ago. Net earnings fell to $305 million from $477 million, on revenues of $7.9 billion. Deliveries rose 2% year-over-year to 20,519 homes, but new orders fell 4% to 21,749 and the average sales price dropped to $371,000 from $389,000, with incentives running at 12.9%. Gross margin on home sales compressed to 15.6% from 17.8% a year earlier.
CEO Stuart Miller cited persistently elevated mortgage rates, constrained affordability, and cautious consumer sentiment as the defining headwinds, compounded by a 4.2% inflation reading driven by higher energy prices. Construction costs improved 2% sequentially and 13% over the past several years, and cycle time hit a record low of 121 days. The company repurchased 5 million shares for $447 million and ended the quarter with $1.8 billion in cash.
For Q3, Lennar guided 20,500-21,500 home deliveries, gross margin of approximately 16%, and an average sales price of $375,000-$380,000. The company cut its full-year 2026 delivery target to 82,000-83,000 homes, citing interest rate pressure and geopolitical uncertainty. Miller said incentive levels of 12.9% are narrowing toward normalized levels of 4%-6% for the first time in three years.
U.S. stock futures were higher this morning, with the Dow futures gaining around 300 points on Friday.
Shares of Lennar Corp (NYSE:LEN) fell sharply in pre-market trading after the company posted mixed second-quarter results.
Lennar reported quarterly adjusted earnings of $1.31 per share, which beat the Street consensus estimate of $1.25, according to Benzinga Pro data. Quarterly revenue came in at $7.94 billion, missing the analyst estimate of $8.02 billion.
Lennar shares dipped 2.7% to $92.35 in pre-market trading.
Here are some other stocks moving lower in pre-market trading.
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