PulteGroup (NYSE:PHM) delivered fourth-quarter results that came in ahead of Wall Street expectations, even as broader housing market conditions remained challenging. The shares ticked up around 0.3% following the release on Thursday.
The homebuilder reported adjusted earnings of $2.88 per share, topping the consensus estimate of $2.81. Quarterly revenue reached $4.61 billion, comfortably above analysts’ forecasts of $4.33 billion.
Home sale revenue, however, declined 5% year on year to $4.5 billion, reflecting a 3% drop in closings to 7,821 homes and a modest 1% reduction in the average selling price to $573,000.
“PulteGroup’s fourth quarter and full year financial results reflect our balanced and disciplined approach to the business as we continue to successfully navigate today’s continuously shifting market dynamics,” said PulteGroup President and CEO, Ryan Marshall. “While lower interest rates and more favorable pricing dynamics have worked to improve the overall affordability of new homes relative to a year ago, lagging consumer confidence continued to weigh on homebuyer demand in the quarter.”
Net new orders in the quarter rose 4% from a year earlier to 6,428 homes, with the total value of those orders steady at $3.5 billion. The reported gross margin on home sales was 24.7%, including $35 million of land impairment charges.
Capital returns remained a focus, with PulteGroup buying back 2.4 million shares for $300 million during the quarter. The company closed the period with $2.0 billion in cash and a debt-to-capital ratio of 11.2%.
For the full year 2025, PulteGroup delivered 29,572 homes, generated $16.7 billion in home sale revenue, and posted net income of $2.2 billion, underscoring its ability to remain profitable amid ongoing market headwinds.