Lennar Corporation

10/02/2026 | Press release | Distributed by Public on 10/02/2026 14:33

Quarterly Report for Quarter Ending August 31, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and accompanying notes included under Item 1 of this Quarterly Report on Form 10-Q and our audited consolidated financial statements and accompanying notes included in our 2025 Form 10-K.
Outlook
Lennar's third quarter 2026 results reflect consistent operational execution against a macro backdrop that grew more difficult during the quarter. We delivered 20,840 homes, within our guidance range, and generated 20,879 new orders, just below our range, while gross margin improved sequentially to 15.8% and net earnings totaled $284 million, or $1.19 per share or $1.23 excluding one-time items. We remain intentionally focused on bringing affordable housing to an affordability-constrained consumer base, a choice that is still weighing on near-term margin but is building the volume and market position we believe will drive margin higher over time. While underlying housing demand remains steady, structural supply constraints persist.
Mortgage interest rates moved higher during the quarter, with the 30-year fixed rate rising to approximately 7%, compared with the 6.4% to 6.5% range earlier this year, and the 10-year U.S. Treasury yield rising to approximately 5%. This increase was driven in significant part by inflation associated with energy prices tied to the ongoing geopolitical tension with Iran. Higher rates and living costs have further strained affordability, and in many of our markets, a significant portion of prospective buyers are finding it harder to qualify for a mortgage. The Federal Reserve remains focused on incoming economic data, but near-term interest rate relief appears unlikely. Resales of existing housing inventory have also begun to increase, particularly in Texas and Florida, intensifying competition for buyers in those markets. In addition, labor availability has become more constrained in certain geographies, reflecting immigration enforcement activity and competing construction demand, which we expect will continue to add cost pressure. Land costs per home, reflected in part through option maintenance fees associated with extended deal durations, have increased and will continue to pressure margin for a period of time while we work through land positions underwritten and committed under prior market conditions.
Notwithstanding these pressures, sales incentives on deliveries declined during the quarter, and cost efficiencies from scale have helped offset a portion of the increase in labor costs. Construction costs per square foot declined further to approximately $80, down 6% from a year ago, and our cycle time reached a record low of 116 days, down from 121 days from second quarter 2026 and 126 days a year ago, reflecting the continued benefit of consistent volume and even-flow production.
Our operating strategy has not changed. We remain focused on two priorities: driving consistent, even-flow production and volume, and continuing to refine our asset-light, land-light balance sheet model to generate strong and growing cash flow and returns. We continue to price to market and to offer incentives intended to maintain volume and affordability. We own approximately 2% of our homesites, with the substantial majority controlled through third parties, and approximately 86% of homes delivered this quarter were sourced through our land banking arrangements.
For the fourth quarter of 2026, we expect new orders in the range of 19,500 to 20,500 homes, with continued focus on matching starts and sales pace. We anticipate deliveries in the range of 22,000 to 23,000 homes as we maintain even-flow production and convert inventory to cash. Our average sales price on those deliveries is expected to be between $370,000 and $380,000. We expect gross margin in the range of 15.5% to 16.0%, and our SG&A percentage should be in the range of 8.7% to 9.0%. These expectations are dependent on market conditions and may change as the quarter progresses.
We believe the fundamental shortage of housing in America has not been resolved and that demand remains deferred rather than diminished. We intend to continue managing our cost structure, cycle time, and land basis with the objective of positioning Lennar to benefit as affordability improves, whether through changes in interest rates, wages, or regulatory and entitlement reform, while remaining disciplined in the market as it exists today.
(1) Results of Operations
Overview
We historically have experienced, and expect to continue to experience, variability in quarterly results. Our results of operations for the three and nine months ended August 31, 2026 are not necessarily indicative of the results to be expected for the full year. Our homebuilding business is seasonal in nature and generally reflects higher levels of new home order activity in our second and third fiscal quarters and increased deliveries in the second half of our fiscal year. However, a variety of factors can alter seasonal patterns.
Our third quarter net earnings attributable to Lennar in 2026 were $283.9 million, or $1.19 per diluted share, compared to third quarter net earnings attributable to Lennar in 2025 of $591.0 million, or $2.29 per diluted share. Excluding mark-to-market losses of $53.3 million on technology investments and a benefit related to one-time items of $39.2 million, net, in our Financial Services segment, third quarter net earnings attributable to Lennar in 2026 were $294.3 million, or $1.23 per diluted share, compared to $516.0 million, or $2.00 per diluted share, excluding mark-to-market gains of $99.2 million on technology investments, in the third quarter of 2025.
Financial information relating to our operations was as follows:
Three Months Ended August 31, 2026
(In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total
Revenues:
Sales of homes $ 7,733,588 - - - - 7,733,588
Sales of land 18,442 - - - - 18,442
Other revenues 7,467 226,121 38,475 22,026 - 294,089
Total revenues 7,759,497 226,121 38,475 22,026 - 8,046,119
Costs and expenses:
Costs of homes sold 6,512,260 - - - - 6,512,260
Costs of land sold 16,216 - - - - 16,216
Selling, general and administrative expenses 714,040 - - - - 714,040
Other costs and expenses - 95,805 40,868 48,393 - 185,066
Total costs and expenses 7,242,516 95,805 40,868 48,393 - 7,427,582
Equity in earnings (losses) from unconsolidated entities 4,808 - (1,342) (301) - 3,165
Other income (expense), net and other gains (losses), net (19,827) - 866 (3,604) - (22,565)
Lennar Other losses from technology investments - - - (53,335) - (53,335)
Operating earnings (loss) $ 501,962 130,316 (2,869) (83,607) - 545,802
Corporate general and administrative expenses - - - - 137,883 137,883
Charitable foundation contribution - - - - 20,840 20,840
Earnings (loss) before income taxes $ 501,962 130,316 (2,869) (83,607) (158,723) 387,079
Three Months Ended August 31, 2025
(In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total
Revenues:
Sales of homes $ 8,213,580 - - - - 8,213,580
Sales of land 30,521 - - - - 30,521
Other revenues 9,574 314,195 228,465 13,943 - 566,177
Total revenues 8,253,675 314,195 228,465 13,943 - 8,810,278
Costs and expenses:
Costs of homes sold 6,779,563 - - - - 6,779,563
Costs of land sold 41,065 - - - - 41,065
Selling, general and administrative expenses 676,491 - - - - 676,491
Other costs and expenses - 136,323 238,791 45,450 - 420,564
Total costs and expenses 7,497,119 136,323 238,791 45,450 - 7,917,683
Equity in earnings (losses) from unconsolidated entities 10,190 - (6,790) 7,422 - 10,822
Other income (expense), net and other gains (losses), net (6,961) - 645 (12,640) - (18,956)
Lennar Other gains from technology investments - - - 99,223 - 99,223
Operating earnings (loss) $ 759,785 177,872 (16,471) 62,498 - 983,684
Corporate general and administrative expenses - - - - 171,397 171,397
Charitable foundation contribution - - - - 21,584 21,584
Earnings (loss) before income taxes $ 759,785 177,872 (16,471) 62,498 (192,981) 790,703
Nine Months Ended August 31, 2026
(In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total
Revenues:
Sales of homes $ 21,601,549 - - - - 21,601,549
Sales of land 46,001 - - - - 46,001
Other revenues 26,824 678,615 184,538 67,940 - 957,917
Total revenues 21,674,374 678,615 184,538 67,940 - 22,605,467
Costs and expenses:
Costs of homes sold 18,246,493 - - - - 18,246,493
Costs of land sold 69,071 - - - - 69,071
Selling, general and administrative expenses 2,029,930 - - - - 2,029,930
Other costs and expenses - 355,883 204,084 135,803 - 695,770
Total costs and expenses 20,345,494 355,883 204,084 135,803 - 21,041,264
Equity in earnings from unconsolidated entities 45,659 - 51,372 3,489 - 100,520
Other income (expense), net and other gains (losses), net (10,178) - 1,489 (1,674) - (10,363)
Lennar Other losses from technology investments - - - (61,749) - (61,749)
Operating earnings (loss) $ 1,364,361 322,732 33,315 (127,797) - 1,592,611
Corporate general and administrative expenses - - - - 431,670 431,670
Charitable foundation contribution - - - - 58,222 58,222
Earnings (loss) before income taxes $ 1,364,361 322,732 33,315 (127,797) (489,892) 1,102,719
Nine Months Ended August 31, 2025
(In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total
Revenues:
Sales of homes $ 23,242,401 - - - - 23,242,401
Sales of land 109,042 - - - - 109,042
Other revenues 29,964 889,370 521,966 26,582 - 1,467,882
Total revenues 23,381,407 889,370 521,966 26,582 - 24,819,325
Homebuilding costs and expenses:
Costs of homes sold 19,070,239 - - - - 19,070,239
Costs of land sold 133,315 - - - - 133,315
Selling, general and administrative 1,981,077 - - - - 1,981,077
Other costs and expenses - 410,735 566,844 99,039 - 1,076,618
Total costs and expenses 21,184,631 410,735 566,844 99,039 - 22,261,249
Equity in earnings (losses) from unconsolidated entities 62,910 - (11,332) 4,594 - 56,172
Other income (expense), net and other gains (losses), net 37,606 - 24,962 (19,097) - 43,471
Lennar Other gains from technology investments - - - 7,280 - 7,280
Operating earnings 2,297,292 478,635 (31,248) (79,680) - 2,664,999
Corporate general and administrative expenses - - - - 474,628 474,628
Charitable foundation contribution - - - - 59,549 59,549
Earnings (loss) before income taxes $ 2,297,292 478,635 (31,248) (79,680) (534,177) 2,130,822
Three Months Ended August 31, 2026 versus Three Months Ended August 31, 2025
Revenues from home sales decreased 6% in the third quarter of 2026 to $7.7 billion from $8.2 billion in the third quarter of 2025. Revenues were lower primarily due to both a 3% decrease in the average sales price of homes and a 3% decrease in the number of home deliveries. New home deliveries were 20,840 homes in the third quarter of 2026, compared to 21,584 homes in the third quarter of 2025. The average sales price of homes delivered was $372,000 in the third quarter of 2026, compared to $383,000 in the third quarter of 2025. The decrease in average sales price of homes delivered in the third quarter of 2026 compared to the same period last year was primarily due to continued weakness in the market.
Gross margins on home sales were $1.2 billion, or 15.8%, in the third quarter of 2026, compared to $1.4 billion, or 17.5%, in the third quarter of 2025. During the third quarter of 2026, gross margins decreased primarily due to lower revenue per square foot and higher land costs year over year, which were partially offset by a decrease in construction costs, reflecting our continued focus on cost-saving initiatives.
Selling, general and administrative expenses were $714.0 million in the third quarter of 2026, compared to $676.5 million in the third quarter of 2025. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 9.2% in the third quarter of 2026, from 8.2% in the third quarter of 2025, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses.
Operating earnings for the Financial Services segment were $129.5 million in the third quarter of 2026, compared to operating earnings of $177.4 million in the third quarter of 2025, both amounts are net of noncontrolling interest. The operating earnings in the third quarter of 2026 included a benefit related to one-time items of $39.2 million, net, primarily due to a litigation accrual reversal resulting from a court judgment. Excluding the benefit related to one-time items in the current quarter, the decrease in operating earnings was primarily due to lower profit per locked loan and lower lock volume in the mortgage business.
Operating loss for the Multifamily segment was $2.9 million in the third quarter of 2026, compared to an operating loss of $16.4 million in the third quarter of 2025. Operating loss for the Lennar Other segment was $83.6 million in the third quarter of 2026, compared to operating earnings of $62.5 million in the third quarter of 2025. The Lennar Other operating loss for third quarter of 2026 was primarily driven by mark-to-market losses of $53.3 million on our technology investments. The Lennar Other operating earnings for third quarter of 2025 were primarily driven by mark-to-market gains of $99.2 million on our technology investments.
In the third quarter of 2026 and 2025, we had tax provisions of $101.6 million and $190.9 million, which resulted in an overall effective income tax rate of 26.4% and 24.4%, respectively. For both periods, our effective income tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits. The increase in the
effective tax rate for the three months ended August 31, 2026 compared to the prior period was primarily due to our spin-off of Millrose Properties, Inc.
Nine Months Ended August 31, 2026 versus Nine Months Ended August 31, 2025
Revenues from home sales decreased 7% in the nine months ended August 31, 2026 to $21.6 billion from $23.2 billion in the nine months ended August 31, 2025. Revenues were lower primarily due to both a 5% decrease in the average sales price of homes and a 2% decrease in the number of home deliveries. New home deliveries were 58,222 homes in the nine months ended August 31, 2026, compared to 59,549 homes in the nine months ended August 31, 2025. The average sales price of homes delivered was $372,000 in the nine months ended August 31, 2026, compared to $393,000 in the nine months ended August 31, 2025. The decrease in average sales price of homes delivered in the nine months ended August 31, 2026 compared to the same period last year was primarily due to continued weakness in the market.
Gross margins on home sales were $3.4 billion, or 15.5%, in the nine months ended August 31, 2026, compared to $4.2 billion, or 18.0%, in the nine months ended August 31, 2025. During the nine months ended August 31, 2026, gross margins decreased primarily due to lower revenue per square foot and higher land costs year over year, which were partially offset by a decrease in construction costs, reflecting our continued focus on cost-saving initiatives.
Selling, general and administrative expenses were $2.0 billion in the nine months ended August 31, 2026, consistent with $2.0 billion in the nine months ended August 31, 2025. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 9.4% in the nine months ended August 31, 2026, from 8.5% in the nine months ended August 31, 2025, primarily due to less leverage as a result of lower revenues.
During the nine months ended August 31, 2026, our homebuilding operating earnings included $36.7 million of interest income, compared to $45.7 million of interest income in the nine months ended August 31, 2025. The decrease in interest income was primarily due to lower cash balances year over year.
Operating earnings for the Financial Services segment were $320.3 million in the nine months ended August 31, 2026, compared to $476.9 million in the nine months ended August 31, 2025, both amounts are net of noncontrolling interest. The operating earnings in the nine months ended August 31, 2026, included a benefit related to one-time items of $39.2 million, net, primarily due to a litigation accrual reversal resulting from a court judgment. Excluding the benefit related to one-time items in the current quarter, the decrease in operating earnings was primarily due to lower profit per locked loan and lower lock volume in the mortgage business.
Operating earnings for the Multifamily segment were $33.4 million in the nine months ended August 31, 2026, compared to an operating loss of $30.9 million in the nine months ended August 31, 2025. Operating loss for the Lennar Other segment was $127.8 million in the nine months ended August 31, 2026, compared to an operating loss of $79.7 million in the nine months ended August 31, 2025. The Lennar Other operating loss for the nine months ended August 31, 2026 was due to operating losses and mark-to-market losses of $61.7 million on our technology investments. The Lennar Other operating loss for the nine months ended August 31, 2025 was primarily due to losses from certain strategic investments, partially offset by mark-to-market gains on our technology investments.
In the nine months ended August 31, 2026 and 2025, we had tax provisions of $275.7 million and $520.5 million, which resulted in an overall effective income tax rate of 25.2% and 24.7%, respectively. For both periods, our effective income tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits. The increase in the effective tax rate from the prior year for the nine months ended August 31, 2026 was primarily due to our spin-off of Millrose Properties, Inc.
Homebuilding Segments
At August 31, 2026, our reportable Homebuilding segments and Homebuilding Other are outlined in Note 2 of the Notes to Condensed Consolidated Financial Statements. The following tables set forth selected financial and operational information related to our homebuilding operations for the periods indicated:
Selected Financial and Operational Data
Three Months Ended August 31, 2026
Gross Margins Operating Earnings
($ in thousands) Sales of Homes Revenue Costs of Sales of Homes Gross Margin (Loss) % Net Margins (Losses) on Sales of Homes (1) Gross Margins (Losses) on Sales of Land Other Revenues Equity in Earnings (Losses) from Unconsolidated Entities Other Income (Expense), net Operating Earnings
East $ 1,828,048 1,446,037 20.9 % 205,218 (726) 3,444 (5,736) (2,269) 199,931
Central 1,943,777 1,646,381 15.3 % 109,861 (624) 416 5 1,525 111,183
South Central 1,372,191 1,140,782 16.9 % 95,728 5,197 758 (12) (2,054) 99,617
West 2,588,288 2,275,863 12.1 % 104,296 (1,621) 670 (48) (17,585) 85,712
Other (2) 1,284 3,197 (149.0) % (7,815) - 2,179 10,599 556 5,519
Totals
$ 7,733,588 6,512,260 15.8 % 507,288 2,226 7,467 4,808 (19,827) 501,962
Three Months Ended August 31, 2025
Gross Margins Operating Earnings
($ in thousands) Sales of Homes Revenue Costs of Sales of Homes Gross Margin (Loss) % Net Margins (Losses) on Sales of Homes (1) Gross Margins (Losses) on Sales of Land Other Revenues Equity in Earnings (Losses) from Unconsolidated Entities Other Income (Expense), net Operating Earnings (Losses)
East $ 1,732,008 1,409,575 18.6 % 167,714 2,019 3,521 14,338 (1,208) 186,384
Central 2,020,519 1,647,159 18.5 % 184,698 (2,525) 1,030 40 1,479 184,722
South Central 1,507,314 1,247,502 17.2 % 134,693 (2,305) 610 (5) (2,864) 130,129
West 2,950,118 2,470,021 16.3 % 278,893 (7,733) 1,877 563 (3,277) 270,323
Other (2) 3,621 5,306 (46.5) % (8,472) - 2,536 (4,746) (1,091) (11,773)
Totals
$ 8,213,580 6,779,563 17.5 % 757,526 (10,544) 9,574 10,190 (6,961) 759,785
Nine Months Ended August 31, 2026
Gross Margins Operating Earnings
($ in thousands) Sales of Homes Revenue Costs of Sales of Homes Gross Margin (Loss) % Net Margins (Losses) on Sales of Homes (1) Gross Margins (Losses) on Sales of Land Other Revenues Equity in Earnings (Losses) from Unconsolidated Entities Other Income (Expense), net Operating Earnings
East $ 5,049,380 4,067,149 19.5 % 473,609 (12,132) 12,018 9,925 (4,148) 479,272
Central 4,951,404 4,206,240 15.0 % 230,942 (5,617) 2,645 46 5,684 233,700
South Central 3,995,511 3,307,729 17.2 % 309,378 1,879 1,978 (37) (6,435) 306,763
West 7,598,189 6,652,659 12.4 % 335,809 (7,200) 3,032 1,540 (18,014) 315,167
Other (2) 7,065 12,716 (80.0) % (24,612) - 7,151 34,185 12,735 29,459
Totals
$ 21,601,549 18,246,493 15.5 % 1,325,126 (23,070) 26,824 45,659 (10,178) 1,364,361
Nine Months Ended August 31, 2025
Gross Margins Operating Earnings
($ in thousands) Sales of Homes Revenue Costs of Sales of Homes Gross Margin (Loss) % Net Margins (Losses) on Sales of Homes (1) Gross Margins (Losses) on Sales of Land Other Revenues Equity in Earnings (Losses) from Unconsolidated Entities Other Income (Expense), net Operating Earnings
East $ 5,102,675 4,103,355 19.6 % 515,097 1,777 9,970 29,271 31,269 587,384
Central 5,294,015 4,309,966 18.6 % 477,235 (5,108) 3,847 36 4,629 480,639
South Central 4,173,587 3,435,915 17.7 % 391,820 (1,056) 2,369 (13) (4,219) 388,901
West 8,657,783 7,203,662 16.8 % 833,381 (19,886) 5,220 1,573 (5,760) 814,528
Other (2) 14,341 17,341 (20.9) % (26,448) - 8,558 32,043 11,687 25,840
Totals
$ 23,242,401 19,070,239 18.0 % 2,191,085 (24,273) 29,964 62,910 37,606 2,297,292
(1)Net margins on sales of homes include selling, general and administrative expenses.
(2)Negative gross and net margins were due to period costs in Urban divisions that impact costs of homes sold without sufficient sales of homes revenue to offset those costs.
Summary of Homebuilding Data
Deliveries:
Three Months Ended August 31,
2026 2025 2026 2025 2026 2025
Homes
Dollar Value (In thousands)
Average Sales Price
East 5,017 4,905 $ 1,865,545 1,797,088 $ 372,000 366,000
Central 5,322 5,334 1,943,777 2,020,518 365,000 379,000
South Central 5,969 6,413 1,372,191 1,507,314 230,000 235,000
West 4,529 4,926 2,588,288 2,950,118 571,000 599,000
Other 3 6 1,284 3,622 428,000 604,000
Total 20,840 21,584 $ 7,771,085 8,278,660 $ 372,000 383,000
Of the total homes delivered listed above, 51 homes with a dollar value of $37.5 million and an average sales price of $735,000 represent homes from unconsolidated entities for the three months ended August 31, 2026, compared to 146 homes with a dollar value of $65.1 million and an average sales price of $446,000 for the three months ended August 31, 2025.
Nine Months Ended August 31,
2026 2025 2026 2025 2026 2025
Homes
Dollar Value (In thousands)
Average Sales Price
East 13,928 14,031 $ 5,206,614 5,259,789 $ 374,000 375,000
Central 13,729 13,828 4,951,404 5,294,015 361,000 383,000
South Central 17,294 17,317 3,995,511 4,173,587 231,000 241,000
West 13,260 14,351 7,598,188 8,657,783 573,000 603,000
Other 11 22 7,065 14,341 642,000 652,000
Total 58,222 59,549 $ 21,758,782 23,399,515 $ 372,000 393,000
Of the total homes delivered listed above, 208 homes with a dollar value of $157.2 million and an average sales price of $756,000 represent homes from unconsolidated entities for the nine months ended August 31, 2026, compared to 339 homes with a dollar value of $157.1 million and an average sales price of $463,000 for the nine months ended August 31, 2025.
Sales Incentives (1):
Three Months Ended August 31, Nine Months Ended August 31,
2026 2025 2026 2025 2026 2025 2026 2025
Average Sales Incentives Per
Home Delivered 		Sales Incentives
as a % of Revenue 		Average Sales Incentives Per
Home Delivered 		Sales Incentives
as a % of Revenue
East $ 48,000 77,600 11.5 % 17.6 % $ 59,300 73,500 13.9 % 16.5 %
Central 40,700 50,400 10.0 % 11.7 % 44,800 48,700 11.1 % 11.3 %
South Central 48,000 60,800 17.3 % 20.5 % 51,700 57,800 18.3 % 19.4 %
West 70,000 70,400 10.9 % 10.5 % 67,200 66,800 10.5 % 10.0 %
Other 66,400 86,100 13.4 % 12.5 % 86,500 95,900 11.9 % 12.8 %
Total $ 51,000 64,100 12.0 % 14.3 % $ 55,400 61,500 13.0 % 13.5 %
(1) Sales incentives relate to homes delivered during the period, excluding homes delivered by unconsolidated entities.
New Orders (2):
At August 31, Three Months Ended August 31,
2026 2025 2026 2025 2026 2025 2026 2025
Active Communities Homes
Dollar Value (In thousands)
Average Sales Price
East 344 360 4,831 5,792 $ 1,800,978 2,081,377 $ 373,000 359,000
Central 464 452 5,625 5,428 1,927,876 1,958,262 343,000 361,000
South Central 479 411 6,100 7,055 1,387,570 1,582,753 227,000 224,000
West 425 440 4,319 4,725 2,386,135 2,814,895 552,000 596,000
Other 1 1 4 4 1,830 2,445 457,000 611,000
Total 1,713 1,664 20,879 23,004 $ 7,504,389 8,439,732 $ 359,000 367,000
Of the total new orders listed above, 37 homes with a dollar value of $32.0 million and an average sales price of $864,000 represent homes in five active communities from unconsolidated entities for the three months ended August 31, 2026, compared to 104 homes with a dollar value of $56.7 million and an average sales price of $546,000 in nine active communities for the three months ended August 31, 2025.
Nine Months Ended August 31,
2026 2025 2026 2025 2026 2025
Homes
Dollar Value (In thousands)
Average Sales Price
East 14,375 15,459 $ 5,442,049 5,621,317 $ 379,000 364,000
Central 15,435 15,244 5,460,671 5,746,412 354,000 377,000
South Central 17,398 18,602 4,026,684 4,362,932 231,000 235,000
West 13,923 14,634 7,915,169 8,701,073 568,000 595,000
Other 12 21 7,610 13,993 634,000 666,000
Total 61,143 63,960 $ 22,852,183 24,445,727 $ 373,000 382,000
Of the total new orders listed above, 165 homes with a dollar value of $94.1 million and an average sales price of $570,000 represent homes from unconsolidated entities for the nine months ended August 31, 2026, compared to 346 homes with a dollar value of $186.4 million and an average sales price of $539,000 for the nine months ended August 31, 2025.
(2)Homes represent the number of new sales contracts executed with homebuyers, net of cancellations, during the three and nine months ended August 31, 2026 and 2025.
We experienced cancellation rates in our Homebuilding segments and Homebuilding Other as follows:
Three Months Ended Nine Months Ended
August 31, August 31,
2026 2025 2026 2025
East 16 % 14 % 15 % 15 %
Central 11 % 12 % 12 % 11 %
South Central 16 % 16 % 16 % 16 %
West 14 % 14 % 12 % 13 %
Other - % 20 % 14 % 19 %
Total 15 % 14 % 14 % 14 %
Backlog:
At August 31,
2026 2025 2026 2025 2026 2025
Homes
Dollar Value (In thousands)
Average Sales Price
East 5,269 4,787 $ 2,006,885 1,847,937 $ 381,000 386,000
Central 5,178 4,795 1,781,944 1,841,720 344,000 384,000
South Central 3,149 4,072 689,111 892,312 219,000 219,000
West 3,260 3,299 1,866,975 2,066,021 573,000 626,000
Other 1 - 545 - 545,000 -
Total 16,857 16,953 $ 6,345,460 6,647,990 $ 376,000 392,000
Of the total homes in backlog listed above, 36 homes with a backlog dollar value of $22.8 million and an average sales price of $635,000 represent the backlog from unconsolidated entities at August 31, 2026, compared to 86 homes with a backlog dollar value of $93.1 million and an average sales price of $1.1 million at August 31, 2025.
Backlog represents the number of homes under sales contracts. Homes are sold using sales contracts, which are generally accompanied by sales deposits. In some instances, purchasers are permitted to cancel sales contracts if they fail to qualify for financing or under certain other circumstances. Various state and federal laws and regulations may sometimes give purchasers a right to cancel contracts homes in backlog. We do not recognize revenue on homes under sales contracts until the sales are closed and title passes to the new homeowners.
Three Months Ended August 31, 2026 versus Three Months Ended August 31, 2025
Homebuilding East: Revenues from home sales increased in the third quarter of 2026 compared to the third quarter of 2025 primarily due to increases in the average sales price of homes delivered in Florida and in the number of homes delivered in Florida and New Jersey. The overall increase in the average sales price of homes delivered was primarily due to product mix. The overall increase in the number of homes delivered was primarily due to an increase in the number of deliveries per active community. During the third quarter of 2026, gross margin percentage on homes delivered increased primarily due to higher revenue per square foot and a decrease in construction costs, partially offset by higher land costs year over year.
Homebuilding Central: Revenues from home sales decreased in the third quarter of 2026 compared to the third quarter of 2025 primarily due to a decrease in the average sales price of homes delivered in all states of the segment except in Illinois, while the number of homes delivered was consistent with the prior period. The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through a decrease in base prices. During the third quarter of 2026, gross margin percentage on homes delivered decreased primarily due to lower revenue per square foot and higher land costs year over year, partially offset by a decrease in construction costs.
Homebuilding South Central: Revenues from home sales decreased in the third quarter of 2026 compared to the third quarter of 2025 primarily due to decreases in the average sales price of homes delivered in Texas and in the number of homes delivered in all states of the segment, except in Kansas. The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through a decrease in base prices. The overall decrease in the number of homes delivered was primarily due to a decrease in the number of deliveries per active community. During the third quarter of 2026, gross margin percentage on homes delivered decreased primarily due to lower revenue per square foot, partially offset by decreases in both construction costs and land costs year over year.
Homebuilding West: Revenues from home sales decreased in the third quarter of 2026 compared to the third quarter of 2025 primarily due to decreases in the average sales price of homes delivered in California, Colorado, Oregon and Washington and in the number of homes delivered in all states of the segment, except in Idaho. The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through a decrease in base prices and an increased use of sales incentives. The overall decrease in the number of homes delivered was primarily due to a decrease in the number of active communities. During the third quarter of 2026, gross margin percentage on homes delivered decreased primarily due to lower revenue per square foot and higher land costs year over year, partially offset by a decrease in construction costs.
Nine Months Ended August 31, 2026 versus Nine Months Ended August 31, 2025
Homebuilding East: Revenues from home sales decreased in the nine months ended August 31, 2026 compared to the nine months ended August 31, 2025 primarily due to the decrease in the number of homes delivered in all states of the segment, except in New Jersey and a decrease in average sales price of homes delivered. The overall decrease in the number of homes delivered was primarily due to a decrease in the number of active communities. During the nine months ended August 31, 2026, gross margin percentage on homes delivered slightly decreased primarily due to lower revenue per square foot and higher land costs year over year, partially offset by a decrease in construction costs.
Homebuilding Central: Revenues from home sales decreased in the nine months ended August 31, 2026 compared to the nine months ended August 31, 2025 primarily due to decreases in both the average sales price of homes delivered, except in Illinois, and number of homes delivered in all states of the segment, except for an increase in the number of homes delivered in Alabama, Georgia, Illinois and South Carolina. The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through a decrease in base prices. The overall decrease in the number of homes delivered was primarily due to a decrease in the number of deliveries per active community. During the nine months ended August 31, 2026, gross margin percentage on homes delivered decreased, primarily due to lower revenue per square foot and higher land costs year over year partially offset by a decrease in construction costs.
Homebuilding South Central: Revenues from home sales decreased in the nine months ended August 31, 2026 compared to the nine months ended August 31, 2025 primarily due to decreases in the average sales price of homes delivered and in the number of homes delivered in Texas. The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through a decrease in base prices. The overall decrease in the number of homes delivered was primarily due to a decrease in the number of deliveries per active community. During the nine months ended August 31, 2026, gross margin percentage on homes delivered decreased primarily due to lower revenue per square foot, partially offset by decreases in both construction costs and land costs year over year.
Homebuilding West: Revenues from home sales decreased in the nine months ended August 31, 2026 compared to the nine months ended August 31, 2025 primarily due to decreases in the average sales price of homes delivered, except in Idaho, Nevada and Oregon, and in the number of homes delivered in all states of the segment. The overall decrease in the average sales price of homes delivered was primarily due to pricing to market through a decrease in base prices and an increased use of sales incentives. The overall decrease in the number of homes delivered was primarily due to a decrease in the number of deliveries per active community. During the nine months ended August 31, 2026, gross margin percentage on homes delivered decreased primarily due to lower revenue per square foot and higher land costs year over year, partially offset by a decrease in construction costs.
Financial Services Segment
Our Financial Services reportable segment provides mortgage financing, title and closing services primarily for buyers of our homes. The segment also originates and sells into securitizations commercial mortgage loans through its LMF Commercial business. Our Financial Services segment sells substantially all of the residential loans it originates within a short period in the secondary mortgage market, the majority of which are sold on a servicing-released, non-recourse basis. After the loans are sold, we retain potential liability for possible claims by purchasers that we breached certain limited industry-standard representations and warranties in the loan sale agreements.
The following table sets forth selected financial and operational information related to the residential mortgage and title activities of our Financial Services segment:
Three Months Ended Nine Months Ended
August 31, August 31,
(Dollars in thousands) 2026 2025 2026 2025
Dollar value of mortgages originated $ 4,704,000 5,172,000 13,718,000 14,492,000
Number of mortgages originated 13,400 14,600 39,200 40,500
Mortgage capture rate of Lennar homebuyers 83% 84% 83% 85%
Number of title and closing service transactions 22,400 22,700 63,200 62,000
At August 31, 2026 and November 30, 2025, the carrying value of Financial Services' commercial mortgage-backed securities was $124.4 million and $132.9 million, respectively. Details of these securities and related debt are disclosed in Note 2 of the Notes to Condensed Consolidated Financial Statements.
Multifamily Segment
We have been actively involved, primarily through unconsolidated funds and joint ventures, in the development and construction of multifamily rental properties. Our Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets.
The following table provides information related to our investment in the Multifamily segment:
Balance Sheets At
(In thousands) August 31, 2026 November 30, 2025
Multifamily investments in unconsolidated entities $ 488,775 506,573
Lennar's net investment in Multifamily 732,015 781,902
During the second half of fiscal 2024, the LMV I partners decided to liquidate and sell all of its 38 rental operation projects of LMV I as the fund has come to the end of its contractual life. As of November 30, 2025, 35 LMV I rental operation projects were sold to various third-party buyers. During the nine months ended August 31, 2026, one additional LMV I rental operation project was sold to a third-party buyer.
Lennar Other Segment
Our Lennar Other segment includes strategic investments in various types of technology and other companies that are looking to improve the homebuilding and financial services industries to better serve homebuyers and homeowners and increase efficiencies as well as fund investments we retained subsequent to our sale of the Rialto investment and asset management platform. At August 31, 2026 and November 30, 2025, we had $696.2 million and $897.6 million, respectively, of assets in our Lennar Other segment, which included investments in unconsolidated entities of $363.4 million and $368.0 million, respectively.
We have investments in publicly traded technology companies, which are held at market and the carrying value of which will therefore change depending on the value of our shareholdings in those entities on the last day of each quarter. All the investments are accounted for as investments in equity securities which are held at fair value and the changes in fair values are recognized through earnings as discussed in the Overview section earlier of our Management's Discussions and Analysis of Financial Condition and Results of Operations.
(2) Financial Condition and Capital Resources
At August 31, 2026, we had cash and cash equivalents and restricted cash related to our homebuilding, financial services, multifamily and other operations of $1.5 billion, compared to $3.8 billion at November 30, 2025 and $1.8 billion at August 31, 2025.
We finance all of our activities, including homebuilding, financial services, multifamily, other and general operating needs, primarily with cash generated from our operations, debt issuances and cash borrowed under our warehouse lines of credit and our unsecured revolving credit facility (the "Credit Facility"). At August 31, 2026, we had $1.2 billion of homebuilding cash and cash equivalents and ended the third quarter of 2026 with total liquidity of $3.6 billion.
Operating Cash Flow Activities
During the nine months ended August 31, 2026 and 2025, cash used in operating activities totaled $822 million and $1.5 billion, respectively. During the nine months ended August 31, 2026, cash used in operating activities was impacted by (1) an increase in inventories due to land purchases and construction costs of $1.7 billion; (2) an increase in deposits and pre-acquisition costs on real estate of $795 million primarily as a result of option contracts with land banks, which included option maintenance fees paid to land banks, and an increase in reimbursements to be received from municipalities for completed land development; and (3) a decrease in accounts payable and other liabilities of $371 million. This was partially offset by (1) our net earnings; (2) a decrease in loans held-for-sale of $392 million primarily related to the sale of loans originated by our Financial Services segment; and (3) a decrease in receivables of $333 million.
During the nine months ended August 31, 2025, cash used in operating activities was impacted by (1) an increase in inventories due to land purchases and construction costs of $1.3 billion; (2) an increase in deposits and pre-acquisition costs on real estate of $1.2 billion as we increased the percentage of controlled homesites primarily as a result of option contracts with Millrose Properties, Inc. ("Millrose"); (3) an increase in other assets of $210 million; and (4) a decrease in accounts payable and other liabilities of $978 million. This was partially offset by our net earnings and a decrease in loans held-for-sale of $240 million primarily related to the sale of loans originated by our Financial Services segment.
Investing Cash Flow Activities
During the nine months ended August 31, 2026 and 2025, cash provided by investing activities totaled $114 million and $176 million, respectively. During the nine months ended August 31, 2026, our cash provided by investing activities was primarily due to distributions of capital from unconsolidated entities of $183 million, which primarily included (1) $112 million from Multifamily entities, (2) $23 million from Homebuilding unconsolidated entities, and (3) $47 million from our Lennar Other unconsolidated entities. This was partially offset by cash contributions of $88 million to unconsolidated entities, which primarily included (1) $48 million to Homebuilding unconsolidated entities and (2) $35 million to Multifamily unconsolidated entities.
During the nine months ended August 31, 2025, our cash provided by investing activities was primarily due to (1) $233 million received from the sale of an investment in a joint venture, $87 million proceeds from the sale of investments and distributions of capital from unconsolidated entities of $236 million, which primarily included (1) $86 million from Homebuilding unconsolidated entities, (2) $129 million from Multifamily entities and (3) $21 million from our Lennar Other unconsolidated entities and $115 million proceeds from the sale of notes receivables. This was partially offset by the $254 million acquisition of Rausch, net of cash acquired. In addition, we had cash contributions of $203 million to unconsolidated entities, which included (1) $169 million to Homebuilding unconsolidated entities, (2) $10 million to Lennar Other unconsolidated entities and (3) $24 million to Multifamily unconsolidated entities and $103 million of net additions of operating properties and equipment.
Financing Cash Flow Activities
During the nine months ended August 31, 2026 and 2025, cash used in financing activities totaled $1.6 billion and $1.9 billion, respectively. During the nine months ended August 31, 2026, cash used in financing activities was primarily due to (1) $993 million of repurchases of our common stock, which included $950 million of repurchases under our repurchase program and $43 million of repurchases related to our equity compensation plan; (2) redemption of $400 million aggregate principal amount of our 5.25% senior notes due June 2026; (3) $206 million of net repayments under our Financial Services' warehouse facilities; (4) $366 million of dividend payments; and (5) $238 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks. This was partially offset by $650 million of net borrowings under our unsecured revolving Credit Facility.
During the nine months ended August 31, 2025, cash used in financing activities was primarily due to (1) $1.8 billion of repurchases of our common stock, which included $1.7 billion of repurchases under our repurchase program and $66 million of repurchases related to our equity compensation plan; (2) $394 million of dividend payments; (3) $479 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks; (4) $416 million net cash in connection with the Millrose spin-off; (5) redemption of $500 million aggregate principal amount of our 4.75% senior notes due May 2025; and (6) $67 million of net repayments under our Financial Services' warehouse facilities. The cash used in financing activities was partially offset by the receipt of proceeds of the sale of $700 million aggregate principal amount of our 5.20% senior notes due 2030 and $1.1 billion of net borrowings under our unsecured revolving Credit Facility.
Debt to total capital ratios are financial measures commonly used in the homebuilding industry and are presented to assist in understanding the leverage of our homebuilding operations. Homebuilding debt to total capital and net Homebuilding debt to total capital are calculated as follows:
At
(Dollars in thousands) August 31, 2026 November 30, 2025 August 31, 2025
Homebuilding debt $ 4,297,251 4,084,686 3,523,766
Stockholders' equity 21,558,959 21,959,417 22,570,320
Total capital $ 25,856,210 26,044,103 26,094,086
Homebuilding debt to total capital 16.6 % 15.7 % 13.5 %
Homebuilding debt $ 4,297,251 4,084,686 3,523,766
Less: Homebuilding cash and cash equivalents 1,150,115 3,441,324 1,406,215
Net Homebuilding debt $ 3,147,136 643,362 2,117,551
Net Homebuilding debt to total capital (1) 12.7 % 2.8 % 8.6 %
(1)Net homebuilding debt to total capital is a non-GAAP financial measure defined as net homebuilding debt (homebuilding debt less homebuilding cash and cash equivalents) divided by total capital (net homebuilding debt plus stockholders' equity). We believe the ratio of net homebuilding debt to total capital is a relevant and a useful financial measure to investors in understanding the leverage employed in homebuilding operations. However, because net homebuilding debt to total capital is not calculated in accordance with GAAP, this financial measure should not be considered in isolation or as an alternative to financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement our GAAP results.
At August 31, 2026, Homebuilding debt to total capital was higher compared to November 30, 2025, primarily as a result of an increase in Homebuilding debt due to outstanding borrowings under our unsecured revolving Credit Facility, partially offset by net earnings and debt paydowns. At August 31, 2026, Homebuilding debt to total capital was higher compared to August 31, 2025, primarily as a result of a decrease in stockholders' equity due to the non-cash exchange of Millrose Class A common stock, stock repurchases, an increase in Homebuilding debt due to issuance of senior notes and outstanding borrowings under our unsecured delayed draw term loan facility (the "Delayed Draw Term Loan Facility") and outstanding borrowings under our unsecured revolving Credit Facility, partially offset by net earnings and debt paydowns.
We are continually exploring various types of transactions to manage our leverage and liquidity positions, take advantage of market opportunities and increase our revenues and earnings. These transactions may include the issuance of additional indebtedness, the repurchase of our outstanding indebtedness, the repurchase of our common stock, the acquisition of homebuilders and other companies, the purchase or sale of assets or lines of business, the issuance of common stock, strategic transactions to accelerate our land-light strategy or securities convertible into shares of common stock, and/or the pursuit of other financing alternatives. In connection with some of our non-homebuilding businesses, we are also considering other types of transactions such as sales, restructurings, and joint ventures as we continue to move towards being a pure play homebuilding company.
Our Homebuilding senior notes and other debts payable as well as letters of credit and surety bonds are summarized within Note 7 of the Notes to Condensed Consolidated Financial Statements. Our Homebuilding average debt outstanding and the average rates of interest was as follows:
Nine Months Ended August 31,
(Dollars in thousands) 2026 2025
Homebuilding average debt outstanding $ 4,289,060 2,929,259
Average interest rate 4.9% 5.0%
Interest incurred $ 174,629 128,203
We have the Delayed Draw Term Loan Facility with committed borrowing availability of approximately $1.7 billion, which can be increased by an additional $400 million via an accordion feature. As of August 31, 2026, we had outstanding borrowings of $1.7 billion under the credit agreement governing our unsecured Delayed Draw Term Loan Facility. We may at any time prepay the loan, in whole or in part, without premium or penalty. The term loan's maturity date is three years from the initial effectiveness date of the credit agreement or May 2028, and at our discretion, it can be extended for an additional year until May 2029, subject to the satisfaction of certain conditions. Under the Delayed Draw Term Loan Facility, interest rates equal the adjusted term SOFR determined for the interest period plus the applicable margin.
The maximum available borrowings on our Credit Facility were as follows:
(In thousands) At August 31, 2026
Commitments - maturing in May 2027 $ 225,000
Commitments - maturing in November 2029 2,900,000
Total commitments $ 3,125,000
Accordion feature 375,000
Total maximum borrowings capacity $ 3,500,000
The proceeds available under the Credit Facility, which are subject to specified conditions for borrowing, may be used for working capital and general corporate purposes. The Credit Facility also provides that up to $477.5 million in commitments may be used for letters of credit. The maturity, debt covenants and details of the Credit Facility are unchanged from the disclosure in the Financial Condition and Capital Resources section in our 2025 Form 10-K. In addition to the Credit Facility, we have other letter of credit facilities with different financial institutions.
Under the agreements governing our Credit Facility and Delayed Draw Term Loan Facility, we are required to maintain a minimum consolidated tangible net worth, a maximum leverage ratio and either a liquidity or an interest coverage ratio. These ratios are calculated per the Credit Facility and Delayed Draw Term Loan Facility agreements, which involve adjustments to GAAP financial measures. We believe we were in compliance with our debt covenants as of August 31, 2026. The following summarizes our debt covenant requirements and our actual levels or ratios with respect to those covenants as calculated per the Credit Facility and Delayed Draw Term Loan Facility agreements as of August 31, 2026:
(Dollars in thousands) Covenant Level Level Achieved as of August 31, 2026
Minimum net worth test $ 10,000,000 15,946,331
Maximum leverage ratio 60.0% 19.1%
Liquidity test 1.00 21.00
Financial Services Warehouse Facilities
Our Financial Services segment uses residential mortgage loan warehouse facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected. The facilities are non-recourse to us and are expected to be renewed or replaced with other facilities when they mature. The LMF Commercial warehouse facilities finance LMF Commercial loan origination and securitization activities and are secured by up to 80% interests in the originated commercial loans financed. These facilities and the related borrowings and collateral are detailed in Note 2 of the Notes to Condensed Consolidated Financial Statements.
Changes in Capital Structure
In January 2024, our Board of Directors authorized an increase to our stock repurchase program to enable us to repurchase up to an additional $5 billion in value of our outstanding Class A or Class B common stock. Repurchases are authorized to be made in open-market or private transactions. The repurchase authorization has no expiration date. At August 31, 2026, we have a remaining authorization to repurchase $751 million in value of our Class A or Class B common stock. The details of our Class A and Class B common stock repurchases under the authorized repurchase program for the nine months ended August 31, 2026 and 2025 are included in Note 4 of the Notes to Condensed Consolidated Financial Statements.
During the nine months ended August 31, 2026, treasury shares increased by 10.6 million shares primarily due to our repurchase of 10.0 million shares of Class A and Class B common stock through our stock repurchase program. During the nine months ended August 31, 2025, treasury shares increased by 14.8 million shares primarily due to our repurchase of 14.1 million shares of Class A and Class B common stock through our stock repurchase program.
On September 23, 2026, our Board of Directors declared a quarterly cash dividend of $0.50 per share on both our Class A and Class B common stock, payable on October 22, 2026 to holders of record at the close of business on October 7, 2026. On July 24, 2026, we paid a quarterly cash dividend of $0.50 per share for both of our Class A and Class B common stock to holders of record at the close of business on July 10, 2026. We approved and paid cash dividends of $0.50 per share for each of the four quarters of 2025 for both our Class A and Class B common stock.
Based on our current financial condition and credit relationships, we believe that our operations and borrowing resources will provide for our current and long-term capital requirements at our anticipated levels of activity.
Supplemental Financial Information
Our outstanding senior notes are guaranteed by certain of our wholly-owned subsidiaries, which are primarily homebuilding subsidiaries. These guarantees are full and unconditional. The guarantors of our senior notes are currently those subsidiaries that also guarantee Lennar Corporation's letter of credit facilities, Credit Facility and Delayed Draw Term Loan Facility, which are disclosed in Note 7 of the Notes to Condensed Consolidated Financial Statements. Under the indentures governing our senior notes, guarantees may be suspended or released under certain circumstances.
Supplemental information for the Obligors, which excludes non-guarantor subsidiaries and intercompany transactions, at August 31, 2026 is included in the following tables. Intercompany balances and transactions within the Obligors have been eliminated and amounts attributable to the Obligors' investment in consolidated subsidiaries that have not issued or guaranteed the senior notes have been excluded. Amounts due from and transactions with nonobligor subsidiaries and related parties are separately disclosed:
(In thousands) At August 31, 2026 At November 30, 2025
Due from non-guarantor subsidiaries $ 14,489,893 14,709,366
Equity method investments 1,138,580 1,213,485
Total assets 40,193,618 40,496,300
Total liabilities 9,047,681 9,243,409
Nine Months Ended
(In thousands) August 31, 2026
Total revenues $ 20,282,054
Operating earnings 1,288,662
Earnings before income taxes 807,842
Net earnings attributable to Lennar 600,960
Off-Balance Sheet Arrangements
We regularly monitor the results of our Homebuilding unconsolidated joint ventures and any trends that may affect their future liquidity or results of operations. We also monitor the performance of homebuilding joint ventures in which we have investments on a regular basis to assess compliance with debt covenants. For those joint ventures not in compliance with the debt covenants, we evaluate and assess possible impairment of our investments. We believe that substantially all of the joint ventures were in compliance with their debt covenants at August 31, 2026.
Homebuilding: Investments in Unconsolidated Entities
As of August 31, 2026, we had equity investments in 47 active Homebuilding and land unconsolidated entities (of which 3 had recourse debt, 10 had non-recourse debt and 34 had no debt) compared to 50 active Homebuilding and land unconsolidated entities at November 30, 2025. Historically, we have invested in unconsolidated entities that acquired and developed land (1) for our homebuilding operations or for sale to third parties or (2) for the construction of homes for sale to third-party homebuyers. Through these entities, we have primarily sought to reduce and share our risk by limiting the amount of our capital invested in land, while obtaining access to potential future homesites and allowing us to participate in strategic ventures. The use of these entities also, in some instances, has enabled us to acquire land to which we could not otherwise obtain access, or could not obtain access on as favorable terms, without the participation of a strategic partner. Participants in these joint ventures have been land owners/developers, other homebuilders and financial or strategic partners. Joint ventures with land owners/developers have given us access to homesites owned or controlled by our partners. Joint ventures with other homebuilders have provided us with the ability to bid jointly with our partners for large land parcels. Joint ventures with financial partners have allowed us to combine our homebuilding expertise with access to our partners' capital. Joint ventures with strategic partners have allowed us to combine our homebuilding expertise with the specific expertise (e.g., commercial or infill experience) of our partner. Each joint venture is governed by an executive committee consisting of members from the partners. Details regarding these investments, balances and debt are included in Note 3 of the Notes to Condensed Consolidated Financial Statements.
The following table summarizes the principal maturities of our Homebuilding unconsolidated entities ("JVs") debt as per current debt arrangements as of August 31, 2026. It does not represent estimates of future cash payments that will be made to reduce debt balances. Many JV loans have extension options in the loan agreements that would allow the loans to be extended into future years.
Principal Maturities of Unconsolidated JVs by Period
(In thousands) Total JV Debt 2026 2027 2028 Thereafter Other
Bank debt without recourse to Lennar $ 1,142,371 59,502 428,439 154,582 499,848 -
Land seller and other debt without recourse to Lennar 43,820 - - - 43,820 -
Maximum recourse debt exposure to Lennar 9,085 9,085 - - - -
Debt issuance costs (13,476) - - - - (13,476)
Total $ 1,181,800 68,587 428,439 154,582 543,668 (13,476)
We own an approximately 40% interest in FivePoint Holdings, LLC., a NYSE listed company, and companies it manages, which own three large multi-use properties in California.
Multifamily: Investments in Unconsolidated Entities
At August 31, 2026, Multifamily had equity investments in 26 active unconsolidated entities that are engaged in multifamily residential developments (of which 18 had non-recourse debt and 8 had no debt) compared to 25 active unconsolidated entities at November 30, 2025. We invest in unconsolidated entities that acquire and develop land to construct multifamily rental properties. Through these entities, we are focusing on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. Participants in these joint ventures have been financial partners. Joint ventures with financial partners have allowed us to combine our development and construction expertise with access to our partners' capital. Each joint venture is governed by an operating agreement that provides significant substantive participating voting rights on major decisions to our partners.
The Multifamily segment manages and has investments in LMV I, LMV II and Canada Pension Plan Investments Fund (the "CPPIB Fund") and a new joint venture with an institutional investor (the "Institutional JV"), which are long-term multifamily development investment vehicles involved in the development, construction and ownership of class-A multifamily assets. The Multifamily segment expects the CPPIB Fund to have almost $1.0 billion in equity and Lennar's ownership percentage in the CPPIB Fund is 4%. The Multifamily segment expects the Institutional JV to acquire certain portfolio assets and invest additional capital to support pipeline opportunities. Details of each fund as of and during the nine months ended August 31, 2026 are included in Note 3 of the Notes to Condensed Consolidated Financial Statements.
In addition, in December 2025, we sold a majority interest in Quarterra Group, Inc. ("Quarterra"), a subsidiary of the Multifamily segment, to TPG Real Estate ("TPG"), thus retaining a noncontrolling interest. TPG's acquisition of Quarterra and its $1.0 billion strategic commitment, combined with Lennar's insights, will accelerate Quarterra's development pipeline and strengthen its platform for delivering thoughtfully designed rental communities in high-growth markets.
We regularly monitor the results of our Multifamily unconsolidated joint ventures and any trends that may affect their future liquidity or results of operations. We also monitor the performance of Multifamily joint ventures in which we have investments on a regular basis to assess compliance with debt covenants. For those joint ventures not in compliance with the debt covenants, we evaluate and assess possible impairment of our investment. We believe all of the joint ventures were in compliance with their debt covenants at August 31, 2026.
The following table summarizes the principal maturities of our Multifamily unconsolidated entities debt as per current debt arrangements as of August 31, 2026. It does not represent estimates of future cash payments that will be made to reduce debt balances.
Principal Maturities of Unconsolidated JVs by Period
(In thousands) Total JV Debt 2026 2027 2028 Thereafter Other
Debt without recourse to Lennar $ 2,205,084 149,617 875,203 560,306 619,958 -
Debt issuance costs (23,553) - - - - (23,553)
Total $ 2,181,531 149,617 875,203 560,306 619,958 (23,553)
Lennar Other: Investments in Unconsolidated Entities
As of August 31, 2026 and November 30, 2025, we had strategic technology investments in unconsolidated entities of $232.1 million and $235.0 million, respectively, accounted for under the equity method of accounting. Our strategic technology investments through our LENX business help to enhance the home buying and home ownership experience, and help us stay at the forefront of homebuilding innovation. Details regarding these investments are included in Note 3 of the Notes to Condensed Consolidated Financial Statements.
As part of the sale of the Rialto investment and asset management platform, we retained the right to receive a portion of payments with regard to carried interests if certain funds meet specified performance thresholds. We periodically receive advance distributions related to the carried interests in order to cover income tax obligations resulting from allocations of taxable income to the carried interests. These distributions are not subject to clawbacks but reduce future carried interest payments to which we become entitled from the applicable funds and were recorded as equity in earnings (losses) in the condensed consolidated statement of operations. Our investment in the Rialto funds totaled $131.3 million and $133.0 million as of August 31, 2026 and November 30, 2025, respectively.
Option Contracts
We often obtain access to land through option contracts, which generally enable us to control portions of properties owned by third parties (including land banks) and unconsolidated entities until we have determined whether to exercise the options. Since fiscal year 2020, we have increased the percentage of our total homesites that we control through options rather than own.
As part of our focus on strategic relationships to further enhance our land-light strategy, at the end of fiscal year 2020 we entered into an arrangement with various land bank investor groups. Under the arrangement, in most instances when we want to acquire a property for use in our for-sale single-family home business, we will offer the investor group the opportunity to acquire the property and give us an option to purchase all or a portion of it back in the future, if it is mutually beneficial to both parties. To the extent the investor group does not elect to purchase properties we identify, we can utilize our other investor relationships to have other investor groups purchase the land or we can purchase it directly. The arrangement with the investor group, together with existing and other strategic partnerships, including the spin-off of Millrose in 2025, were significant steps in our strategy to migrate to a higher percentage of our homesites which we control but do not own, which we expect will result in greater cash flow and higher returns on assets and equity.
The table below indicates the number of homesites to which we had access through option contracts with third parties and unconsolidated JVs (i.e., controlled homesites) and homesites owned (excluding homes in inventory):
Years of
August 31, 2026 Controlled Homesites Owned Homesites Total Homesites Supply Owned (1)
East 107,892 1,979 109,871
Central 126,702 3,253 129,955
South Central 145,045 1,478 146,523
West 91,865 3,377 95,242
Other 4,649 1,721 6,370
Total homesites 476,153 11,808 487,961 0.1
% of total homesites 98% 2%
Years of
August 31, 2025 Controlled Homesites Owned Homesites Total Homesites Supply Owned (1)
East 116,841 1,313 118,154
Central 130,125 3,389 133,514
South Central 164,849 1,919 166,768
West 95,300 3,133 98,433
Other 4,649 1,561 6,210
Total homesites 511,764 11,315 523,079 0.1
% of total homesites 98% 2%
(1)Based on trailing twelve months of home deliveries.
Details on option contracts, transactions with land banks and related consolidated inventory not owned and exposure are included in Note 9 of the Notes to Condensed Consolidated Financial Statements.
Contractual Obligations and Commercial Commitments
Our contractual obligations and commercial commitments have not changed materially from those reported in Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2025 Form 10-K, except for a decrease of $198 million in borrowings under the Financial Services' warehouse repurchase facilities, a decrease of $400 million due to redemption of our 5.25% senior notes due June 2026 and an increase of $650 million outstanding borrowings under our revolving Credit Facility.
(3) Recently Adopted Accounting Pronouncements
See Note 1 of the Notes to Condensed Consolidated Financial Statements included under Item 1 of this Quarterly Report on Form 10-Q for a discussion of recently adopted accounting pronouncements.
(4) Critical Accounting Policies
There have been no significant changes to our critical accounting policies during the nine months ended August 31, 2026 as compared to those we disclosed in Management's Discussion and Analysis of Financial Condition and Results of Operations included in our 2025 Form 10-K.
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