Lennar Corporation has reported its second quarter 2025 results, and there are several key highlights to note in comparison to the prior year quarter.
In the second quarter of 2025, Lennar reported net earnings of $477 million, with net earnings per diluted share of $1.81 ($1.90 excluding mark-to-market losses on technology investments). This is a significant decrease from the second quarter of 2024 when the company reported net earnings of $954 million, or $3.45 per diluted share.
New orders increased by 6% to 22,601 homes, while deliveries increased by 2% to 20,131 homes. However, revenues from home sales decreased by 7% to $7.8 billion from $8.4 billion in the second quarter of 2024. This decrease was primarily due to a 9% decrease in the average sales price of homes delivered, which fell to $389,000 from $426,000 in the second quarter of 2024.
The gross margin on home sales was 17.8% (18.0% excluding purchase accounting) in the second quarter of 2025, compared to 22.6% in the second quarter of 2024. Selling, general and administrative expenses also increased to 8.8% of revenues from home sales, up from 7.5% in the second quarter of 2024.
Lennar's financial services segment saw operating earnings of $157 million, compared to $146 million in the second quarter of 2024. The multifamily operating loss decreased to $15 million from $20 million in the second quarter of 2024, while the Lennar other operating loss increased to $53 million from $28 million in the second quarter of 2024.
The company's effective income tax rate also increased to 25.1% in the second quarter of 2025, up from 23.9% in the second quarter of 2024.
Looking ahead, Lennar expects new orders between 22,000 and 23,000 homes, deliveries between 22,000 and 23,000 homes, and a gross margin of approximately 18% for the third quarter of 2025.
The market has reacted to these announcements by moving the company's shares 0.81% to a price of $109.49. For more information, read the company's full 8-K submission here.
