Lennar Reports Q2 Earnings of $305M, Cuts 2026 Delivery Guidance to 82K–83K
LEN•Lennar reported Q2 net earnings of $305 million ($1.24 per diluted share, $1.31 excluding mark-to-market losses), with new orders down 4% to 21,749 homes and a backlog valued at $6.6 billion. The company cut full-year delivery guidance to 82,000–83,000 homes and expects a 16% gross margin.
1. Q2 Financial Performance
Lennar reported second quarter net earnings of $305 million ($1.24 per diluted share), or $322 million ($1.31 excluding $23 million of mark-to-market losses on technology investments) on revenues of $7.94 billion. Homebuilding operating earnings totaled $489 million, and gross margin on home sales improved sequentially to 15.6%.
2. Backlog and Orders
New home orders fell 4% year-over-year to 21,749 homes, while deliveries increased 2% to 20,519 homes with an average sales price of $371,000, reflecting incentives of 12.9%. Backlog at quarter end comprised 16,818 homes with a dollar value of $6.6 billion.
3. Guidance and Outlook
Management reduced full-year 2026 delivery guidance to 82,000–83,000 homes and forecasts third quarter deliveries of 20,500–21,500 homes with gross margin around 16% as incentive levels moderate. SG&A expenses are expected to improve to roughly 8.8%–9.0% of home sale revenues as part of cost discipline.
4. Capital Management
The company repurchased 5 million shares of common stock for $447 million and redeemed $400 million of 5.25% senior notes due June 2026, ending the quarter with $1.8 billion in cash and zero outstanding borrowings on its $3.1 billion revolving credit facility.
