PulteGroup Reports Fourth Quarter 2025 Financial Results

Core Viewpoint - PulteGroup, Inc. reported a decline in net income for the fourth quarter of 2025, reflecting challenges in the housing market despite a disciplined business approach and significant investments in land acquisition and development [2][3]. Financial Performance - The company reported net income of $502 million, or $2.56 per share, for Q4 2025, down from $913 million, or $4.43 per share, in the same period last year [1][2]. - Home sale revenues for Q4 2025 were $4.5 billion, a decrease of 5% compared to the prior year, driven by a 3% decline in closings to 7,821 homes and a 1% decrease in average sales price to $573,000 [3][4]. - For the full year 2025, PulteGroup delivered 29,572 homes and generated $16.7 billion in home sale revenues, with a net income of $2.2 billion [2]. Cost and Expenses - The reported gross margin for home sales in Q4 2025 was 24.7%, down from 27.5% in the prior year, which included land impairment charges of $35 million [4]. - Selling, general, and administrative (SG&A) expenses for Q4 2025 were $389 million, or 8.7% of home sale revenues, compared to $196 million, or 4.2% of revenues in Q4 2024 [5]. Orders and Backlog - Net new orders for Q4 2025 increased by 4% to 6,428 homes, with a total value of $3.5 billion, remaining comparable to the previous year [6]. - The company's backlog at the end of Q4 2025 totaled 8,495 homes, valued at $5.3 billion [6]. Financial Services - The financial services segment generated pre-tax income of $35 million in Q4 2025, down from $51 million in the same period last year, impacted by lower closing volumes and a decrease in mortgage capture rate to 84% [7]. Shareholder Actions - In Q4 2025, PulteGroup repurchased 2.4 million common shares for $300 million, totaling 10.6 million shares repurchased for the year at a cost of $1.2 billion [8]. Cash Position - The company ended Q4 2025 with $2.0 billion in cash and a debt-to-capital ratio of 11.2% [8].