Lennar Shares Slide After 'Weakness In The Market' Leads To Lower Sales Prices And Gross Margin

Lennar Corp. LEN released its first-quarter results after Thursday's closing bell. Here's a look at the details from the report. 

The Details: Lennar reported quarterly earnings of $2.14 per share. which beat the analyst consensus estimate of $1.73. Quarterly GAAP revenue came in at $7.63 billion, beating the consensus estimate of $7.43 billion.

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For the first quarter, Lennar reported:

• New orders increased 1% to 18,355 homes; new orders dollar value decreased 4% to $7.4 billion.
• Backlog of 13,145 homes with a dollar value of $5.8 billion.
• Deliveries increased 6% to 17,834 homes.
• Total revenues of $7.6 billion.
• Homebuilding operating earnings of $809 million.
• Gross margin on home sales of 18.7% (18.8% before purchase accounting.)
• S,G&A expenses as a % of revenues from home sales of 8.5%.
• Net margin on home sales of 10.2%.
• Financial Services operating earnings of $143 million.
• Multifamily operations were breakeven.

“We are pleased to report our 2025 first-quarter results that were both constructive and strategic for Lennar. During the quarter, we continued to focus on our strategy of matching production pace with sales pace and maintaining even flow production,” said Stuart Miller, Co-CEO of Lennar. 

Miller did point to weakness in the market, which led to a lower average sales price and other metrics that came in below expectations.

“Reflecting continued weakness in the market, however, our average sales price, net of incentives, declined to $408,000, 1% lower than last year. Additionally, our gross margin was 18.7%, just shy of our guidance, and our SG&A expenses were 8.5%, producing a 10.2% net margin, all contributing to earnings of $520 million, or $1.96 per diluted share,” Miller said.

LEN Price Action: According to data from Benzinga Pro, Lennar shares are down 4.18% after hours at $115.05 on Thursday.  

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