Lennar reported a strong finish to 2023 with substantial cash generation and a deliberate transition toward an asset-light, land-light operating model. For the full year, Lennar delivered over 73,000 homes, up 10% year-over-year, and generated net income of $1.36 billion and EPS of $4.82 in Q4 2023. The company ended the year with about $6.3 billion of cash and $8.9 billion of homebuilding liquidity, and a near-record low Homebuilding debt-to-total capital ratio of 9.6%. Despite a challenging rate environment weighing on margins in Q4, Lennar signaled that margins should stabilize near 2023 levels as lower rates and the company’s dynamic pricing/incentive tools take hold in 2024. Management reiterated a disciplined capital allocation framework, including debt reduction, stock buybacks, and robust cash generation, with a stated objective of delivering ~80,000 homes in 2024 and repurchasing at least $2 billion of stock over the next year. The quarter and year underscored Lennar’s ability to sustain volume through incentives and pricing tools while reinforcing a durable balance sheet in a housing cycle characterized by higher borrowing costs and limited supply.