Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Lennar (NYSE: LEN) and the best and worst performers in the home builders industry.

Traditionally, homebuilders have built competitive advantages with economies of scale that lead to advantaged purchasing and brand recognition among consumers. Aesthetic trends have always been important in the space, but more recently, energy efficiency and conservation are driving innovation. However, these companies are still at the whim of the macro, specifically interest rates that heavily impact new and existing home sales. In fact, homebuilders are one of the most cyclical subsectors within industrials.

The 12 home builders stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 4.1%.

Luckily, home builders stocks have performed well with share prices up 12.8% on average since the latest earnings results.

Weakest Q2: Lennar (NYSE: LEN)

One of the largest homebuilders in America, Lennar (NYSE: LEN) is known for constructing affordable, move-up, and retirement homes across a range of markets and communities.

Lennar reported revenues of $8.38 billion, down 4.4% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ adjusted operating income and EBITDA estimates.

Stuart Miller, Executive Chairman and Co-Chief Executive Officer of Lennar, said, "While we continue to see softness in the housing market due to affordability challenges and a decline in consumer confidence, we adhered to our strategy of driving starts, sales, and closings in order to build long-term efficiencies in our business."

Interestingly, the stock is up 22.9% since reporting and currently trades at $134.48.

Read our full report on Lennar here, it’s free.

Best Q2: Champion Homes (NYSE: SKY)

Founded in 1951, Champion Homes (NYSE: SKY) is a manufacturer of modular homes and buildings in North America.

Champion Homes reported revenues of $701.3 million, up 11.7% year on year, outperforming analysts’ expectations by 9.2%. The business had an incredible quarter with a solid beat of analysts’ sales volume estimates and a beat of analysts’ EPS estimates.

Champion Homes achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 12.1% since reporting. It currently trades at $74.22.

Is now the time to buy Champion Homes? Access our full analysis of the earnings results here, it’s free.

KB Home (NYSE: KBH)

The first homebuilder to be listed on the NYSE, KB Home (NYSE: KB) is a homebuilding company targeting the first-time home buyer and move-up buyer markets.

KB Home reported revenues of $1.53 billion, down 10.5% year on year, exceeding analysts’ expectations by 1.6%. Still, it was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ backlog estimates.

KB Home delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 18.3% since the results and currently trades at $63.15.

Read our full analysis of KB Home’s results here.

NVR (NYSE: NVR)

Known for its unique land acquisition strategy, NVR (NYSE: NVR) is a respected homebuilder and mortgage company in the United States.

NVR reported revenues of $2.60 billion, flat year on year. This result beat analysts’ expectations by 5.4%. Taking a step back, it was a mixed quarter as it also produced a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EBITDA estimates.

The stock is up 4.4% since reporting and currently trades at $8,247.

Read our full, actionable report on NVR here, it’s free.

Tri Pointe Homes (NYSE: TPH)

Established in 2009 in California, Tri Pointe Homes (NYSE: TPH) is a United States homebuilder recognized for its innovative and sustainable approach to creating premium, life-enhancing homes.

Tri Pointe Homes reported revenues of $902.4 million, down 21.9% year on year. This print surpassed analysts’ expectations by 10%. Zooming out, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a significant miss of analysts’ backlog estimates.

Tri Pointe Homes delivered the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $35.02.

Read our full, actionable report on Tri Pointe Homes here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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