Lennar (LEN) Earnings Preview: Lower revenue and earnings expected for Q4 2025

Shares of Lennar Corporation (NYSE: LEN) fell over 2% on Tuesday. The stock has dropped 14% in the past three months. The homebuilder is scheduled to report its earnings results for the fourth quarter of 2025 on Tuesday, December 16, after the market closes. Here’s a look at what to expect from the earnings report:

Revenue

Analysts are projecting revenue of $9.14 billion for Lennar for the fourth quarter of 2025, which indicates a decline of over 8% from the same period a year ago. In the third quarter of 2025, revenues decreased 6% year-over-year to $8.8 billion.

Earnings

Lennar has guided for earnings per share of $2.10-2.30 for Q4 2025. Analysts are predicting EPS of $2.24, which points to a decline of 44% from the prior-year quarter. In Q3 2025, adjusted EPS fell 49% YoY to $2.00.

Points to note

Lennar has been facing headwinds from housing market softness, mortgage rates, and economic uncertainty. Although there is high demand for housing, affordability has remained pressured due to high costs. On its Q3 earnings call, the company mentioned that the drop in interest rates had led to a pickup in interest from homebuyers to move forward with home purchases. Lower interest rates may have helped push home sales forward.

Last quarter, Lennar lowered its expectations for the fourth quarter to relieve pressure on sales and deliveries. The company expects deliveries to range between 22,000-23,000 and new orders to range between 20,000-21,000 for Q4. Average sales price is expected to be $380,000-390,000 and gross margin is expected to be 17.5%, in line with the third quarter.

In Q3, new orders increased 12% YoY but deliveries remained flat. LEN faced difficulty maintaining sales volume and had to offer more incentives to drive sales and avoid building up excess inventory, which took a toll on margins. The company saw average sales price decline 9% to $383,000 and gross margin drop to 17.5% from 22.5% a year ago.

Lennar has been following its strategy of matching its sales pace to its production pace and it has been lowering its construction costs to enable affordability and support the supply and demand balance. This strategy is likely to have helped its performance in the fourth quarter.