Lennar Corporation (NYSE:LEN) Q4 2023 Earnings Call Transcript

Jon Jaffee: Just as you said, Stuart, the by design approach is to not have completed inventory, which have new inventory moving through our production machine, which we don’t need to flex up or down, it will consistently come through and will consistently drive deliveries towards our goal of about 80,000 for this year. So the market conditions will ebb and flow most likely, but our machine will be very consistent through that delivering by design target that we have.

Susan Maklari: Okay. And then in your comments, you detailed some really impressive market share gains that you’ve realized over the course of the year. As you think about the forward year, can you talk a bit to maybe who those share gains you think largely came from? And then the ability to further outgrow the market as you drive some of these company-specific initiatives?

Stuart Miller: So we’re certainly not going to be naming names, and it’s different across the platform. And I don’t think you would even be able to identify a specific where it came from. I would say every market is different, every strategy in various markets for the competitive landscape has been different. Remember that there are some numbers that have been constrained by access to capital. There have been others that just have a very different strategy. Our strategy has been clear and consistent and where there has been pull back by one another or a group of other builders. We’ve winged in, we’ve built certain voids and picked up market share in that process, whether it’s been a land acquisition, whether it’s been in the acquisition of new trade partners to help focus on cycle time and help bring costs into focus or whether it’s been in accelerating sales or sales pace, we’ve been able across the board to lean in and drive market share.

Jon Jaffee: I think the market share, the position is a byproduct of the strategy as you’re hearing, it’s becoming the most efficient, effective buyer of choice from Lennar sellers and the most efficient, effective builder choice for our trade partners. That’s what really drives our strategy and it produces, other builders pull back or maybe accelerate will provide us consistent growth, that consistent volume to both Lennar sellers and to our trade partners.

Susan Maklari: Okay. [Technical Difficulty]

Stuart Miller: Okay. Thank you very much. We’re going to end it there. I want to say thanks everybody for joining us. It’s been a really exciting year for our company in terms of evolution, in terms of execution and in terms of learning curve and look forward to reporting on progress through 2024. Thanks for joining.

Operator: That concludes today’s conference. Thank you all for participating. You may now disconnect your line, and please enjoy the rest of your day.