Lennar Corporation cut its annual delivery target to 80,000-81,000 homes from 82,000-83,000 after reporting fiscal third-quarter gross margin on home sales of 15.8%. The homebuilder delivered 20,840 homes in the quarter, down 3% year over year, and generated 20,879 new orders, down 9%. Construction costs per square foot fell 6% year over year and are down 14% since the fourth quarter of 2023, while incentives remained approximately 12% of home value, moderating from about 12.9% in the prior quarter. Gross margin improved sequentially from 15.6% but fell from 17.5% a year earlier, which Lennar attributed primarily to lower revenue per square foot and higher land costs, partly offset by construction savings. Selling, general and administrative expenses rose to 9.2% of home-sales revenue from 8.2%, and Lennar guided fourth-quarter gross margin to 15.5%-16.0% on expected deliveries of 22,000-23,000 homes.
Lennar CorporationLennar cut its annual delivery target to 80,000-81,000 homes and Q3 gross margin fell to 15.8% from 17.5% a year earlier, with SG&A rising to 9.2% of revenue.
