Lennar cuts full-year delivery guidance after Q3 miss
Revenue came in at $8.05B versus $8.39B expected
Published
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Lennar reported third-quarter revenue of $8.05 billion, short of the $8.39 billion expected. Stuart Miller, the company's Executive Chairman, CEO and President, said earnings of $1.19 per share came in below expectations.
Miller said the housing market has deteriorated since the last earnings call, pointing to rising mortgage rates and weaker consumer confidence.
The company lowered its full-year 2026 delivery target to about 80,000 to 81,000 homes, down from the 82,000 to 83,000 homes it guided to last quarter. For the fourth quarter, Lennar expects new orders of roughly 19,500 to 20,500 homes, deliveries of about 22,000 to 23,000 homes, gross margin of 15.5% to 16.0%, an average sales price of $370,000 to $380,000, SG&A of 8.7% to 9.0% of home sales, and Financial Services operating earnings of $90 million to $95 million. Lennar repurchased 3 million shares for $256 million during the quarter.
The results add another data point to a homebuilding sector already contending with affordability pressure and elevated rates. Lennar's guidance cut, paired with the wider revenue miss, points to conditions still worsening rather than stabilizing, and management's acknowledgment of deterioration since last quarter reinforces a bearish read on near-term housing demand and pricing power across the industry.