Lennar Corp. fell 3.2% to $128.62 after the home builder reported results for the fiscal third quarter of 2025 ending on August 31.
Consolidated revenue decreased to $8.8 billion from $9.4 billion, net income declined to $591 million from $1.16 billion, and diluted earnings per share fell to $2.29 from $4.26 a year ago.
During the third quarter, Lennar returned a total of $507 million to shareholders through share repurchases of 4.1 million shares of common stock at an average share price of $122.97.
As previously announced on February 10, Lennar Corporation completed its acquisition of Rausch Coleman Homes.
For the fourth quarter, Lennar expects to secure between 20,000 and 21,000 new orders and deliver between 22,000 and 23,000 new homes.
The average sales price is projected to range from $380,000 to $390,000.
The gross margin percentage on home sales is expected to be approximately 17.5%, consistent with the third quarter, and SG&A as a percentage of home sales is anticipated to be between 7.8% and 8.0%.
Additionally, operating earnings from financial services are forecasted to be between $130 million and $135 million.
“Our third quarter results reflect both the continued pressures of today's housing market and the consistency of Lennar's operating strategy.
This quarter, we delivered 21,584 homes and recorded 23,004 new orders.
Achieving these results required additional incentives, resulting in a reduced average sales price of $383,000, and our gross margin drifted down to 17.5%, while our SG&A expenses came in at 8.2%, reflecting the soft market conditions." said Stuart Miller, Executive Chairman and Co-Chief Executive Officer of Lennar.
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