Reported 1 day ago
In the fourth-quarter earnings call for Lennar (LEN) held on December 19, 2024, executives discussed the challenges faced due to rising interest rates and their effect on home sales and margins, resulting in a shortfall compared to expectations. With economic pressures affecting consumer confidence and affordability, new orders were lower than anticipated, prompting adjustments in pricing and incentives. The company remains focused on maintaining production levels while managing inventory, while also preparing for the acquisition of Rausch Coleman and the upcoming spin-off of Millrose Properties, aimed at enhancing operational efficiency and growth in the land-light strategy. Strong liquidity and a strategic shift to a more asset-light infrastructure are expected to support future shareholder returns.
Source: YAHOO