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Lennar Lowers Delivery Targets After Q2 Revenue Miss and Margin Squeeze

The reset reflects weak buyer demand caused by high mortgage rates, rising incentives, falling prices.

Overview

  • Lennar reported second-quarter adjusted EPS of $1.31 and revenue of $7.94 billion, with revenue falling short of analyst estimates and shares declining after the update.
  • Management trimmed third-quarter delivery guidance to 20,500–21,500 homes and cut full-year 2026 deliveries to 82,000–83,000 homes, citing persistent rate pressure and weaker demand.
  • Homebuilding gross margin fell to 15.6% from 17.8% a year earlier, the average selling price dropped to about $371,000, and buyer incentives rose to roughly 12.9%, compressing profits.
  • Operational figures showed deliveries of 20,519 homes (up 2% year over year), new orders down 4% to 21,749 homes, and backlog at 16,818 homes valued at about $6.6 billion.
  • The company said it will release an updated investor presentation on its asset-light path to margin recovery, keeping $1.8 billion in homebuilding cash, a $3.1 billion undrawn revolver, and recent $447 million buybacks as part of its capital plan.