Lennar Q1 Home Deliveries Miss Estimates on High Prices
Lennar reported 16,863 home deliveries for the first quarter, missing estimates as high rates hit demand. The company also posted lower profit and revenue.
Lennar Corporation reported first-quarter home deliveries that fell short of Wall Street expectations on Thursday, as an inflation-driven affordability crisis in the United States continues to weigh on the housing market. Following the announcement, shares of the Miami-based homebuilder declined 1.2% in after-hours trading.
The company completed 16,863 home deliveries during the first quarter, missing the 17,677 units anticipated by analysts according to LSEG data. Lennar Co-CEO Stuart Miller attributed the performance to a combination of economic and geopolitical factors that have impacted the industry for several years.
Our first quarter of fiscal year 2026 was defined by the same persistent headwinds that have challenged the housing market for over three years — high mortgage rates, constrained affordability, cautious consumer sentiment, and geopolitical uncertainty, especially now including the recent conflict in Iran.
Single-family homebuilders have faced significant challenges as a chronic supply shortage and sustained inflation have driven property prices higher. To maintain sales momentum, Lennar has implemented cost-cutting measures and offered incentives such as mortgage rate buydowns. Despite these efforts, broader industry sentiment remains weak. The National Association of Home Builders and Wells Fargo & Company Housing Market index dropped one point to 36 in February, marking its 22nd consecutive month below the 50-point break-even threshold.
Financial results for the quarter ended February 28, 2026, showed revenue of $6.62 billion, trailing the $6.88 billion expected by the market. Excluding specific items, Lennar reported a profit of 88 cents per share, which was lower than the 96 cents per share projected by analysts. Looking ahead to the second quarter, the company expects to deliver between 20,000 and 21,000 homes, compared to the 20,232 units estimated by analysts. However, Lennar forecasted a decline in gross margins on home sales, projecting a range between 15.5% and 16%, down from the 17.8% reported in previous periods.
