Shares of Lennar Corporation (NYSE: LEN) stayed green on Monday. The stock has dropped 12% over the past three months. The homebuilder is scheduled to report its earnings results for the second quarter of 2025 on Monday, June 16, after the market closes. Here’s a look at what to expect from the earnings report:
Revenue
Analysts are projecting revenue of $8.24 billion for Lennar in the second quarter of 2025. This implies a decline of nearly 6% from the same quarter a year ago. In the first quarter of 2025, revenues increased 4% year-over-year to $7.6 billion.
Earnings
Lennar has guided for earnings per share of $1.80-2.00 for Q2 2025. Analysts are predicting EPS of $1.96 for the quarter. This compares to adjusted EPS of $3.38 reported in Q2 2024. In Q1 2025, adjusted EPS decreased 17% YoY to $2.14.
Points to note
The housing market is likely to continue facing headwinds from a challenging macroeconomic environment. As seen over the past few quarters, while there is strong demand for housing, affordability continues to be hindered by inflation and interest rates. There is also a shortage in supply of homes due to underproduction. As a result, consumers are reluctant to purchase new homes. At the same time, prices of homes and rents for apartments have witnessed a drop.
Homebuilders have been offering various incentives to help with affordability and drive home sales. This has put pressure on average sales price and margins. In Q1, Lennar saw new orders increase by 1% and home deliveries increase by 6% while average sales price dipped 1%. Gross margins on home sales were 18.7% compared to 21.8% last year.
For the second quarter of 2025, Lennar has guided for new orders of 22,500-23,500 and deliveries of 19,500-20,500. Average sales price is estimated to range between $390,000-400,000. Gross margin on home sales is expected to be approx. 18%.