Lennar reports strong Q2 growth

Lennar Corporation, a prominent homebuilder, has reported its second-quarter results for 2024, revealing several significant changes compared to the prior year. Here are the key highlights:

  • Net earnings per diluted share increased by 15% to $3.45, excluding mark-to-market losses on technology investments and a one-time gain on the sale of a technology investment.
  • Net earnings saw a 9% increase to $954 million.
  • New orders surged by 19% to 21,293 homes, while deliveries increased by 15% to 19,690 homes.
  • The backlog stood at 17,873 homes with a dollar value of $8.2 billion.
  • Total revenues reached $8.8 billion.
  • Homebuilding operating earnings amounted to $1.3 billion, with a gross margin on home sales of 22.6% and S,G&A expenses as a percentage of revenues from home sales of 7.5%.
  • Financial services operating earnings were $146 million, while the multifamily segment reported an operating loss of $20 million, and the Lennar Other segment showed an operating loss of $28 million.

Additionally, the company achieved a significant reduction in its debt, redeeming $454 million of its 4.50% senior notes due April 2024 and repurchasing $100 million of its 4.75% senior notes due November 2027. Lennar also repurchased 3.8 million shares of its common stock for $603 million during the quarter.

Looking ahead, Lennar expects to deliver between 20,500 and 21,000 homes with a gross margin of approximately 23.0% in the third quarter of 2024. The company also aims to maintain a focus on delivering 80,000 homes for the full year, with a margin consistent with that of the previous year.

The company's results indicate a strong performance in the face of evolving market conditions, with notable increases in new orders and deliveries. Moreover, the strategic reduction of debt and share repurchases demonstrate Lennar's commitment to fortifying its financial position.

Today the company's shares have moved 0.9% to a price of $156.51. For the full picture, make sure to review Lennar's 8-K report.

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