PulteGroup, Inc. (NYSE:PHM) reported fourth-quarter results Thursday, delivering adjusted earnings and revenue that topped analyst expectations.
The homebuilder reported net income of $502 million, or $2.56 per share, while adjusted EPS of $2.88 beat the $2.81 estimate. Sales of $4.611 billion exceeded the $4.322 billion estimate and were up from $4.922 billion in the prior-year period.
Homebuilding revenue totaled $4.517 billion, compared with $4.807 billion a year earlier. Home sale revenues were $4.478 billion versus $4.708 billion.
Land sale and other revenues declined to $39.419 million from $99.108 million, and closings fell 3% to 7,821 homes, and the average selling price declined 1% to $573,000.
Reported home sale gross margin was 24.7% and includes $35 million, or 80 basis points, of land impairment charges, compared with 27.5% in the prior year.
Homebuilding SG&A expense was $389 million, or 8.7% of home sale revenues, and includes the insurance benefit of $34 million recorded in the period, compared with $196 million, or 4.2% of home sale revenues, in the fourth quarter of 2024, which included an insurance benefit of $255 million.
Orders and Backlog
Net new orders increased 4% to 6,428 homes, with an order value of $3.5 billion that the company said was comparable with the prior year.
Average community count rose 6% to 1,014, and backlog ended the quarter at 8,495 homes valued at $5.3 billion.
Financial Services revenue declined to $93.426 million from $115.146 million in the prior-year period, with fourth-quarter pre-tax income of $35 million compared with $51 million a year earlier.
Mortgage capture rate fell to 84% from 86%, while mortgage originations totaled 4,940 versus 5,328, with origination principal of $2.144 billion compared with $2.342 billion.
Capital Allocation and Balance Sheet
PulteGroup repurchased 2.4 million shares for $300 million during the quarter. For the full year, the company repurchased 10.6 million shares, or 5.2% of shares outstanding, for $1.2 billion, or $112.76 per share.
The company invested $1.4 billion in land acquisition and development during the quarter.
PulteGroup ended the quarter with $1.981 billion of cash and equivalents and $27.907 million of restricted cash. Notes payable totaled $1.631 billion, and Financial Services debt totaled $532.338 million. The company reported a debt-to-capital ratio of 11.2% and a net debt-to-capital ratio of (3.0)%.
Full-Year Results and Outlook
For the year ended Dec. 31, 2025, net income was $2.219 billion, or $11.12 per diluted share, compared with $3.083 billion, or $14.69 per diluted share, in 2024. Total revenues were $17.312 billion, down from $17.947 billion a year earlier.
Net cash provided by operating activities was $1.871 billion, compared with $1.681 billion in the prior year.
“While lower interest rates and more favorable pricing dynamics have worked to improve the overall affordability of new homes relative to a year ago, lagging consumer confidence continued to weigh on homebuyer demand in the quarter,” said CEO Ryan Marshall.
“Given these market dynamics, we remain focused on intelligently turning our assets, generating strong cash flows, and further developing a land pipeline that can routinely support community count growth of 3% to 5% annually,” added Marshall.
PHM Price Action: PulteGroup shares were up 3.96% at $123.27 at the time of publication on Thursday, according to Benzinga Pro data.
Photo by Kristi Blokhin via Shutterstock
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