Lennar Corp (LEN) reported a mixed bag of results Tuesday after the market close, and investors weren't thrilled about it. The homebuilder managed to beat revenue expectations but fell short on earnings, a combination that sent shares sliding in after-hours trading.
The Numbers: Lennar posted fourth-quarter revenue of $9.37 billion, topping analyst estimates of $9.02 billion. But adjusted earnings came in at $2.03 per share, missing the $2.21 per share that analysts were expecting. That earnings miss is what's driving the stock weakness.
The underlying business showed some encouraging signs, though. New orders increased 18% year-over-year to 20,018 homes, and deliveries rose 4% to 23,034 homes. But here's the catch: despite those volume gains, revenue from home sales actually fell 7% in the quarter to $8.9 billion. The company ended the period with a backlog of 13,936 homes valued at approximately $5.2 billion.
What's Happening: The housing market remains tough, plain and simple. Stuart Miller, executive chairman and co-CEO of Lennar, explained it this way: "Even as interest rates moved slightly lower in our fourth quarter, the overall market remained challenged. Accordingly, our fourth quarter and full year 2025 results reflect a disciplined commitment to increasing housing supply in a market constrained by affordability challenges, as well as weak consumer confidence."
Looking Ahead: For the first quarter of fiscal 2026, Lennar expects new orders to land between 18,000 and 19,000. The company projects deliveries of 17,000 to 18,000 homes at an average sales price of $365,000 to $375,000. That's notably lower than the $386,000 average sales price in the fourth quarter, suggesting the company is adjusting pricing to match market realities.
Lennar executives will discuss the results and outlook in more detail during an earnings call at 11 a.m. ET Wednesday morning.
Stock Movement: Lennar shares dropped 4.14% in after-hours trading to $112.70 on Tuesday.
