Lennar Corporation, one of the nation’s leading homebuilders, reported its second-quarter earnings for 2025, revealing a decline in both net earnings and sales prices amid a challenging housing market. The company recorded net earnings of $477 million, or $1.81 per diluted share, down from $954 million, or $3.45 per diluted share during the same period last year. When adjusting for mark-to-market losses on technology investments, earnings were $1.90 per diluted share.

New orders increased by 6% to 22,601 homes, and deliveries rose 2% to 20,131 homes. However, total revenues for the quarter were $8.4 billion, a decrease from the previous year’s $8.8 billion. The average sales price for homes delivered dropped to $389,000, down from $426,000 a year ago. Gross margin on home sales was reported at 17.8%, declining from 22.6% in the previous year, while the margin excluding purchase accounting was 18.0%.

Selling, general, and administrative (SG&A) expenses rose to $688 million, representing 8.8% of home sales revenues, an increase from 7.5% in the same quarter of 2024. The operating earnings from the Financial Services segment increased to $157 million, compared to $146 million last year, primarily due to a higher profit per locked loan.

The company’s balance sheet remained robust with $1.2 billion in cash and total liquidity of $5.4 billion. Homebuilding debt to total capital stood at 11%. During the quarter, Lennar repurchased 4.7 million shares for $517 million and issued $700 million in senior notes due in 2030 while redeeming $500 million of maturing notes.

Lennar expects a continued focus on volume and affordability in the upcoming quarters, predicting new orders and deliveries to remain between 22,000 and 23,000 homes in the third quarter of 2025. The company aims to maintain gross margin at approximately 18% moving forward. The inventory of completed unsold homes was noted at 2,900, which is below two unsold homes per community, consistent with historical figures.

The overall market remains challenging, characterized by elevated interest rates, constrained supply, and mixed signals affecting consumer confidence. As a result, Lennar’s operational strategy includes a focus on managing inventory effectively, maintaining cash flow, and leveraging technology for efficiency.