PulteGroup (PHM) Q4 2025 earnings summary

Executive summary

• Achieved 29,572 home closings and $16.7B in home sale revenues for 2025, with net income of $2.2B, marking the fifth most profitable year in company history.

• Q4 2025 net income was $502M ($2.56/share), including $81M in pre-tax charges for manufacturing asset divestiture, $35M in land impairment, and a $34M insurance benefit.

• Maintained a diversified buyer base: 38% first-time, 40% move-up, 22% active adult, with active adult signups up 14% in Q4 year-over-year.

• Ended 2025 with $2B in cash after $5.2B invested in land and $1.2B in share repurchases.

• Strategic divestiture of off-site manufacturing operations to focus on core homebuilding.

Financial highlights

• Q4 home sale revenues were $4.5B, down 5% year-over-year, with 7,821 closings (down 3%) and average sales price of $573,000 (down 1%).

• Q4 gross margin was 24.7% (down from 27.5% in Q4 2024), impacted by $35M in land impairment charges and higher incentives.

• Q4 SG&A expense was $389M (8.7% of home sale revenues), including a $34M insurance benefit.

• Financial services pre-tax income was $35M in Q4, down from $51M in Q4 2024, impacted by lower ASPs, closing volumes, and mortgage capture rate.

• Backlog at quarter-end: 8,495 homes valued at $5.3B.

Outlook and guidance

• Projecting 2026 home closings of 28,500–29,000 and Q1 closings of 5,700–6,100.

• Expecting average sales price of $550,000–$560,000 for both Q1 and full-year 2026.

• Anticipating gross margins of 24.5%–25.0% for Q1 and full-year 2026; SG&A expense expected at 9.5%–9.7% of home sale revenue for 2026.

• Land acquisition and development spend projected at $5.4B in 2026; cash flow generation expected to be ~$1B.

• Community count expected to grow 3%–5% in 2026.