Fri, Jun 28, 9:06 PM (71 days ago)
Lennar Corporation's Form 10-Q for the quarter ended May 31, 2024, reports a strong financial performance driven by increased home deliveries and effective cost management. Key highlights include: 1. **Revenue and Earnings**: Quarterly revenues rose to $8.8 billion, up from $8.0 billion in the same period last year. Net earnings attributable to Lennar increased to $954.3 million ($3.45 per diluted share), compared to $871.7 million ($3.01 per diluted share) in Q2 2023. 2. **Homebuilding**: Home deliveries increased by 15% to 19,690 homes, though the average sales price dropped by 5% to $426,000. Gross margins on home sales improved slightly to 22.6% from 22.5% due to cost savings and increased production efficiency. 3. **Financial Services**: Operating earnings grew to $146.3 million, up from $112.1 million, driven by higher mortgage origination volume and increased capture rates. 4. **Cash Flow**: Operating cash flow was $610 million, impacted by strategic land purchases and increased inventories. Cash used in investing activities was $275 million, primarily due to contributions to unconsolidated entities. 5. **Debt and Liquidity**: Homebuilding debt decreased to $2.2 billion with a 7.7% debt-to-capital ratio. The company had $3.6 billion in cash and no borrowings under its $2.2 billion revolving credit facility. 6. **Future Outlook**: Lennar expects to deliver approximately 80,000 homes in 2024 with a gross margin of around 23%, and plans to repurchase over $2 billion of its stock for the full year. The company is also exploring a strategic spin-off of land assets valued at $6-$8 billion to support its land-light strategy.