Original Article by: BUILDER Online
Despite a start to the year that signals a “complicated and volatile 2023,” Lennar reported strong first quarter results. Driven by the home builder’s pricing to market strategy, it recorded “stronger than expected” revenues and home closings, strong profitability and cash flow, and a “fortified balance sheet,” according to executive chairman Stuart Miller.
The home builder’s fiscal first quarter earnings of $597 million represented an 18% increase on a year-over-year basis compared with the first quarter of 2022.
“While the consumer remains challenged by affordability concerns, they are adjusting to the new normal of interest rates and opting to purchase their home. In these extraordinarily volatile and difficult market conditions, the Lennar team has focused on strategy, and we have executed with precision,” Miller said on the home builder’s first quarter earnings call. “We have a plan of execution to continue to navigate the uncertainty of 2023 with a focus on maintaining volume, maximizing margins, managing inventories, driving cash flow, managing land and land spend, and further enhancing our balance sheet in spite of the challenging market conditions.”