LEN · News · 20260921N

Gross Margin Drivers

LENNAR CORP /NEW/ · 2026-09-21 · Importance 31 · Surprise 32

Lennar’s fiscal Q3 2026 gross margin on home sales was 15.8%, up from 15.6% in the prior quarter. Construction cost per square foot fell 6% year over year, while buyer incentives remained approximately 12% of home value. Since late 2023, construction cost per square foot has declined 14%, but land cost per home site has risen about 6%; the company attributed the margin gap to land committed to under different market conditions.

Key facts

• Since late 2023, Lennar cut construction cost per square foot by 14%, while land cost per home site rose about 6%. source
• Lennar's fiscal Q3 2026 gross margin was 15.8%, up from 15.6% the quarter before. source
• Lennar's operating margin over the past twelve months was 6.8%, compared with a three-year average of 11.9%. source