Lennar (LEN.US), one of the largest US residential developers, reported its financial results for the fourth fiscal quarter of 2025, which slightly disappointed investors. Despite maintaining high sales volumes, the company's financial results were weaker than the consensus, and the outlook for the coming quarter suggests a further slowdown in earnings growth.
In the fourth quarter, Lennar achieved adjusted earnings per share (EPS) of $2.03, which was significantly below both the previous year's figure ($4.06) and market forecasts ($2.24). Revenue was $9.37 billion, down 5.8% year-on-year, although slightly exceeding analysts' expectations. The gross margin on home sales declined to 17% from 22.1% a year earlier. The average home sale price was $386,000.
The outlook for the first quarter of 2026 is even more conservative: the company forecasts new orders of 18,000-19,000 (nearly 20,300 were expected) and a gross margin of 15-16% (16.9% was expected), all below market expectations. Analysts (including Citi, Barclays, and RBC) emphasize that the weak results and weaker-than-expected outlook confirm pressure on housing demand, growing competition from the secondary market, and the lack of rapid stabilization of margins, which translated into declines in Lennar's share price before the opening of today's session.
The company's shares are trading below Wednesday's opening price, in the zone of recent lows from November 18. As long as the company's shares remain below the 100-day exponential moving average (purple curve on the chart), the technical downtrend is likely to continue. Source: xStation
DE40: Many informations, few movements
From Euphoria to Correction: CoreWeave and the Future of AI Infrastructure
EU Fines for Tech Giants — Their Role in EU/USA Competition
DE40: European stocks are falling as markets await U.S. data
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
