Lennar reported results for its third quarter ended August 31, 2022.
Article continues below
Third quarter net earnings attributable to Lennar in 2022 were $1.5 billion, or $5.03 per diluted share, compared to third quarter net earnings attributable to Lennar in 2021 of $1.4 billion, or $4.52 per diluted share.
Excluding mark-to-market gains (losses) on technology investments in both years and one-time items in the current year, third quarter net earnings attributable to Lennar in 2022 were $1.5 billion, or $5.18 per diluted share, compared to third quarter net earnings attributable to Lennar in 2021 of $1.0 billion, or $3.27 per diluted share.
Stuart Miller, Executive Chairman of Lennar, said, "At this evolving time in the market, we are pleased to report third quarter earnings of $1.5 billion, or $5.03 per diluted share, compared to $1.4 billion, or $4.52 per diluted share for the third quarter last year.
Excluding mark-to-market gains (losses) on our technology investments and one-time items, third quarter earnings were $1.5 billion, or $5.18 per diluted share, compared to $1.0 billion, or $3.27 per diluted share for the third quarter last year, a 48% and 58% increase year over year, respectively."
Mr. Miller continued, "Our home deliveries were 17,248, up 13% over last year, and in line with our guidance estimate given at the beginning of the quarter, and we achieved a homebuilding gross margin of 29.2% and homebuilding S,G&A expenses of 5.8%, leading to a 23.5% net margin, even as materials and labor costs increased. Supply chain constraints, while improving, still continue to limit deliveries."
"While our new orders declined 12% compared to last year's third quarter, we continued to maintain a consistent starts pace and drive sales by adjusting pricing and incentives. Sales have clearly been impacted by rising interest rates, but there remains a significant national shortage of housing, especially workforce housing, and demand remains strong as we navigate the rebalance between price and interest rates."
"Accordingly, during the quarter, we continued to focus on pricing to market and rightsizing our inventory to generate significant cash flow. We are focused on balance sheet strength as we retired early $575 million of homebuilding senior notes due November 2022, ended the quarter with $1.3 billion in cash, had no borrowings on our $2.6 billion revolver and homebuilding debt to capital of 15.0%, the lowest in our history. Our balance sheet has never been in a stronger position than it is today." ■