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Lennar reported homebuilding revenue of $7.76B, down 6.0% from a year earlier, and new orders down 9% to 20,879 homes. Builders FirstSource's annual report names Lennar as a top customer. Fewer Lennar starts and closings mean Builders FirstSource sells less building material, and its shares have not yet reacted.
Reported by Lennar Corporation
-4.7%EPS surprise
EPS $1.23 actual vs $1.29 estimate
Reported Sep 16, 2026
This is the company that reported. The stocks below are other companies its numbers affect.
Lennar's shares (LEN) adjusted within seconds of its after-hours results. Its suppliers may take longer. Lennar's homebuilding revenue was $7.76B, down 6.0% from $8.25B a year earlier. New orders fell 9% to 20,879 homes, and Lennar expects only 22,000-23,000 deliveries in the fourth quarter. Builders FirstSource (BLDR) says in its own 10-K annual report that its largest customers are the biggest national homebuilders, including D.R. Horton, Lennar, Pulte Homes, Toll Brothers and Meritage Homes. Its revenue depends on how many homes those customers start and close. Fewer Lennar closings and a smaller backlog (16,857 homes, worth $6.3B) mean less building material sold. Analysts who cover Builders FirstSource do not follow Lennar's results closely. Making the link means reading Builders FirstSource's 10-K against Lennar's segment figures, a step most stock screens skip. Its share price has not yet reflected the drop.
Investors still value Builders FirstSource (BLDR) on past demand. Its revenue forecasts have not yet been cut for the drop in volume shown in Lennar's third-quarter 2026 results, released after the market closed.
Why that may be wrong
The news came out under Lennar's name (LEN) after the market closed. Builders FirstSource (BLDR) does not report soon, so nothing pushes its analysts to revise their estimates right away. Seeing the link means checking Builders FirstSource's 10-K list of customers against Lennar's segment figures. That two-document step tends to reach Builders FirstSource's analysts days to weeks later.
The link is disproven if Builders FirstSource (BLDR) reports next quarter that building materials revenue held flat or grew from a year earlier, despite Lennar's lower volumes. That would mean either more sales to other customers such as D.R. Horton (DHI) and Pulte (PHM) made up for Lennar, or Lennar is a smaller share of its business than the 10-K suggests.
Builders FirstSource (BLDR) also sells to D.R. Horton (DHI), Pulte (PHM), Toll Brothers (TOL) and Meritage, which may not face the same drop. If D.R. Horton or Pulte deliver more homes, its total volume could stay flat as Lennar shrinks. Lennar's exact share of its revenue is also unknown, since the 10-K names Lennar as a top customer but gives no figure. Builders FirstSource may already have set a cautious outlook in its last report, allowing for weaker homebuilding. Its next earnings release should settle it. Clearly negative growth in single-family new construction revenue would confirm the link, while flat or positive growth would mean other customers made up for Lennar.
In the third quarter of 2022, Lennar reported a sharp slowdown in new orders, though its deliveries still grew. Builders FirstSource (BLDR) shares fell over the next 2-3 trading days, along with the wider market, then recovered within about a week.
Lennar reported homebuilding revenue of $7.76B, down 6.0% from $8.25B a year earlier. New orders fell 9% to 20,879 homes, and it expects 22,000-23,000 deliveries in the fourth quarter of 2026, below the prior year.
Builders FirstSource (BLDR) names Lennar as one of its largest customers in its own 10-K. Its building materials revenue rises and falls with the number of homes Lennar starts and closes. Fewer Lennar deliveries and a shrinking order book mean it sells less framing, windows, doors and structural parts.
Analysts' forecasts for Builders FirstSource (BLDR) have not yet been cut for the lower volumes in Lennar's results. The news came out after the market closed under a different company's name, so estimate cuts are likely to follow days to weeks later.
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