Lennar Corporation (LEN) Q4 2024 Earnings Report

Lennar reported Q4 2024 revenue of approximately $9.95 billion, delivering 36% year-over-year growth and EPS of $4.06, supported by a high level of unit completions and favorable pricing leverage before seasonality and margin dynamics weighed on quarterly profitability. Net income rose about 52% YoY to $1.10 billion, while gross margin declined to roughly 15.6% due to increased incentives and rate buy-down activity implemented to sustain demand amid a higher rate environment. Management signaled a strategic pivot toward volume-driven production, with margins temporarily compressed as Lennar adapts pricing and incentives to a more cautious demand backdrop. The company maintained constructive longer-term demand expectations and reiterated a path toward an asset-light, land-light operating model, anchored by Milrose Properties and the Rausch Coleman integration, aimed at improving capital efficiency and cash flow visibility.

Lennar ended the period with robust liquidity, including about $4.99 billion in cash and total liquidity of roughly $7.6 billion, and a debt-to-capital ratio of 7.5%. The firm completed $521 million of share repurchases in Q4 (3 million shares) and disclosed a full-year buyback program exceeding $2 billion. The Q4 commentary underlines a stabilized long-run operating framework centered on volume and inventory turnover, with guidance calling for 86,000–88,000 home deliveries in 2025 (an 8%–10% year-over-year increase) and Q1 2025 margin guidance of 19%–19.25% as the company navigates the ongoing demand normalization and the integration of strategic assets. The outlook remains tempered by affordability constraints and potential macro shocks, but the balance sheet and cash generation capabilities position Lennar to participate in any rebound in housing demand as rates stabilize.