Lennar Corporation reported solid QQ3 2024 results, with revenue of $9.42 billion, up 7.9% year over year and 7.4% quarter over quarter. Despite a modest gross margin (approximately 15.6%), the company generated strong operating cash flow of $819 million and free cash flow of about $801 million, underpinning a robust liquidity position (cash and cash equivalents of roughly $4.31 billion) and a net cash position (net debt of about -$0.44 billion). Net income reached $1.16 billion, producing earnings per share (EPS) of $4.26, with a 2H2024 trajectory supported by disciplined cost management and favorable product mix. The balance sheet remains conservatively levered, with total liabilities of ~$12.18 billion and total stockholders’ equity of ~$27.41 billion, and liquidity metrics illustrating healthy coverage (current ratio ~11.5, quick ratio ~4.0, cash ratio ~1.50). The quarter also featured significant capital allocation activity, including a stock repurchase of ~$524.6 million, signaling confidence in intrinsic value and a commitment to returning capital to shareholders.
Key takeaway: Lennar’s QQ3 results reflect a resilient operating profile in a cyclical housing market, characterized by strong cash generation, prudent balance-sheet management, and value-focused capital allocation. Near-term execution hinges on housing demand dynamics, mortgage rate environment, and the efficiency of backlog conversion, all of which management will continue to monitor as it navigates a still-sensitive macro backdrop.