Lennar Corporation, a leading homebuilder in the United States, has reported its first-quarter results for 2025, showcasing several key highlights and operational metrics. The company's net earnings per diluted share stood at $1.96, or $2.14 excluding mark-to-market losses on technology investments, with net earnings totaling $520 million. Notably, new orders increased by 1% to 18,355 homes, despite a 4% decrease in new orders' dollar value to $7.4 billion. Additionally, deliveries saw a 6% increase to 17,834 homes, while total revenues reached $7.6 billion.
In terms of financial performance, Lennar's homebuilding operating earnings amounted to $809 million, with a gross margin on home sales of 18.7%, S,G&A expenses as a percentage of revenues from home sales at 8.5%, and a net margin on home sales of 10.2%. The company's financial services segment reported operating earnings of $143 million, while multifamily operations broke even, and Lennar's other segment experienced an operating loss of $89 million.
The press release also detailed Lennar's strategic moves during the quarter, such as the completion of the spin-off of Millrose Properties, Inc. and the acquisition of Rausch Coleman Homes' homebuilding operations. Lennar's Chairman and Co-CEO, Stuart Miller, emphasized the company's focus on matching production pace with sales pace and maintaining even flow production, despite a challenging macroeconomic environment for homebuilding. Lennar also allocated capital by repurchasing $703 million of its common stock and strengthening its balance sheet, ending the quarter with no outstanding borrowings on its $3.0 billion revolving credit facility and $2.3 billion in homebuilding cash and cash equivalents.
Furthermore, Lennar's operational metrics showed improvements, with a decrease in cycle time by 11% year over year and an improvement in inventory turn to 1.7 times compared to 1.5 times the previous year. The company's years supply of owned homesites improved to 0.2 years from 1.3 years, and controlled homesite percentage increased to 98% from 77% year over year, reflecting a return on inventory of 29.7%.
Looking ahead, Lennar expects to deliver between 19,500 to 20,500 homes for the second quarter and anticipates its gross margin to be approximately 18%, contingent on market conditions.
The market has reacted to these announcements by moving the company's shares -4.0% to a price of $115.22. For the full picture, make sure to review Lennar's 8-K report.
