Lennar's Q3 2026 revenue of $8.0 billion, down 8.7% year-over-year, and operating margin of 5.7% suggest sustained contraction and margin pressure from reliance on sales incentives, with EPS declining 48% year-over-year to $1.19.
Lennar Corporation (LEN) annual income statement — 30-year revenue, gross profit & net income history
| 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 | 31.97B | 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 % | -8.03% | -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 | 28.93B | 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 | 3.04B | 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 % | 9.52% | 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 | 1.33B | 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 | 1.31B | 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 | 2M | 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 | 1.71B | 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 % | 5.34% | 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 | 1.8B | 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 % | 5.62% | 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 % | -50.03% | -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) | 103.69M | 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 | 1.9B | 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 | -114.45M | -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 | 114.45M | 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 | 77.5M | 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 | 1.79B | 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 % | 5.59% | 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 | 460.83M | 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 % | 25.81% | 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 | 1.31B | 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 % | 4.1% | 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 % | -51.13% | -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) | 1.32B | 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 | 137.46M | 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) | 5.52 | 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 % | -47.73% | -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 | 237.76M | 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 | 237.76M | 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% |
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.
Key Metrics
Top Statement Risk
Margin compression from incentives
Metrics are mathematically derived from official filings.
Revenue Contraction Deepens Sequentially
Lennar's revenue has contracted for six consecutive quarters, with the most recent period showing an 8.7% year-over-year decline to $8.0 billion, indicating persistent demand headwinds despite the company's Everything's Included model.
The sequential deceleration from -4.4% in Q2 2025 to -8.7% in Q3 2026 suggests that affordability challenges are intensifying, likely driven by elevated mortgage rates. The company's reliance on incentive-driven sales to maintain volume appears to be offset by pricing concessions, further compressing the top line.
Gross Margin Volatility Reflects Incentive Reliance
Based on recent SEC filings, Lennar's gross margin compressed to a trough of 5.9% in Q1 2026 before a rebound to 16.6% in Q3 2026, highlighting significant quarterly volatility tied to sales incentives and land sale mix.
The wide swings in gross margin, from 15.6% in Q4 2024 to 5.9% and back, imply that the company is actively using pricing adjustments to move inventory. This volatility may indicate that the Everything's Included model's standardization benefits are being overshadowed by the need to offer aggressive mortgage rate buy-downs and other concessions in a high-rate environment.
Operating Leverage Erodes with Margin Compression
As reported in financial statements, Lennar's operating income fell to $459.8 million in Q3 2026 despite revenue of $8.0 billion, resulting in an operating margin of 5.7% that is less than half the 13.9% seen a year earlier.
The compression in operating margin suggests that the company's fixed cost base is becoming a larger burden as gross profit declines. SG&A expenses, while variable in part, have not fallen proportionally with revenue, indicating limited operational flexibility to preserve profitability during cyclical downturns.
Inflection Point Marked by Sharp Margin Deterioration
The period from Q1 2025 to Q1 2026 represents a critical inflection where Lennar's gross margin collapsed from 11.3% to 5.9%, driven by an aggressive shift to incentive-based sales to maintain volume.
This inflection appears to be a direct response to the affordability crisis, with the company sacrificing margin to keep community traffic and sales velocities from falling further. The lasting impact is a structural reset of the profitability profile, as the benefits of the asset-light land strategy are being temporarily overshadowed by the need to finance buyer demand.
Margin Compression Risks Overlooked by Market
Short-sellers may focus on the fact that Lennar's Q3 2026 EPS of $1.19 represents a 48% year-over-year decline, while the 9.9% gross margin average across recent quarters signals unsustainable pricing practices.
The core challenge is whether the rebound in gross margin to 16.6% in Q3 2026 is sustainable or a one-time adjustment. If the company must continue offering steep incentives to drive sales, the current earnings trajectory may deteriorate further, especially if the housing shortage thesis is offset by persistent buyer affordability constraints.