Q : How does Lennar plan to balance volume growth with margin pressures in 2025? A : Stuart Miller stated that Lennar is committed to maintaining volume by adjusting to market conditions, which will help rationalize costs at both the land and production levels. The company aims to leverage steady-state volume to manage costs effectively, even if it means operating with lower margins temporarily.

Q : What is Lennar's strategy for achieving its delivery growth target, and how does the Rausch Coleman acquisition fit into this plan? A : Stuart Miller noted that Lennar's growth strategy includes both organic and inorganic elements, with the Rausch Coleman acquisition contributing to new market entries and expanding community counts in existing markets. The acquisition aligns with Lennar's goal of achieving 8% to 10% delivery growth in 2025, with Rausch Coleman expected to add approximately 4,000 deliveries.

Q : How is Lennar addressing potential cost impacts from tariffs and immigration policies? A : Jonathan Jaffe, President and Co-CEO, explained that Lennar has shifted to more U.S.-based manufacturing to mitigate tariff impacts and is working with trade partners to minimize potential disruptions from immigration policy changes. The company is focused on maintaining efficiency and reducing cycle times despite these challenges.

Q : What are Lennar's expectations for gross margins in the first quarter of 2025, and how do they compare to historical levels? A : Diane Bessette, CFO, indicated that Lennar expects gross margins to be between 19% and 19.25% in Q1 2025, with margins in the backlog around 20%. The first quarter typically has lower margins due to seasonal factors, but there is potential upside if market conditions improve.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

This article first appeared on GuruFocus .