Lennar cut its home target and said the market got worse

Lennar builds and sells new homes across the United States. It is one of the biggest builders in the country. It also runs a lending arm that helps buyers pay. [C1][C1] Press release, opening paragraphMiami, September 16, 2026 -- Lennar Corporation (NYSE: LEN and LEN.B), one of the nation’s leading homebuilders, today reported results for its third quarter ended August 31, 2026. Third quarter net earnings attributable to Lennar in 2026 were $284 million, or $1.19 per diluted share, compared to third quarter net earnings attributable to Lennar in 2025 of $591 million, or $2.29 per diluted share.Lennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm [C6][C6] Press release, Third Quarter 2026 HighlightsFinancial Services operating earnings of $129 millionLennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm

Its plan has been simple. Keep building the same number of homes. Cut the price until they sell. That keeps costs down per home. [C7][C7] Press release, comments of Stuart Millerour team adhered to our strategy of leveraging consistent volume in order to drive costs lower. We delivered 20,840 homes, within our guidance of 20,500 to 21,500, generated 20,879 new orders and produced total revenues of $8.0 billion.Lennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm

The cost of that plan shows up in the price tag. The average home sold for $372,000. About 12.0% of that was given back to the buyer as help. [C8][C8] Press release, comments of Stuart MillerOur average sales price was $372,000, reflecting approximately 12.0% in incentives, along with base price adjustments necessary to sustain volume in a market where affordability remains the defining constraint. Our gross margin improved sequentially to 15.8%, with SG&A of 9.2% resulting in a net margin of 6.6%.Lennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm

Lennar named the cause. Home loan rates went up through the quarter. The 30-year rate was about 6.8% at the end of it. It has gone higher since. [C9][C9] Press release, comments of Stuart MillerMortgage rates increased through the quarter, with the 30-year rate at approximately 6.8% at quarter end and even higher since. Rates are responding as inflation remains above the Fed’s target, driven by geopolitical tension and higher oil prices. Additionally, consumer confidence has declined as rates and affordability have driven more consumers to slow their purchase decision.Lennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm

Buyers reacted the way you would expect. The company says people are slowing down their choice to buy. New orders fell 9% from a year ago, to 20,879 homes. [C9][C9] Press release, comments of Stuart MillerMortgage rates increased through the quarter, with the 30-year rate at approximately 6.8% at quarter end and even higher since. Rates are responding as inflation remains above the Fed’s target, driven by geopolitical tension and higher oil prices. Additionally, consumer confidence has declined as rates and affordability have driven more consumers to slow their purchase decision.Lennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm [C2][C2] Press release, Third Quarter 2026 HighlightsNew orders decreased 9%, to 20,879 homes, compared to prior year • Backlog of 16,857 homes with a dollar value of $6.3 billion • Deliveries decreased 3%, to 20,840 homes, compared to prior year • Total revenues of $8.0 billionLennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm

Lennar still handed over 20,840 homes. That was inside its own plan. But total sales came to $8.0 billion, and profit fell to $284 million. [C7][C7] Press release, comments of Stuart Millerour team adhered to our strategy of leveraging consistent volume in order to drive costs lower. We delivered 20,840 homes, within our guidance of 20,500 to 21,500, generated 20,879 new orders and produced total revenues of $8.0 billion.Lennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm [C2][C2] Press release, Third Quarter 2026 HighlightsNew orders decreased 9%, to 20,879 homes, compared to prior year • Backlog of 16,857 homes with a dollar value of $6.3 billion • Deliveries decreased 3%, to 20,840 homes, compared to prior year • Total revenues of $8.0 billionLennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm [C1][C1] Press release, opening paragraphMiami, September 16, 2026 -- Lennar Corporation (NYSE: LEN and LEN.B), one of the nation’s leading homebuilders, today reported results for its third quarter ended August 31, 2026. Third quarter net earnings attributable to Lennar in 2026 were $284 million, or $1.19 per diluted share, compared to third quarter net earnings attributable to Lennar in 2025 of $591 million, or $2.29 per diluted share.Lennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm

The forward number is the one that moved. Lennar cut its target for the year by about 2,000 homes. It now aims for 80,000 to 81,000. [C3][C3] Press release, comments of Stuart Millerwe are moderating our target full-year 2026 deliveries to approximately 80,000 to 81,000 homes, from the 82,000 to 83,000 homes we discussed last quarter.Lennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm

The next three months are meant to be the biggest. Lennar plans 22,000 to 23,000 homes. It holds orders for only 16,857 homes today. The rest has to be sold and closed inside the quarter. [C5][C5] Press release, Guidance tableNew Orders 19,500 - 20,500 Deliveries 22,000 - 23,000 Average Sales Price $370,000 - $380,000 Gross Margin % on Home Sales 15.5% - 16.0%Lennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm [C2][C2] Press release, Third Quarter 2026 HighlightsNew orders decreased 9%, to 20,879 homes, compared to prior year • Backlog of 16,857 homes with a dollar value of $6.3 billion • Deliveries decreased 3%, to 20,840 homes, compared to prior year • Total revenues of $8.0 billionLennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm

Owners did get cash back. Lennar bought 3 million of its own shares for $256 million. The average price paid was $85.49. [C10][C10] Press release, Share RepurchasesIn the third quarter of 2026, the Company repurchased 3 million shares of its common stock for $256 million at an average share price of $85.49.Lennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm

Nobody knows where home loan rates go next. Lennar says they are higher now than at the end of its quarter. It gives no view past that. [C9][C9] Press release, comments of Stuart MillerMortgage rates increased through the quarter, with the 30-year rate at approximately 6.8% at quarter end and even higher since. Rates are responding as inflation remains above the Fed’s target, driven by geopolitical tension and higher oil prices. Additionally, consumer confidence has declined as rates and affordability have driven more consumers to slow their purchase decision.Lennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm

The gap in the last quarter is not explained. Lennar plans to hand over more homes than it holds orders for. It does not say how many are already built and empty. [C5][C5] Press release, Guidance tableNew Orders 19,500 - 20,500 Deliveries 22,000 - 23,000 Average Sales Price $370,000 - $380,000 Gross Margin % on Home Sales 15.5% - 16.0%Lennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm [C2][C2] Press release, Third Quarter 2026 HighlightsNew orders decreased 9%, to 20,879 homes, compared to prior year • Backlog of 16,857 homes with a dollar value of $6.3 billion • Deliveries decreased 3%, to 20,840 homes, compared to prior year • Total revenues of $8.0 billionLennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm

How much more help buyers will need is open. This quarter it was about 12.0% of the price. Lennar does not say what it plans next. [C8][C8] Press release, comments of Stuart MillerOur average sales price was $372,000, reflecting approximately 12.0% in incentives, along with base price adjustments necessary to sustain volume in a market where affordability remains the defining constraint. Our gross margin improved sequentially to 15.8%, with SG&A of 9.2% resulting in a net margin of 6.6%.Lennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm

Lennar has not said what a weaker year does to 2027. The plan it cut runs only to the end of November. [C3][C3] Press release, comments of Stuart Millerwe are moderating our target full-year 2026 deliveries to approximately 80,000 to 81,000 homes, from the 82,000 to 83,000 homes we discussed last quarter.Lennar Corporation third quarter 2026 results press release, Exhibit 99.1Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/920760/000162828026062287/ex991-2026831x8kq3.htm