Lennar: Everything Shouts 'Not Yet' (Earnings Review)

Summary Lennar Corporation faces cyclical headwinds, with Q3 earnings disappointing and shares at 52-week lows, despite Berkshire Hathaway increasing its stake. LEN's asset-light transition has improved ROE to 21% and reduced capital intensity, but macro conditions — high mortgage rates and weak sentiment — are pressuring margins and volumes. Q3 results showed revenue down to $8B, gross margin at 15.8%, and FY26 guidance cut to 80k–81k home deliveries, reflecting ongoing demand softness. At $76/share, LEN trades above peer averages on forward PE, and I remain on the sidelines, watching for macro recovery signals before considering a position. I do much more than just articles at iREIT®+HOYA Capital: Members get access to model portfolios, regular updates, a chat room, and more. Learn More » panaya chittaratlert/iStock via Getty Images Introduction The world is not only about AI, and my readers know that I am particularly interested in understanding the infrastructure side of most economic activity, as I keep thinking that, though services and software surely show how sophisticated our 21st-century world This article was written by Luca Socci 8.41K Followers Follow I’m a long-term investor focused on U.S. and European equities, with a dual emphasis on undervalued growth stocks and high-quality dividend growers. Through years of experience, I’ve learned that sustained profitability—evident in strong margins, stable and expanding free cash flow, and high returns on invested capital—is a more reliable driver of returns than valuation alone. I manage one of my portfolios publicly on eToro, where I qualified as a Popular Investor, allowing others to copy my real-time investment decisions. My background spans Economics, Classical Philology, Philosophy and Theology. This interdisciplinary foundation sharpens both my quantitative analysis and my ability to interpret market narratives through a broader, long-term lens. I started investing when I became a father. By managing wisely what I received and earn, I aim to ensure for me and my children that we don't have so much that we don't have to do anything, but that we have enough assets to be free to do what we want. The goal is not to free myself from work, but to make sure I can work in the place and in a way where I can fully express myself.I partner with iREIT®+HOYA Capital, where I share exclusive content and run a dividend growth portfolio with buy/sell alerts. Analyst’s Disclosure: I/we have a beneficial long position in the shares of LOW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.