PulteGroup (PHM) Q4 2025 earnings summary

Executive summary

• Closed over 29,500 homes in 2025, generating $16.7 billion in home sale revenues and $2.2 billion in net income, marking one of the most profitable years in company history.

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

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

• Net new orders rose 4% year-over-year to 6,428 homes valued at $5.3 billion; backlog at quarter-end was 8,495 homes.

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

Financial highlights

• Q4 2025 home sale revenues were $4.5 billion, down 5% year-over-year; closings decreased 3% to 7,821 homes, with average sales price down 1% to $573,000.

• Q4 gross margin was 24.7% (down from 27.5% prior year), impacted by $35 million in land impairment charges and higher incentives (9.9% of revenue).

• Q4 SG&A expense was $389 million (8.7% of home sale revenues), up from $196 million (4.2%) prior year, including a $34 million insurance benefit.

• Q4 financial services pre-tax income was $35 million, down from $51 million year-over-year.

• Q4 2025 EPS was $2.56, down 42% year-over-year.

Outlook and guidance

• Projecting 2026 closings of 28,500–29,000 homes; Q1 2026 closings expected between 5,700 and 6,100.

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

• Expect gross margins of 24.5%–25.0% for Q1 and full-year 2026; house costs to be flat to slightly down, lot costs to rise 7%–8%.

• SG&A expense for 2026 guided at 9.5%–9.7% of home sale revenue; Q1 SG&A expected at 11.5%.

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