Trading disclosure
The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Learn moreLennar Corp (NYSE:LEN) reported a 52% drop in third-quarter net earnings and lowered its annual delivery target.
Net earnings fell to $284 million, or $1.19 per diluted share, from $591 million, or $2.29, a year earlier.
The homebuilder now targets 80,000 to 81,000 deliveries for financial year 2026, down from its previous forecast of 82,000 to 83,000.
CEO Stuart Miller said rising mortgage rates and weaker consumer confidence were delaying purchases.
During the quarter, new orders declined 9% to 20,879 homes, while deliveries fell 3% to 20,840.
To sustain volume, Lennar offered incentives of approximately 12% and adjusted base prices, with its average sales price falling 3% to $372,000.
Lower revenue per square foot and higher land costs reduced gross margin on home sales to 15.8%, from 17.5% a year earlier.
Lennar said lower construction costs partially offset the margin decline, reporting a 6% annual reduction in costs per square foot.
For the fourth quarter, Lennar expects 22,000 to 23,000 deliveries and a gross margin on home sales of approximately 15.5% to 16%.