Homebuilder Lennar delivered 20,519 homes in Q2, beating new order expectations amid persistent affordability challenges.
Lennar reported second-quarter earnings of $1.31 per share, excluding mark-to-market items, as home deliveries reached 20,519 units and new orders totaled 21,749. The results came despite a tough housing market, with mortgage rates holding in the mid- to upper-6% range, pressuring affordability for buyers.
Gross margin improved to 15.6% and net margin stood at 6.4%, with management noting early signs of better pricing and margin recovery. Construction costs per square foot fell 7% year over year, while cycle time hit a record low of 121 days, boosting efficiency.
The company maintained strong liquidity and an asset-light strategy, owning just 2% of its land while controlling the rest through third parties. CEO Stuart Miller emphasized operating in the current environment rather than waiting for rate cuts.