Lennar cuts full-year 2026 delivery target again, Q3 earnings fall

Lennar cuts full-year 2026 delivery target again, Q3 earnings fall

Thu, September 17, 2026 at 4:39 PM GMT+3 2 min read

• LEN -0.02%

Lennar cut its full-year 2026 home delivery target for the second time, blaming rising mortgage rates and deteriorating market conditions, as third-quarter profit and revenue fell from a year earlier.

The Miami-based homebuilder now expects to deliver between 80,000 and 81,000 homes for the full year, down from its previous guidance of 82,000 to 83,000, the company said Wednesday. Analysts polled by FactSet had been expecting 82,300 deliveries, according to the Wall Street Journal.

"Mortgage rates increased through the quarter, with the 30-year rate at approximately 6.8% at quarter end and even higher since," Stuart Miller, Lennar's executive chairman, chief executive officer and president, said in a statement. "Consumer confidence has declined as rates and affordability have driven more consumers to slow their purchase decision."

Third-quarter net earnings attributable to Lennar fell to $284 million, or $1.19 per diluted share, from $591 million, or $2.29 per diluted share, in the same period a year earlier. Excluding mark-to-market losses on technology investments and one-time items in its financial services segment, adjusted earnings were $1.23 per diluted share. Analysts polled by FactSet had expected $1.28 per diluted share, according to the Wall Street Journal.

Total revenue for the quarter ended Aug. 31 fell to $8.05 billion from $8.81 billion a year prior. Analysts had expected $8.32 billion in revenue, according to the Wall Street Journal.

Deliveries slipped 3% year over year to 20,840 homes, with the average selling price coming in at $372,000, compared with $383,000 in the same quarter of 2025. New orders fell 9% to 20,879 homes. Lennar offered approximately 12% in buyer incentives during the quarter, with the average sales price reflecting base price adjustments the company said were necessary to sustain volume.

Homebuilding gross margin came in at 15.8%, up from 15.6% in the prior quarter but down from 17.5% in the third quarter of 2025. Miller attributed the year-over-year compression to lower revenue per square foot and higher land costs, partially offset by construction savings.

For the fourth quarter, Lennar guided for between 22,000 and 23,000 deliveries at an average price of $370,000 to $380,000, with gross margin on home sales of 15.5% to 16%.

Lennar had lowered its full-year delivery target to 82,000 to 83,000 homes from approximately 85,000 after its second quarter, citing persistently elevated mortgage rates, constrained affordability, and geopolitical uncertainty. That revision came alongside second-quarter results that also missed Wall Street's revenue expectations, with total quarterly revenues of $7.9 billion falling short of analyst estimates of roughly $8.1 billion.

Lennar stock closed down 2.1% at $78.36 on Wednesday and fell an additional 2.6% after hours to $76.34.