PulteGroup Reports Mixed Q4 2025 Results with Revenue Beat
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 18h ago
0mins
Source: seekingalpha
- Earnings Miss: PulteGroup's Q4 GAAP EPS of $2.56 fell short of the $2.83 analyst estimate, declining from $2.96 in Q3 and $4.43 a year ago, indicating pressure on profitability.
- Revenue Beat: The company reported Q4 revenue of $4.61 billion, exceeding the $4.37 billion consensus and rising from $4.40 billion in Q3, although it decreased from $4.92 billion in Q4 2024, reflecting market demand fluctuations.
- New Orders Growth: Net new orders totaled 6,428 units in Q4, up from 6,167 a year prior, despite the order value remaining virtually unchanged at $3.51 billion, suggesting some recovery in demand amid weak market confidence.
- Declining Backlog and Margin: The unit backlog fell to 8,495 homes valued at $5.27 billion from 10,153 homes worth $6.50 billion in Q4 2024, with a gross margin of 24.7%, down from 27.5% a year ago, indicating challenges in cost management and competitive pressures.
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Analyst Views on PHM
Wall Street analysts forecast PHM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PHM is 138.73 USD with a low forecast of 111.00 USD and a high forecast of 159.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 123.270
Low
111.00
Averages
138.73
High
159.00
Current: 123.270
Low
111.00
Averages
138.73
High
159.00
About PHM
PulteGroup, Inc. is a homebuilder in the United States. The Company's segments include Homebuilding and Financial Services. Its Homebuilding operations involve acquisition and development of land primarily for residential purposes within the United States and the construction of housing on such land. Its financial services business segment includes mortgage banking, title, and insurance agency operations, through Pulte Mortgage LLC (Pulte Mortgage) and other subsidiaries. Pulte Mortgage arranges financing through the origination of mortgage loans primarily for the benefit of its homebuyers. Its Homebuilding operations are aggregated into six segments: Northeast, Southeast, Florida, Midwest, Texas and West. The Company, through its brand portfolio that includes Centex, Pulte Homes, Del Webb, DiVosta Homes, American West and John Wieland Homes and Neighborhoods, offers a variety of home designs with varying levels of options and amenities to its customer groups.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
PulteGroup Reports Strong Q4 Earnings Exceeding Expectations
- Earnings Beat: PulteGroup reported adjusted earnings of $3.10 per share, surpassing the consensus estimate of $2.81, indicating a significant improvement in profitability that boosts investor confidence.
- Margin Improvement: The adjusted homebuilder EBIT margin exceeded forecasts by 173 basis points, reaching 17.2%, reflecting positive progress in cost control and operational efficiency, thereby strengthening market position.
- Unit Order Growth: Unit orders grew by 4% year-on-year, led by Florida and the Northeast with increases of 13% and 12% respectively, despite a 6% decline in the Midwest, showcasing strong demand in specific markets that could drive future sales growth.
- Strong Financial Position: The company ended Q4 with a net debt/capital ratio of -3.0%, down approximately 410 basis points sequentially, and with $2.0 billion in cash and equivalents, indicating robust financial health that supports future investments and expansion.
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PulteGroup Reports Q4 2025 Earnings with Strategic Shift and Guidance
- Performance Overview: PulteGroup closed 29,500 homes in 2025, generating $16.7 billion in sales revenue with a gross margin of 26.3%, demonstrating the effectiveness of its diversified operating model, despite a 5% decline in revenue in Q4 compared to last year.
- Strategic Shift: The company has decided to divest its off-site manufacturing operations to focus on core homebuilding, which is expected to optimize resource allocation and enhance shareholder value, reflecting a keen response to changing market demands.
- Future Outlook: Management expects to close between 5,700 and 6,100 homes in Q1 2026, with a full-year target of 28,500 to 29,000 homes, and an average sales price projected between $550,000 and $560,000, indicating confidence in market stability.
- Financial Health: Q4 2025 net income was $502 million, or $2.56 per share, down from last year, but with stable cash flow totaling $1.9 billion, indicating the company's strong financial position amid market uncertainties.
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