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DHI vs LEN
D.R. Horton (DHI) vs Lennar (LEN) Earnings Recap: Recent Results Highlight Margin Pressures Amid Housing Affordability Challenges
Key Takeaways
- DHI reported Q1 FY2026 (ended Dec 31, 2025) net income of $594.8 million ($2.03 diluted EPS), down 30% YoY, with home sales revenues of $6.5 billion from 17,818 homes closed.
- LEN posted Q1 FY2026 (ended Feb 28, 2026) net earnings of $229 million ($0.93 diluted EPS), down significantly YoY, on total revenues of $6.6 billion and 16,863 homes delivered.
- Both builders face margin compression from elevated incentives and affordability issues; DHI homebuilding pre-tax margin at 10.8%, LEN gross margin on home sales at 15.2%.
- Net sales orders grew modestly: DHI up 3% to 18,300 homes, LEN up 1% to 18,515 homes.
- DHI guides FY2026 homes closed at 86,000-88,000 and revenues $33.5-35.0 billion; LEN eyes Q2 deliveries of 20,000-21,000 homes.
- Strong balance sheets support share repurchases: DHI $670 million, LEN $237 million in Q1.
Earnings Context and Why This Comparison Matters
As leading U.S. homebuilders, DHI and LEN compete directly in the single-family housing market, navigating persistent affordability constraints, elevated mortgage rates, and softening demand. Their recent quarterly earnings provide critical insights into operational resilience, pricing strategies, and inventory management amid a housing shortage juxtaposed against buyer hesitation. Comparing these results reveals divergent scale advantages, cost controls, and forward positioning in a cyclical sector sensitive to interest rates and economic sentiment.
Lennar (LEN) Focus
LEN released first-quarter fiscal 2026 results (ended February 28, 2026), reporting net earnings attributable to Lennar of $229 million, or $0.93 per diluted share ($0.88 adjusted excluding mark-to-market gains on technology investments). Total revenues reached $6.6 billion, with homebuilding revenues at $6.3 billion from 16,863 homes delivered at an average sales price of $374,000. Gross margin on home sales was 15.2%, down from 18.7% year-over-year, reflecting lower revenue per square foot, higher land costs, and incentives, partially offset by a 2.5% quarterly drop in construction costs (12% over two years). New orders rose 1% to 18,515 homes valued at $7.1 billion, bolstering backlog to 15,588 homes ($6.0 billion value). Homebuilding cash stood at $2.1 billion, with debt-to-total capital at 15.7%. For Q2, LEN guides 20,000-21,000 deliveries, gross margins of 15.5%-16.0%, and new orders of 21,000-22,000 homes at $370,000-$375,000 average price.
D.R. Horton (DHI) Context
DHI's first-quarter fiscal 2026 (ended December 31, 2025) showed net income of $594.8 million ($2.03 diluted EPS), with consolidated revenues of $6.9 billion. Home sales generated $6.5 billion from 17,818 homes closed at an average price of $365,500, yielding a homebuilding pre-tax profit margin of 10.8% (including warranty recovery benefit). Net sales orders increased 3% to 18,300 homes ($6.7 billion value), with backlog at 11,376 homes ($4.3 billion). Non-homebuilding segments contributed positively: Financial Services pre-tax income of $58 million (31.4% margin), Forestar $20.8 million (7.6% margin). Operations generated $854 million in cash flow; debt-to-total capital was 18.8%, with $6.6 billion liquidity. Fiscal 2026 guidance includes 86,000-88,000 homes closed, revenues of $33.5-35.0 billion, and at least $3.0 billion in operating cash flow.
Head-to-Head Earnings and Market Comparison
DHI outperformed LEN in scale, closing more homes (17,818 vs. 16,863) and generating higher home sales revenues ($6.5B vs. $6.3B), though both saw YoY declines amid affordability pressures. EPS favored DHI at $2.03 versus LEN's $0.93, reflecting DHI's larger base and diversified segments like Forestar. Margins compressed industry-wide: LEN gross at 15.2%, DHI homebuilding pre-tax at 10.8%. Growth drivers include modest order growth and shrinking cycle times (LEN at 122 days), but risks persist from incentives, land costs, and rates. Both maintain robust liquidity and repurchase aggressively, signaling confidence despite sentiment tempered by macro headwinds.
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Tickeron AI Verdict
Tickeron AI favors DHI with moderate conviction (65% probability) over the next quarter, citing superior scale, EPS stability, diversified revenue streams, and conservative FY2026 guidance amid shared margin risks. LEN's land-light model and cost efficiencies offer upside if rates ease, but DHI's cash generation and buybacks provide a stronger near-term edge.
Disclaimer
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To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is DHI is a Hold and LEN is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
DHI’s FA Score shows that 1 FA rating(s) are green whileLEN’s FA Score has 1 green FA rating(s).
- DHI’s FA Score: 1 green, 4 red.
- LEN’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
DHI’s TA Score shows that 4 TA indicator(s) are bullish while LEN’s TA Score has 5 bullish TA indicator(s).
- DHI’s TA Score: 4 bullish, 5 bearish.
- LEN’s TA Score: 5 bullish, 3 bearish.
Price Growth
DHI (@Homebuilding) experienced а +2.11% price change this week, while LEN (@Homebuilding) price change was +2.87% for the same time period.
The average weekly price growth across all stocks in the @Homebuilding industry was +0.95%. For the same industry, the average monthly price growth was -4.56%, and the average quarterly price growth was -6.19%.
Reported Earning Dates
DHI is expected to report earnings on Apr 21, 2026.
LEN is expected to report earnings on Jun 22, 2026.
Industries' Descriptions
@Homebuilding (+0.95% weekly)Homebuilding includes companies residential home construction companies, renovators and repair firms. The companies may be building single-family or multifamily homes, condominiums or mobile homes. Over the five years to 2019, the Home Builders industry is estimated to have grown at an annualized rate of 2.5% to reach $89.4 billion, (including expected growth of 2.6% in 2019), according to a study by IbisWorld. After having suffered one of its worst crises a decade ago during the last macroeconomic recession–which had much of its origins in U.S. real estate – the homebuilding industry has been recovering steadily so far. Higher disposable incomes and improving economic activity have bolstered consumers’ purchases of homes. While revenue of the Home Builders industry remains well below its prerecession high, demand growth estimates show promise.
| DHI | LEN | DHI / LEN | |
| Capitalization | 41.3B | 21.8B | 189% |
| EBITDA | 4.23B | 2.89B | 147% |
| Gain YTD | -0.683 | -13.067 | 5% |
| P/E Ratio | 12.98 | 12.80 | 101% |
| Revenue | 33.5B | 34.2B | 98% |
| Total Cash | 2.51B | 3.8B | 66% |
| Total Debt | 5.62B | 5.88B | 96% |
DHI | LEN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 12 | 10 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 70 Overvalued | 85 Overvalued | |
PROFIT vs RISK RATING 1..100 | 56 | 88 | |
SMR RATING 1..100 | 56 | 75 | |
PRICE GROWTH RATING 1..100 | 58 | 64 | |
P/E GROWTH RATING 1..100 | 20 | 17 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
DHI's Valuation (70) in the Homebuilding industry is in the same range as LEN (85). This means that DHI’s stock grew similarly to LEN’s over the last 12 months.
DHI's Profit vs Risk Rating (56) in the Homebuilding industry is in the same range as LEN (88). This means that DHI’s stock grew similarly to LEN’s over the last 12 months.
DHI's SMR Rating (56) in the Homebuilding industry is in the same range as LEN (75). This means that DHI’s stock grew similarly to LEN’s over the last 12 months.
DHI's Price Growth Rating (58) in the Homebuilding industry is in the same range as LEN (64). This means that DHI’s stock grew similarly to LEN’s over the last 12 months.
LEN's P/E Growth Rating (17) in the Homebuilding industry is in the same range as DHI (20). This means that LEN’s stock grew similarly to DHI’s over the last 12 months.
| DHI | LEN | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 69% | 1 day ago 54% |
| Stochastic ODDS (%) | 1 day ago 63% | 1 day ago 62% |
| Momentum ODDS (%) | 1 day ago 69% | N/A |
| MACD ODDS (%) | 1 day ago 73% | 1 day ago 65% |
| TrendWeek ODDS (%) | 1 day ago 69% | 1 day ago 69% |
| TrendMonth ODDS (%) | 1 day ago 69% | 1 day ago 71% |
| Advances ODDS (%) | 3 days ago 66% | 1 day ago 65% |
| Declines ODDS (%) | 13 days ago 63% | 13 days ago 66% |
| BollingerBands ODDS (%) | N/A | 1 day ago 79% |
| Aroon ODDS (%) | 1 day ago 66% | 1 day ago 66% |
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DHI and
Correlation & Price change
A.I.dvisor indicates that over the last year, DHI has been closely correlated with PHM. These tickers have moved in lockstep 92% of the time. This A.I.-generated data suggests there is a high statistical probability that if DHI jumps, then PHM could also see price increases.
LEN and
Correlation & Price change
A.I.dvisor indicates that over the last year, LEN has been closely correlated with PHM. These tickers have moved in lockstep 89% of the time. This A.I.-generated data suggests there is a high statistical probability that if LEN jumps, then PHM could also see price increases.