Lennar Q1 Earnings Preview: I Am Turning Contrarian (Rating Upgrade)

2026-03-09 10:51:44 ET

Lennar Corporation ( LEN ) has had a very challenging 18 months. Since I last covered Lennar in September 2024, the company has lost ~44% of its market value. Back then, I was impressed by Lennar's strategic asset dispositions in its bid to convert into an asset-light business model. While Lennar has made progress on this front, its margins have suffered as a result of aggressive sales incentives. Lennar has had no choice but to take a margin hit to prioritize volume growth to clear its inventory buildup. Average sales prices have also dropped significantly. In FY 2025, ASP declined to $391,000 from $423,000 a year ago. The bad news is that ASPs are expected to remain under pressure....

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