Lennar Corporation

Third-quarter revenue figures were not stated in the call, but management reported 20,840 homes delivered and 20,879 new orders. Gross margin improved to 15.8% from 15.6% last quarter, net margin was 6.6%, and EPS was $1.19 on a GAAP basis or $1.23 excluding one-time items. SG&A was 9.2%, Financial Services earned $129 million, cash was $1.2 billion, and homebuilding debt-to-total-capital was 16.6%. For Q4, Lennar guided to 19,500 to 20,500 new orders, 22,000 to 23,000 deliveries, average sales price of $370,000 to $380,000, gross margin of 15.5% to 16%, SG&A of 8.7% to 9%, Financial Services earnings of $90 million to $95 million, and EPS of about $1.30 to $1.65.

Stuart Miller framed the quarter as solid execution in a worsening environment, emphasizing that higher rates, inflation, weaker confidence, and heavier resale competition are pressuring affordability. He said Lennar is deliberately prioritizing even-flow production and volume over margin to work through older, higher-cost land and convert it to cash, while keeping finished inventory and owned land very low. His tone was confident and resolute, with repeated emphasis that the strategy is intentional, consistent, and intended to leave Lennar better positioned when affordability improves.

Diane Bessette focused on balance sheet strength and cash generation, highlighting $1.2 billion of cash, $3.6 billion of total liquidity, a 16.6% homebuilding debt-to-total-capital ratio, and $22 billion of stockholders’ equity. She noted $650 million drawn on the revolver, $1.7 billion outstanding under the term loan, $400 million of senior notes redeemed, 3 million shares repurchased for $256 million, and $119 million of dividends paid. She also pointed to inventory discipline, with about 3,100 completed unsold homes and 116-day cycle time, and guided Q4 EPS to $1.30 to $1.65 with gross margin of 15.5% to 16% and SG&A of 8.7% to 9%.

Analysts pressed on inventory turns, cash deployment, SG&A leverage from technology spending, labor availability, margin bridge into Q4, and the impact of mortgage rate buydowns and resale competition in Texas and Florida. Management said inventory turns are likely to stay around the current range until market conditions improve, that cash will continue to be balanced among debt reduction, buybacks, and dividends, and that technology investments should normalize more visibly in 2027. On labor, management said pressure is geographic and tied to immigration enforcement, data centers, and tariffs, but Lennar’s scale and trade-partner relationships are helping offset it; on resale competition, they said it is more intense in affordable-price markets but can also unlock demand from move-up sellers.