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Lennar Reports Second Quarter 2024 Results

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Lennar (NYSE: LEN) reported strong second-quarter 2024 results, with net earnings increasing 9% to $954 million and earnings per diluted share rising 15% to $3.45 compared to the same period last year. Revenues grew 9% to $8.8 billion, driven by a 19% increase in new orders and a 15% rise in home deliveries. However, the average sales price per delivered home decreased by 5% to $426,000 amid rising sales incentives.

Operating earnings for homebuilding were $1.3 billion, with gross margins on home sales at 22.6% and net margins at 15.1%. The company also reported $3.6 billion in homebuilding cash and cash equivalents, with no outstanding borrowings on its $2.2 billion revolving credit facility. Lennar repurchased 3.8 million shares for $603 million and repaid $554 million of senior notes during the quarter.

Looking ahead to Q3 2024, Lennar expects to deliver between 20,500 and 21,000 homes with a gross margin of approximately 23%.

Positive
  • Net earnings increased by 9% to $954 million.
  • Earnings per diluted share rose 15% to $3.45.
  • Total revenues grew 9% to $8.8 billion.
  • New orders increased by 19% to 21,293 homes.
  • Home deliveries rose 15% to 19,690 homes.
  • Gross margins on home sales were 22.6%.
  • Strong liquidity with $3.6 billion in homebuilding cash and cash equivalents.
  • Repurchased 3.8 million shares for $603 million.
  • No outstanding borrowings on the $2.2 billion revolving credit facility.
Negative
  • Average sales price per home decreased by 5% to $426,000.
  • Operating loss for the Multifamily segment increased to $20 million.
  • Operating loss for the 'Lennar Other' segment increased to $28 million.
  • Selling, general, and administrative expenses increased to 7.5% of revenues from 6.7% in the same period last year.

Insights

Lennar Corporation's second-quarter financials show a strong performance across several key metrics. Net earnings increased by 9% to $954 million, while earnings per diluted share jumped 15% to $3.45. Notably, new orders rose by 19% and deliveries by 15%, underscoring solid demand in the housing market despite fluctuating interest rates. This is a significant indicator that Lennar has adeptly managed consumer incentives and cost efficiencies to maintain growth.

The company's revenue increased by 9% to $8.8 billion, driven by higher home deliveries, although the average sales price per home decreased by 5% due to increased use of sales incentives. The gross margin on home sales improved slightly to 22.6%, demonstrating Lennar's effective cost management strategies and focus on reducing construction costs.

Additionally, Lennar redeemed significant portions of its debt and repurchased shares, reflecting a priority on strengthening the balance sheet. The absence of borrowings under its $2.2 billion revolver and a cash reserve of $3.6 billion point to robust liquidity. In summary, the reports indicate solid operational and financial health, positioning Lennar well for future growth.

Lennar's performance is noteworthy in the context of the broader housing market. The increase in new orders and deliveries reflects resilience in housing demand, even as consumer sentiment and affordability face challenges due to interest rates. This aligns with ongoing trends of housing supply shortages and strong household formation rates, which continue to drive demand.

The company's strategic focus on a land-light model and improving production efficiencies is evident. Lennar's reduction in cycle time to 150 days and improvement in inventory turnover to 1.6 times are significant operational gains, showcasing the company's ability to adapt to market dynamics efficiently.

Lennar's use of digital marketing and dynamic pricing models also suggests a modern, data-driven approach to matching production with sales. However, it's important to watch for potential impacts from any further macroeconomic shifts and interest rate changes, which could influence future demand and profitability.

The company's tax strategy appears to be effectively managed, with an overall effective income tax rate of 23.9% for the quarter. This rate includes considerations for state income tax expenses and non-deductible executive compensation, partially offset by energy-efficient home and solar tax credits. The slight decrease from last year's 24.4% rate suggests improved financial management in leveraging tax credits and deductions.

This focus on tax efficiency can contribute positively to the bottom line, freeing up more funds for reinvestment or debt reduction, as demonstrated by their strategic debt transactions and share repurchases. For retail investors, understanding how tax strategies impact net earnings is crucial, as these savings can enhance shareholder value in the long run.

Second Quarter 2024 Highlights - comparisons to the prior year quarter

  • Net earnings per diluted share increased 15% to $3.45
    • $3.38, excluding mark-to-market losses on technology investments and one-time gain on sale of a technology investment
  • Net earnings increased 9% to $954 million
  • New orders increased 19% to 21,293 homes
  • Backlog of 17,873 homes with a dollar value of $8.2 billion
  • Deliveries increased 15% to 19,690 homes
  • Total revenues of $8.8 billion
  • Homebuilding operating earnings of $1.3 billion
    • Gross margin on home sales of 22.6%
    • S,G&A expenses as a % of revenues from home sales of 7.5%
    • Net margin on home sales of 15.1%
  • Financial Services operating earnings of $146 million
  • Multifamily operating loss of $20 million
  • Lennar Other operating loss of $28 million
  • Homebuilding cash and cash equivalents of $3.6 billion
  • Years supply of owned homesites of 1.2 years and controlled homesites of 79%
  • No outstanding borrowings under the Company's $2.2 billion revolving credit facility
  • Homebuilding debt to total capital of 7.7%
  • Redeemed $454 million aggregate principal amount of its 4.50% senior notes due April 2024
  • Repurchased $100 million aggregate principal amount of its 4.75% senior notes due November 2027
  • Repurchased 3.8 million shares of Lennar common stock for $603 million

MIAMI, June 17, 2024 /PRNewswire/ -- Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's leading homebuilders, today reported results for its second quarter ended May 31, 2024. Second quarter net earnings attributable to Lennar in 2024 were $954 million, or $3.45 per diluted share, compared to second quarter net earnings attributable to Lennar in 2023 of $872 million, or $3.01 per diluted share. Excluding mark-to-market losses on technology investments and one-time gain on the sale of a technology investment, second quarter net earnings attributable to Lennar in 2024 were $935 million, or $3.38 per diluted share. Excluding mark-to-market gains on technology investments, second quarter net earnings attributable to Lennar in 2023 were $852 million or $2.94 per diluted share.

Stuart Miller, Executive Chairman and Co-Chief Executive Officer of Lennar, said, "We are pleased to report another strong quarter against the backdrop of evolving market conditions as interest rates rose for most of the quarter and then subsided as the quarter closed. Although affordability continued to be tested by interest rate movements and simultaneously challenged consumer sentiment, purchasers remained responsive to increased sales incentives, resulting in a 19% increase in our new orders and a 15% increase in our deliveries year over year. The macroeconomic environment remained relatively consistent with employment remaining strong, housing supply remaining chronically short due to production deficits over a decade, and demand strength driven by strong household formation. We remained focused on consistent production pace driving sales pace, while using pricing, incentives, marketing spend and margin adjustment to enable consistent sales volume in a fluctuating interest rate environment."

"Earnings were $954 million, or $3.45 per diluted share, compared to $872 million, or $3.01 per diluted share last year. We delivered 19,690 homes in our second quarter and our new orders were 21,293. Our average sales price, net of incentives, per home delivered was $426,000 in the second quarter, down 5% from last year, and our homebuilding gross margin in the second quarter was 22.6%, up 10 basis points from last year, as a result of our careful management of incentives combined with our intense focus on reducing construction costs, while homebuilding S,G&A expenses were 7.5%, resulting in a 15.1% net margin."

"Driven by this quarter's strong operating performance, we constructively allocated capital while we continued to strengthen and fortify our balance sheet. During the quarter, we repurchased $603 million of our common stock and repaid $554 million of senior notes ending the quarter with homebuilding debt to total capital of 7.7%, no borrowings on our $2.2 billion revolver and cash of $3.6 billion. With cash on hand exceeding our debt, and with overall liquidity of $5.8 billion, our balance sheet remains extremely strong. Against that backdrop, we remain focused on our "land strategies" initiatives in order to intensify our land light focus and assure consistency of execution now and in the future as we embrace an ever-more focused manufacturing model for Lennar."

Jon Jaffe, Co-Chief Executive Officer and President of Lennar, said, "Operationally, our starts pace and sales pace were 5.8 homes and 5.7 homes per community in the second quarter, respectively, as we continue to move closer to an even flow operating model. Our cycle time was down to 150 days, or 30% year over year, as our production first focus has positively impacted our production times, while our inventory turn improved to 1.6 times reflecting broader efficiencies. Concurrently, the Lennar Machine continued to carefully match our sales pace to our production pace using our digital marketing and dynamic pricing models."

"During the quarter, we continued the migration to our land light strategy. This was evidenced by our years supply of owned homesites improving to 1.2 years from 1.7 years last year and our controlled homesite percentage increasing to 79% from 70% year over year. These results drove our return on inventory to 31.4%, a year-over-year improvement of 110 basis points."

Mr. Miller concluded, "We continue to remain enthusiastic about our current execution and our future. We have remained focused on our operating strategies, while at the same time being observant of current economic and market trends. This has positioned us particularly well as the economic environment continues to define itself throughout the complicated election year in 2024. As we look ahead to our third quarter, we expect to deliver between 20,500 and 21,000 homes with a gross margin of approximately 23.0%. We remain focused on delivering 80,000 homes for the full year, with a margin that remains consistent with last year's margin. We will continue to fortify our balance sheet with significant liquidity and operate from a position of strength, thus enabling us to continue to execute on our core strategies to drive strong cash flow and higher returns."

RESULTS OF OPERATIONS
THREE MONTHS ENDED MAY 31, 2024 COMPARED TO
THREE MONTHS ENDED MAY 31, 2023

Homebuilding

Revenues from home sales increased 9% in the second quarter of 2024 to $8.4 billion from $7.6 billion in the second quarter of 2023. Revenues were higher primarily due to a 15% increase in the number of home deliveries, partially offset by a 5% decrease in the average sales price of homes delivered. New home deliveries increased to 19,690 homes in the second quarter of 2024 from 17,074 homes in the second quarter of 2023. The average sales price of homes delivered was $426,000 in the second quarter of 2024, compared to $449,000 in the second quarter of 2023. The decrease in average sales price of homes delivered in the second quarter of 2024 compared to the same period last year was primarily due to pricing to market through an increased use of incentives and product mix.

Gross margins on home sales were $1.9 billion, or 22.6%, in the second quarter of 2024, compared to $1.7 billion, or 22.5%, in the second quarter of 2023. During the second quarter of 2024, gross margins increased because of a decrease in costs per square foot as the Company continued to focus on construction cost savings, which was partially offset by a decrease in average sales price and an increase in land costs.

Selling, general and administrative expenses were $630 million in the second quarter of 2024, compared to $511 million in the second quarter of 2023. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 7.5% in the second quarter of 2024, from 6.7% in the second quarter of 2023, primarily due to an increase in digital marketing, professional expenses and insurance costs.

Financial Services

Operating earnings for the Financial Services segment were $146 million in the second quarter of 2024, compared to $112 million in the second quarter of 2023. The increase in operating earnings was primarily due to higher volume from increased capture rate and Lennar deliveries.

Ancillary Businesses

Operating loss for the Multifamily segment was $20 million in the second quarter of 2024, compared to operating loss of $8 million in the second quarter of 2023. Operating loss for the Lennar Other segment was $28 million in the second quarter of 2024, compared to an operating loss of $18 million in the second quarter of 2023. The Lennar Other operating loss for the second quarter of 2024 includes $22 million of mark-to-market losses on the Company's publicly traded technology investments and a $47 million one-time gain on the sale of a technology investment.

Tax Rate

In the second quarter of 2024 and 2023, the Company had tax provisions of $300 million and $281 million, respectively, which resulted in an overall effective income tax rate of 23.9% and 24.4%, respectively. For both periods, the Company's effective income tax rate included state income tax expense and non-deductible executive compensation, partially offset by energy efficient home and solar tax credits.

OTHER TRANSACTIONS

Debt Transactions

During the second quarter of 2024, the Company redeemed $454 million aggregate principal amount of its 4.50% senior notes due April 2024. The redemption price, which was paid in cash, was 100% of the principal amount outstanding. Additionally, the Company repurchased $100 million aggregate principal amount of its 4.75% senior notes due November 2027.

Share Repurchases

In the second quarter of 2024, the Company repurchased 3.8 million shares of its common stock for $603 million at an average share price of $158.64.

Liquidity

At May 31, 2024, the Company had $3.6 billion of Homebuilding cash and cash equivalents and no outstanding borrowings under its $2.2 billion revolving credit facility, thereby providing approximately $5.8 billion of available capacity.

Guidance

The following are the Company's expected results of its homebuilding and financial services activities for the third quarter of 2024:


Third Quarter 2024


New Orders

20,500 - 21,000


Deliveries

20,500 - 21,000


Average Sales Price

$420,000 - $425,000


Gross Margin % on Home Sales

About 23.0%


S,G&A as a % of Home Sales

7.3% - 7.5%


Financial Services Operating Earnings   

$135 million - $140 million


About Lennar

Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar's Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar's homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout the United States. Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties. LENX drives Lennar's technology, innovation and strategic investments. For more information about Lennar, please visit www.lennar.com.

Note Regarding Forward-Looking Statements: Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the homebuilding market and other markets in which we participate. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those anticipated by the forward-looking statements. We wish to caution readers not to place undue reliance on any forward-looking statements, which are expressly qualified in their entirety by this cautionary statement and speak only as of the date made. Important factors that could cause differences between anticipated and actual results include slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities or own a substantial number of single-family homes for rent; decreased demand for our homes, either for sale or for rent, or Multifamily rental apartments; the potential impact of inflation; the impact of increased cost of mortgage financing for homebuyers, increased interest rates or increased competition in the mortgage industry; supply shortages and increased costs related to construction materials, including lumber, and labor; cost increases related to real estate taxes and insurance; the effect of increased interest rates with regard to our funds' borrowings on the willingness of the funds to invest in new projects; reductions in the market value of our investments in public companies; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies, including our land light strategy, and our planned spin-off; a decline in the value of the land and home inventories we maintain and resulting possible future writedowns of the carrying value of our real estate assets; the forfeiture of deposits related to land purchase options we decide not to exercise; the effects of public health issues such as a major epidemic or pandemic that could have a negative impact on the economy and on our businesses; possible unfavorable results in legal proceedings; conditions in the capital, credit and financial markets; changes in laws, regulations or the regulatory environment affecting our business, and the other risks and uncertainties described in our filings from time to time with the Securities and Exchange Commission, including those included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Annual Report on Form 10-K filed on January 26, 2024, as amended by our Annual Report on Form 10-K/A filed on April 25, 2024 and Quarterly Reports on Form 10-Q. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

A conference call to discuss the Company's second quarter earnings will be held at 11:00 a.m. Eastern Time on Tuesday, June 18, 2024. The call will be broadcast live on the Internet and can be accessed through the Company's website at investors.lennar.com. If you are unable to participate in the conference call, the call will be archived at investors.lennar.com for 90 days. A replay of the conference call will also be available later that day by calling 203-369-3354 and entering 5723593 as the confirmation number.

 

LENNAR CORPORATION AND SUBSIDIARIES
Selected Revenues and Operating Information
(In thousands, except per share amounts)
(unaudited)


Three Months Ended


Six Months Ended


May 31,


May 31,


2024


2023


2024


2023

Revenues:








Homebuilding

$   8,381,059


7,670,017


15,312,050


13,826,322

Financial Services

281,723


222,979


531,443


405,960

Multifamily

99,500


151,744


229,177


295,267

Lennar Other

3,310


411


5,852


8,031

Total revenues

$   8,765,592


8,045,151


16,078,522


14,535,580









Homebuilding operating earnings

$   1,340,155


1,214,409


2,368,951


2,121,248

Financial Services operating earnings

147,012


112,599


278,308


191,336

Multifamily operating loss

(20,474)


(8,162)


(36,113)


(29,763)

Lennar Other operating loss

(28,964)


(18,399)


(68,512)


(58,156)

Corporate general and administrative expenses

(156,982)


(124,752)


(314,303)


(250,858)

Charitable foundation contribution

(19,690)


(17,074)


(36,488)


(30,733)

Earnings before income taxes

1,261,057


1,158,621


2,191,843


1,943,074

Provision for income taxes

(300,471)


(280,879)


(511,336)


(466,024)

Net earnings (including net earnings attributable to noncontrolling interests)           

960,586


877,742


1,680,507


1,477,050

Less: Net earnings attributable to noncontrolling interests

6,275


6,048


6,862


8,822

Net earnings attributable to Lennar

$      954,311


871,694


1,673,645


1,468,228









Basic and diluted average shares outstanding

273,703


284,910


275,325


285,492









Basic and diluted earnings per share

$             3.45


3.01


6.01


5.07









Supplemental information:








Interest incurred (1)

$        33,764


49,704


70,275


99,281









EBIT (2):








Net earnings attributable to Lennar

$      954,311


871,694


1,673,645


1,468,228

Provision for income taxes

300,471


280,879


511,336


466,024

Interest expense included in:








Costs of homes sold

43,100


61,145


82,314


110,597

Costs of land sold

286


1,028


286


1,047

Homebuilding other income (expense), net

4,679


3,758


9,594


7,332

Total interest expense

48,065


65,931


92,194


118,976

EBIT

$   1,302,847


1,218,504


2,277,175


2,053,228



(1)

Amount represents interest incurred related to homebuilding debt.

(2)

EBIT is a non-GAAP financial measure defined as earnings before interest and taxes. This financial measure has been presented because the Company finds it important and useful in evaluating its performance and believes that it helps readers of the Company's financial statements compare its operations with those of its competitors. Although management finds EBIT to be an important measure in conducting and evaluating the Company's operations, this measure has limitations as an analytical tool as it is not reflective of the actual profitability generated by the Company during the period. Management compensates for the limitations of using EBIT by using this non-GAAP measure only to supplement the Company's GAAP results. Due to the limitations discussed, EBIT should not be viewed in isolation, as it is not a substitute for GAAP measures.

 

LENNAR CORPORATION AND SUBSIDIARIES
Segment Information
(In thousands)
(unaudited)


Three Months Ended


Six Months Ended


May 31,


May 31,


2024


2023


2024


2023

Homebuilding revenues:








Sales of homes

$      8,357,750


7,636,579


15,259,531


13,730,406

Sales of land

13,598


16,314


34,350


26,032

Other homebuilding

9,711


17,124


18,169


69,884

Total homebuilding revenues

8,381,059


7,670,017


15,312,050


13,826,322









Homebuilding costs and expenses:








Costs of homes sold

6,469,952


5,916,325


11,865,484


10,719,168

Costs of land sold

6,903


11,932


20,920


34,009

Selling, general and administrative

629,600


510,700


1,197,587


960,494

Total homebuilding costs and expenses

7,106,455


6,438,957


13,083,991


11,713,671

Homebuilding net margins

1,274,604


1,231,060


2,228,059


2,112,651

Homebuilding equity in earnings (loss) from unconsolidated entities

15,516


(12,279)


28,818


(9,093)

Homebuilding other income (expense), net

50,035


(4,372)


112,074


17,690

Homebuilding operating earnings

$      1,340,155


1,214,409


2,368,951


2,121,248









Financial Services revenues

$         281,723


222,979


531,443


405,960

Financial Services costs and expenses

134,711


110,380


253,135


214,624

Financial Services operating earnings

$         147,012


112,599


278,308


191,336









Multifamily revenues

$           99,500


151,744


229,177


295,267

Multifamily costs and expenses

102,205


154,354


234,872


303,310

Multifamily equity in loss from unconsolidated entities and other income (expense), net

(17,769)


(5,552)


(30,418)


(21,720)

Multifamily operating loss

$          (20,474)


(8,162)


(36,113)


(29,763)









Lennar Other revenues

$              3,310


411


5,852


8,031

Lennar Other costs and expenses

26,841


6,795


35,929


13,271

Lennar Other equity in earnings (loss) from unconsolidated entities, other income (expense), net, and other gain (loss)     

16,081


(37,512)


(11,784)


(54,459)

Lennar Other unrealized gains (losses) from technology investments (1)

(21,514)


25,497


(26,651)


1,543

Lennar Other operating loss

$          (28,964)


(18,399)


(68,512)


(58,156)


(1)  The following is a detail of Lennar Other unrealized gains (losses) from mark-to-market adjustments on technology investments:

 


Three Months Ended


Six Months Ended


May 31,


May 31,


2024


2023


2024


2023

Blend Labs (BLND)               

$                 715


(1,332)


3,651


(746)

Hippo (HIPO)

10,737


(4,399)


27,186


2,233

Opendoor (OPEN)

(16,907)


22,512


(15,592)


14,821

SmartRent (SMRT)

(4,609)


8,621


(6,572)


9,926

Sonder (SOND)

(40)


(138)


11


(458)

Sunnova (NOVA)

(11,410)


233


(35,335)


(24,233)


$          (21,514)


25,497


(26,651)


1,543

 

LENNAR CORPORATION AND SUBSIDIARIES
Summary of Deliveries, New Orders and Backlog
(Dollars in thousands, except average sales price)
(unaudited)

Lennar's reportable homebuilding segments and all other homebuilding operations not required to be reported separately have divisions located in:

East: Alabama, Florida, New Jersey and Pennsylvania
Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, South Carolina, Tennessee and Virginia
Texas: Texas
West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington
Other: Urban divisions


Three Months Ended May 31,


2024


2023


2024


2023


2024


2023

Deliveries:

Homes


Dollar Value


Average Sales Price

East

5,529


4,893


$       2,222,108


2,146,387


$       402,000


439,000

Central

4,188


3,699


1,706,051


1,603,187


407,000


433,000

Texas

4,669


3,908


1,194,525


1,137,517


256,000


291,000

West

5,292


4,565


3,263,904


2,773,005


617,000


607,000

Other

12


9


6,343


7,401


529,000


822,000

Total

19,690


17,074


$       8,392,931


7,667,497


$       426,000


449,000

Of the total homes delivered listed above, 70 homes with a dollar value of $35 million and an average sales price of $503,000 represent home deliveries from unconsolidated entities for the three months ended May 31, 2024, compared to 72 home deliveries with a dollar value of $31 million and an average sales price of $429,000 for the three months ended May 31, 2023.


At May 31,


Three Months Ended May 31,


2024


2023


2024


2023


2024


2023


2024


2023

New Orders:

Active Communities


Homes


Dollar Value


Average Sales Price

East

309


339


5,000


5,022


$  2,033,401


2,166,704


$     407,000


431,000

Central

332


330


5,332


4,080


2,144,250


1,729,280


402,000


424,000

Texas

239


226


5,213


3,732


1,332,392


1,079,757


256,000


289,000

West

363


365


5,735


5,045


3,679,145


3,190,159


642,000


632,000

Other

2


3


13


6


5,688


5,544


438,000


924,000

Total

1,245


1,263


21,293


17,885


$  9,194,876


8,171,444


$     432,000


457,000

Of the total homes listed above, 74 homes with a dollar value of $40 million and an average sales price of $540,000 represent homes in eight active communities from unconsolidated entities for the three months ended May 31, 2024, compared to 73 homes with a dollar value of $37 million and an average sales price of $507,000 in seven active communities for the three months ended May 31, 2023.


For the Six Months Ended May 31,


2024


2023


2024


2023


2024


2023

Deliveries:

Homes


Dollar Value


Average Sales Price

East

10,253


8,748


$       4,172,739


3,858,332


$        407,000


441,000

Central

7,748


6,439


3,101,695


2,804,582


400,000


436,000

Texas

8,932


7,329


2,264,683


2,154,490


254,000


294,000

West

9,530


8,207


5,785,395


4,967,027


607,000


605,000

Other

25


10


13,160


8,566


526,000


857,000

Total

36,488


30,733


$     15,337,672


13,792,997


$        420,000


449,000

Of the total homes delivered listed above, 147 homes with a dollar value of $78 million and an average sales price of $532,000 represent home deliveries from unconsolidated entities for the six months ended May 31, 2024, compared to 135 home deliveries with a dollar value of $63 million and an average sales price of $464,000 for the six months ended May 31, 2023.


For the Six Months Ended May 31,


2024


2023


2024


2023


2024


2023

New Orders:

Homes


Dollar Value


Average Sales Price

East

9,526


8,863


$       3,931,479


3,840,881


$       413,000


433,000

Central

9,606


6,821


3,862,786


2,877,097


402,000


422,000

Texas

9,644


6,874


2,452,391


1,959,213


254,000


285,000

West

10,662


9,510


6,675,384


5,898,485


626,000


620,000

Other

31


11


15,218


9,229


491,000


839,000

Total

39,469


32,079


$    16,937,258


14,584,905


$       429,000


455,000

Of the total new orders listed above, 120 homes with a dollar value of $65 million and an average sales price of $543,000 represent new orders from unconsolidated entities for the six months ended May 31, 2024, compared to 170 new orders with a dollar value of $75 million and an average sales price of $443,000 for the six months ended May 31, 2023.


At May 31,


2024


2023


2024


2023


2024


2023

Backlog:

Homes


Dollar Value


Average Sales Price

East

5,853


8,276


$        2,467,062


3,565,256


$         422,000


431,000

Central

5,021


4,951


2,136,707


2,165,563


426,000


437,000

Texas

2,607


2,242


663,648


641,806


255,000


286,000

West

4,383


4,743


2,962,332


3,157,935


676,000


666,000

Other

9


2


3,586


1,828


398,000


914,000

Total

17,873


20,214


$        8,233,335


9,532,388


$         461,000


472,000

Of the total homes in backlog listed above, 120 homes with a backlog dollar value of $62 million and an average sales price of $513,000 represent the backlog from unconsolidated entities at May 31, 2024, compared to 201 homes with a backlog dollar value of $90 million and an average sales price of $450,000 at May 31, 2023.

 

LENNAR CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
(unaudited)


May 31, 2024


November 30, 2023

ASSETS




Homebuilding:




Cash and cash equivalents

$                     3,597,493


6,273,724

Restricted cash

11,572


13,481

Receivables, net

898,301


887,992

Inventories:




Finished homes and construction in progress

11,729,673


10,455,666

Land and land under development

4,418,285


4,904,541

Inventory owned

16,147,958


15,360,207

Consolidated inventory not owned

3,753,542


2,992,528

Inventory owned and consolidated inventory not owned     

19,901,500


18,352,735

Deposits and pre-acquisition costs on real estate

2,754,819


2,002,154

Investments in unconsolidated entities

1,263,905


1,143,909

Goodwill

3,442,359


3,442,359

Other assets

1,540,507


1,512,038


33,410,456


33,628,392

Financial Services

3,043,941


3,566,546

Multifamily

1,377,243


1,381,513

Lennar Other

836,030


657,852

Total assets

$                   38,667,670


39,234,303









LIABILITIES AND EQUITY




Homebuilding:




Accounts payable

$                     1,727,358


1,631,401

Liabilities related to consolidated inventory not owned      

3,227,478


2,540,894

Senior notes and other debts payable, net

2,241,507


2,816,482

Other liabilities

2,513,173


2,739,217


9,709,516


9,727,994

Financial Services

1,583,363


2,447,039

Multifamily

246,776


278,177

Lennar Other

112,262


79,127

Total liabilities

11,651,917


12,532,337





Stockholders' equity:




Preferred stock


Class A common stock of $0.10 par value

25,996


25,848

Class B common stock of $0.10 par value

3,660


3,660

Additional paid-in capital

5,674,733


5,570,009

Retained earnings

23,764,695


22,369,368

Treasury stock

(2,597,806)


(1,393,100)

Accumulated other comprehensive income

6,596


4,879

Total stockholders' equity

26,877,874


26,580,664

Noncontrolling interests

137,879


121,302

Total equity

27,015,753


26,701,966

Total liabilities and equity

$                   38,667,670


39,234,303

 

LENNAR CORPORATION AND SUBSIDIARIES
Supplemental Data
(Dollars in thousands)
(unaudited)








May 31, 2024


November 30, 2023


May 31, 2023 

Homebuilding debt

$     2,241,507


2,816,482


3,852,258

Stockholders' equity

26,877,874


26,580,664


25,015,145

Total capital

$   29,119,381


29,397,146


28,867,403

Homebuilding debt to total capital

7.7 %


9.6 %


13.3 %







Homebuilding debt

$     2,241,507


2,816,482


3,852,258

Less: Homebuilding cash and cash equivalents      

3,597,493


6,273,724


4,004,679

Net homebuilding debt

$    (1,355,986)


(3,457,242)


(152,421)

Net homebuilding debt to total capital (1)

(5.3) %


(15.0) %


(0.6) %



(1)

Net homebuilding debt to total capital is a non-GAAP financial measure defined as net homebuilding debt (homebuilding debt less homebuilding cash and cash equivalents) divided by total capital (net homebuilding debt plus stockholders' equity). The Company believes the ratio of net homebuilding debt to total capital is a relevant and a useful financial measure to investors in understanding the leverage employed in homebuilding operations. However, because net homebuilding debt to total capital is not calculated in accordance with GAAP, this financial measure should not be considered in isolation or as an alternative to financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement the Company's GAAP results.

Contact:
Ian Frazer
Investor Relations
Lennar Corporation
(305) 485-4129

Cision View original content:https://www.prnewswire.com/news-releases/lennar-reports-second-quarter-2024-results-302174646.html

SOURCE Lennar Corporation

FAQ

What were Lennar's earnings per share for Q2 2024?

Lennar's earnings per diluted share for Q2 2024 were $3.45, marking a 15% increase from the previous year.

How much did Lennar's total revenues increase in Q2 2024?

Lennar's total revenues increased by 9% in Q2 2024, reaching $8.8 billion.

What is the stock symbol for Lennar ?

Lennar is traded under the stock symbol LEN.

How many new orders did Lennar receive in Q2 2024?

Lennar received 21,293 new orders in Q2 2024, a 19% increase from the previous year.

What was Lennar's average sales price per delivered home in Q2 2024?

The average sales price per delivered home in Q2 2024 was $426,000, a 5% decrease from the previous year.

What were Lennar's homebuilding cash and cash equivalents at the end of Q2 2024?

At the end of Q2 2024, Lennar had $3.6 billion in homebuilding cash and cash equivalents.

How many homes does Lennar expect to deliver in Q3 2024?

Lennar expects to deliver between 20,500 and 21,000 homes in Q3 2024.

What was Lennar's gross margin on home sales in Q2 2024?

Lennar's gross margin on home sales was 22.6% in Q2 2024.

How much did Lennar repurchase in shares during Q2 2024?

Lennar repurchased 3.8 million shares for $603 million during Q2 2024.

What were Lennar's operating losses in the Multifamily segment for Q2 2024?

Lennar reported an operating loss of $20 million in its Multifamily segment for Q2 2024.

Lennar Corporation

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Residential Construction
General Bldg Contractors - Residential Bldgs
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United States of America
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