Lennar Q2 2025 Misses Estimates, Analysts Cut Targets

Lennar Corporation reported mixed fiscal second-quarter 2025 results, with revenue declining 4.4% year-over-year to $8.38 billion but surpassing analyst expectations. Earnings per share fell to $1.81 GAAP ($1.90 adjusted), missing consensus estimates and reflecting ongoing pressures from affordability challenges, lower average sales prices, and increased SG&A expenses. While Lennar met guidance for deliveries and new orders, its backlog and operating margin declined significantly, signaling continued softness in the housing market. Analysts from RBC Capital, UBS, and Citi all lowered price targets due to margin and volume concerns, though UBS maintained a Buy rating based on long-term strategy confidence. Despite the profit miss, Lennar's stock saw a modest post-earnings rise, with cautious guidance for the next quarter. The company continues to navigate industry headwinds through incentives and price reductions to maintain sales pace.