Lennar Q2 revenue misses estimates as average home prices drop on high mortgage rate

Lennar

11/06/2026 21:53

Overview
U.S. homebuilder's Q2 revenue declined and missed analyst expectations
Adjusted EPS for Q2 fell year over year amid affordability and margin pressures
Company repurchased 5 mln shares for $447 mln during the quarter

Outlook
Lennar expects Q3 deliveries of 20,500 to 21,500 homes
Company sees Q3 gross margin on home sales at about 16%
Lennar moderates full-year 2026 delivery target to 82,000 to 83,000 homes

Result Drivers
LOWER HOME PRICES - Co said a 5% decrease in average sales price, driven by continued market weakness and affordability challenges, was the main reason for lower homebuilding revenue
MARGIN PRESSURE - Gross margin fell due to lower revenue per square foot and higher land costs, partially offset by lower construction costs from cost-saving initiatives
MORTGAGE PROFITABILITY - Financial Services earnings declined mainly due to lower profit per locked loan in the mortgage business

Company press release: ID:nPnbc2DZta

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$7.90 bln
$8.02 bln (14 Analysts)
Q2 Net Income
 
$305 mln
 
Q2 Homebuilding Operating Earnings
 
$489 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 10 "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 Corp is $88.50, about 6.8% below its June 11 closing price of $94.95
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 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.)