Lennar

Eagle Capital Management says Lennar Corporation's margins and earnings have collapsed in recent years due to weakness in its geographic markets and a shift to a 'land light' model after spinning off its land bank. While the spin-off should lower balance-sheet risk and improve long-term returns on capital, it has reduced margins and exacerbated earnings pressure in the current weak housing market. Eagle expects excess inventory to clear over time, with volume and discounting conditions improving; sector M&A activity and recent deals illustrate depressed valuations. Lennar closed at $84.94 on August 18, 2026, with a 52-week loss of 31.45% and a market capitalization of $20.42 billion. » Altro su finance.yahoo.com

S&P Global lowers Lennar’s outlook from “positive” to “stable” and affirms all ratings, including the issuer rating BBB. The move is justified by declining revenues and shrinking gross margins due to reduced affordability and higher mortgage rates; the homebuilding business posted revenue of USD 13.9 billion (-8%) and a gross margin of about 15.4% for the six months to May 31, 2026. Metrics: debt/EBITDA 1.7x, FFO/debt ~29%, and EBITDA interest coverage 11.6x; S&P expects 2026 EBITDA margins of 7–8% and could downgrade the rating if leverage rises sustainably above 2x or margins deteriorate significantly. Cash and equivalents amount to USD 4.7 billion. » Altro su de.investing.com

Antipodes Partners disclosed in its Q1 2026 letter that it divested Lennar after gross margins on home sales fell to 15.2% from 18.7% year‑on‑year and sales incentives rose to about 14% of revenue. Deliveries, average prices and new order guidance are tracking below expectations, prompting Antipodes to conclude the bridge to earnings recovery will be longer and more painful than previously thought. The fund shifted toward defensive sectors as it trimmed exposure amid a volatile macro backdrop and weak US housing market recovery. » Altro su finance.yahoo.com