Lennar Corporation (NYSE:LEN) reported fourth quarter fiscal 2025 results for the period ended November 30, 2025, reflecting continued volume growth against a softer housing market backdrop. The company generated total revenues of $9.4 billion and net earnings of $490 million, or $1.93 per diluted share, down from $1.1 billion, or $4.06 per share, in the prior-year quarter. Excluding mark-to-market gains on technology investments and a one-time loss tied to the Millrose exchange offer, adjusted earnings were $2.03 per share. Deliveries rose 4% year over year to 23,034 homes, while new orders increased 18% to 20,018 homes.
#Financial Performance Breakdown
Homebuilding revenues declined 7% year over year to $8.9 billion, driven primarily by a 10% decrease in average sales price to $386,000, partially offset by higher deliveries. Gross margin on home sales contracted to 17.0% from 22.1% a year ago, reflecting increased incentives, lower revenue per square foot, and higher land costs, partially offset by reduced construction costs. Selling, general and administrative expenses totaled $697 million, rising to 7.9% of home sales revenue due to reduced operating leverage and higher marketing expenses.
Homebuilding operating earnings were $718 million, while Financial Services generated operating earnings of $134 million, down from $154 million in the prior year due to lower loan volumes and profitability per transaction. The Multifamily segment reported an operating loss of $44 million, compared to a near break-even result last year. Lennar Other posted operating earnings of $61 million, primarily from $123 million in mark-to-market gains on technology investments.
The balance sheet remained conservatively positioned, with $3.4 billion in homebuilding cash, no borrowings on its $3.1 billion revolving credit facility, and $1.7 billion outstanding under term loans. Homebuilding debt to total capital stood at 15.7%.
#Strategic and Operational Highlights
During the quarter, Lennar completed a non-cash exchange offer involving Millrose Properties, repurchasing 8.0 million shares of Lennar common stock. This transaction resulted in a one-time pre-tax loss of $156 million and reduced investments in unconsolidated entities and stockholders’ equity by $1.1 billion. For the full fiscal year, Lennar repurchased 22.1 million shares, including $1.7 billion in cash repurchases.
Operationally, the company continued emphasizing volume and affordability. Community count increased to 1,708, while sales and start pace moderated to 4.0 and 3.7 homes per community per month, respectively. Construction cycle times averaged 127 days, contributing to an improved inventory turn of 2.2 times. Lennar also completed the spin-off of Millrose and finalized the acquisition of Rausch Coleman Homes’ homebuilding operations earlier in the fiscal year.
#Management Commentary and Outlook
Management described the quarter as operating within a challenged affordability environment, citing continued use of incentives—approximately 14% in price adjustments and concessions—to sustain demand. Executives emphasized disciplined cost control and flexibility in pacing as central to navigating market uncertainty. For the first quarter of fiscal 2026, management guided to deliveries of 17,000 to 18,000 homes, average sales prices between $365,000 and $375,000, and gross margins of 15% to 16%, noting that margins typically seasonally soften in the first quarter.
#Investor Takeaway and Risk Framing
The quarter underscores Lennar’s strategy of prioritizing volume and liquidity over near-term margins in a constrained affordability environment. While order growth and a strong balance sheet highlight operational resilience, margin compression, reliance on incentives, and losses in the Multifamily segment remain key considerations. Results reflect a single reporting period within a volatile housing cycle, and management acknowledged limited visibility as market conditions continue to evolve.