PulteGroup (PHM) Q4 2025 earnings summary

Executive summary

• Closed 29,572 homes in 2025, generating $16.7 billion in home sale revenues and $2.2 billion in net income, marking the fifth most profitable year 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 strong diversification across 47 markets and buyer segments, with active adult sales up 14% in Q4 year-over-year.

• Net new orders rose 4% year-over-year to 6,428 homes valued at $5.3 billion, with a backlog of 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

• Full-year gross and operating margins were 26.3% and 16.9%, respectively.

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

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

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

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

Outlook and guidance

• Projecting 2026 full-year closings of 28,500–29,000 homes and Q1 closings of 5,700–6,100.

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

• Guiding for gross margins of 24.5%–25.0% and SG&A expense of 9.5%–9.7% of home sale revenue for 2026.

• Land acquisition and development spend projected at $5.4 billion in 2026, with expected cash flow generation of ~$1 billion.

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