Lennar Q2 earnings fall 36% on margin pressure; lowers FY26 delivery guidance to 82-83k homes

Filed June 29, 2026 · Period ending May 31, 2026 · Compared to 10-Q Jul 1, 2025 · ~2 min read

Key Changes

• high

  Q2 FY26 net earnings fell 36% YoY to $304.8M ($1.24/share) as gross margin compressed 220bp to 15.6% on lower pricing ($371k avg vs $389k) and higher land costs, despite reduced construction costs.

  MD&A: Q2 Results verify on EDGAR →
• high

  Full-year delivery guidance cut to 82-83k homes (down ~4% from prior 86-88k range) citing interest-rate pressures and macro uncertainty; Q3 margin guidance of ~16% implies continued compression vs 18% prior year.

  MD&A: Guidance verify on EDGAR →
• high

  Homebuilding debt-to-total-capital rose 480bp YoY to 15.8% (net debt-to-capital 9.4% vs 6.7%) driven by $1.7B drawn on term loan facility, senior notes issuance, and lower equity from $737M stock buybacks and Millrose exchange.

  MD&A: Liquidity & Capital verify on EDGAR →