AI Takeaway
Lennar's FY2025 results showed significant pressure with revenue declining 3.5% to $34.2B and net income nearly halving to $2.1B, driven by margin compression and a sharp 91% drop in operating cash flow, even as the company continued returning capital through $1.8B in share buybacks.
Revenue
$34.19B
-3.54% YoY
EPS (Basic)
$7.98
-44.23% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue fell 3.5% year-over-year from $35.4B to $34.2B in FY2025, reflecting softening demand in the homebuilding market as elevated mortgage rates and affordability constraints weighed on home sales volumes and/or pricing.
Source: Source: 10-K Income Statement
Net income dropped 47.2% from $3.9B to $2.1B, with net margin contracting to approximately 6.1% in FY2025 from a higher prior-year level, suggesting significant cost pressures or incentive spending to move inventory in a challenging housing environment.
Source: Source: 10-K Income Statement & Key Ratios
SG&A expenses increased 8.0% to $2.68B even as revenue declined, indicating operating leverage moved in the wrong direction and management was unable to scale down overhead costs proportionally to the revenue shortfall.
Source: Source: 10-K Income Statement
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Upgrade to unlockNet income fell nearly 47% year-over-year to $2.1B despite only a 3.5% revenue decline, implying substantial margin erosion likely from buyer incentives, price reductions, or elevated construction costs. This disconnect between revenue and profitability suggests structural margin pressure that may persist if housing demand remains soft.
Source: Source: 10-K Income Statement
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Upgrade to unlockReported EPS of $1.93 versus the $2.24 analyst consensus — a -13.7% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $34.19B | $35.44B | -3.54% |
Net Income | $2.08B | $3.93B | -47.15% |
EPS (Basic) | $7.98 | $14.31 | -44.23% |
SG&A Expense | $2.68B | $2.48B | +7.98% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $34.43B | $41.31B | -16.66% |
Total Liabilities | $12.29B | $13.29B | -7.54% |
Stockholders' Equity | $21.96B | $27.87B | -21.21% |
Cash & Equivalents | $3.76B | $4.91B | -23.49% |
Long-Term Debt | $5.87B | $4.19B | +40.24% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $216.81M | $2.4B | -90.98% |
Investing Cash Flow | $221.57M | $-302.56M | +173.23% |
Financing Cash Flow | $-1.6B | $-3.68B | +56.60% |
Share Buybacks | $1.81B | $2.26B | -19.86% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 6.1% | — | — |
ROE | 9.5% | — | — |
ROA | 6.0% | — | — |
Debt to Equity | $0.56 | — | — |
LEN's Q2 FY2026 results show a decline in revenue and net income, with significant challenges in maintaining profitability amid increased liabilities and reduced equity.
Lennar's Q1 FY2026 results showed significant pressure with revenue declining 13.3% YoY to $6.62B and net income falling 55.8% to $229M, reflecting a challenging homebuilding environment with negative operating cash flow of -$433.5M.
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Lennar reported FY2025 revenue of $34.2B, down 3.5% year-over-year, while net income fell sharply by 47.2% to $2.1B. The results reflected significant margin compression and a 91% collapse in operating cash flow to just $217M, signaling a challenging year for the homebuilder.
Lennar's net income fell nearly 47% from $3.9B to $2.1B in FY2025, a decline far steeper than the 3.5% revenue decrease, suggesting significant cost pressures including potentially higher buyer incentives, elevated construction costs, and rising SG&A expenses which grew 8% to $2.68B. The net margin contracted to approximately 6.1%, indicating structural profitability headwinds.
Lennar's operating cash flow dropped 91% from $2.4B to just $217M in FY2025, a dramatic deterioration likely driven by working capital build-up in inventory or land. Despite this, the company continued repurchasing shares, spending $1.8B on buybacks, which contributed to a 23.5% decline in cash and equivalents to $3.8B.
Yes, Lennar's long-term debt rose 40.2% from $4.2B to $5.9B in FY2025, even as earnings and cash flow came under significant pressure. This pushed the debt-to-equity ratio to approximately 0.56x, reflecting increased financial leverage at a challenging point in the housing cycle.
Lennar returned approximately $1.8B to shareholders through share buybacks in FY2025, down 19.9% from $2.26B in the prior year. Basic EPS declined 44.2% to $7.98, reflecting both the lower net income and the impact of the reduced share count from ongoing repurchase activity.