Company Overview - PulteGroup (PHM) has shifted from a growth-at-all-costs strategy to a disciplined, returns-focused approach, consistently delivering above-average returns [1] Industry Context - The homebuilding industry is currently facing a soft market that has persisted through 2025 and is expected to continue [1]

Core Viewpoint - PulteGroup, Inc. is a prominent home construction company in the U.S., maintaining a positive outlook from Raymond James with an "Outperform" rating and an increased price target, reflecting confidence in its growth potential [1][3][6] Group 1: Stock Performance - PulteGroup's stock was priced at $130.46, marking a 2.67% increase from previous levels [2] - The stock exhibited volatility with a daily trading range between $126.13 and $135.60, and over the past year, it fluctuated between a high of $142.11 and a low of $88.07 [2] - The trading volume for the day reached 2,813,870 shares, indicating active investor interest [3] Group 2: Financial Results - For the fourth quarter ending December 31, 2025, PulteGroup reported a net income of $502 million, or $2.56 per share, despite incurring pre-tax charges related to asset divestitures and land impairments [4][5][6] - The pre-tax charge related to asset divestiture was $81 million, or $0.31 per share, and land impairment charges totaled $35 million, or $0.14 per share [4] - The company's strong financial performance underscores its resilience and strategic focus on optimizing operations and enhancing shareholder value [5]

Core Insights - PulteGroup reported strong operating and financial performance in 2025, achieving significant revenue and margins despite variable demand throughout the year [4][7] - The company emphasized its investment strategy, spending $5.2 billion on land acquisition and development in 2025, contributing to a total of $24 billion over the past five years [2] - PulteGroup's diversified buyer mix and broad market presence were highlighted as key factors in its performance, with a notable increase in active adult segment signups [8][9] Financial Performance - In 2025, PulteGroup closed over 29,500 homes, generating home sale revenue of $16.7 billion, with a gross margin of 26.3% and an operating margin of 16.9% [3][7] - The company reported a net income of $2.2 billion for the full year, translating to $11.12 per share, while fourth-quarter net income was $502 million, or $2.56 per share [15] - Cash flow from operations for the year was $1.9 billion, and the company ended with a net debt-to-capital ratio of negative 3% [3][7] Shareholder Returns - PulteGroup repurchased 10.6 million shares for $1.2 billion in 2025, with $983 million remaining under its share repurchase authorization at year-end [1] - The average repurchase price was $112.76 per share, including $300 million in repurchases during the fourth quarter [1] 2026 Guidance - For 2026, PulteGroup guided to 28,500–29,000 closings and an average sales price of $550,000–$560,000, with expected gross margins of 24.5%–25.0% [5][16][17] - The company plans to spend approximately $5.4 billion on land acquisition and development in 2026, anticipating around $1 billion in cash flow [18] - Management expects elevated incentives and a focus on the spring selling season to drive results [17] Market Trends - The company noted improvements in affordability due to lower mortgage rates and increased wages, with stronger demand observed in certain regions like the Northeast and Southeast [19] - The active adult segment, particularly through the Del Webb brand, was identified as a significant driver of demand and profitability [9]

Core Insights - PulteGroup (PHM) reported better-than-expected fourth-quarter 2025 results, with adjusted earnings and revenues surpassing estimates, despite year-over-year declines due to affordability pressures and margin compression [1][9] Revenue & Earnings Performance - Adjusted earnings for Q4 were $2.88 per share, exceeding the Zacks Consensus Estimate of $2.78 by 3.6%, but down from $3.50 in the previous year [3] - Total revenues reached $4.61 billion, beating the Zacks Consensus Estimate of $4.31 billion by 6.9%, although this represented a 6.3% decline year over year [4] - Home sale revenues fell 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 (ASP) to $573,000 [4] Margin Performance - Home sale gross margin was 24.7%, down 280 basis points year over year, primarily due to $35 million in land impairment charges [5] - Selling, general and administrative expenses rose to 8.7% of home sale revenues from 4.2% a year ago, impacting adjusted operating margins [5] Segment-Level Details - Homebuilding revenues totaled $4.52 billion, down from $4.81 billion a year ago, with net new orders increasing 4% year over year to 6,428 homes [6] - The Financial Services segment generated pre-tax income of $35 million, down from $51 million in the previous year, reflecting lower closing volumes and a reduced mortgage capture rate of 84% compared to 86% last year [7] 2025 Performance Overview - Reported EPS for 2025 was $11.12, down from $14.69 a year ago, with total revenues at $17.3 billion, down from $17.9 billion in 2024 [8] - PulteGroup delivered 29,572 homes in 2025, down from 31,219 homes a year ago, while net new orders totaled 27,914 homes, indicating steady underlying demand despite macro uncertainty [8] Backlog and Capital Allocation - 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 [10] - The company exited 2025 with $2.0 billion in cash, up from $1.65 billion at the end of 2024, maintaining a conservative capital structure with a debt-to-capital ratio of 11.2% [11] Management Outlook - Management noted that while lower interest rates have improved relative affordability, subdued consumer confidence continues to weigh on demand [12] - PulteGroup aims for disciplined asset turnover and sustained land investment to support 3–5% annual community count growth over time, positioning the company for longer-term normalization in housing demand [12]

Core Insights - PulteGroup reported a revenue of $4.61 billion for Q4 2025, marking a year-over-year decline of 6.3% and an EPS of $2.88 compared to $3.50 a year ago, exceeding the Zacks Consensus Estimate of $4.31 billion by 6.96% and delivering an EPS surprise of 3.53% [1] Financial Performance - The average selling price was $573.00, surpassing the estimated $564.19 by analysts [4] - Net new orders in units totaled 6,428, exceeding the average estimate of 5,967 [4] - The unit backlog stood at 8,495, slightly above the average estimate of 8,439 [4] - Closings in units reached 7,821, compared to the average estimate of 7,416 [4] - Average active communities were 1,014, higher than the estimated 1,002 [4] Revenue Breakdown - Home sale revenues amounted to $4.48 billion, exceeding the average estimate of $4.16 billion, but reflecting a year-over-year decline of 4.9% [4] - Financial Services revenues were reported at $93.43 million, below the average estimate of $107.17 million, with an 18.9% year-over-year decline [4] - Homebuilding revenues totaled $4.52 billion, surpassing the average estimate of $4.2 billion, with a year-over-year decline of 6% [4] - Land sale and other revenues in homebuilding were $39.42 million, significantly lower than the average estimate of $58.6 million, representing a 60.2% year-over-year decline [4] Market Performance - PulteGroup shares returned +5.1% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Financial Data and Key Metrics Changes - In 2025, PulteGroup closed over 29,500 homes and generated home sale revenues of $16.7 billion, with full-year gross and operating margins reported at 26.3% and 16.9% respectively [7][22] - The company reported net income of $2.2 billion for the full year, translating to $11.12 per share, while Q4 net income was $502 million or $2.56 per share, down from $913 million or $4.43 per share in Q4 2024 [22][23] - Cash flow from operations for 2025 was $1.9 billion, and the company ended the year with $2 billion in cash [7][11] Business Line Data and Key Metrics Changes - In Q4 2025, net new orders increased by 4% year-over-year to 6,428 homes, with a 6% increase in average community count [12][14] - The absorption pace for the full year was 2.3 homes per month, down from 2.6 homes per month in 2024, with a cancellation rate of 12% compared to 10% in the prior year [13][14] - Closings in Q4 were 7,821 homes, down 3% year-over-year, with a decrease in average sales price to $573,000 [15][16] Market Data and Key Metrics Changes - PulteGroup's operations are established in 47 distinct markets, with relative strength in the Midwest, Northeast, and Florida, while Texas and many western markets experienced softer demand [7][8] - Active adult buyer signups increased by 6% year-over-year, with a 14% increase in Q4 compared to the same quarter in the previous year [8][14] - The company reported a year-end backlog of 8,495 homes valued at $5.3 billion [15] Company Strategy and Development Direction - PulteGroup has made a strategic decision to divest its off-site manufacturing operations to focus on core homebuilding activities, believing this will better serve shareholders [10] - The company aims to achieve community count growth of 3%-5% in 2026, supported by a land pipeline of 235,000 lots [9][11] - The operating model emphasizes diversification and balance across markets and buyer groups, which has helped navigate variable market dynamics [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing improved affordability due to lower mortgage rates and increased consumer income [30] - The company noted that consumer confidence will be critical in determining buyer demand in the coming months [31] - Despite a challenging year in 2025, management highlighted strong financial results and a disciplined approach to capital allocation [9][11] Other Important Information - PulteGroup repurchased 10.6 million common shares in 2025 for $1.2 billion, with $983 million remaining under the existing share repurchase authorization [22][23] - The company expects SG&A expenses to be in the range of 9.5%-9.7% of home sale revenue for 2026 [19] Q&A Session Summary Question: Can you discuss the management of SG&A expenses despite lower home sales? - Management indicated that they maintained a balanced approach, making targeted reductions in certain markets while investing in quality and customer experience [34][36] Question: What is the outlook for gross margins in 2026? - Management expects gross margins to be in the range of 24.5%-25.0% for both Q1 and the full year, with land costs anticipated to increase by 7%-8% [18][46] Question: Can you elaborate on the trends in major markets regarding inventory? - Management noted positive trends in Florida, with strong sales, while other markets like Texas are experiencing sluggish demand [50][51] Question: What are the implications of the administration's restrictions on institutional ownership of single-family homes? - Management does not foresee significant impacts on their operations and is committed to adhering to any new regulations [100][103]

PulteGroup (NYSE:PHM) Q4 2025 Earnings call January 29, 2026 08:30 AM ET Company ParticipantsJim Ossowski - Senior VP of FinanceJim Zeumer - Head of Investor RelationsRyan Marshall - President and CEOStephen Kim - Senior Managing Director and Head of Housing ResearchConference Call ParticipantsAlan Ratner - AnalystAnthony Pettinari - AnalystJay McCanless - Equity Research AnalystJohn Lovallo - AnalystKenneth Zener - AnalystMatthew Bouley - AnalystMichael Dahl - AnalystMichael Rehaut - AnalystSam Reid - Anal ...

Financial Data and Key Metrics Changes - In 2025, PulteGroup closed over 29,500 homes and generated home sale revenues of $16.7 billion, with full-year gross and operating margins reported at 26.3% and 16.9% respectively [5][19] - The company reported net income of $2.2 billion for the full year, translating to $11.12 per share, while Q4 net income was $502 million or $2.56 per share, down from $913 million or $4.43 per share in Q4 2024 [19][5] - Cash flow from operations for 2025 was $1.9 billion, and the company ended the year with $2 billion in cash [5][10] Business Line Data and Key Metrics Changes - In Q4 2025, net new orders increased by 4% year-over-year to 6,428 homes, with a 6% increase in average community account [11] - The closing mix for Q4 was 37% first-time buyers, 39% move-up buyers, and 24% active adult buyers, compared to 40%, 40%, and 20% respectively in Q4 2024 [13] - The company reported a full-year absorption pace of 2.3 homes per month, down from 2.6 homes per month in 2024 [11] Market Data and Key Metrics Changes - PulteGroup's operations are established in 47 distinct markets, with relative strength in the Midwest, Northeast, and Florida, while facing pressure in Texas and many western markets [5][6] - Active adult buyer signups increased by 6% year-over-year, with a 14% increase in Q4 compared to the same quarter in the previous year [7] - The company noted a year-over-year increase in fourth quarter signups in Florida of 13% [24] Company Strategy and Development Direction - PulteGroup emphasizes a diversified operating model across markets and buyer groups, which has helped navigate variable market dynamics [4] - The company has made a strategic decision to divest its off-site manufacturing operations to focus on core homebuilding operations [9] - PulteGroup plans to invest $5.4 billion in land acquisition and development in 2026, expecting community account growth of 3%-5% [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing improved affordability due to lower mortgage rates and increased consumer income [25] - The company anticipates that the spring selling season will be a key driver of financial results, with expectations for a strong demand in key markets [23] - Management acknowledged the challenges faced in 2025 but highlighted the company's strong financial position entering 2026 [10][23] Other Important Information - The company repurchased 10.6 million common shares in 2025 for $1.2 billion, with $983 million remaining under the existing share repurchase authorization [19][20] - PulteGroup's reported fourth quarter gross margin was 24.7%, down from 27.5% in Q4 of the previous year, impacted by land impairment charges and higher incentives [15] Q&A Session Summary Question: Can you help us with some of the levers that you may have pulled on SG&A? - Management indicated that they have made targeted reductions in force in slower markets but have focused on maintaining a balanced business approach [28] Question: What is your view on technology infusion into homebuilding? - Management emphasized the importance of innovation in homebuilding but decided to focus on core competencies rather than vertically integrating off-site construction [30] Question: Can you elaborate on the full-year gross margin outlook? - Management expects ASP to remain flat, with house costs slightly decreasing and land costs increasing by 7%-8% [33] Question: How are inventory trends stabilizing across major markets? - Management noted positive trends in Florida and other key markets, while some areas like Texas are still experiencing sluggish demand [36] Question: What are the implications of the administration's restrictions on institutional ownership of single-family homes? - Management does not foresee significant impacts from these restrictions and is committed to adhering to any new regulations [56]

分组1 - PulteGroup reported quarterly earnings of $2.88 per share, exceeding the Zacks Consensus Estimate of $2.78 per share, but down from $3.5 per share a year ago, representing an earnings surprise of +3.53% [1] - The company achieved revenues of $4.61 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 6.96%, although this is a decrease from year-ago revenues of $4.92 billion [2] - PulteGroup has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has gained approximately 5.1% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The company's earnings outlook is crucial for future stock performance, with current consensus EPS estimates of $1.98 on $3.54 billion in revenues for the coming quarter and $11.09 on $16.99 billion in revenues for the current fiscal year [7] - The Zacks Industry Rank for Building Products - Home Builders is currently in the bottom 2% of over 250 Zacks industries, which may negatively impact stock performance [8]

FOURTH QUARTER 2025 EARNINGS CALL January 29, 2026 1 Forward-looking Statements This presentation includes "forward-looking statements." These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that they do not relate to m ...