PulteGroup (NYSE:PHM) Releases Earnings Results

PulteGroup (NYSE:PHM) posted its quarterly earnings results on Thursday. The construction company reported $2.56 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.78 by ($0.22), FiscalAI reports. PulteGroup had a return on equity of 19.58% and a net margin of 14.93%.The business had revenue of $4.61 billion during the quarter, compared to the consensus estimate of $4.34 billion.

Here are the key takeaways from PulteGroup’s conference call:

• Strong 2025 financial performance — Pulte reported ~29,500 home closings, $16.7 billion in home sale revenue, full-year gross margin of 26.3%, net income of $2.2 billion, and $1.9 billion cash from operations, finishing 2025 with $2.0 billion cash and a net debt-to-capital of -3%.
• 2026 guidance — Management expects 28,500–29,000 closings, average selling price of $550k–$560k, gross margin of 24.5%–25.0%, SG&A 9.5%–9.7%, ~$5.4B land spend and roughly $1B in operating cash flow for 2026.
• Strategic divestiture of ICG (off-site manufacturing) — Pulte plans to sell its off-site manufacturing operations to focus capital and management on core homebuilding, recording an $81M Q4 charge but expecting to benefit from external innovation without owning the asset.
• Inventory and product mix discipline — Spec inventory was reduced (specs down 18% YoY; ~2,000 finished specs), starts are being matched to sales, and management is shifting toward more built‑to‑order (targeting ~60% BTO) to improve margins and capital efficiency.
• Rising lot costs and localized market pressure — Management expects lot costs to increase ~7%–8% in 2026 and noted continued weakness in Texas and many Western markets, which could pressure margins despite a large 235,000‑lot pipeline.

PulteGroup Price Performance

Shares of PHM opened at $127.18 on Friday. PulteGroup has a one year low of $88.07 and a one year high of $142.11. The stock’s fifty day moving average is $124.58 and its 200-day moving average is $124.56. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.81 and a current ratio of 0.81. The firm has a market capitalization of $24.79 billion, a price-to-earnings ratio of 9.79, a price-to-earnings-growth ratio of 1.01 and a beta of 1.33.

PulteGroup Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, January 6th. Stockholders of record on Tuesday, December 16th were paid a $0.26 dividend. The ex-dividend date of this dividend was Tuesday, December 16th. This is a positive change from PulteGroup’s previous quarterly dividend of $0.22. This represents a $1.04 annualized dividend and a dividend yield of 0.8%. PulteGroup’s dividend payout ratio (DPR) is currently 8.01%.

Key Stories Impacting PulteGroup

Here are the key news stories impacting PulteGroup this week:

• Positive Sentiment: Revenue and some metrics outperformed expectations, showing demand for new homes held up enough to deliver higher-than-anticipated sales in Q4. PulteGroup Reports Fourth Quarter 2025 Financial Results
• Positive Sentiment: Management set an operational target of 3%–5% community-count growth for 2026 and emphasized strategic divestitures and margin focus — a signal that the company is prioritizing profitability and portfolio optimization. PulteGroup outlines 3%–5% community count growth for 2026 amid strategic divestiture and margin focus
• Positive Sentiment: Brokerage coverage remains mixed but not uniformly bearish — some consensus views still rate the stock as a buy/hold on a multi-quarter view, providing support vs. a deeper sell-off. PulteGroup, Inc. (NYSE:PHM) Receives Consensus Rating of “Moderate Buy” from Brokerages
• Neutral Sentiment: Full earnings materials and call transcripts are available for investors to parse (company slides, call transcript, and analyst Q&A) — useful for assessing management tone on spring selling season and incentives. View Press Release / Slide Deck
• Neutral Sentiment: Market commentary highlights that spring selling-season guidance will be a key near-term catalyst — investors should watch management commentary and community starts/traffic for indication of recovery. Housing Market’s Spring Season Is Around the Corner. Watch These Numbers in PulteGroup Earnings.
• Negative Sentiment: Reported EPS fell short of some consensus figures (reported $2.56 per share) and included notable one-time pre-tax charges (about $81M related to a planned divestiture and $35M of land impairments), which reduced headline profitability. PulteGroup: Q4 Earnings Snapshot
• Negative Sentiment: Multiple outlets and analysts flagged weaker homebuyer demand, increased incentives and margin pressure — factors that pressured profit and led some shops (notably Zacks) to cut near-term EPS forecasts and assign a negative rating. PulteGroup Q4 Earnings & Revenues Top Estimates, Stock Down
• Negative Sentiment: Analyst note flow included several estimate cuts and a downgrade from Zacks to “Strong Sell,” which increases downside risk if guidance or spring-season trends disappoint. Zacks Research downgrade

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on PHM shares. Wall Street Zen raised shares of PulteGroup from a “sell” rating to a “hold” rating in a report on Sunday, January 11th. Zacks Research cut PulteGroup from a “hold” rating to a “strong sell” rating in a research report on Monday. Oppenheimer restated an “outperform” rating on shares of PulteGroup in a research report on Friday. JPMorgan Chase & Co. upped their price objective on PulteGroup from $136.00 to $149.00 and gave the stock an “overweight” rating in a research note on Thursday, December 4th. Finally, Wells Fargo & Company raised their target price on PulteGroup from $132.00 to $150.00 and gave the company an “overweight” rating in a research note on Wednesday, January 14th. Nine investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, PulteGroup has a consensus rating of “Moderate Buy” and a consensus target price of $138.85.

Hedge Funds Weigh In On PulteGroup

Several large investors have recently bought and sold shares of the stock. Fulcrum Asset Management LLP acquired a new stake in shares of PulteGroup in the 3rd quarter worth approximately $47,000. MUFG Securities EMEA plc bought a new stake in PulteGroup during the second quarter worth approximately $63,000. Johnson Financial Group Inc. lifted its position in PulteGroup by 58.3% in the third quarter. Johnson Financial Group Inc. now owns 964 shares of the construction company’s stock worth $128,000 after purchasing an additional 355 shares during the period. EverSource Wealth Advisors LLC boosted its stake in PulteGroup by 197.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,212 shares of the construction company’s stock valued at $128,000 after purchasing an additional 804 shares in the last quarter. Finally, von Borstel & Associates Inc. acquired a new position in shares of PulteGroup during the 3rd quarter valued at $227,000. Institutional investors and hedge funds own 89.90% of the company’s stock.

PulteGroup Company Profile

PulteGroup, Inc (NYSE: PHM) is a U.S.-based residential homebuilder that designs, constructs and sells single-family homes and develops master-planned communities. The company operates multiple national and regional brands that target different buyer segments, including first-time buyers, move-up buyers and active-adult customers. Its operations encompass land acquisition and development, home design and construction, community amenities and ongoing customer service and warranty programs.

PulteGroup markets homes under several well-known brands, such as Pulte Homes, Centex and Del Webb, among others, offering a range of product types from entry-level detached homes to larger, higher-end residences and age-restricted active-adult communities.