By Shaina Mishkin

Lennar's second-quarter revenue missed Wall Street's expectations, according to financial results released Thursday as housing market headwinds kept on blowing.

The builder earned $1.24 a share, or $1.31, excluding mark-to-market losses on technology investments, on $7.9 billion in revenue. The earnings figure was in-line with consensus expectations, but revenue fell short of the roughly $8.1 billion analysts expected, according to FactSet.

The stock was down 1.2% in after-hours trading after closing 5.7% higher.

"Our second quarter of fiscal year 2026 was defined by the same stubborn headwinds that have challenged the housing market for the past several years -- persistently elevated mortgage rates, constrained affordability, and cautious consumer sentiment, exacerbated by geopolitical uncertainty creating a resurgent inflation reading of 4.2% driven by higher energy prices," Lennar CEO and executive chairman Stuart Miller said in a statement.

Lennar's gross margin on home sales of 15.6% was about in-line with expectations but on the low end of its prior guidance. Its average home sold for $371,000, inclusive of 12.9% buyer incentives and pricing changes "necessary to sustain volume in a market where affordability remains the defining constant."

Investors have been watching margins closely. Lennar expects its gross margin on home sales to be around 16% in its third quarter, the company said.

The stock has come under pressure this year. Housing demand has remained weak, requiring continued buyer incentives to keep homes selling, and the company's land-banking strategy -- Lennar pays 8.5% interest to its land-banking spinoff Millrose for the land it controls -- faced criticism.

Oppenheimer analyst Tyler Batory earlier this month wrote that the Lennar should trade at a book value multiple similar to smaller peers because "its land banking obligations add a layer of fixed cost to gross margin."

Investors can expect a closer look at Lennar's land banking strategy on Friday morning, when the company said it will publish a new investor deck.

"This deck has been designed to give investors a current view of Lennar's transformation, our asset-light operating model, our technology platform, and our path to margin recovery and long-term value creation," Miller said. "We believe it provides important context for understanding not just where we are today, but where we are going, and why we remain so confident about Lennar's long-term position."

The company will discuss its results on an 11 a.m. Eastern conference call Friday.

Write to Shaina Mishkin at shaina.mishkin@dowjones.com

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June 11, 2026 17:21 ET (21:21 GMT)

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