Lennar reported a robust QQ3 2024 with revenue of $9.416B, gross margin of 22.5% and net margin of 15.8%, delivering EPS of $4.26 (non-GAAP). The quarter showcased continued volume growth under an evolving asset-light, land-light operating model, with starts up 8% YoY, new orders up 5% YoY and deliveries up 16% YoY to roughly 21,500 homes. Lennar reiterated its full-year delivery target of 80,500–81,000 homes for 2024 and guided Q4 to deliver 22,500–23,000 homes, maintaining a flat gross margin sequence through the year as it optimizes production cadence and absorbs community lag effects.
Management emphasized that the five-year transformation toward just-in-time finished-home-site delivery, asset-light balance sheet, and a durable land strategy has reduced land ownership to 1.1 years and increased controlled sites to 81% as of year-end, with inventory turns at about 1.6x. The company remains highly liquidity-ready (cash on hand ~$4.0B and no revolver borrowings) and has repurchased $519M of stock in Q3, with a 2024 target of >$2B in buybacks. A centerpiece of the medium-term plan is Millrose Properties Inc., a REIT-like vehicle intended to provide permanent capital for land development and a just-in-time homesite supply engine. Lennar anticipates Millrose will reduce inventory and equity in a way that elevates returns and supports capital deployment to growth, debt repayment, and buybacks.
Risk considerations include currency-like sensitivity to mortgage rates, affordability dynamics, and community counts lagging start schedules, which can pressure margins in the near term. Nonetheless, the balance sheet strength (debt-to-total capital ~7.6%), ongoing cash generation, and a disciplined capital-allocation framework position Lennar to participate in a more constructive housing cycle as rates normalize. The long-run growth framework targets roughly 10% steady-state volume growth, aided by an asset-light platform that enables broader geographic and market expansion.