PulteGroup Q4 Earnings & Revenues Top Estimates, Stock Down

PulteGroup PHM reported better-than-expected fourth-quarter 2025 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate, though both metrics declined year over year amid continued affordability pressures and margin compression. Lower consumer confidence and higher incentive activity weighed on profitability, partially offset by stable order trends, higher community counts and disciplined capital deployment.

Shares of the Atlanta-based homebuilder slipped 0.2% in pre-market trading on Thursday following the earnings announcement.

Revenues & Earnings Performance

For the fourth quarter, PulteGroup reported adjusted earnings of $2.88 per share, which beat the Zacks Consensus Estimate of $2.78 by 3.6%, but declined from $3.50 in the year-ago quarter. On a reported basis, earnings were $2.56 per share, reflecting land impairment charges and costs associated with the planned divestiture of certain manufacturing assets.

Total revenues (Homebuilding & Financial Services) came in at $4.61 billion, beating the Zacks Consensus Estimate of $4.31 billion by 6.9%, though down 6.3% year over year. Home sale revenues declined 5% year over year to $4.48 billion, driven by a 3% decrease in closings to 7,821 homes and a 1% decline in average selling price or ASP to $573,000.

PulteGroup, Inc. Price, Consensus and EPS Surprise

PulteGroup, Inc. price-consensus-eps-surprise-chart | PulteGroup, Inc. Quote

Margin Performance of PulteGroup

Home sale gross margin was 24.7%, down 280 basis points year over year, primarily reflecting $35 million (80 basis points) of land impairment charges recorded during the quarter. Elevated incentives and cost pressures further weighed on margins. Selling, general and administrative expenses rose to 8.7% of home sale revenues from 4.2% a year ago, reflecting the absence of unusually large insurance benefits recorded in the prior-year period, resulting in lower adjusted operating margins.

PulteGroup’s Segment-Level Details

PulteGroup operates through Homebuilding and Financial Services segments. Homebuilding revenues totaled $4.52 billion, down from $4.81 billion a year ago. Despite softer deliveries, net new orders increased 4% year over year to 6,428 homes, while the value of net new orders remained stable at $3.5 billion, supported by a 6% increase in average community count.

The Financial Services segment generated pre-tax income of $35 million, down from $51 million in the year-ago quarter, reflecting lower closing volumes and a reduced mortgage capture rate of 84% compared with 86% last year.

PulteGroup’s 2025 Performance at a Glance

The company’s reported EPS was $11.12 in 2025, down from $14.69 a year ago. Total revenues were $17.3 billion, down from $17.9 billion in 2024, due to lower homebuilding volumes.

PulteGroup delivered 29,572 homes in 2025, down from 31,219 homes a year ago, while net new orders totaled 27,914 homes (down from 29,226 units), with an aggregate value of $15.5 billion, signaling steady underlying demand despite macro uncertainty.

Ending backlog stood at 8,495 homes valued at $5.3 billion, down year over year, reflecting lower order conversion and a more cautious buyer environment.

Balance Sheet & Capital Allocation

PulteGroup exited 2025 with $2.0 billion in cash, cash equivalents and restricted cash, up from $1.65 billion at the end of 2024. The company maintained a conservative capital structure with a debt-to-capital ratio of 11.2% and a net debt-to-capital ratio of negative 3%, indicating a net cash position.

During the quarter, the company repurchased $300 million of common stock, bringing full-year 2025 repurchases to $1.2 billion, or 5.2% of shares outstanding.

PHM’s Outlook & Management Commentary

Management noted that while lower interest rates have improved relative affordability, subdued consumer confidence continues to weigh on demand. PulteGroup remains focused on disciplined asset turnover, strong cash flow generation and sustained land investment to support 3–5% annual community count growth over time. Despite near-term macro uncertainty, management believes the company is well-positioned for longer-term normalization in housing demand.

PHM’s Zacks Rank & Peer Releases

PulteGroup currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

D.R. Horton, Inc. DHI reported better-than-expected first-quarter fiscal 2026 (ended Dec. 31, 2025) results, with earnings and total revenues beating the Zacks Consensus Estimate.  However, on a year-over-year basis, both metrics declined.

D.R. Horton expects consolidated revenues to be in the range of $33.5-$35 billion. This compares with $34.25 billion in fiscal 2025. Homes closed are anticipated to be within 86,000-88,000, compared with 84,863 in fiscal 2025.

KB Home KBH reported fourth-quarter fiscal 2025 results. The quarter’s earnings and total revenues surpassed the Zacks Consensus Estimate but decreased on a year-over-year basis.

KB Home’s quarterly performance remained under pressure amid a challenging economic and geopolitical environment, with low consumer confidence, affordability concerns and a still-high mortgage rate continuing to constrain demand. In response to these headwinds, management has adopted a measured outlook for the first quarter and full fiscal year 2026. For the first quarter of fiscal 2026, the company is expecting housing revenues to be in the $1.05-$1.15 billion band, down from $1.39 billion reported in the year-ago period. It expects deliveries to be in the range of 2,300-2,500 homes compared with 2,770 homes delivered in the year-ago period.

Lennar Corporation LEN reported mixed results for the fourth quarter of fiscal 2025, wherein its adjusted earnings missed the Zacks Consensus Estimate, while total revenues beat the same. Meanwhile, both metrics tumbled on a year-over-year basis.

Lennar’s quarterly performance was hurt by a still-challenging housing market, as affordability issues and buyer uncertainty kept demand weak. A six-week government shutdown and softer market conditions added further pressure. In response, the company remained focused on maintaining volumes, adapting to evolving conditions, reducing costs and supporting long-term housing demand rather than reacting to short-term volatility. For the first quarter of fiscal 2026, Lennar expects deliveries to be in the range of 17,000-18,000 homes compared with 17,834 homes delivered in the year-ago period.

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