LEN US S&P 500Russell 1000 Earnings call

Lennar (LEN) · Q3 2026 results and valuation

Share price: $86.33 · 2026-11-11

Lennar is a homebuilder that constructs and sells single-family and multi-family homes, while also providing mortgage loans, title insurance, and closing services. The company operates in various markets across the United States, including the East, Central, and West regions. Its products are sold to first-time, move-up, active adult, and luxury homebuyers. Source: 10-K annual report (2026-01-28)

Results Q3 2026 vs Q2 2026 · previous quarter · published 17 Sep 2026 and 12 Jun 2026

Net income down 6.9% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.

1 · Numbers

−6.9%

Net income vs Q2 2026

Outlook given

Net income 283.9M vs 304.8M

Revenue +1.3%

2 · How management spoke

Restrained

Less upbeat than 79% of company calls

Answers to analysts: cautious, in line with the script.

Similar to last call.

3 · What stood out

Lennar paid down $400 million of senior debt, repurchased 3 million shares for $256 million, and paid $119 million in dividends for the quarter.

Valuation

Is Lennar undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-11-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

The projected cash flow doesn't cover the debt, so the price is far above the model's fair value.

Current price

$86.33

close of 2026-11-11

Market implies growth of i

+65.6% for 10 yrs

Fair value / share

$-5.96

Buy below

$-4.47

Price vs fair value

n/a

Price vs buy-below price

n/a

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Guidance

For the fourth quarter, the company expects to generate 19,500 to 20,500 new orders and deliver 22,000 to 23,000 homes with a gross margin between 15.5% and 16%.
Figure

Gross margin improved to 15.8% because the sales incentives rate fell to 12%, while net margin reached 6.6% and earnings per share were $1.19 on a GAAP basis.

Source quote
“Our gross margin improved sequentially to 15.8% as our sales incentives rate on deliveries came down to 12%, our net margin improved to 6.6%, and our earnings per share came in at $1.19 on a GAAP basis and $1.23, excluding one-time items.”
Figure

The company estimates a fourth-quarter EPS range of approximately $1.30 to $1.65 based on combined estimates.

Source quote
“And so on a combined basis, these estimates should produce an EPS range of approximately $1.30 to $1.65 for the fourth quarter.”
Figure

Construction cost per square foot decreased by 14% compared to the previous quarter.

Source quote
“Our construction cost per square foot in the same time frame is down 14%.”
Figure

The company paid down $400 million of senior debt, repurchased 3 million shares for $256 million, and paid $119 million in dividends for the quarter.

Source quote
“We paid down $400 million of senior debt, repurchased 3 million shares of stock for $256 million, and paid $119 million in dividends for the quarter.”

4 more

Figure

Construction cycle time improved to 116 days, the lowest in history.

Source quote
“Our construction cycle time improved to 116 days, our lowest cycle time in history, reflecting the continued impact of our production efficiencies.”
Key theme

The company will continue to maintain a balance of capital allocation between debt reduction, stock buybacks, and dividend payments.

Source quote
“In terms of how we will use capital, if you look at this past quarter, it's split between debt reduction, stock buyback and dividend payment, you're going to continue to see a balance between those as we go forward.”
Figure

The company maintains a $3.1 billion credit facility, allowing them to manage to a lower cash balance because they have availability at a moment's notice.

Source quote
“But we have a $3.1 billion credit facility. So we try to manage to a lower cash balance when possible because we've got availability at a moment's notice.”
Guidance

The company expects some costs to remain while other costs are already being reduced in real time.

Tone

How upbeat the language was, compared with other companiesi. Dot: Q3 2026. Ring: Q2 2026.

Prepared remarks Restrained (was restrained)

Answers to analysts Cautious (was cautious)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“We believe our land portfolio of primarily optioned homesites provides us with a strong competitive position to continue to grow market share in a capital-efficient way.”

“Construction cost per foot have continued to improve and improved again this quarter to approximately $80 per square foot.”

“I want to be clear that we are managing both of these components at the same time, low land inventory and low finished home inventory because that combination is precisely...”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-08-31)

Metric	Q3 2026period end 2026-08-31	Q2 2026period end 2026-05-31	Change	Q3 2025	YoY
Revenue	8.05B	7.94B	+1.3%	8.81B	−8.7%
Operating income	387.1M	413.2M	−6.3%	790.7M	−51.0%
Net income	283.9M	304.8M	−6.9%	591.0M	−52.0%
EPS	1.19	1.24	−4.0%	2.29	−48.0%
P/E today 7.6	7.2	7.1	+0.1	13.2	−6.0

Topics

Most discussed now

These factors include those described in Lennar's earnings release and its SEC filings, including those under the caption Risk Factors...
Therefore, I'm going to focus on a few balance sheet highlights.
Stuart's comments, combined with Lennar's earnings release provide a comprehensive overview of its third quarter operating results.
Lennar is still kind of going through the numbers around this, but it is creating a really interesting focus for the...
That's just as important as the vertical construction component and being able to maximize efficiency around Lennar's scale.

Faded since Q2 2026

Dropped I do not mean to create false optimism or anything like that.
Dropped The answer, Mike, is that Lennar is it is dealing right now with a changing constantly changing macro environment.
Fading While they will not be giving opening remarks today, they will participate in Lennar's Q&A period.
Fading From Lennar's volume based operating strategy to its asset light manufacturing model, and from its technology platform and initiatives to...

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-10-29 Material agreement; New financial obligation · SEC 8-K
2026-10-15 Other events · SEC 8-K
Lennar Corporation settled its offering of $300 million of 5.700% Senior Notes due 2029 and $300 million of 5.950% Senior Notes due 2032 on October 15, 2026.
2026-09-16 Results of operations · SEC 8-K
Lennar Corporation reported net earnings of $284 million or $1.19 per diluted share for the third quarter of 2026, compared to $591 million or $2.29 per diluted share in the same period of 2025.
2026-06-12 Regulation FD disclosure · SEC 8-K
Lennar Corporation reported an asset-light transformation since 2018, resulting in a reduction of owned inventory from $16.6 billion to $10.5 billion and a growth in deliveries of approximately 80%.
2026-06-11 Results of operations · SEC 8-K
Lennar reported net earnings of $305 million and $1.24 per diluted share for the second quarter of 2026, compared to $477 million and $1.81 per diluted share in the second quarter of 2025.
2026-06-08 Director or officer change; Regulation FD disclosure · SEC 8-K
Lennar Corporation appointed Jim Parker as Chief Operating Officer and David Grove as Executive Vice President, Homebuilding, effective June 5, 2026.
2026-04-13 Shareholder vote results · SEC 8-K · routine
2026-03-12 Results of operations · SEC 8-K
Lennar reported total revenues of $6.6 billion and net earnings of $229 million for the first quarter of 2026, compared to $520 million in the first quarter of 2025.

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-18.

Cash & runway

Cash & equivalents

$3.76B

2025-11-30

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: -7.0% YoY, -1.3% QoQ.

Quarter	Shares
Q1 2025	262.7M
Q2 2025	260.3M
Q3 2025	255.6M
Q1 2026	244.4M
Q2 2026	240.8M
Q3 2026	237.8M

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 58 filings; 50 filings parsed.

Sold by insiders

0 shares

0 transactions

Bought by insiders

7.5M shares

$595.3M · 45 transactions

Net direction

net buying

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

by year-end

having an extremely efficient land operating system and process

Source quote
“As I said in June, we expect that by year-end, we will have an extremely efficient land operating system and process that reduces our cost structure while enhancing our land acquisition, diligence and review.”
fourth quarter

volume alone should produce leverage

Source quote
“So the fixed base is coming down, and you should expect SG&A to improve as fourth quarter volume alone should produce leverage.”
fourth quarter

generate new orders of approximately 19,500 to 20,500 and to deliver 22,000 to 23,000 homes with a gross margin between 15.5% and 16%

Source quote
“As we look ahead to the fourth quarter, we expect to generate new orders of approximately 19,500 to 20,500 and to deliver 22,000 to 23,000 homes with a gross margin between 15.5% and 16%.”
Q4

new orders to be in the range of 19,500 to 20,500 homes

Source quote
“We expect Q4 new orders to be in the range of 19,500 to 20,500 homes with continued focus on matching start and sales pace.”
Q4

deliveries to be in the range of 22,000 to 23,000

Source quote
“We anticipate our Q4 deliveries to be in the range of 22,000 to 23,000 as we maintain even flow production and turn inventory into cash.”