Lennar Corporation has reported its third-quarter 2025 results, and the figures show notable changes compared to the prior year quarter.
In terms of net earnings, the company reported $591 million, a decrease from the third quarter of 2024 when net earnings were $1.2 billion. Excluding mark-to-market gains on technology investments, net earnings for the third quarter of 2025 were $516 million, or $2.00 per diluted share, compared to $1.1 billion or $3.90 per diluted share in the prior year quarter.
New orders increased by 12% to 23,004 homes, with a backlog of 16,953 homes valued at $6.6 billion. However, deliveries of 21,584 homes remained consistent with the prior year. Total revenues were reported at $8.8 billion, representing a decrease from the third quarter of 2024.
Lennar's homebuilding operating earnings were $760 million, with a gross margin on home sales of 17.5%. The company also reported financial services operating earnings of $178 million and a multifamily operating loss of $16 million.
In terms of financials, the company reported homebuilding cash and cash equivalents of $1.4 billion and outstanding borrowings of $1.1 billion under its $3.1 billion revolving credit facility.
Looking at the performance of specific segments, revenues from home sales decreased by 9% to $8.2 billion in the third quarter of 2025, with a 9% decrease in the average sales price of homes delivered. Gross margins on home sales were 17.5%, compared to 22.5% in the third quarter of 2024.
Lennar's financial services segment reported operating earnings of $177 million, an increase from $144 million in the prior year quarter, primarily due to higher profit per locked loan in the mortgage business.
However, the multifamily segment reported an operating loss of $16 million, compared to operating earnings of $79 million in the third quarter of 2024. This decrease was impacted by a one-time net gain from the sale of assets in the company's lmv fund I and a one-time write-down of non-core assets.
In terms of tax provisions, the company had tax provisions of $191 million in the third quarter of 2025, resulting in an effective income tax rate of 24.4%, compared to an effective income tax rate of 23.0% in the prior year quarter.
The company also repurchased 4.1 million shares of its common stock for $507 million in the third quarter of 2025.
Looking ahead, Lennar expects new orders of 20,000 * 21,000 homes, deliveries of 22,000 * 23,000 homes, and a gross margin of approximately 17.5% for the fourth quarter of 2025.
As the company's leadership looks to the future, they remain confident in their ability to build margin as conditions stabilize and create sustained value, despite the pressures of today’s housing market.
Lennar Corporation, established in 1954, is a prominent builder of quality homes for all generations and operates in the affordable, move-up, and active adult housing segments. The company's financial services segment provides mortgage financing, title and closing services, while its multifamily segment is a nationwide developer of high-quality multifamily rental properties. As a result of these announcements, the company's shares have moved -3.94% on the market, and are now trading at a price of $127.6388. For more information, read the company's full 8-K submission here.
