(Disclosure: Rose Law Group represents Lennar.)
By Leah Draffen | Builder
Lennar reported lower second quarter earnings as it maintained sales volume in a high‑rate, affordability‑constrained housing market by leaning on pricing adjustments and incentives.
“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,” said Stuart Miller, executive chairman, CEO, and president of Lennar. “Against that backdrop, our team delivered results that demonstrate the strength and resilience of our operating platform.”
Net income fell to $305 million, or $1.24 per share, from $477 million a year earlier, while revenue totaled $7.9 billion. Home sales revenue declined 2% to $7.6 billion, reflecting a 5% drop in average sales price to $371,000, partially offset by a 2% increase in deliveries to 20,519 homes.
Demand remained relatively steady but softer, with new orders down 4% to 21,749 homes and backlog at 16,818 homes. Incentives averaged roughly 12.9%, underscoring ongoing affordability pressure.
