Global Finance News
17 Sep 2026, 08:40
Lennar Stock Falls 2.3% Premarket as Q3 Earnings Miss Expectations and Housing Conditions Weaken
Lennar shares fell 2.3% in premarket trading Thursday after the homebuilder reported weaker third-quarter earnings and lowered its full-year delivery target amid higher mortgage rates and worsening housing affordability.
Lennar reported Q3 net earnings of $284 million, or $1.19 per diluted share, down sharply from $591 million, or $2.29 per share, a year earlier. Adjusted EPS was $1.23. Revenue totaled $8.0 billion, while home deliveries declined 3% to 20,840 and new orders fell 9% to 20,879.
Housing margins also remained under pressure. Home-sales gross margin declined to 15.8% from 17.5% a year earlier, reflecting lower revenue per square foot and higher land costs. The average selling price fell to $372,000 from $383,000 as Lennar used pricing adjustments and incentives to support demand.
Management said earnings were below expectations as market conditions deteriorated, with 30-year mortgage rates reaching about 6.8% at quarter-end and affordability weighing on buyer decisions.
Lennar now expects approximately 80,000–81,000 home deliveries for full-year 2026, down from its previous target of 82,000–83,000. For Q4, the company projects 22,000–23,000 deliveries and a gross margin of 15.5%–16.0%.
Lennar shares fell 2.3% in premarket trading Thursday after the homebuilder reported weaker third-quarter earnings and lowered its full-year delivery target amid higher mortgage rates and worsening housing affordability.
Lennar reported Q3 net earnings of $284 million, or $1.19 per diluted share, down sharply from $591 million, or $2.29 per share, a year earlier. Adjusted EPS was $1.23. Revenue totaled $8.0 billion, while home deliveries declined 3% to 20,840 and new orders fell 9% to 20,879.
Housing margins also remained under pressure. Home-sales gross margin declined to 15.8% from 17.5% a year earlier, reflecting lower revenue per square foot and higher land costs. The average selling price fell to $372,000 from $383,000 as Lennar used pricing adjustments and incentives to support demand.
Management said earnings were below expectations as market conditions deteriorated, with 30-year mortgage rates reaching about 6.8% at quarter-end and affordability weighing on buyer decisions.
Lennar now expects approximately 80,000–81,000 home deliveries for full-year 2026, down from its previous target of 82,000–83,000. For Q4, the company projects 22,000–23,000 deliveries and a gross margin of 15.5%–16.0%.
