Lennar lowered its full-year 2026 home delivery target to approximately 82,000 to 83,000 homes, down from a prior target of about 85,000, citing persistent pressure on interest rates and geopolitical uncertainty, the company said Thursday.
The homebuilder now expects to deliver 82,000 to 83,000 homes in 2026, down from a prior target of about 85,000
Mario Tama/Getty Images
Lennar lowered its full-year 2026 home delivery target to approximately 82,000 to 83,000 homes, down from a prior target of about 85,000, citing persistent pressure on interest rates and geopolitical uncertainty, the company said Thursday.
The revision came alongside second-quarter results that fell short of Wall Street's revenue expectations. Against analyst expectations of roughly $8.1 billion, Lennar's $7.9 billion in total quarterly revenues came up short for the period ending May 31, 2026. Revenue from home sales declined 2% from the same period a year earlier.
Quarter-over-quarter deliveries reached 20,519 homes, a 2% gain, though pricing told a different story — the average sale came in at $371,000, a 5% slide from the $389,000 recorded in the same period last year. To keep pace with demand, Lennar offered roughly 12.9% in buyer incentives and made pricing adjustments the company described as essential to maintaining sales momentum.
On a reported basis, Lennar earned $1.24 per diluted share, or $305 million in net earnings, versus $477 million, or $1.81 per diluted share, in last year's second quarter. Once mark-to-market losses on technology investments were stripped out, the per-share figure rose to $1.31. The reported figure narrowly trailed the $1.25 analyst estimate tracked by Yahoo Finance.
Margin on home sales contracted to 15.6% from 17.8% in the year-ago period; reduced revenue per square foot and elevated land costs were the primary drags, though savings on construction partially cushioned the impact. Incoming orders totaled 21,749 homes, retreating 4% from the prior year.
In a statement, Stuart Miller, Lennar's executive chairman, CEO and president, characterized the period this way: "Our second quarter of fiscal year 2026 was defined by the same stubborn headwinds that have challenged the housing market for the past several years — persistently elevated mortgage rates, constrained affordability, and cautious consumer sentiment, exacerbated by geopolitical uncertainty creating a resurgent inflation reading of 4.2% driven by higher energy prices."
Looking ahead to the third quarter of 2026, management guided for between 20,500 and 21,500 home closings, priced on average between $375,000 and $380,000, with the home-sales gross margin expected to recover to around 16%.
During the quarter, buybacks totaled $447 million, covering 5 million shares, and Lennar closed the period holding $1.8 billion in homebuilding cash with its $3.1 billion revolving credit facility entirely undrawn.
Shares slipped roughly 1.2% ahead of Friday's open in the wake of the report, Barron's noted, after having surged 5.7% in Thursday's regular session.
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