Lennar Corporation reported significant financial performance for the three and nine months ended August 31, 2024, reflecting growth in revenues and profitability compared to the previous fiscal period. Total revenues for the third quarter reached $9.42 billion, up from $8.73 billion in the same period of 2023. Homebuilding revenues specifically increased to $9.05 billion from $8.32 billion, driven by a 16% rise in home deliveries, totaling 21,516 homes. However, the average sales price of homes delivered decreased to $422,000 from $448,000.
For the nine months ended August 31, 2024, total revenues were $25.49 billion, compared to $23.27 billion in the prior year. Homebuilding revenues for this period also rose to $24.28 billion from $22.02 billion. Despite the increase in revenues, gross margins on home sales slightly declined, with gross margins for the third quarter at 22.5%, down from 24.4% in 2023, attributed to increased land costs and decreased revenues per square foot.
Net earnings attributable to Lennar for the third quarter were $1.16 billion, or $4.26 per diluted share, compared to $1.11 billion, or $3.87 per diluted share, in the prior year. For the nine-month period, net earnings increased to $2.87 billion from $2.59 billion. The company’s operating earnings for the third quarter were $1.72 billion, up from $1.61 billion in 2023.
Lennar's total assets as of August 31, 2024, amounted to $39.74 billion, an increase from $39.23 billion at the end of November 2023. Cash and cash equivalents decreased to $4.04 billion from $6.27 billion, while inventory owned rose to $16.25 billion from $15.36 billion. The company also reported an increase in accounts payable and liabilities related to consolidated inventory not owned.
Strategically, Lennar is transitioning to a land-light, asset-light model while maintaining production volume. The company plans to spin off Millrose Properties Inc., contributing land assets valued between $6 billion and $8 billion. Additionally, Lennar authorized an increase to its stock repurchase program by an additional $5 billion, with $3.9 billion remaining as of August 31, 2024. The company expects to repurchase over $2 billion of stock for fiscal year 2024.
Overall, Lennar's performance reflects strong demand for housing despite market challenges, with expectations for continued growth into 2025.
About LENNAR CORP /NEW/
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