Lennar's profitability is under pressure, evidenced by a sharp gross margin compression to 5.9% in 2026Q1 from 24.9% in 2023Q4, alongside a 52% year-over-year decline in EPS.
| Metric | TTM | Nov'25 | Nov'24 | Nov'23 | Nov'22 | Nov'21 | Nov'20 | Nov'19 | Nov'18 | Nov'17 | Nov'16 | Nov'15 | Nov'14 | Nov'13 | Nov'12 | Nov'11 | Nov'10 | Nov'09 | Nov'08 | Nov'07 | Nov'06 | Nov'05 | Nov'04 | Nov'03 | Nov'02 | Nov'01 | Nov'00 | Nov'99 | Nov'98 | Nov'97 | Nov'96 |
|---|
| Sales/Revenue | 33.17B | 34.19B | 35.44B | 34.23B | 33.67B | 27.13B | 22.49B | 22.26B | 20.57B | 12.65B | 10.95B | 9.47B | 7.78B | 5.94B | 4.11B | 3.1B | 3.07B | 3.12B | 4.58B | 10.19B | 16.27B | 13.87B | 10.5B | 8.91B | 7.24B | 5.98B | 4.71B | 3.12B | 2.42B | 1.3B | 1.04B |
| Revenue Growth % | -7.23% | -3.54% | 3.53% | 1.67% | 24.11% | 20.64% | 1.03% | 8.21% | 62.67% | 15.49% | 15.58% | 21.78% | 31.08% | 44.58% | 32.62% | 0.69% | -1.45% | -31.82% | -55.08% | -37.38% | 17.31% | 32.05% | 17.89% | 23.11% | 20.99% | 27.05% | 50.94% | 29.03% | 85.47% | 25.09% | 19.67% |
| Cost of Goods Sold | 30.26B | 30.8B | 29.94B | 28.29B | 26.47B | 21.59B | 19.01B | 19.46B | 18.24B | 11.02B | 9.46B | 8.17B | 6.68B | 5.1B | 3.66B | 2.9B | 2.86B | 3.46B | 4.89B | 12.64B | 15.17B | 11.67B | 9.02B | 7.69B | 6.35B | 5.27B | 4.12B | 2.7B | 2.08B | 1.14B | 909.9M |
| COGS % of Revenue | - | 90.09% | 84.48% | 82.65% | 78.61% | 79.59% | 84.55% | 87.41% | 88.65% | 87.15% | 86.35% | 86.25% | 85.87% | 85.98% | 89.19% | 93.58% | 92.9% | 110.98% | 106.77% | 124.08% | 93.27% | 84.18% | 85.89% | 86.36% | 87.76% | 88.13% | 87.62% | 86.54% | 85.89% | 87.35% | 87.35% |
| Gross Profit | 2.92B | 3.39B | 5.5B | 5.94B | 7.2B | 5.54B | 3.47B | 2.8B | 2.33B | 1.62B | 1.49B | 1.3B | 1.1B | 831.9M | 443.63M | 198.73M | 218.29M | -342.65M | -309.83M | -2.45B | 1.1B | 2.19B | 1.48B | 1.21B | 885.7M | 709.81M | 582.92M | 419.6M | 341.1M | 164.8M | 131.8M |
| Gross Margin % | 8.79% | 9.91% | 15.52% | 17.35% | 21.39% | 20.41% | 15.45% | 12.59% | 11.35% | 12.85% | 13.65% | 13.75% | 14.13% | 14.02% | 10.81% | 6.42% | 7.1% | -10.98% | -6.77% | -24.08% | 6.73% | 15.82% | 14.11% | 13.64% | 12.24% | 11.87% | 12.38% | 13.46% | 14.11% | 12.65% | 12.65% |
| Gross Profit Growth % | - | -38.4% | -7.44% | -17.51% | 30.08% | 59.37% | 23.97% | 20.05% | 43.65% | 8.69% | 14.79% | 18.47% | 32.13% | 87.52% | 123.24% | -8.96% | 163.71% | -10.59% | 87.37% | -323.93% | -50.08% | 48.09% | 21.97% | 37.15% | 24.78% | 21.77% | 38.92% | 23.01% | 106.98% | 25.04% | -15.3% |
| Operating Expenses | 646.98M | 636.72M | 648.99M | 501.34M | 414.5M | 398.38M | 333.45M | 321.19M | 343.93M | 285.89M | 232.56M | 216.24M | 177.16M | 146.06M | 127.34M | 95.26M | 93.93M | 117.56M | 129.75M | 173.2M | 193.31M | 187.26M | 141.72M | 111.49M | 85.96M | 75.83M | 108.69M | 85.3M | 53.4M | 24.9M | 24.4M |
| OpEx % of Revenue | - | 1.86% | 1.83% | 1.46% | 1.23% | 1.47% | 1.48% | 1.44% | 1.67% | 2.26% | 2.12% | 2.28% | 2.28% | 2.46% | 3.1% | 3.08% | 3.06% | 3.77% | 2.84% | 1.7% | 1.19% | 1.35% | 1.35% | 1.25% | 1.19% | 1.27% | 2.31% | 2.74% | 2.21% | 1.91% | 2.34% |
| Selling, General & Admin | 646.98M | 636.72M | 648.99M | 501.34M | 414.5M | 398.38M | 333.45M | 321.19M | 343.93M | 285.89M | 232.56M | 216.24M | 177.16M | 146.06M | 127.34M | 95.26M | 93.93M | 117.56M | 129.75M | 173.2M | 193.31M | 187.26M | 141.72M | 111.49M | 85.96M | 75.83M | 50.16M | 37.6M | 29M | 15.9M | 12.4M |
| SG&A % of Revenue | - | 1.86% | 1.83% | 1.46% | 1.23% | 1.47% | 1.48% | 1.44% | 1.67% | 2.26% | 2.12% | 2.28% | 2.28% | 2.46% | 3.1% | 3.08% | 3.06% | 3.77% | 2.84% | 1.7% | 1.19% | 1.35% | 1.35% | 1.25% | 1.19% | 1.27% | 1.07% | 1.21% | 1.2% | 1.22% | 1.19% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 58.53M | 47.7M | 24.4M | 9M | 12M |
| Operating Income | 2.27B | 2.75B | 4.85B | 5.44B | 6.79B | 5.14B | 3.14B | 2.48B | 1.99B | 1.34B | 1.26B | 1.09B | 922.04M | 685.84M | 316.3M | 103.47M | 124.37M | -460.21M | -439.58M | -2.63B | 901.97M | 2.01B | 1.34B | 1.1B | 799.75M | 633.98M | 474.24M | 334.3M | 287.7M | 139.9M | 107.4M |
| Operating Margin % | 6.84% | 8.05% | 13.68% | 15.89% | 20.16% | 18.94% | 13.97% | 11.15% | 9.67% | 10.59% | 11.53% | 11.46% | 11.85% | 11.56% | 7.7% | 3.34% | 4.05% | -14.75% | -9.61% | -25.78% | 5.54% | 14.47% | 12.76% | 12.39% | 11.05% | 10.6% | 10.08% | 10.72% | 11.9% | 10.74% | 10.31% |
| Operating Income Growth % | - | -43.29% | -10.84% | -19.86% | 32.1% | 63.6% | 26.58% | 24.66% | 48.64% | 6.07% | 16.24% | 17.78% | 34.44% | 116.83% | 205.68% | -16.8% | 127.02% | -4.69% | 83.26% | -391.13% | -55.06% | 49.78% | 21.45% | 37.95% | 26.15% | 33.68% | 41.86% | 16.2% | 105.65% | 30.26% | -20.33% |
| EBITDA | 2.41B | 2.88B | 4.97B | 5.55B | 6.87B | 5.22B | 3.24B | 2.57B | 2.08B | 1.41B | 1.31B | 1.13B | 960.58M | 716.18M | 344.38M | 124.97M | 137.89M | -440.31M | -407.19M | -2.57B | 951.98M | 2.08B | 1.41B | 1.18B | 872.13M | 702.65M | 532.77M | 382M | 312.1M | 148.9M | 119.4M |
| EBITDA Margin % | 7.25% | 8.44% | 14.01% | 16.21% | 20.42% | 19.26% | 14.39% | 11.56% | 10.12% | 11.11% | 11.99% | 11.92% | 12.35% | 12.07% | 8.39% | 4.04% | 4.49% | -14.12% | -8.9% | -25.22% | 5.85% | 15% | 13.46% | 13.24% | 12.05% | 11.75% | 11.32% | 12.25% | 12.91% | 11.43% | 11.46% |
| EBITDA Growth % | -49.51% | -41.9% | -10.53% | -19.27% | 31.59% | 61.48% | 25.72% | 23.63% | 48.11% | 7.07% | 16.19% | 17.6% | 34.12% | 107.97% | 175.56% | -9.37% | 131.32% | -8.13% | 84.15% | -369.87% | -54.22% | 47.15% | 19.84% | 35.2% | 24.12% | 31.89% | 39.47% | 22.4% | 109.6% | 24.71% | -17.71% |
| D&A (Non-Cash Add-back) | 136.37M | 134.31M | 115.53M | 110.16M | 87.08M | 85.95M | 94.55M | 92.2M | 91.18M | 66.32M | 50.22M | 43.67M | 38.54M | 30.35M | 28.08M | 21.5M | 13.52M | 19.91M | 32.4M | 56.76M | 50.01M | 72.64M | 73.29M | 75.91M | 72.39M | 68.67M | 58.53M | 47.7M | 24.4M | 9M | 12M |
| EBIT | 2.42B | 2.83B | 5.2B | 5.22B | 6.03B | 5.84B | 3.14B | 2.48B | 1.99B | 1.34B | 1.26B | 1.22B | 1.01B | 775.85M | 316.47M | 188.62M | 165.15M | -689.55M | -538.03M | -2.63B | 901.97M | 2.01B | 1.34B | 1.1B | 799.75M | 633.98M | 474.24M | 334.3M | 287.7M | 139.9M | 107.4M |
| Net Interest Income | 0 | -13.87M | -18.77M | -15.43M | -19.13M | -20.14M | -22.4M | -17.62M | -11.26M | -7.16M | -4.63M | -12.45M | -36.55M | -93.91M | -94.35M | -90.65M | -70.42M | -70.85M | -27.59M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 13.87M | 18.77M | 15.43M | 19.13M | 20.14M | 22.4M | 17.62M | 11.26M | 7.16M | 4.63M | 12.45M | 36.55M | 93.91M | 94.35M | 90.65M | 70.42M | 70.85M | 27.59M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 148.28M | 63.46M | 334.94M | -237.34M | -773.08M | 680.8M | -16.87M | -46.81M | 272.43M | -149.38M | 68.11M | 123.6M | 47.75M | -3.9M | -94.18M | -5.5M | -29.64M | -300.19M | -126.04M | -455.17M | 40.68M | 152.83M | 177.62M | 103.8M | 75.96M | 45.45M | -98.6M | -48.8M | -47.6M | -54.2M | -23M |
| Pretax Income | 2.42B | 2.81B | 5.18B | 5.2B | 6.01B | 5.82B | 3.12B | 2.43B | 2.26B | 1.19B | 1.33B | 1.21B | 969.78M | 681.94M | 222.11M | 97.97M | 94.72M | -760.4M | -565.63M | -3.08B | 942.65M | 2.16B | 1.52B | 1.21B | 875.71M | 679.42M | 375.63M | 285.5M | 240.1M | 85.7M | 84.4M |
| Pretax Margin % | 7.29% | 8.23% | 14.63% | 15.2% | 17.86% | 21.45% | 13.89% | 10.94% | 11% | 9.41% | 12.15% | 12.77% | 12.47% | 11.49% | 5.41% | 3.17% | 3.08% | -24.38% | -12.36% | -30.25% | 5.79% | 15.57% | 14.45% | 13.55% | 12.1% | 11.36% | 7.98% | 9.16% | 9.93% | 6.58% | 8.1% |
| Income Tax | 605.13M | 705.56M | 1.22B | 1.24B | 1.37B | 1.36B | 656.24M | 592.17M | 545.17M | 417.86M | 417.38M | 390.42M | 341.09M | 177.01M | -435.22M | -14.57M | -25.73M | -314.35M | 547.56M | -1.14B | 348.78M | 815.28M | 572.86M | 455.66M | 330.58M | 261.58M | 146.5M | 112.8M | 96M | 35.1M | 32.9M |
| Effective Tax Rate % | 25.03% | 25.07% | 23.48% | 23.86% | 22.71% | 23.41% | 21.01% | 24.33% | 24.09% | 35.13% | 31.37% | 32.28% | 35.17% | 25.96% | -195.94% | -14.87% | -27.17% | 41.34% | -96.81% | 37% | 37% | 37.75% | 37.75% | 37.75% | 37.75% | 38.5% | 39% | 39.51% | 39.98% | 40.96% | 38.98% |
| Net Income | 1.79B | 2.08B | 3.93B | 3.94B | 4.61B | 4.43B | 2.47B | 1.85B | 1.7B | 810.48M | 911.84M | 802.89M | 638.92M | 479.67M | 679.12M | 92.2M | 95.26M | -417.15M | -1.11B | -1.94B | 593.87M | 1.36B | 945.62M | 751.39M | 545.13M | 417.85M | 229.14M | 172.7M | 144.1M | 84.4M | 88M |
| Net Margin % | 5.39% | 6.08% | 11.1% | 11.5% | 13.7% | 16.33% | 10.96% | 8.31% | 8.24% | 6.41% | 8.33% | 8.47% | 8.21% | 8.08% | 16.54% | 2.98% | 3.1% | -13.37% | -24.24% | -19.05% | 3.65% | 9.77% | 9.01% | 8.44% | 7.53% | 6.99% | 4.87% | 5.54% | 5.96% | 6.48% | 8.45% |
| Net Income Growth % | -52.1% | -47.15% | -0.15% | -14.64% | 4.15% | 79.72% | 33.31% | 9.04% | 109.24% | -11.12% | 13.57% | 25.66% | 33.2% | -29.37% | 636.59% | -3.21% | 122.84% | 62.39% | 42.86% | -426.85% | -56.18% | 43.31% | 25.85% | 37.84% | 30.46% | 82.36% | 32.68% | 19.85% | 70.73% | -4.09% | 25% |
| Net Income (Continuing) | 1.81B | 2.11B | 3.97B | 3.96B | 4.65B | 4.46B | 2.47B | 1.84B | 1.72B | 771.75M | 913.09M | 819.2M | 628.69M | 504.93M | 657.33M | 112.54M | 120.46M | -446.06M | -1.11B | -1.94B | 593.87M | 1.34B | 944.64M | 751.39M | 545.13M | 417.85M | 229.14M | 172.7M | 144.1M | 50.6M | 51.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10.74M | 977K | 0 | 0 | 0 | 0 | 0 | 0 | 33.8M | 36.5M |
| Minority Interest | 152.89M | 181.19M | 151.09M | 121.3M | 139.87M | 179.86M | 104.55M | 84.31M | 101.42M | 113.81M | 185.53M | 301.13M | 424.28M | 458.57M | 586.44M | 607.06M | 585.43M | 144.53M | 165.75M | 28.53M | 55.39M | 78.24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 7.31 | 7.98 | 14.31 | 13.73 | 15.72 | 14.27 | 7.85 | 5.74 | 5.44 | 3.38 | 3.85 | 3.39 | 2.75 | 2.11 | 3.05 | 0.47 | 0.50 | -2.40 | -6.86 | -12.07 | 3.62 | 8.07 | 5.59 | 4.56 | 3.44 | 2.68 | 1.62 | 1.22 | 1.22 | 1.09 | 1.19 |
| EPS Growth % | -49.24% | -44.23% | 4.22% | -12.66% | 10.16% | 81.78% | 36.76% | 5.51% | 60.95% | -12.21% | 13.57% | 23.27% | 30.33% | -30.82% | 548.94% | -6% | 120.83% | 65.01% | 43.16% | -433.43% | -55.14% | 44.36% | 22.59% | 32.56% | 28.36% | 65.43% | 32.79% | 0% | 11.93% | -8.4% | 23.96% |
| EPS (Basic) | - | 7.98 | 14.31 | 13.73 | 15.74 | 14.28 | 7.88 | 5.76 | 5.46 | 3.38 | 4.05 | 3.79 | 3.06 | 2.43 | 3.51 | 0.48 | 0.50 | -2.40 | -6.86 | -12.07 | 3.69 | 8.43 | 5.97 | 5.00 | 3.80 | 2.97 | 1.78 | 1.32 | 1.27 | 1.10 | 1.20 |
| Diluted Shares Outstanding | 244.44M | 257.75M | 272.02M | 283.32M | 289.82M | 306.61M | 309.41M | 318.42M | 308.56M | 237.16M | 235.33M | 235.43M | 232.8M | 230.44M | 223.07M | 199.09M | 192.63M | 173.95M | 161.56M | 160.84M | 164.16M | 167.95M | 169.22M | 164.82M | 158.41M | 156.12M | 141.26M | 141.44M | 118.06M | 77.21M | 73.88M |
| Basic Shares Outstanding | 244.44M | 257.75M | 272.02M | 283.32M | 289.82M | 306.61M | 309.41M | 318.42M | 307.97M | 237.16M | 222.79M | 209.29M | 206.25M | 194.28M | 190.4M | 188.23M | 186.62M | 173.95M | 161.56M | 160.84M | 161.1M | 157.9M | 158.38M | 150.28M | 143.31M | 140.58M | 128.55M | 130.48M | 113.5M | 76.52M | 73.27M |
| Dividend Payout Ratio | - | 25.07% | 13.96% | 10.93% | 9.49% | 6.99% | 7.91% | 2.78% | 2.9% | 4.64% | 3.87% | 4.13% | 5.13% | 6.44% | 4.48% | 32.44% | 31.05% | - | - | - | 17.06% | 6.58% | 8.45% | 3.02% | 0.58% | 0.75% | 1.26% | 1.68% | 1.87% | 3.91% | 3.98% |
Margin compression and volume decline
As reported in recent financial filings, Lennar's revenue growth has shifted into negative territory, with the most recent quarter showing a 13.3% year-over-year decline, signaling a significant deceleration from the positive growth rates observed throughout the 2024 fiscal year across its primary homebuilding segments.
The persistent decline in revenue suggests that the company is struggling to maintain volume in a high-interest-rate environment. Investors should monitor whether this contraction reflects a strategic pivot toward higher-margin projects or an inability to compete effectively without aggressive pricing incentives.
Based on the company's latest income statement, gross margins have compressed sharply to 5.9% in 2026Q1, a stark departure from the 24.9% levels seen in 2023Q4, indicating that the firm's pricing power is currently under significant pressure from rising input costs and competitive discounting.
This rapid margin deterioration suggests that the 'Everything's Included' model may be losing its protective buffer against cyclical downturns. The reliance on incentives to drive sales appears to be eroding profitability, necessitating a closer look at whether this is a temporary adjustment or a permanent shift in the cost structure.
According to the provided income statement data, operating income has fallen to $233.1 million in 2026Q1, reflecting a significant loss of operating leverage as the company's overhead costs fail to scale down in proportion to the sharp decline in gross profit margins.
The inability to maintain operating margins suggests that fixed costs are becoming a burden during this period of revenue contraction. Analysts should investigate whether management can successfully implement further cost-rationalization measures to protect the bottom line from further erosion.
As indicated by the quarterly income statements, stock-based compensation remains a notable line item, reaching $62.4 million in 2026Q1, which continues to exert downward pressure on net income and complicates the assessment of core operational profitability during this period of declining earnings per share.
The significant fluctuation in SBC expenses suggests that compensation structures may be creating non-operating volatility in the net income line. Investors should evaluate the extent to which these charges mask the underlying performance of the core homebuilding business.
While management emphasizes a transition to an asset-light model, the recent 52% year-over-year decline in EPS suggests that the current strategy may be insufficient to offset the impact of market-wide affordability constraints and the resulting need for aggressive, margin-dilutive mortgage rate buy-downs.
Short-term performance metrics raise concerns that the company's reliance on financial services to bridge the affordability gap is unsustainable. The market may be underestimating the risk that continued margin compression will lead to further earnings downgrades if the housing market remains stagnant.
Quick answers to the most common questions about buying LEN stock.
For fiscal year 2025, Lennar Corporation (LEN) reported total revenue of $34.19B. This represents a 3181.8% increase compared to $1.04B in 1996.
Lennar Corporation (LEN) is profitable, generating $2.08B in net income for the fiscal year ending 2025 with a net profit margin of 6.1%.
Lennar Corporation (LEN) reported an operating income of $2.75B, resulting in an operating profit margin of 8.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Lennar Corporation (LEN) generated $3.39B in gross profit for the year, representing a gross profit margin of 9.9%. This demonstrates the company's core pricing power and production efficiency.