Earnings call transcript: Lennar misses Q3 2026 estimates as housing demand softens

Lennar Corp. missed Wall Street expectations for fiscal third-quarter profit and revenue, reporting adjusted earnings of $1.23 per share, below the $1.29 expected, and revenue of $8.05 billion, less than the $8.31 billion forecast. The stock was last up 0.22% at $78.54, near the low end of its 52-week range. New orders fell short of expectations, dropping from 23,000 a year earlier to 20,879.

Gross margin improved slightly, but SG&A ran above the company's target range. Lennar pointed to affordability challenges, with mortgage rates staying high and resale listings becoming more competitive. The company's production model remained tightly aligned, with starts, sales, and deliveries within a narrow band. Management expects a land operating system to be fully operational by year-end 2026, improving land buying, development, and administration at a lower cost of capital.