Lennar lowers 2026 delivery goal to 82,000-83,000 homes after Q2 revenue miss
LEN•Lennar cut its 2026 home delivery guidance to 82,000-83,000 homes from 85,000, citing elevated interest rates and geopolitical uncertainty, after Q2 revenue of $7.9 billion missed the $8.1 billion estimate. Average sale price fell 5% to $371,000 while gross margin shrank to 15.6% and buyer incentives climbed to 12.9%.
1. Q2 Performance
In its quarter ended May 31, Lennar reported total revenues of $7.9 billion, missing the $8.1 billion analyst projection. Net earnings fell to $305 million, or $1.24 per diluted share, down from $477 million and $1.81 per share a year earlier; adjusted earnings per share were $1.31, just below the $1.25 estimate.
2. Guidance Revision
The company lowered its full-year 2026 home delivery forecast to 82,000-83,000 homes, down from about 85,000, attributing the cut to persistent mortgage rate pressure and geopolitical uncertainty. For the upcoming quarter, Lennar expects 20,500-21,500 closings, average sale prices of $375,000-$380,000 and a home-sales gross margin near 16%.
3. Pricing, Margins and Cash Flow
Deliveries rose 2% quarter-over-quarter to 20,519 homes, but average sale prices dropped 5% to $371,000. Home-sales margin narrowed to 15.6% due to lower revenue per square foot and higher land costs, partially offset by construction savings; incentives totaled 12.9%. The company bought back $447 million of stock and ended the quarter with $1.8 billion in homebuilding cash and an undrawn $3.1 billion credit facility.
