Lennar Q2 earnings miss and cuts 2026 delivery forecast

Lennar Corporation reported second-quarter earnings that reflected a challenging housing market, with revenue falling short of expectations and the company lowering its full-year delivery forecast due to persistent economic headwinds.

The Miami-based homebuilder reported revenue of $7.94 billion for the quarter ended May 31, a decline from $8.38 billion a year earlier. Adjusted earnings were $1.31 per share. The company delivered 20,519 homes during the quarter, a 2% increase from the prior year, but the average selling price fell to $371,000 from $389,000.

Executive Chairman and CEO Stuart Miller said the quarter was defined by stubborn headwinds, including persistently elevated mortgage rates, constrained affordability, and cautious consumer sentiment. He noted the 30-year fixed mortgage rate remained in the mid-to-upper 6% range during the quarter. Miller also cited a recent inflation reading of 4.2% driven by higher energy costs, which he said can weigh on consumer confidence and reduce willingness to make major financial commitments.

Profitability metrics showed pressure, with homebuilding gross margin contracting to 15.6% from 17.8% a year ago. Miller said the company's...