Core Insights - PulteGroup reported a revenue of $4.61 billion for Q4 2025, marking a year-over-year decline of 6.3% and an EPS of $2.88 compared to $3.50 a year ago, exceeding the Zacks Consensus Estimate of $4.31 billion by 6.96% and delivering an EPS surprise of 3.53% [1] Financial Performance - The average selling price was $573.00, surpassing the estimated $564.19 by analysts [4] - Net new orders in units totaled 6,428, exceeding the average estimate of 5,967 [4] - The unit backlog stood at 8,495, slightly above the average estimate of 8,439 [4] - Closings in units reached 7,821, compared to the average estimate of 7,416 [4] - Average active communities were 1,014, higher than the estimated 1,002 [4] Revenue Breakdown - Home sale revenues amounted to $4.48 billion, exceeding the average estimate of $4.16 billion, but reflecting a year-over-year decline of 4.9% [4] - Financial Services revenues were reported at $93.43 million, below the average estimate of $107.17 million, with an 18.9% year-over-year decline [4] - Homebuilding revenues totaled $4.52 billion, surpassing the average estimate of $4.2 billion, with a year-over-year decline of 6% [4] - Land sale and other revenues in homebuilding were $39.42 million, significantly lower than the average estimate of $58.6 million, representing a 60.2% year-over-year decline [4] Market Performance - PulteGroup shares returned +5.1% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Financial Data and Key Metrics Changes - In 2025, PulteGroup closed over 29,500 homes and generated home sale revenues of $16.7 billion, with full-year gross and operating margins reported at 26.3% and 16.9% respectively [7][22] - The company reported net income of $2.2 billion for the full year, translating to $11.12 per share, while Q4 net income was $502 million or $2.56 per share, down from $913 million or $4.43 per share in Q4 2024 [22][23] - Cash flow from operations for 2025 was $1.9 billion, and the company ended the year with $2 billion in cash [7][11] Business Line Data and Key Metrics Changes - In Q4 2025, net new orders increased by 4% year-over-year to 6,428 homes, with a 6% increase in average community count [12][14] - The absorption pace for the full year was 2.3 homes per month, down from 2.6 homes per month in 2024, with a cancellation rate of 12% compared to 10% in the prior year [13][14] - Closings in Q4 were 7,821 homes, down 3% year-over-year, with a decrease in average sales price to $573,000 [15][16] Market Data and Key Metrics Changes - PulteGroup's operations are established in 47 distinct markets, with relative strength in the Midwest, Northeast, and Florida, while Texas and many western markets experienced softer demand [7][8] - Active adult buyer signups increased by 6% year-over-year, with a 14% increase in Q4 compared to the same quarter in the previous year [8][14] - The company reported a year-end backlog of 8,495 homes valued at $5.3 billion [15] Company Strategy and Development Direction - PulteGroup has made a strategic decision to divest its off-site manufacturing operations to focus on core homebuilding activities, believing this will better serve shareholders [10] - The company aims to achieve community count growth of 3%-5% in 2026, supported by a land pipeline of 235,000 lots [9][11] - The operating model emphasizes diversification and balance across markets and buyer groups, which has helped navigate variable market dynamics [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing improved affordability due to lower mortgage rates and increased consumer income [30] - The company noted that consumer confidence will be critical in determining buyer demand in the coming months [31] - Despite a challenging year in 2025, management highlighted strong financial results and a disciplined approach to capital allocation [9][11] Other Important Information - PulteGroup repurchased 10.6 million common shares in 2025 for $1.2 billion, with $983 million remaining under the existing share repurchase authorization [22][23] - The company expects SG&A expenses to be in the range of 9.5%-9.7% of home sale revenue for 2026 [19] Q&A Session Summary Question: Can you discuss the management of SG&A expenses despite lower home sales? - Management indicated that they maintained a balanced approach, making targeted reductions in certain markets while investing in quality and customer experience [34][36] Question: What is the outlook for gross margins in 2026? - Management expects gross margins to be in the range of 24.5%-25.0% for both Q1 and the full year, with land costs anticipated to increase by 7%-8% [18][46] Question: Can you elaborate on the trends in major markets regarding inventory? - Management noted positive trends in Florida, with strong sales, while other markets like Texas are experiencing sluggish demand [50][51] Question: What are the implications of the administration's restrictions on institutional ownership of single-family homes? - Management does not foresee significant impacts on their operations and is committed to adhering to any new regulations [100][103]

PulteGroup (NYSE:PHM) Q4 2025 Earnings call January 29, 2026 08:30 AM ET Company ParticipantsJim Ossowski - Senior VP of FinanceJim Zeumer - Head of Investor RelationsRyan Marshall - President and CEOStephen Kim - Senior Managing Director and Head of Housing ResearchConference Call ParticipantsAlan Ratner - AnalystAnthony Pettinari - AnalystJay McCanless - Equity Research AnalystJohn Lovallo - AnalystKenneth Zener - AnalystMatthew Bouley - AnalystMichael Dahl - AnalystMichael Rehaut - AnalystSam Reid - Anal ...

Financial Data and Key Metrics Changes - In 2025, PulteGroup closed over 29,500 homes and generated home sale revenues of $16.7 billion, with full-year gross and operating margins reported at 26.3% and 16.9% respectively [5][19] - The company reported net income of $2.2 billion for the full year, translating to $11.12 per share, while Q4 net income was $502 million or $2.56 per share, down from $913 million or $4.43 per share in Q4 2024 [19][5] - Cash flow from operations for 2025 was $1.9 billion, and the company ended the year with $2 billion in cash [5][10] Business Line Data and Key Metrics Changes - In Q4 2025, net new orders increased by 4% year-over-year to 6,428 homes, with a 6% increase in average community account [11] - The closing mix for Q4 was 37% first-time buyers, 39% move-up buyers, and 24% active adult buyers, compared to 40%, 40%, and 20% respectively in Q4 2024 [13] - The company reported a full-year absorption pace of 2.3 homes per month, down from 2.6 homes per month in 2024 [11] Market Data and Key Metrics Changes - PulteGroup's operations are established in 47 distinct markets, with relative strength in the Midwest, Northeast, and Florida, while facing pressure in Texas and many western markets [5][6] - Active adult buyer signups increased by 6% year-over-year, with a 14% increase in Q4 compared to the same quarter in the previous year [7] - The company noted a year-over-year increase in fourth quarter signups in Florida of 13% [24] Company Strategy and Development Direction - PulteGroup emphasizes a diversified operating model across markets and buyer groups, which has helped navigate variable market dynamics [4] - The company has made a strategic decision to divest its off-site manufacturing operations to focus on core homebuilding operations [9] - PulteGroup plans to invest $5.4 billion in land acquisition and development in 2026, expecting community account growth of 3%-5% [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing improved affordability due to lower mortgage rates and increased consumer income [25] - The company anticipates that the spring selling season will be a key driver of financial results, with expectations for a strong demand in key markets [23] - Management acknowledged the challenges faced in 2025 but highlighted the company's strong financial position entering 2026 [10][23] Other Important Information - The company repurchased 10.6 million common shares in 2025 for $1.2 billion, with $983 million remaining under the existing share repurchase authorization [19][20] - PulteGroup's reported fourth quarter gross margin was 24.7%, down from 27.5% in Q4 of the previous year, impacted by land impairment charges and higher incentives [15] Q&A Session Summary Question: Can you help us with some of the levers that you may have pulled on SG&A? - Management indicated that they have made targeted reductions in force in slower markets but have focused on maintaining a balanced business approach [28] Question: What is your view on technology infusion into homebuilding? - Management emphasized the importance of innovation in homebuilding but decided to focus on core competencies rather than vertically integrating off-site construction [30] Question: Can you elaborate on the full-year gross margin outlook? - Management expects ASP to remain flat, with house costs slightly decreasing and land costs increasing by 7%-8% [33] Question: How are inventory trends stabilizing across major markets? - Management noted positive trends in Florida and other key markets, while some areas like Texas are still experiencing sluggish demand [36] Question: What are the implications of the administration's restrictions on institutional ownership of single-family homes? - Management does not foresee significant impacts from these restrictions and is committed to adhering to any new regulations [56]

分组1 - PulteGroup reported quarterly earnings of $2.88 per share, exceeding the Zacks Consensus Estimate of $2.78 per share, but down from $3.5 per share a year ago, representing an earnings surprise of +3.53% [1] - The company achieved revenues of $4.61 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 6.96%, although this is a decrease from year-ago revenues of $4.92 billion [2] - PulteGroup has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has gained approximately 5.1% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The company's earnings outlook is crucial for future stock performance, with current consensus EPS estimates of $1.98 on $3.54 billion in revenues for the coming quarter and $11.09 on $16.99 billion in revenues for the current fiscal year [7] - The Zacks Industry Rank for Building Products - Home Builders is currently in the bottom 2% of over 250 Zacks industries, which may negatively impact stock performance [8]

FOURTH QUARTER 2025 EARNINGS CALL January 29, 2026 1 Forward-looking Statements This presentation includes "forward-looking statements." These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that they do not relate to m ...

Core Viewpoint - PulteGroup reported a decline in fourth-quarter profit due to ongoing weak consumer sentiment negatively impacting home sales [1] Company Summary - PulteGroup's fourth-quarter profit decreased as a result of challenging market conditions [1] - The company is facing difficulties in home sales attributed to low consumer confidence [1] Industry Summary - The housing market is experiencing a downturn, influenced by weak consumer sentiment [1] - Overall home sales are being adversely affected, indicating broader challenges within the real estate sector [1]

FOR IMMEDIATE RELEASE Company Contact Investors: Jim Zeumer (404) 978-6434 jim.zeumer@pultegroup.com PULTEGROUP REPORTS FOURTH QUARTER 2025 FINANCIAL RESULTS "PulteGroup's fourth quarter and full year financial results reflect our balanced and disciplined approach to the business as we continue to successfully navigate today's continuously shifting market dynamics," said PulteGroup President and CEO, Ryan Marshall. "Inclusive of our strong fourth quarter results, in 2025 PulteGroup delivered 29,572 homes, $ ...

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].

Performance Overview - The Third Avenue Real Estate Value Fund generated a return of +11.61% for the year ended December 31, 2025, outperforming its benchmark, the MSCI ACWI IMI Core Real Estate Index, which returned +9.86% [2][3] - Since its inception in 1998, the Fund has achieved an annualized return of +8.96%, indicating that an initial investment of $100,000 would exceed $1,000,000 by year-end with reinvested distributions [4] Key Contributors and Detractors - Major contributors to the Fund's performance included investments in National Storage REIT and several industrial and logistics REITs such as Prologis, First Industrial, and Segro plc [3] - Detractors included investments in U.S. homebuilders like Lennar Corp., PulteGroup, and D.R. Horton, as well as certain U.K. property companies [3] Fund Management Strategy - The Fund Management emphasizes long-term results and has refined its investment strategy to focus on well-capitalized enterprises with discounted securities [8][9] - The Firm's approach to value investing has remained consistent, targeting opportunities for resource conversion, including privatizations and mergers [10][11] Recent Additions and Changes - The Fund initiated a position in FirstService Corporation, a Canadian real estate services company, which meets the Fund's investment criteria due to its conservative capitalization and strong management [12][13] - Other changes included adding to positions where the price-to-value gap widened, such as Unite Group and Fidelity National Financial, while trimming back on CBRE Group and JLL Inc. [16] Sector Allocations - 40.3% of the Fund's capital is invested in U.S. residential real estate companies, supported by strong demand and low inventory levels [18] - 27.5% is allocated to North American commercial real estate companies, which are expected to benefit from structural demand drivers [19] - 27.6% is invested in international real estate companies, focusing on similar activities as domestic holdings [20] - The remaining 4.6% is in cash, debt, and options, including U.S. Dollar cash and short-term U.S. Treasuries [21] Market Insights - The Fund Management believes that the next five years could mirror the early 2000s, with compelling valuations for listed real estate leading to net inflows and differentiated returns [29][30] - The report highlights the significant size of the publicly traded real estate market, with over $6 trillion accessible to investors globally [28]