Lennar Corp. - Ordinary Shares - Class A

Q3 performance (execution despite tougher macro) - Delivered 20,840 homes (within guidance 20,500–21,500) and generated 20,879 new orders (just below 21,000–22,000). - Gross margin improved to 15.8% (from 15.6% in Q2), supported by delivery incentives down to ~12%. - Net margin improved to 6.6%; GAAP EPS $1.19 (or $1.23 excluding one-time items). - Average sales price (ASP) ~$372k, modestly below guidance; SG&A 9.2% (above expected 8.8–9%), mainly due to lower revenue leverage and higher brokerage commissions (but headcount down ~12% YoY).

Guidance/outlook for Q4 2026 (investor snapshot) - New orders: 19,500–20,500 - Deliveries: 22,000–23,000 - ASP: $370k–$380k - Gross margin: 15.5%–16.0% - SG&A: 8.7%–9.0% - EPS (combined): approximately $1.30–$1.65 - Financial Services earnings: $90m–$95m; multifamily loss ~($25)m; Lennar Other loss ~($20)m; joint venture/land/other earnings ~$10m. - Key caveat: all guidance depends on market conditions and could change if rates/affordability shift further.

Macro challenges: rates up, affordability stressed, consumer confidence softer - Management highlighted that interest rates moved higher again: 30-year fixed ~7% today vs 6.4–6.5% at the prior call, with 10-year ~5%. - Inflation pressures driven by energy/oil supply disruptions (Iran conflict); Fed policy remains data-driven and rate cuts are not assumed in the business plan. - Resale competition intensifying: active resale listings above historic levels; especially high in Texas and Florida, driving incentive/pricing pressure.