Lennar (LEN) FY2025 results: revenue $34.2 billion, down 3.5% on the year

Lennar is one of the largest homebuilders in the United States by deliveries, and also originates residential and commercial mortgage loans, provides title insurance and closing services and develops multifamily rental property. It sponsors and manages funds and joint ventures that build and own multifamily rentals and a fund that owns single-family rentals, and holds investments in companies applying technology to homebuilding and to real estate financial services. Homebuilding is the most substantial part of the business, at approximately 94% of consolidated revenues in fiscal 2025. It was founded as a local Miami homebuilder in 1954, floated in 1971 and listed on the New York Stock Exchange in 1972. Its homebuilding segments cover East, Central, South Central and West, with an Other grouping of urban divisions and related investments mainly in California, and its remaining segments are Financial Services, Multifamily and Lennar Other.

Building and selling homes

The homebuilding business builds and sells single-family attached and detached homes and buys, develops and sells residential land through entities it invests in, selling mostly into communities aimed at first-time, move-up, active adult and luxury buyers. New home deliveries, including those from unconsolidated entities, were 82,583 in fiscal 2025 against 80,210 in 2024. At 30 November 2025 it was actively building and marketing homes in 1,708 communities, up from 1,447 a year earlier, and held about 5,000 completed unsold homes, or 2.9 per community, against about 2,900, or 2.0 per community, in 2024. It is involved in every phase, from land acquisition and site planning to design, construction and marketing, but supervises with a relatively small labour force and hires subcontractors for site improvements and virtually all construction work, under arrangements setting price and time schedules and requiring compliance with building codes.

How it gets land

Land is acquired, or options over land obtained, under specified underwriting criteria through a mixed programme: option contracts over properties owned by land banks and third parties; direct purchases from landowners, developers or other homebuilders; acquisitions of local or regional homebuilders holding land in strategic markets; joint ventures that limit the capital tied up in land; investments in regional developers in exchange for preferential purchase opportunities; and land bought alongside the Multifamily business. It has been cutting its reliance on owned land, and at 30 November 2025, 98% of its homesites were controlled through options with land banks, land sellers and joint ventures, against 82% a year earlier. It describes this as a land-light model that adds flexibility and reduces capital intensity.

Millrose

In February 2025 it completed a taxable spin-off of Millrose Properties, distributing approximately 80% of Millrose's common stock to its own stockholders while temporarily holding, without voting, the rest. It describes that transaction as accelerating its move towards being a pure-play, asset-light new home manufacturing company. In November 2025 it disposed of that stake through an exchange offer, acquiring 8,049,594 shares of its own Class A common stock for 33,298,754 Millrose Class A shares, after which only an immaterial number of forfeited shares remained.

Financial Services, Multifamily and Other

Lennar Mortgage offers conforming conventional, FHA-insured and VA-guaranteed mortgage products, mainly to buyers of the company's homes, from most states where it builds; in fiscal 2025 it lent to 84% of homebuyers who took mortgage financing where the service was offered. It is licensed to provide title insurance and closing services for residential and commercial transactions in 37 states, and handled approximately 86,300 closings in 27 states during fiscal 2025. LMF Commercial originates and securitises first mortgage loans secured by income-producing commercial property, and also originates floating rate loans on properties in transition, undergoing lease-up, sell-out, renovation or repositioning. The Multifamily business has developed communities since 2011, at first almost entirely through shorter-duration joint ventures that sold them soon after building and now through longer-duration funds that keep them as rentals, while Lennar Other holds strategic investments in technology companies.

Competition, seasons and people

The industry is highly competitive, and in every region the company competes for buyers with national, regional and local builders, with resales of existing homes and with the rental market, on location, price, reputation for customer satisfaction, amenities, design, quality and financing. It also competes with other builders for desirable properties, raw materials and skilled labour, and with many property owners when selling land. The business is seasonal, with higher new home order activity in the second and third fiscal quarters and more deliveries in the second half, though the company is working towards even flow production across quarters. At 30 November 2025 it employed 12,532 people, 10,182 in homebuilding, 2,132 in financial services and 218 in multifamily, with no collective bargaining agreements covering its own associates, though some subcontractors have union-represented employees.

From Lennar's annual report on Form 10-K for the year ended 30 November 2025. The filing

Written from the 10-K filed 28 January 2026: read the full 10-K.