Lennar Corporation (LEN) — Agentic Tribune

Item 1. Business.

Overview of Lennar Corporation

We are one of the largest homebuilders in the United States by deliveries, revenues and net earnings, an originator of residential and commercial mortgage loans, a provider of title insurance and closing services and a developer of multifamily rental properties. In addition, we are a sponsor and manager of funds and joint ventures engaged in development and ownership of multifamily rental properties and a sponsor and manager of a fund engaged in ownership of single-family rental properties. We also have investments in companies that are engaged in applying technology to improve the homebuilding industry and real estate related aspects of the financial services industry.

Our homebuilding operations are the most substantial part of our business, generating $32 billion in revenues, or approximately 94% of consolidated revenues, in fiscal 2025.

As of November 30, 2025, our reportable Homebuilding segments and all Other Homebuilding operations not required to be reported separately have divisions located in:

East: Florida, New Jersey and Pennsylvania

Central: Alabama, Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, South Carolina, Tennessee

and Virginia

South Central: Arkansas, Kansas, Missouri, Oklahoma and Texas

West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington

Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC ("FivePoint").

Our other reportable segments are Financial Services, Multifamily and Lennar Other. Financial information about our Homebuilding, Financial Services, Multifamily and Lennar Other operations is contained in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations and Note 3 of the Notes to Consolidated Financial Statements.

About Our Company

Our company was founded as a local Miami homebuilder in 1954. We completed our initial public offering in 1971 and listed our common stock on the New York Stock Exchange in 1972. During the 1980s and 1990s, we entered and expanded operations in a number of homebuilding markets, including California, Florida and Texas, through both organic growth and acquisitions, such as Pacific Greystone Corporation in 1997. In 2000, we acquired U.S. Home Corporation, which expanded our operations into New Jersey, Maryland, Virginia, Minnesota and Colorado and strengthened our position in other states. From 2002 through 2005, we acquired several regional homebuilders, which brought us into new markets and strengthened our position in several existing markets. From 2010 through 2013, we expanded our homebuilding operations into Georgia, Oregon, Washington and Tennessee. In 2017, we acquired WCI Communities, Inc., a homebuilder of luxury single-family and multifamily homes, including a small number of luxury high-rise tower units, in Florida. In 2018, we acquired CalAtlantic Group, Inc. ("CalAtlantic"), a major homebuilder which was building homes across the homebuilding spectrum, from entry level to luxury, in 43 metropolitan statistical areas spanning 19 states, and providing mortgage, title and escrow services. In February 2025, we acquired Rausch Coleman Homes ("Rausch"), a residential homebuilder, expanding our homebuilding operations into several new markets in Arkansas (Bentonville/Fayetteville, Little Rock and Jonesboro), Oklahoma (Tulsa and Stillwater), Alabama (Birmingham and Tuscaloosa), and Kansas/Missouri (Kansas City), while adding to our existing footprint in Texas (Houston and San Antonio), Oklahoma (Oklahoma City), Alabama (Huntsville) and Florida (Gulf Coast).

We are focused on increasing efficiencies in our building process and reducing selling, general and administrative expenses by using technology and innovative strategies to reduce customer acquisition costs. Our construction playbook has three primary areas of focus: lowering construction costs, reducing cycle time and achieving even flow production. We have aimed to maintain operating margins by deferring home sale price commitments until construction costs are finalized to protect against cost escalations. We focus on executing our operating strategy to be a consistent and high-volume homebuilder with production pace in sync with sales pace while using our gross margin as a shock absorber. We have advanced our transition to a land-light operating model by increasing the proportion of homesites we control through options or agreements rather than ownership. This approach enhances flexibility, reduces capital intensity, and lowers our years’ supply of owned land. In connection with our transition to a land-light operating model, in February 2025, we spun off a significant portion of our land assets to Millrose (as defined below), and, in November 2025, disposed of the remaining holdings in Millrose in an exchange offer, in which we purchased shares of Lennar Class A common stock using Millrose Class A common stock as consideration, as discussed further below under the caption “Homebuilding Operations – Millrose Spin-Off and Exchange Offer”.

Homebuilding Operations

Overview

Our homebuilding operations include the construction and sale of single-family attached and detached homes as well as the purchase, development and sale of residential land directly through entities in which we have investments. New home deliveries, including deliveries from unconsolidated entities, were 82,583 in fiscal 2025, compared to 80,210 in fiscal 2024 and

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73,087 in fiscal 2023. We primarily sell homes in communities targeted to first-time, move-up, active adult, and luxury homebuyers. The average sales price of a Lennar home varies depending on product and geographic location. For fiscal 2025, the average sales price, excluding deliveries from unconsolidated entities, was $391,000, compared to $423,000 in fiscal 2024 and $445,000 in fiscal 2023.

We operate primarily under the Lennar brand name. Our homebuilding mission is focused on the profitable development of residential communities. Key elements of our strategy include:

•Focus on Strong Operating Margins - Our purchasing leverage combined with our focus on reducing selling, general and administrative costs by using technology and innovative strategies and reducing interest expense through paydowns of debt has enabled us to achieve strong gross profit and operating margins.

•Everything’s Included® Approach - We are focused on distinguishing our products, including through our Everything’s Included® approach, which maximizes our purchasing power, enables us to include luxury features as standard items in our homes and simplifies our homebuilding operations.

•Innovative Homebuilding - We are constantly innovating the homes we build to create products that better meet our customers' needs and desires. Our Next Gen® homes provide what can be a home within a home to accommodate children or parents or can be an office from which to work remotely.

•Core Plans - We are integrating standardized, highly efficient, value engineered Plan series across all divisions at different price points. The Core Plans are driving cost savings and strong operating margins, while delivering great value for our homebuyers.

•Flexible Operating Structure - Our local operating structure gives us the flexibility to make operating decisions based on local homebuilding conditions and customer preferences, while our centralized management structure provides strategic oversight for our homebuilding operations.

•Digital Marketing - We are increasingly advertising homes through digital channels, which is significantly increasing the cost effectiveness of our marketing efforts.

•Dynamic pricing model - We match up unsold production as homes progress toward completion, with pricing information from our dynamic pricing model on a community-by-community and home-by-home basis.

•Technology Focused - We partner with and/or invest in technology companies that are looking to improve the homebuilding and financial services industries to increase efficiencies, reduce customer acquisition costs and create a better customer experience.

•Land-light strategy - We are focused on having a minimal amount of years' supply of owned homesites and high percentage of land we control through options or agreements, including agreements with strategic land banks and joint ventures, rather than ownership. In connection with this strategy, we spun off a significant portion of our land assets to Millrose, as discussed further below under the caption “Homebuilding Operations – Millrose Spin-Off.”

•Even flow production - We adjust prices, with our gross margin being a shock absorber, in an effort to maintain consistent starts and sales paces in order to generate increased market share in all the markets we build in.

Diversified Program of Property Acquisition

We generally acquire, or obtain options to acquire, land for development and for the construction of homes that we sell to homebuyers. Land purchases are subject to specified underwriting criteria and are made through our diversified program of property acquisition, which may consist of:

•Acquiring land through option contracts, which generally enables us to control portions of properties owned by land banks and other third parties or entities in which we have investments until we have determined whether to exercise the options;

•Acquiring land directly from individual land owners/developers, or other homebuilders;

•Acquiring local or regional homebuilders that own, or have options to purchase, land in strategic markets;

•Acquiring access to land through joint ventures or partnerships, which among other benefits, limits the amount of our capital invested in land while helping to ensure our access to potential future homesites and allowing us to participate in strategic ventures;

•Investing in regional developers in exchange for preferential land purchase opportunities; and

•Acquiring land in conjunction with our Multifamily business.

For the last several years, we have been reducing our reliance on land we own and increasing our access to land through options and joint ventures, most significantly through our use of land banks which is a critical part of our operating strategy. At November 30, 2025, 98% of our total homesites were controlled through options with land banks, land sellers and joint ventures compared to 82% at November 30, 2024. For additional information about our investments in and relationships

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with unconsolidated entities, see Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Report.

Construction and Development

We are involved in all phases of planning and building in our residential communities, including land acquisition, site planning, preparation and improvement of land and design, construction and marketing of homes. We use independent subcontractors for most aspects of land development and home construction. At November 30, 2025, we were actively building and marketing homes in 1,708 communities, including nine communities being constructed by unconsolidated entities. This was an increase from the 1,447 communities, including 11 communities being constructed by unconsolidated entities, in which we were actively building and marketing homes at November 30, 2024. At November 30, 2025 and 2024, we had about 5,000 and 2,900 completed unsold homes, respectively, which resulted in 2.9 and 2.0 completed unsold homes per community, respectively.

We generally supervise and control the development of land and the design and building of our residential communities with a relatively small labor force. We hire subcontractors for site improvements and virtually all of the work involved in the construction of homes. Arrangements with our subcontractors generally provide that our subcontractors will complete specified work in accordance with price and time schedules and in compliance with applicable building codes and laws. The price schedules may be subject to change to meet changes in labor and material costs or for other reasons. We generally do not own heavy construction equipment. We finance construction and land development activities primarily with cash generated from operations and historically from proceeds of unsecured corporate debt. In addition, when our land bank partners, including Millrose, acquire undeveloped or partially developed land that we have options to purchase, they finance the horizontal development of all such homesites up to pre-negotiated development budgets, which is incorporated into the takedown prices for Lennar’s purchase options on the properties.

Marketing

We offer a diversified line of homes for first-time, move-up, active adult, luxury and multi-generational homebuyers in a variety of locations ranging from urban infill communities to suburban golf course communities. Our Everything’s Included® marketing program enables us to differentiate our homes from those of our competitors by including premium features as standard at competitive prices, while reducing construction and overhead costs through a simplified construction process, product standardization and volume purchasing. Most of our homes include home automation and technology components, as well as energy efficient materials and systems, which enhances our brand. We sell our homes from models that we have designed and constructed. We employ new home consultants who are paid salaries, commissions or both to conduct on-site sales of our homes. We also sell homes through independent realtors. We have made it possible for potential homebuyers to take virtual tours of model homes. During fiscal 2025 and 2024, even with shifts in macroeconomic factors in much of the period, we were able to develop, enhance, use, and improve the Lennar machine. Our sales, marketing, and dynamic pricing machine is quickly becoming an advanced digital engine that has materially benefited from aggressive, focused use and engagement while the market was most difficult.

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Financial statements

data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .

From 10-Q filed 2026-06-29 (period ending 2026-05-31).

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and accompanying notes included under Item 1 of this Quarterly Report on Form 10-Q and our audited consolidated financial statements and accompanying notes included in our 2025 Form 10-K.

Outlook

Lennar's second quarter 2026 results represent strong operational execution against a macro backdrop that has grown more complicated throughout the quarter. While our margin remains under pressure as we continue to focus on bringing affordable housing to an affordability-constrained consumer base, underlying demand is real and growing and supply remains structurally short.

Mortgage interest rates remained stubbornly elevated in the mid-to-upper 6% range throughout the quarter, keeping affordability challenged for the majority of our buyers. Complicating the picture further, headline inflation rose to 4.2% year-over-year in May, the highest reading since early 2023, driven primarily by energy prices tied to supply disruptions from the Iran conflict. While core inflation decelerated on a monthly basis, higher energy costs impact every part of the American household budget and weigh on consumer confidence and the urgency to make major financial commitments. The Federal Reserve remains on hold, and near-term rate relief appears unlikely. Consumer psychology continues to be tested by concerns about long-term job security amid rapid advances in artificial intelligence. Traffic across our communities has been inconsistent; intent is high but urgency to close remains measured and deliberate rather than confident.

On an encouraging note, after three years of incentive levels that have been generally increasing, we saw a meaningful decline in our sales incentives on deliveries this quarter. While the overall market remains choppy and it is too early to declare a sustained trend, this may be a leading indicator of margin recovery. The federal government's engagement with the national housing crisis also continues to deepen, with housing affordability remaining a genuine focal point of both the administration and the legislature.

Our operating strategy has not changed. We remain focused on two strategic priorities: driving consistent, even-flow production and volume, and continuously refining our asset-light, land-light balance sheet model to generate strong and growing cash flow and returns. Using incentives, we price to market in order to maintain sales at a consistent level as the market adjusts. This has given us a competitive edge, and has enabled us to drive down construction costs per square foot and to reduce cycle time to a record low. Our land-light model enables us to be a significantly more efficient land buyer, land developer and land administrator at a meaningfully lower cost of capital. We are not waiting for conditions to normalize, we are building and executing in the market as it exists today, and we are currently expecting sequential margin improvement to continue as the year progresses.

For the third quarter of 2026, we expect new orders to be in the range of 21,000 to 22,000 homes, with continued focus on matching starts and sales pace. We anticipate third quarter deliveries to be in the range of 20,500 to 21,500 homes as we maintain even-flow production and convert inventory to cash. Our average sales price on those deliveries is expected to be between $375,000 and $380,000. We expect gross margins to be approximately 16%, and our SG&A percentage should be in the range of 8.8% to 9.0%. For the full year, we are adjusting our annual delivery guidance to 82,000 to 83,000 homes, reflecting current pressures on interest rates and continued macro uncertainty.

After over three years of navigating a rather difficult and complicated housing market, we believe that we are well-positioned for market conditions as they unfold. In the current market, incentives are declining, margins are starting to improve, and our sales and marketing machines are generating stronger leads, faster engagement, and better conversion. Our position is strong in the vast majority of our markets, which gives us the scale and operational discipline to position ourselves for improvements in the market rather than waiting for conditions to improve on their own. We are building towards that with clarity, discipline, and confidence.

(1) Results of Operations

Overview

We historically have experienced, and expect to continue to experience, variability in quarterly results. Our results of operations for the three and six months ended May 31, 2026 are not necessarily indicative of the results to be expected for the full year. Our homebuilding business is seasonal in nature and generally reflects higher levels of new home order activity in our second and third fiscal quarters and increased deliveries in the second half of our fiscal year. However, a variety of factors can alter seasonal patterns.

Our second quarter net earnings attributable to Lennar in 2026 were $304.8 million, or $1.24 per diluted share, compared to our second quarter net earnings attributable to Lennar in 2025 of $477.4 million, or $1.81 per diluted share. Excluding pretax mark-to-market losses of $23.3 million and $29.4 million on technology investments, respectively, our second quarter net earnings attributable to Lennar in 2026 were $322.1 million, or $1.31 per diluted share, compared to $499.5 million or $1.90 per diluted share in the second quarter of 2025.

Financial information relating to our operations was as follows:

	Three Months Ended May 31, 2026
(In thousands)	Homebuilding		Financial Services	Multifamily	Lennar Other	Corporate	Total
Revenues:
Sales of homes	$	7,595,039	—	—	—	—	7,595,039
Sales of land	12,401		—	—	—	—	12,401
Other revenues	8,874		236,939	63,564	23,055	—	332,432
Total revenues	7,616,314		236,939	63,564	23,055	—	7,939,872
Costs and expenses:
Costs of homes sold	6,412,619		—	—	—	—	6,412,619
Costs of land sold	21,544		—	—	—	—	21,544
Selling, general and administrative expenses	698,395		—	—	—	—	698,395
Other costs and expenses	—		135,836	72,788	43,726	—	252,350
Total costs and expenses	7,132,558		135,836	72,788	43,726	—	7,384,908
Equity in earnings from unconsolidated entities	2,670		—	27,233	4,184	—	34,087
Other income, net and other gains, net	2,945		—	316	795	—	4,056
Lennar Other losses from technology investments	—		—	—	(23,252)	—	(23,252)
Operating earnings (loss)	$	489,371	101,103	18,325	(38,944)	—	569,855
Corporate general and administrative expenses	—		—	—	—	136,149	136,149
Charitable foundation contribution	—		—	—	—	20,519	20,519
Earnings (loss) before income taxes	$	489,371	101,103	18,325	(38,944)	(156,668)	413,187

	Three Months Ended May 31, 2025
(In thousands)	Homebuilding		Financial Services	Multifamily	Lennar Other	Corporate	Total
Revenues:
Sales of homes	$	7,788,275	—	—	—	—	7,788,275
Sales of land	43,195		—	—	—	—	43,195
Other revenues	12,392		298,098	230,305	5,237	—	546,032
Total revenues	7,843,862		298,098	230,305	5,237	—	8,377,502
Costs and expenses:
Costs of homes sold	6,402,532		—	—	—	—	6,402,532
Costs of land sold	56,173		—	—	—	—	56,173
Selling, general and administrative expenses	688,847		—	—	—	—	688,847
Other costs and expenses	—		140,818	254,677	30,025	—	425,520
Total costs and expenses	7,147,552		140,818	254,677	30,025	—	7,573,072
Equity in earnings (losses) from unconsolidated entities	17,716		—	(5,269)	(331)	—	12,116
Other income, net and other gains, net	14,208		—	14,887	1,664	—	30,759
Lennar Other losses from technology investments	—		—	—	(29,440)	—	(29,440)
Operating earnings (loss)	$	728,234	157,280	(14,754)	(52,895)	—	817,865
Corporate general and administrative expenses	—		—	—	—	155,853	155,853
Charitable foundation contribution	—		—	—	—	20,131	20,131
Earnings (loss) before income taxes	$	728,234	157,280	(14,754)	(52,895)	(175,984)	641,881

	Six Months Ended May 31, 2026
(In thousands)	Homebuilding		Financial Services	Multifamily	Lennar Other	Corporate	Total
Revenues:
Sales of homes	$	13,867,961	—	—	—	—	13,867,961
Sales of land	27,559		—	—	—	—	27,559
Other revenues	19,357		452,494	146,063	45,914	—	663,828
Total revenues	13,914,877		452,494	146,063	45,914	—	14,559,348
Costs and expenses:
Costs of homes sold	11,734,233		—	—	—	—	11,734,233
Costs of land sold	52,855		—	—	—	—	52,855
Selling, general and administrative expenses	1,315,890		—	—	—	—	1,315,890
Other costs and expenses	—		260,078	163,216	87,410	—	510,704
Total costs and expenses	13,102,978		260,078	163,216	87,410	—	13,613,682
Equity in earnings from unconsolidated entities	40,851		—	52,714	3,790	—	97,355
Other income, net and other gains, net	9,649		—	623	1,930	—	12,202
Lennar Other losses from technology investments	—		—	—	(8,414)	—	(8,414)
Operating earnings (loss)	$	862,399	192,416	36,184	(44,190)	—	1,046,809
Corporate general and administrative expenses	—		—	—	—	293,787	293,787
Charitable foundation contribution	—		—	—	—	37,382	37,382
Earnings (loss) before income taxes	$	862,399	192,416	36,184	(44,190)	(331,169)	715,640

	Six Months Ended May 31, 2025
(In thousands)	Homebuilding		Financial Services	Multifamily	Lennar Other	Corporate	Total
Revenues:
Sales of homes	$	15,028,821	—	—	—	—	15,028,821
Sales of land	78,521		—	—	—	—	78,521
Other revenues	20,390		575,175	293,501	12,639	—	901,705
Total revenues	15,127,732		575,175	293,501	12,639	—	16,009,047
Homebuilding costs and expenses:
Costs of homes sold	12,290,676		—	—

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Held by

holders ( registered funds via N-PORT, institutional investors via 13F). Showing top by dollar value.

Holder	Type	ETF	MF	Position ($)	% of holder	Δ % of holder	Holder AUM

Next expected filings

~2026-10-04 10-Q expected by 2026-10-13 (in 70 days)
~2027-01-27 10-K expected by 2027-01-30 (in 185 days)
~2027-04-10 10-Q expected by 2027-04-19 (in 258 days)
~2027-06-30 10-Q expected by 2027-07-09 (in 339 days)

Predicted from historical filing cadence; not an SEC commitment.

Recent SEC filings

2026-06-29 10-Q Quarterly Report
2026-06-11 8-K Earnings Release; Financial Statements and Exhibits
2026-06-08 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
2026-04-10 S-3ASR S-3ASR
2026-04-09 10-Q Quarterly Report
2026-03-12 8-K Earnings Release; Financial Statements and Exhibits
2026-01-28 10-K Annual Report
2025-12-16 8-K Earnings Release; Financial Statements and Exhibits
2025-11-14 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
2025-10-03 10-Q Quarterly Report
2025-09-19 8-K Earnings Release; Financial Statements and Exhibits
2025-08-04 8-K Officer/Director Change; Regulation FD Disclosure; Other Events; Financial Statements and Exhibits
2025-07-01 10-Q Quarterly Report
2025-06-17 8-K Earnings Release; Financial Statements and Exhibits
2025-05-19 8-K Material Agreement Entered; Material Financial Obligation; Other Events

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