Lennar Reports Q3 Earnings Drop Amid Reduced Annual Delivery Target
Homebuilder Lennar Corp (NYSE:LEN) reported a significant decline in third-quarter net earnings, with profits falling by 52% year-over-year to $1.19 per diluted share from $2.29 previously. The company also reduced its annual home delivery target for fiscal year 2026 due to weaker consumer demand and rising mortgage rates. New orders dropped by 9%, while deliveries fell slightly at a 3% decline, prompting Lennar to offer price incentives of around 12%. Gross margin on home sales declined to 15.8% from 17.5% in the prior year due to lower revenue per square foot and higher land costs. Despite these challenges, construction cost reductions helped partially offset some losses, with a reported 6% annual decline in costs per square foot. Lennar expects fourth-quarter deliveries of between 22,000 and 23,000 homes.
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