Lennar Corporation (LEN-B) Q3 2024 Earnings Report

Lennar reported a solid Q3 2024, underscoring continued momentum in volume and an ongoing transition to an asset-light, land-light operating model. Revenue reached $9.42 billion with net income of $1.16 billion and GAAP EPS of $4.26 for the quarter, supported by 20,250 starts (+8% YoY), about 20,600 new orders (~+5% YoY), and deliveries of roughly 21,500 (+16% YoY). The company continued to improve operating efficiency and cash flow generation, highlighted by a reduced cycle time (140 days on average, down 23% YoY) and an inventory turn of 1.6x, while shrinking owned land to 1.1 years and increasing controlled lands to 81%. Lennar also reiterated its commitment to capital returns, repurchasing 3.4 million shares for $519 million in the quarter and signaling a target of more than $2 billion in share repurchases for 2024, with $4 billion of cash on hand and a debt-to-total-capital ratio of 7.6%. 2024 guidance preserves the long-range plan: projected closings of 80.5k–81.0k for the year, Q4 deliveries of 22.5k–23.0k, and flat gross margin quarter-over-quarter, with EPS in the $4.10–$4.25 range for Q4. Management also detailed the Millrose Properties REIT spin-off as a foundational pillar of the asset-light strategy, noting a structure designed to provide permanent capital and ongoing land development financing while Lennar remains a contractor with ongoing option rights to repurchase finished homesites. While near-term headwinds include higher-rate affordability constraints and community start delays, the operating framework is positioned to benefit from a more permissive rate environment and ongoing supply-demand realignment over 2025 and beyond.