By Connor Hart

Lennar's profit fell in its fiscal first quarter while costs rose, though revenue increased as consumer demand remained strong in spite of high interest rates and inflation.

The Miami homebuilder on Wednesday posted a profit of $519.5 million for its three months ended Feb. 28, compared with $719.3 million in the same quarter last year.

First-quarter earnings per share came in at $1.96. Analysts surveyed by FactSet expected per-share earnings of $1.70.

Total homebuilding costs and expenses rose to $6.54 billion from $5.98 billion a year earlier.

Revenue increased 4.4% to $7.63 billion, topping the $7.43 billion that analysts modeled.

Deliveries increased 6% to 17,834 homes, and new orders edged 1% higher to 18,355 homes. The company's average sales price, net of incentives, fell 1% to $408,000, reflecting continued weakness in the market.

"Our first quarter was marked by a challenging macroeconomic environment for homebuilding," Chief Executive Stuart Miller said. "While demand remains strong, persistently higher interest rates and inflation, combined with a downturn in consumer confidence and a limited supply of affordable homes, made it increasingly difficult for consumers to access homeownership."

Lennar ended the recent quarter with a backlog of 13,145 homes with a dollar value of $5.8 billion. For its current quarter, the company expects home deliveries between 19,500 and 20,500 and new home orders between 22,500 and 23,500.

"Despite an uncertain macro environment, we are optimistic about our business and remain focused on our mission of building a healthier housing market and bringing attainable homes to more people," Miller said.

Shares fell 3% to $116.49 in after-hours trading.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

March 20, 2025 17:34 ET (21:34 GMT)

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