Homebuilder Lennar Q1 revenue misses estimates amid weak market

Lennar

12/03/2026 20:41

Overview

U.S. homebuilder's fiscal Q1 revenue declined and missed analyst expectations

Company repurchased 2 mln shares for $237 mln during the quarter

Outlook

Lennar expects Q2 deliveries of 20,000 to 21,000 homes

Company sees Q2 gross margin on home sales of 15.5% to 16%

Lennar expects Q2 financial services operating earnings of $100 mln to $110 mln

Result Drivers

WEAK DEMAND & AFFORDABILITY - Co said high mortgage rates, constrained affordability, and cautious consumer sentiment continued to weigh on the housing market

LOWER PRICES & INCENTIVES - Revenues declined due to an 8% decrease in average sales price and increased use of sales incentives to sustain volume

MARGIN PRESSURE - Gross margins fell due to lower revenue per square foot and higher land costs, partially offset by lower construction costs

Company press release: ID:nPn15lp7na

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$6.6 bln
$6.88 bln (15 Analysts)
Q1 Net Income
$229 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 10 "hold" and 7 "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 Corp is $110.00, about 13.9% above its March 11 closing price of $96.57

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

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.)