Lennar Reports Nearly 6% Revenue Decline in Q4 2025, Outlook Dim
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 24 2025
0mins
Source: Benzinga
- Revenue Decline: Lennar's Q4 2025 report reveals a nearly 6% year-over-year revenue drop, indicating weak sales in a high-rate environment, with gross margins expected to further decline to 15-16% in upcoming quarters.
- Disappointing Market Expectations: Despite a recent drop in mortgage rates, Lennar projects full-year 2026 deliveries of approximately 85,000 homes, significantly below market expectations, reflecting ongoing weak demand.
- Stock Price Pressure: LEN shares have fallen over 20% year-to-date, and after the disappointing earnings release, the stock broke below the 200-day simple moving average, indicating further downside risk.
- Uncertain Industry Outlook: With high rates and other market pressures, Lennar and other homebuilders face significant challenges, suggesting investors should be cautious when selecting related stocks in 2026.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy LEN?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on LEN
Wall Street analysts forecast LEN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LEN is 101.18 USD with a low forecast of 80.00 USD and a high forecast of 122.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
0 Buy
7 Hold
6 Sell
Moderate Sell
Current: 114.020
Low
80.00
Averages
101.18
High
122.00
Current: 114.020
Low
80.00
Averages
101.18
High
122.00
About LEN
Lennar Corporation is a homebuilder and an originator of residential and commercial mortgage loans. The Company is also a provider of title insurance and closing services, and a developer of multifamily rental properties. The Company's segments include Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar others. Its Homebuilding segments primarily include the construction and sale of single-family attached and detached homes, as well as the purchase, development and sale of residential land directly and through its unconsolidated entities. The Company's Financial Services segment primarily provides mortgage financing, title and closing services primarily for buyers of its homes, as well as property and casualty insurance. The Company’s Multifamily segment is involved in the development, construction and property management of multifamily rental properties. its Lennar Other segment includes fund investments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Trump Administration Weighs Antitrust Probe into Homebuilders
- Antitrust Investigation: The Trump administration is considering an antitrust probe into homebuilders, causing stocks of major firms like DR Horton and Lennar to drop by 1.8%, indicating market concerns over potential regulatory impacts on profitability.
- Information Flow Review: The investigation may focus on the flow of information with the trade group Leading Builders of America, amid worries that member companies could use this information to limit new home supply or coordinate pricing, potentially harming market competition.
- Housing Affordability Issues: With housing affordability at record lows, builders are exploring avenues for cooperation with the White House, including a proposed
See More
Trump Administration Considers Antitrust Probe into Homebuilders
- Antitrust Investigation Potential: The Trump administration is considering an antitrust investigation into U.S. homebuilders, although no final decision has been made, raising concerns about the industry's outlook and potentially impacting investor confidence.
- Stock Price Fluctuations: Following this news, shares of Lennar Corp. (LEN) and D.R. Horton (DHI) fell approximately 2%, reflecting the market's sensitivity to potential regulatory risks, which could lead to short-term capital outflows.
- Industry Impact: Should the investigation proceed, it could have far-reaching implications for the entire homebuilding sector, especially in the current market environment where companies may face stricter compliance requirements, thereby affecting profitability.
- Future Developments Monitoring: As the investigation could commence in the coming weeks, investors need to closely monitor related developments to assess the long-term impacts on the market and individual stocks, particularly in the context of the recovering real estate market.
See More
KB Home Declines 0.8%, PulteGroup Decreases 1.1%, Hovnanian Enterprises Drops 0.5%
Home Sales Decline: Home sales have decreased by 0.8%, indicating a slowdown in the housing market.
PulteGroup Performance: PulteGroup's stock has fallen by 1.1%, reflecting challenges in the construction and real estate sector.
Hovnanian Enterprises Drop: Hovnanian Enterprises has experienced a decline of 0.5%, suggesting potential issues within the company or market conditions.
Market Trends: Overall, the trends indicate a cautious outlook for the housing and construction industries, with several companies reporting declines.
See More
D.R. Horton Declines 2.5%, Lennar Decreases 2.2%, NVR Falls 2.5%
- Market Performance: Horton down 2.5%, Lennar falls 2.2%, and NVR drops 2.5%.
- Industry Trends: The declines indicate a potential downturn in the housing market.
See More
U.S. Homebuilders Decline Following Bloomberg Report on White House Considering Antitrust Investigation
Antitrust Investigation: The U.S. government is reportedly considering an antitrust probe into home builders, following a report by Bloomberg.
White House Involvement: The White House is exploring the possibility of opening an investigation into the practices of home builders in the coming weeks.
See More
Lennar Proposes Million-Home Plan to Tackle U.S. Housing Crisis
- Stock Surge: Lennar's shares surged due to its upcoming proposal for a million-home plan to the Trump administration, rising 7.5% in morning trading and settling nearly 4% higher, reflecting strong market optimism about the initiative.
- Housing Plan Overview: The plan may focus on a rent-to-own model where private investors fund home construction and rent them to tenants, allowing rent payments to count towards a down payment after three years, aimed at addressing the U.S. housing affordability crisis.
- Need for Government Support: The initiative might require backing from the White House, with government-backed mortgages (potentially through Fannie Mae or Freddy Mac) likely playing a role, highlighting the government's critical influence in the housing market.
- Market Context: The U.S. housing market has been sluggish for years, with home prices rising over 50% from 2000 to 2024 while wage growth has stagnated, exacerbating affordability issues; if successful, this plan could positively impact the upcoming mid-term elections.
See More
Trump Administration Weighs Antitrust Probe into Homebuilders
- Antitrust Investigation: The Trump administration is considering an antitrust probe into homebuilders, causing stocks of major firms like DR Horton and Lennar to drop by 1.8%, indicating market concerns over potential regulatory impacts on profitability.
- Information Flow Review: The investigation may focus on the flow of information with the trade group Leading Builders of America, amid worries that member companies could use this information to limit new home supply or coordinate pricing, potentially harming market competition.
- Housing Affordability Issues: With housing affordability at record lows, builders are exploring avenues for cooperation with the White House, including a proposed
See More
Trump Administration Considers Antitrust Probe into Homebuilders
- Antitrust Investigation Potential: The Trump administration is considering an antitrust investigation into U.S. homebuilders, although no final decision has been made, raising concerns about the industry's outlook and potentially impacting investor confidence.
- Stock Price Fluctuations: Following this news, shares of Lennar Corp. (LEN) and D.R. Horton (DHI) fell approximately 2%, reflecting the market's sensitivity to potential regulatory risks, which could lead to short-term capital outflows.
- Industry Impact: Should the investigation proceed, it could have far-reaching implications for the entire homebuilding sector, especially in the current market environment where companies may face stricter compliance requirements, thereby affecting profitability.
- Future Developments Monitoring: As the investigation could commence in the coming weeks, investors need to closely monitor related developments to assess the long-term impacts on the market and individual stocks, particularly in the context of the recovering real estate market.
See More
KB Home Declines 0.8%, PulteGroup Decreases 1.1%, Hovnanian Enterprises Drops 0.5%
Home Sales Decline: Home sales have decreased by 0.8%, indicating a slowdown in the housing market.
PulteGroup Performance: PulteGroup's stock has fallen by 1.1%, reflecting challenges in the construction and real estate sector.
Hovnanian Enterprises Drop: Hovnanian Enterprises has experienced a decline of 0.5%, suggesting potential issues within the company or market conditions.
Market Trends: Overall, the trends indicate a cautious outlook for the housing and construction industries, with several companies reporting declines.
See More
D.R. Horton Declines 2.5%, Lennar Decreases 2.2%, NVR Falls 2.5%
- Market Performance: Horton down 2.5%, Lennar falls 2.2%, and NVR drops 2.5%.
- Industry Trends: The declines indicate a potential downturn in the housing market.
See More
U.S. Homebuilders Decline Following Bloomberg Report on White House Considering Antitrust Investigation
Antitrust Investigation: The U.S. government is reportedly considering an antitrust probe into home builders, following a report by Bloomberg.
White House Involvement: The White House is exploring the possibility of opening an investigation into the practices of home builders in the coming weeks.
See More
Lennar Proposes Million-Home Plan to Tackle U.S. Housing Crisis
- Stock Surge: Lennar's shares surged due to its upcoming proposal for a million-home plan to the Trump administration, rising 7.5% in morning trading and settling nearly 4% higher, reflecting strong market optimism about the initiative.
- Housing Plan Overview: The plan may focus on a rent-to-own model where private investors fund home construction and rent them to tenants, allowing rent payments to count towards a down payment after three years, aimed at addressing the U.S. housing affordability crisis.
- Need for Government Support: The initiative might require backing from the White House, with government-backed mortgages (potentially through Fannie Mae or Freddy Mac) likely playing a role, highlighting the government's critical influence in the housing market.
- Market Context: The U.S. housing market has been sluggish for years, with home prices rising over 50% from 2000 to 2024 while wage growth has stagnated, exacerbating affordability issues; if successful, this plan could positively impact the upcoming mid-term elections.
See More
