Lennar reported Q4 FY25 revenues of $9.4 billion and net earnings of $1.93 per share, a decline from the prior year. For the full fiscal year, the company delivered 82,583 homes on revenues of $34.2 billion. The quarter was characterized by a significant increase in new orders, offset by lower pricing and margins as the company navigated a challenging market.
Key Highlights
- New orders demonstrated strong demand, increasing 18% year-over-year to 20,018 homes in the fourth quarter. Full-year new orders grew 9% to 83,978 homes.
- Gross margin on home sales contracted to 17.0% from 22.1% in the prior-year quarter. The decline was attributed to a 10% decrease in the average sales price of delivered homes to $386,000 and increased use of incentives.
- Management guided for further margin compression in Q1 2026, forecasting a gross margin between 15.0% and 16.0% and an average sales price between $365,000 and $375,000. Full-year 2026 deliveries are expected to be approximately 85,000 homes.