Company: LEN
Filing Date: 2025-10-03
Form Type: 10-Q
Source: 0001628280-25-044086
Chunk: 178

Company: LENNAR CORP /NEW/
Filing Date: 2025-10-03
Form: 10-Q
Item: Item 2
Chunk 178
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5%, in the third quarter of 2025, compared to $2.0 billion, or 22.5%, in the third quarter of 2024. During the third quarter of 2025, gross margins decreased primarily due to a lower revenue per square foot and higher land costs year over year, which were partially offset by a decrease in construction costs, reflecting our continued focus on cost-saving initiatives.

Selling, general and administrative expenses were $676.5 million in the third quarter of 2025, compared to $600.7 million in the third quarter of 2024. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 8.2% in the third quarter of 2025, from 6.7% in the third quarter of 2024, primarily due to less leverage as a result of lower revenues and an increase in marketing and selling expenses. 

During the three months ended August 31, 2025, our homebuilding operating earnings included $8.7 million of interest income, compared to $33.8 million of interest income in the three months ended August 31, 2024. The decrease in interest income was primarily due to lower cash balances year over year.

Operating earnings for the Financial Services segment were $177.4 million in the third quarter of 2025, compared to $143.6 million in the third quarter of 2024. The increase in operating earnings was primarily due to higher profit per locked loan in the mortgage business as a result of higher margins.

Operating loss for the Multifamily segment was $16.4 million in the third quarter of 2025, compared to operating earnings of $79.0 million in the third quarter of 2024, which were positively impacted by a $179.0 million one-time net gain from the sale of assets in our LMV Fund I, partially offset by a one-time $90.0 million write-down of non-core assets. 

Operating earnings for the Lennar Other segment were $62.5 million in the third quarter of 2025, compared to operating earnings of $20.1 million in the third quarter of 2024. The Lennar Other operating earnings for both the third quarter of 2025 and 2024 were primarily related to $99.2 million and $39.1 million mark-to-market gains on our technology investments, respectively.

In the third quarter of 2025 and 2024, we had tax provisions