LEN · News · 20260917N

Gross Margin Drivers

LENNAR CORP /NEW/ · 2026-09-17 · Importance 31 · Surprise 32

Third-quarter gross margin on home sales was 15.8%, down from 17.5% a year earlier but up sequentially from 15.6%. SG&A was 9.2% of home sales revenue, compared with 8.2% a year ago, leaving a 6.6% net margin on home sales. Lennar cited pricing adjustments and sales incentives amid affordability pressures and stronger resale competition; the sales-incentive rate on deliveries was 12%, down sequentially.

Key facts

• Lennar’s Q3 2026 gross margin was 15.8%, up sequentially from 15.6%. source
• Lennar’s third-quarter 2026 gross margin on home sales fell to 15.8% from 17.5%. source
• Lennar’s SG&A rose to 9.2% of home sales revenue from 8.2%, leaving a net margin of 6.6%. source
• Lennar’s Q3 2026 sales incentives rate on deliveries was 12%, down sequentially. source
• Lennar’s Q3 2026 SG&A was 9.2%, above the expected range of 8.8%–9%. source
• Lennar’s construction cost was approximately $80 per square foot, down 6% year over year and 14% from Q4 2023. source