Shareholder returns remained a focus as well. Ossowski said the company repurchased 10.6 million shares during 2025 for $1.2 billion at an average price of $112.76 per share, including $300 million in repurchases during the fourth quarter. PulteGroup also ended the year with $983 million remaining under its share repurchase authorization.Executives emphasized that the company invested heavily for future growth, with $5.2 billion spent on land acquisition and development in 2025. Marshall said that, includin ...

Financial Data and Key Metrics Changes - The company delivered 3,435 residential units in Q4 2025, exceeding guidance, with a total of 10,792 units delivered for the full year [4] - Net income for Q4 was $36 million, or $1.21 per diluted share, with adjusted net income at $47 million, or $1.59 per diluted share [19] - Home sales revenues for Q4 reached $1.1 billion, up 16% sequentially, while average sales price decreased by 5% to $367,000 [19] Business Line Data and Key Metrics Changes - The Century Living segment contributed to revenues with the sale of a 300-unit multifamily community for $97 million [20] - The company repurchased over 7% of its shares outstanding at the beginning of the year, totaling 2.3 million shares for $178 million [5][25] Market Data and Key Metrics Changes - The average community count increased by 13% to 318 communities in 2025, with expectations for low- to mid-single-digit percentage growth in 2026 [12][14] - The mortgage capture rate was 84% for both Q4 2025 and the full year, representing records for the company [23] Company Strategy and Development Direction - The company plans to maintain a disciplined approach to growth, focusing on existing lot counts and not expanding for the sake of growth alone [7] - The land acquisition and development expense is expected to remain flat in 2026, with the ability to adjust based on market conditions [15][16] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the spring selling season, noting improved order activity and potential consumer interest [29][31] - The company anticipates that any interest rate relief or governmental support for homebuyers could unlock buyer demand [7] Other Important Information - The company maintained a quarterly cash dividend of $0.29 per share and ended the year with $2.6 billion in stockholders' equity [24] - The company achieved a record book value per share of $89 at the end of Q4 2025 [5][25] Q&A Session Summary Question: Insights on the spring selling season - Management noted that while January sales pace has been slower compared to the previous year, order activity has improved sequentially, and they are hopeful for a better spring selling season [29][30] Question: Expectations for gross margin - Management indicated that gross margins may see a slight pullback due to incentives but expect to revert to a more balanced approach in the future [41][42] Question: Community count growth - Management expects community count to grow steadily throughout the year, particularly in the middle and back half of the year [33] Question: Stock repurchase authorization - Approximately 1.5 million shares remain under the stock repurchase program [45] Question: SG&A as a percentage of sales - SG&A is expected to be 14.5% in Q1 2026, higher than previous levels due to typical seasonal trends [51][52]

Financial Data and Key Metrics Changes - In Q1, net income was $16.5 million or $0.32 per diluted share, down from $38.2 million or $0.76 per diluted share in the prior year quarter [6] - Pre-tax income was $21.9 million compared to $51.2 million in Q1 of last year, with a pre-tax profit margin of 8.7% versus 16.7% in the prior year quarter due to reduced operating leverage [6] - Revenues totaled $250.4 million, down from $305.9 million in the prior year quarter [6][7] - Gross profit margin for the quarter was 22% compared to 23.8% for the same quarter last year [8] Business Line Data and Key Metrics Changes - The company sold 2,333 lots in the quarter with an average sales price of $105,500 [7] - Owned lot position increased by 23% compared to a year ago, and community count increased by 25% over the same period [5] - SG&A expenses increased by 29% from the prior year quarter to $36 million, primarily due to a 30% increase in employee count [8] Market Data and Key Metrics Changes - The total lot position increased by 29% from a year ago to 106,000 lots, with 64% owned and 36% controlled through purchase contracts [14] - Owned lots under contract increased by 51% from a year ago to 25,200 lots, representing 37% of the owned lot position [15] Company Strategy and Development Direction - The company is focused on investing in compelling land parcels, maximizing returns, and consolidating market share in the lot development industry [5] - The goal is to double market share to 5% over the intermediate term while maintaining a disciplined approach to capital investment [20] - The company expects to invest approximately $2 billion in land acquisition and development in fiscal 2025, subject to market conditions [12] Management's Comments on Operating Environment and Future Outlook - Management noted that builder demand remains strong, particularly for new communities, and there has been no softening in land prices [9][33] - The company expects Q1 to be the lowest delivery quarter of the year, with higher revenues anticipated in the second half of fiscal 2025 [19] - Management expressed confidence in the company's ability to gain market share in the fragmented lot development industry [20] Other Important Information - The company ended the quarter with $645 million of liquidity, including $132 million in unrestricted cash [15] - Total debt was $807 million with no senior note maturities until May 2026, and the net debt to capital ratio was 29.5% [15] Q&A Session Summary Question: Can you provide more detail on the stabilization of costs in land development? - Management indicated that development costs have stabilized over the past 12 months, with no significant price increases observed [23] Question: How do you foresee the growth in employee count and new markets affecting cost leverage? - Management expects SG&A expenses to moderate for the remainder of the year, anticipating high single-digit growth [26] Question: What is driving the higher revenue per lot this quarter? - The increase in revenue per lot was attributed to a specific infill project with significant lot prices that skewed the average sales price up for the quarter [28] Question: How has builder demand been trending year to date? - Builder demand remains strong, particularly for new communities, with no significant delays reported from major customers [32]