Question · Q4 2025
Mike Rehaut questioned Lennar's commitment to pushing supply versus easing back on delivery aspirations if demand remains weak, given Q4 margin results and Q1 projections. He also asked for insights into the expected level of share repurchases in 2026, considering the repositioned balance sheet and asset-light model, compared to the $2.7 billion in 2025.
Answer
Stuart Miller and Jon Jaffe reiterated their commitment to maintaining volume to build efficiencies, acknowledging the fluidity of market conditions (interest rates, inflation, consumer confidence, government shutdown). They emphasized the underlying supply shortage and demand for affordable housing. Regarding share repurchases, Stuart Miller expressed enthusiasm for 2026, noting the completed Millrose transaction and the asset-lighter model's expected cash flow efficiency, leading to programmatic stock buybacks. CFO Diane Bessette added that cash levels on the balance sheet depend on market conditions and upcoming debt maturities.
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