Updated: December 17, 2025
Lennar Corporation’s stock (NYSE: LEN) is in the spotlight on December 17, 2025 after the homebuilder reported fourth-quarter and full-year fiscal 2025 results late Tuesday and laid out a cautious early outlook for fiscal 2026. The headline takeaway: Lennar’s revenue held up, but profits and margins didn’t, and management signaled that the affordability fight—fought with incentives and mortgage-rate buydowns—is still squeezing profitability. [1]
What’s happening with Lennar stock today
Lennar shares have been reacting to a mixed earnings picture: better-than-expected revenue, but weaker-than-expected earnings and soft first-quarter guidance. Reuters reported the stock fell more than 4% in after-hours trading after the results. [2]
In the regular Tuesday session (December 16), MarketWatch said LEN closed down 1.80% at $117.57, underperforming some peers, and noted the stock sat about 20% below its 52-week high of $147.48 (reached on a December 17 within the past year). [3]
As of the latest available quote in today’s data feeds, LEN has been trading around $117.57. [4]
The news driving the move: Lennar’s Q4 and fiscal 2025 results
Lennar’s official release (for the quarter ended November 30, 2025) shows a company pushing to keep homes moving—even if it means giving up margin to do it.
Key Q4 2025 numbers investors are reacting to
From Lennar’s earnings release:
- Diluted EPS:$1.93 (or $2.03 excluding certain adjustments) [5]
- Total revenue:$9.37 billion [6]
- Deliveries:23,034 homes (up year over year) [7]
- New orders:20,018 homes (up year over year) [8]
- Average sales price (deliveries):$386,000 (down from $430,000 a year earlier) [9]
- Gross margin on home sales:17.0% (down from 22.1% a year earlier) [10]
- Backlog:13,936 homes worth $5.2 billion [11]
Management explicitly pointed to the lever most homebuilder investors have learned to obsess over: incentives. In the release, Lennar said it maintained roughly 14% in incentives and price adjustments to support volume. [12]
Full-year fiscal 2025 highlights
For the full fiscal year ended November 30, 2025, Lennar reported:
- Diluted EPS:$7.98 (or $8.06 excluding certain adjustments) [13]
- Total revenue:$34.2 billion [14]
- New orders:83,978 homes (up year over year) [15]
- Deliveries:82,583 homes (up year over year) [16]
- Home sales gross margin:17.7% (full-year) [17]
The release also highlighted meaningful capital actions and structural moves, including completing the Millrose spin-off and an acquisition of Rausch Coleman Homes’ homebuilding operations earlier in 2025, plus repurchasing 22.1 million shares (some via cash repurchases and some via the Millrose exchange offer). [18]
Why earnings missed even though revenue beat
This quarter’s story is basically a classic homebuilder trade-off, wearing a neon sign:
- Affordability pressure is keeping demand fragile. [19]
- Lennar is using mortgage-rate buydowns and other incentives to protect volumes—helpful for revenue and deliveries, painful for margins. [20]
- Lennar said Q4 gross margin fell due to lower revenue per square foot and higher land costs, partially offset by lower construction costs. [21]
Reuters also flagged two additional headwinds discussed around the release: the effects of a six-week government shutdown and tariffs lifting input costs (including materials like lumber). [22]
Lennar’s 2026 guidance: the forecast that matters now
For many investors, the earnings print is old news within minutes. Guidance is the live wire.
In Lennar’s outlook for the first quarter of fiscal 2026, the company said it expects:
- New orders:18,000–19,000 [23]
- Deliveries:17,000–18,000 [24]
- Average sales price:$365,000–$375,000 [25]
- Gross margin on home sales:15%–16% [26]
- SG&A as % of home sales: about 9.5% [27]
- Financial services operating earnings:$105 million–$110 million [28]
Management also said it expects full-year deliveries of ~85,000 homes. [29]
Barron’s summed up the market’s issue bluntly: Q4 earnings missed expectations, and Q1 guidance (including orders, deliveries, and margins) came in lighter than analysts were looking for, reinforcing the “profitability vs. volume” dilemma. [30]
Analyst reaction and stock forecasts: where Wall Street stands on LEN
Analyst forecasts for Lennar stock on December 17 look… cautious. Not apocalyptic, not euphoric—more like the market is waiting for clearer evidence that margins can stabilize without demand breaking.
Here’s what the major consensus aggregators show right now:
- MarketBeat: average 12‑month price target $121.77 (19 analysts), with targets ranging $96 to $161. [31]
- TipRanks: average price target $122.33 (14 analysts) and a “Hold” consensus rating (TipRanks lists 2 buys, 8 holds, 4 sells). [32]
- StockAnalysis: average target $125.13 and an overall “Hold” rating (17 analysts). [33]
Put together, those targets imply low-single-digit upside around current levels—basically a market that thinks Lennar is roughly fairly priced unless margins surprise to the upside or the housing macro improves faster than expected. [34]
One more “forecast” traders watched: options-implied volatility
Ahead of the earnings release, options markets were pricing in a move of roughly 5% post-earnings (TipRanks/TheFly reported implied volatility suggesting ~5% or ~$5.93, with a median move of 4.7% over the prior eight quarters). [35]
That’s notable because the initial after-hours reaction (down ~4%+) landed in the same neighborhood. [36]
The macro backdrop: mortgage rates and the 2026 housing debate
Homebuilder stocks don’t trade in a vacuum; they trade in a haunted house whose walls are labeled “Mortgage Rates.”
Freddie Mac’s Primary Mortgage Market Survey showed the average 30-year fixed mortgage rate at 6.22% as of December 11, 2025 (slightly above the prior week and below year-ago levels). [37]
The Associated Press noted rates were still near 2025 lows and reported economists broadly expect mortgage rates to stay slightly above 6% in 2026, which would be “better than 7%” but not exactly a return to the ultra-cheap money era. [38]
Barron’s has also been leaning into the idea that a 2026 housing-stock comeback is plausible if rates drift lower and supply constraints keep the long-term demand story intact—though 2025’s affordability squeeze has been real. [39]
What investors will listen for on the December 17 earnings call
Lennar’s investor relations site lists the Q4 2025 conference call for Wednesday, December 17, 2025 at 11:00 a.m. EST. [40]
On a call like this, the most market-moving details are often not the headline EPS number—they’re the texture behind the guidance. Based on today’s release and the questions analysts typically press homebuilders on in this environment, expect attention on:
- Incentive intensity: Does “~14% incentives” rise, fall, or shift form (rate buydowns vs price cuts)? [41]
- Order quality and cancellations: Are orders holding without increasingly aggressive concessions? (Lennar guided to 18,000–19,000 Q1 orders.) [42]
- Margin bridge: How much is mix vs land cost vs build cost vs incentives? [43]
- Millrose “land-light” strategy impacts: Investors continue to track how the Millrose structure influences returns, capital intensity, and buybacks over time. [44]
- 2026 demand assumptions: Management explicitly said it’s giving “limited guidance” against an uncertain backdrop—so language shifts matter. [45]
Bottom line for Lennar stock on December 17, 2025
Lennar is still selling a lot of homes—deliveries and orders rose year over year—but it’s doing so in a market where affordability constraints mean profitability gets bargained down, one incentive at a time. [46]
With LEN trading around the high‑$110s and consensus price targets clustered in the low‑$120s, Wall Street’s current forecast looks less like a victory lap and more like a “show me the margin stabilization” waiting room. [47]
References
1. investors.lennar.com, 2. www.reuters.com, 3. www.marketwatch.com, 4. www.marketwatch.com, 5. investors.lennar.com, 6. investors.lennar.com, 7. investors.lennar.com, 8. investors.lennar.com, 9. investors.lennar.com, 10. investors.lennar.com, 11. investors.lennar.com, 12. investors.lennar.com, 13. investors.lennar.com, 14. investors.lennar.com, 15. investors.lennar.com, 16. investors.lennar.com, 17. investors.lennar.com, 18. investors.lennar.com, 19. www.reuters.com, 20. www.investing.com, 21. investors.lennar.com, 22. www.reuters.com, 23. investors.lennar.com, 24. investors.lennar.com, 25. investors.lennar.com, 26. investors.lennar.com, 27. investors.lennar.com, 28. investors.lennar.com, 29. investors.lennar.com, 30. www.barrons.com, 31. www.marketbeat.com, 32. www.tipranks.com, 33. stockanalysis.com, 34. www.marketbeat.com, 35. www.tipranks.com, 36. www.reuters.com, 37. www.freddiemac.com, 38. apnews.com, 39. www.barrons.com, 40. investors.lennar.com, 41. investors.lennar.com, 42. investors.lennar.com, 43. investors.lennar.com, 44. investors.lennar.com, 45. investors.lennar.com, 46. investors.lennar.com, 47. www.marketbeat.com
