Lennar Q3 revenue misses analyst estimates amid market weakness

Lennar

16/09/2026 21:42

Overview
U.S. homebuilder's Q3 revenue fell and missed analyst expectations
Adjusted EPS for Q3 declined year-over-year amid higher mortgage rates and affordability constraints
Company repurchased 3 mln shares for $256 mln during the quarter

Outlook
Lennar expects Q4 new orders of 19,500 to 20,500 homes
Company sees Q4 deliveries of 22,000 to 23,000 homes with gross margin of 15.5% to 16.0%
Lennar lowers 2026 full-year delivery target to 80,000 to 81,000 homes from 82,000 to 83,000

Result Drivers
HIGHER MORTGAGE RATES - Co said increased rates and affordability constraints led consumers to slow purchase decisions, reducing new orders and deliveries
LOWER HOME SALES PRICES - Co attributed decrease in average sales price to continued market weakness
DECLINING GROSS MARGINS - Co said gross margins fell due to lower revenue per square foot and higher land costs, partially offset by reduced construction costs from cost-saving initiatives

Company press release: ID:nPn7Npfh4a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$8.04 bln
$8.31 bln (12 Analysts)
Q3 EPS
 
$1.19
 
Q3 Net Earnings 
 
$284 mln
 
Q3 Homebuilding Operating Earnings
 
$502 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 9 "hold" and 9 "sell" or "strong sell"
The average consensus recommendation for the homebuilding peer group is "buy."
Wall Street's median 12-month price target for Lennar Corporation is $85.00, about 6.2% above its September 15 closing price of $80.07
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
Sept 16 - UK's Barratt Redrow FY revenue rises; cuts annual home completions target
Sept 15 - UK's MJ Gleeson FY revenue beats on partnerships strategy
Sept 16 - US homebuilder sentiment drops to 12-month low in September

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)