Lennar’s Earnings Plummet 53% as U.S. Housing Market Struggles in 2025
Lennar Corporation, one of the largest homebuilders in the U.S., has reported a sharp drop in earnings for the fiscal fourth quarter of 2025. The company’s non-GAAP net income fell by 53%, missing analyst expectations. This decline comes as the broader housing market faces ongoing challenges.
Lennar’s financial results for the quarter showed a significant slowdown. Revenue dropped by 6% year-over-year to $9.4 billion, while non-GAAP net income fell to $514 million, or $2.03 per share. This figure was $0.18 below the consensus estimate, reflecting weaker-than-expected performance.
The housing sector has struggled with volatility in recent months. U.S. housing starts declined by 9.1% in August 2025, briefly recovered with a 1.2% rise in September, then fell again by 4.6% in October. The National Association of Home Builders also predicts a 7% drop in housing starts for 2025 compared to 2024. Despite these setbacks, Lennar maintains key strengths. Its 'everything’s included' pricing model continues to attract buyers, while its 'land light' approach allows the company to focus on construction rather than land acquisition. Executive Chairman and CEO Stuart Miller has emphasised strategic partnerships and affordability as priorities, reinforcing Lennar’s long-term strategy. Lennar’s stock price declined following the earnings report, reflecting investor concerns about the company’s outlook in a weakening market. However, some analysts still view the company as a strong investment due to its solid fundamentals.
Lennar’s latest financial results highlight the pressures facing the U.S. homebuilding industry. With revenue and earnings both down, the company must navigate a market where housing starts remain unstable. Yet, its pricing model and operational efficiency may help it weather the downturn in the months ahead.
