Lennar posted third-quarter adjusted earnings of $1.23 per share, missing the $1.29 analyst consensus, as revenue fell short of estimates and home deliveries slipped. Shares dropped after the report, and the homebuilder cut its full-year delivery target.
Lennar Corporation (NYSE:LEN) reported adjusted earnings per share of $1.23 for the quarter ended August 31, 2026, missing the analyst consensus of $1.29. Separately, earnings came in at $1.19 per share, $0.10 worse than the same $1.29 estimate. Shares fell 2.8% following the results.
Revenue and deliveries fall short
Revenue totaled $8.05 billion, below the $8.31 billion estimate and down 9% year-over-year from $8.81 billion in the prior-year period. The company delivered 20,840 homes at an average sales price of $372,000, down 3% in both volume and price compared with the third quarter of 2025. New orders decreased 9% year-over-year to 20,879 homes.
Stuart Miller, Executive Chairman and CEO, attributed the shortfall to deteriorating market conditions, saying results reflect an environment "which has deteriorated since our last earnings call". He noted mortgage rates climbed to approximately 6.8% by quarter end, driven by persistent inflation, geopolitical tensions and higher oil prices, while consumer confidence declined as affordability concerns mounted. Rising inflation was one of the pressures Miller cited.
Guidance trimmed for the year
For the fourth quarter, Lennar expects to deliver 22,000 to 23,000 homes with gross margins of 15.5% to 16.0%. The company reduced its full-year 2026 delivery target to 80,000 to 81,000 homes from the previously expected 82,000 to 83,000 homes.
Lennar ended the quarter with $1.2 billion in homebuilding cash after repurchasing 3 million shares for $256 million and repaying $400 million of senior notes. The stock closed at $78.36, down 12.67% over the last three months and 41.07% over the last 12 months, and it saw zero positive EPS revisions against seven negative revisions in the last 90 days.
Sources: Investing.com, Investing.com
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