Lennar posts weak quarterly profit as homebuying demand dips

Dec 16 (Reuters) – U.S. homebuilder Lennar missed Wall Street’s fourth-quarter profit forecasts on Tuesday; Affordability pressures continued to weigh on home-buying demand, and the company’s shares fell more than 4% in after-hours trading.

Co-CEO Stuart Miller said although interest rates trended downward in the reported quarter, the housing market remained under pressure as affordability constraints continued and consumer confidence remained weak.

“Despite the added pressure of the six-week government shutdown, we continued to build and sell homes, adapting as necessary to changing market conditions,” he said.

The Miami, Florida-based company reported fourth-quarter earnings of $1.93 per share, according to data compiled by LSEG; this was below analysts’ estimate of $2.22 per share.

High interest rates have strained affordability and weighed on U.S. homebuilders’ earnings in recent quarters; Cost uncertainty was further compounded by renewed tariffs on lumber and other key construction materials.

“While affordability and consumer confidence remain challenging due to slowing interest rates, we are focused on adapting to the new normal as the market finds its footing,” Miller said.

Lennar said it expects deliveries of 17,000 to 18,000 homes in the first quarter of 2026 and home sales gross margin of 15% to 16%. In the quarter ended Nov. 30, the company reported a 17% gross margin on home sales.

A total of 85,000 houses are expected to be delivered in 2026.

Lennar continues to see margin compression as it turns to sales sweeteners such as mortgage rate buybacks and deals with cost adjustments amid a softening demand environment.

The second-largest U.S. homebuilder by sales reported quarterly revenue of $9.37 billion; This is above analysts’ average estimate of $9.02 billion. (Reporting by Abhinav Parmar in Bengaluru; Editing by Shailesh Kuber)