PulteGroup, Inc. (NYSE: PHM) shares were trading modestly lower in early New York session after the homebuilder reported fourth-quarter 2025 financial results, with the stock recently positioned near the upper end of its 52-week range of $88.07 to $142.11 on the NYSE.
Quarterly Financial Highlights
PulteGroup reported Q4 net income of $502 million, or $2.56 per diluted share, for the quarter ended December 31, 2025. That compares with $913 million, or $4.43 per share, in the prior year period. The results included an $81 million pretax charge related to intended asset divestitures and a $35 million land impairment, partly offset by a $34 million pre-tax insurance benefit.
Home sale revenues in the quarter totaled $4.5 billion, down 5% year-over-year, driven by a 3% decline in closings to 7,821 homes and a 1% decrease in average sales price to about $573,000. The home sale gross margin was 24.7%, including land impairment charges, down from 27.5% in Q4 2024.
Net new orders rose 4% to 6,428 homes, with the total value of orders roughly flat year-over-year. Backlog at quarter end stood at roughly 8,495 homes valued at $5.3 billion.
Full-Year and Operational Context
For the full year 2025, PulteGroup delivered 29,572 homes with home sale revenues of $16.7 billion and net income of about $2.2 billion, compared with higher 2024 results including elevated insurance benefits. The company ended the year with $2.0 billion in cash and a debt-to-capital ratio near 11.2%, after investing $5.2 billion in land acquisition and development.
Market Reaction and Analyst Activity
Analyst activity today included a downgrade by Zacks Research to a “strong sell”, reflecting lowered sentiment on near-term earnings prospects. Evercore ISI and Citigroup have also recently trimmed price targets, while other firms maintain mixed ratings, leaving PulteGroup’s consensus outlook cautious.
Sector and Macro Environment
PulteGroup’s results arrive against a backdrop of continued housing market headwinds, with elevated mortgage rates and affordability pressures tempering buyer demand. Shares have recently traded near the top of their year’s range, reflecting investor focus on valuation and the housing cycle. The homebuilding sector remains sensitive to interest rate shifts and consumer confidence dynamics.
