PulteGroup Inc. said its fourth-quarter profit fell sharply as home sale revenues declined and margins tightened despite improving affordability from lower mortgage rates.
The Atlanta-based homebuilder reported net income of $502 million, or $2.56 per share, for the three months ended Dec. 31, 2025, down from $913 million, or $4.43 per share, a year earlier, according to PulteGroup. Revenue from home sales fell 5% to $4.5 billion as closings dropped 3% to 7,821 homes and the average selling price slipped 1% to $573 thousand.
Home sale gross margin narrowed to 24.7% from 27.5% a year earlier, including $35 million in land impairment charges. “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 president and chief executive Ryan Marshall.
Marshall said that while lower interest rates and more favorable pricing improved affordability, “lagging consumer confidence continued to weigh on homebuyer demand in the quarter.” He added that the company remains focused on “intelligently turning our assets, generating strong cash flows, and further developing a land pipeline that can routinely support community count growth of 3% to 5% annually.”
Net new orders rose 4% to 6,428 homes valued at $3.5 billion, while backlog declined to 8,495 homes worth $5.3 billion. The company’s financial services business earned $35 million before taxes, down from $51 million a year earlier, as closing volumes and mortgage capture rates fell to 84% from 86%.
For 2025 as a whole, PulteGroup delivered 29,572 homes, generating $16.7 billion in home sale revenues and $2.2 billion in net income. The company invested $5.2 billion in land acquisition and development and repurchased $1.2 billion of stock, ending the year with $2.0 billion in cash and a debt-to-capital ratio of 11.2%.
The company said it will continue to prioritize operational efficiency and disciplined capital allocation as the U.S. housing market adjusts to moderating interest rates and variable consumer sentiment.
