Antipodes Global Value Strategy stated in its first-quarter 2026 investor letter that it divested Lennar Corporation. Gross margins on home sales fell to 15.2% in the first quarter of fiscal 2026, down from 18.7% a year earlier. Sales incentives of approximately 14% of revenue, compared to a historical 4% to 6%, are becoming entrenched rather than normalizing. Deliveries, average prices, and new order guidance are all tracking below expectations. The strategy noted that while the structural US housing undersupply story is real, the bridge to earnings recovery is longer and more painful than originally anticipated.
Lennar CorporationGross margins fell from 18.7% to 15.2%, sales incentives are entrenched at 14% of revenue, and deliveries, prices, and new orders are below expectations.