Lennar Corporation reported first quarter 2026 revenue of $6.6 billion and EPS of $0.93, missing analyst expectations and declining from $7.6 billion and $1.96 per share in the prior-year period. The company navigated persistent market headwinds by utilizing incentives to support volume, which resulted in a lower average selling price and compressed margins.
Key Highlights
- Home deliveries decreased 5% year-over-year to 16,863 homes, while new orders saw a slight increase of 1% to 18,515 homes.
- Gross margin on home sales contracted to 15.2% from 18.7% in the same quarter last year, reflecting pricing pressure and incentive use.
- The average sales price of homes delivered fell 8% year-over-year to $374,000 from $408,000, driven by incentives of approximately 14%.
- For the second quarter of 2026, Lennar guided for 20,000 to 21,000 home deliveries with an expected gross margin between 15.5% and 16.0%.