With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

This year's 100 Best Companies to Work For are rebuilding the social contract at work so people feel supported, trusted, and future-ready as they undergo that transition.

100 Best Places to Work 2026_PulteGroup, Inc.

Employees say:"We have an amazing culture. Management inspires, leads by example, and leads with humility. Teams support one another, hold each other accountable, and have each other's backs. Individuals are committed to working hard, growing, and doing the right thing. We are recognized for our contributions and successes. My job is absolutely one of the best parts of my life."

Fortune 100 Best Companies to Work For

The companies on this annual list make a conscious effort to be supportive, inclusive workplaces.

2025 Best Large Workplaces for Women_PulteGroup, Inc._US1__68a71dfc383bc91cadd06a7f_3

Employees say:"Management consistently demonstrates adaptability to departmental needs and communicates company metrics and initiatives with clarity and transparency. Emotional wellbeing is a core part of our culture, and we're provided with ample opportunities to maintain a healthy work-life balance. Our team is incredibly supportive, always striving to do the right thing and ensuring our division's clients are satisfied. The collective effort and dedication truly make this a great place to work."

100 Best Large Workplaces for Women

See which workplaces made this year's list.

2025_GPTW_Construction_Large_PulteGroup, Inc._US1__685d50c0023fa8a026342320_1

Employees say:"I believe Pulte has established a culture that recognizes people as its most valuable asset. The company provides excellent wellness coverage and programs, competitive pay, paid holidays, company-wide celebratory events, and various other initiatives that prioritize its employees."

Best Large Workplaces in Construction

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The top companies on our list have one thing in common: Staff largely trust leadership to see them as well-rounded people and reward them for a job well done.

GPTW_100BestCompaniesToWorkFor_2025-PulteGroup, Inc._US1__20241210214006_4

Employees say: "This company provides opportunities for employees to grow and develop to be the best employee that they can be. PulteGroup has built a great work culture and team that empowers its employees. Some examples are teambuilding events, great communication, and holiday events."

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

GPTW_Women_Large_2024-PulteGroup, Inc._US1__20240830224000_3

Employees say:"The work like balance is unlike anything I have experienced before. You have enough PTO to not worry about using it all quickly. You do not feel like you have to miss moments in your kids/family life due to work."

GPTW-Construction-Large-2024-PulteGroup

Employees say:"I have worked in the new home sales business for 17 years and with 4 other home builders. Pulte has been beyond the best company to work for. Management truly wants you to succeed and is supportive. Everyone is welcoming and I feel as though I am really part of a team. They offer a leadership development program that I was invited to participate in. Upper management and the division president are approachable and easy to talk to, they ask for feedback and value my opinions. I genuinely ENJOY spending my free time with my co-workers and have cultivated many friendships."

Fortune partners with global people analytics firm Great Place to Work to analyze survey feedback representing employees from companies across the U.S.

GPTW Millennials 2024-Large-PulteGroup, Inc.

Employees say:"The people at Pulte are genuinely nice and compassionate. I've never felt so supported in my career as much as I do here. I feel at ease because I am not worried how I will be treated. I don't take for granted the excellence in behavior here."

100 Best Large Workplaces for Millennials

Industries included in the sector are construction and engineering services and homebuilders.

Fortune Sector Leaders: Engineering and Construction

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

Creating a more empathetic workplace looks like staying loyal to workers, emphasizing D&I initiatives, and paying well.

100 Best Companies 2024-PulteGroup, Inc.

After weathering a difficult year in a nearly frozen housing market, PulteGroup fell seven places from its 2023 ranking. Yet it remains the third largest homebuilder in the U.S., with operations in more than 45 U.S. markets. PulteGroup aims to create affordable housing opportunities; provides mortgage-free homes to wounded veterans through its Built to Honor program; organizes food drives with local pantries; and launches fundraising initiatives for organizations employees care about.&nbsp; &nbsp;The PulteGroup Foundation launched Dollars for Doers in 2022: For every hour an employee volunteers, the foundation contributes the equivalent of up to $25 per hour, for up to 40 hours annually per employee.&nbsp; &nbsp;To bolster the success of its homebuilding operations team, which constitutes 75% of its workforce, PulteGroup offers mentorship and formal training programs, such as its Certified Field Trainer initiative to support trainees for up to six months.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

Building a culture of trust and transparency is essential to help everyone thrive, especially in rocky economic times.

100 BEST COMPANIES 2023-PulteGroup

One of the largest homebuilders in the U.S. aims to continually improve the employee experience. As a result, nine out of 10 employees want to work at PulteGroup for “a long time.” 
<ul> 
 	<li>The diversity board’s outreach committee has enhanced PulteGroup’s recruitment, hiring, and onboarding efforts with a focus on identifying a large pool of diverse job candidates and building recruitment relationships with HBCUs.</li> 
 	<li>New hires are assigned an onboarding experience partner, responsible for ensuring new team members feel connected to the company.</li> 
 	<li>PulteGroup’s affordable housing committee is piloting a new program, Hope to Home, that will subsidize a percentage of the homes the company builds, offering them to first-time buyers in underserved groups.</li> 
 	<li>The company has a one-stop learning management system that provides employees with training, workshops, and developmental tools.</li> 
 	<li>PulteGroup’s new health and wellness program goes beyond physical and emotional health coverage to include financial and social wellness.</li> 
</ul>

GPTW Women 2023-PulteGroup, Inc.

Employees say: 
 
"Everyone on the team cares about doing a great job, taking care of each other, and doing what is right for our customers. There’s a high level of work ethic and pride from everyone."

Fortune partnered with Great Place to Work to analyze survey feedback representing nearly half a million U.S. employees.

GPTW Millennial Large 2023-PulteGroup

Employees say: 
 
"Every single employee seems genuinely happy to work at PulteGroup, Inc. I think I can speak for most, if not all, of us when I say we feel like this company and our superiors care about our happiness. I feel seen as something more than just an employee. My managers are happy in their roles and are great leaders. The opportunity to volunteer and have a day off to do so is so special. This company cares for our community, and I feel a massive sense of pride over it."

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

When it comes to supporting employees, flexibility, diversity, and a few extra paid days off go a long way.

100 Best 2022 PulteGroup,-Inc._1274415-5

America’s third-largest homebuilder has a laser focus on diversity, equity, and inclusion. PulteGroup created internal committees to work on recruiting and training a diverse talent pool of employees and to sponsor cultural awareness programming with live, interactive webinars that spotlight the achievements of a diverse range of individuals. Externally, in keeping with the company’s values, PulteGroup is working to create homeowning opportunities for lower-income families and minorities through affordable housing and down payment assistance initiatives. Part of the company’s emphasis on inclusion includes a flexible workweek. Once fully implemented, employees will work in the office two days per week and remotely for the other three.

Great Places to Work in Construction Large-2022-PulteGroup, Inc._1274415-5

Employees say: 
 
“This team is like a big family, and it is a lot of fun to be able to work with all of them. We have a strong bond and its great to feel like my work makes a difference. This is the only place I have worked that truly shows how much they appreciate our hard work and what we do.”

GPTW Women 2022-PulteGroup, Inc

Employees say: 
 
“Pulte offers a lot of development and growth opportunities that help you grow and advance in your career. There is a large focus on recognition and connection, even in a hybrid environment. I have been impressed with our increased efforts on diversity and inclusion the past couple of years and the launch of our BRGs and women in leadership series.”

To determine millennials' workplace preferences, Fortune's research partner Great Place to Work analyzed feedback representing more than 6.1 million U.S. employees.

GPTW 2022 Millennials List Large-Pulte Group

Employees say: 
 
“I have said this before and I’ll say it again, I feel blessed to be with a company who is not always thinking of the bottom line. Keeping people safe when weather is bad, during a pandemic making sure we had the essentials, and listening to its employees when they chime in with ideas. I have several close friends working for other builders and they cannot say the same. I’m a proud Pulte employee!”

This year’s Fortune 500 marks the 68th running of the list.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

Our 2021 list of the 100 best companies to work for, as ranked by their employees. See which companies made the list.

100 Best Companies 2021-76-PulteGroup,-Inc.

The homebuilder was hit hard by the pandemic, which forced it to make painful staff reductions in the form of furloughs and layoffs. In response, PulteGroup CEO Ryan Marshall, his direct reports, and the entire board of directors took pay cuts, raising $400,000 for a relief fund aiding those who lost their jobs. In the end, the company was able to bring back 100% of furloughed employees within 60 days, and actively set about rehiring those who were laid off. Marshall has also made a commitment to improving PulteGroup’s diversity practices, forming an internal diversity and inclusion board meant to hold the organization accountable to its goals.

The companies on this year's list make a conscious effort to be supportive, inclusive workplaces.

Best-Workplaces-Women-2021-Large-PulteGroup,-Inc

Employees say: 
 
“The company is always making an effort to recognize its employees and show their appreciation. The CEO knows front-line employees by name and makes an effort to build relationships with employees at all levels of the organization.”

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-284-PulteGroup

Started by 18-year-old homebuilder Bill Pulte in 1950, PulteGroup is now the third-largest home construction company in the U.S. based on number of homes closed. Its brands include Del Webb and Centex.

We surveyed tens of thousands of employees to create this list of millennials’ favorite workplaces.

Best Large Workplaces Millennials 2021-PulteGroup,-Inc

Employees say: 
 
“My managers trust me to get the job done well, and as result, I have incredible opportunity and flexibility. I trust my team, and they too enjoy complete flexibility and opportunity. Together - we always WIN! This is truly a Great Place to Work!”

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

Best Workplaces Women 2020-PulteGroup

Employees say: 
 
“People are genuinely interested in my career advancement. I've been mentored and challenged, which directly resulted in several promotions. This is truly a team where people care for each other and look for ways to build them up to promote.”

This year's Fortune 500 marks the 66th running of the list.

F500-2020_309_PulteGroup

The Atlanta-based homebuilder, whose brands include Del Webb and Centex, is considered the third-largest home construction company in the U.S. based on the number of homes closed. It operates in more than 40 markets.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 62nd running of the list.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Fortune Global 500

Best Companies

Rank last year

Years on list

U.S. employees

U.S. job openings

Year founded

Benefits

Subsidized childcare

Compressed work weeks

Option to work remotely

Minimum requirement in-office attendance (days per week)

Mental health coverage

Free mental health sessions (per year)

Free backup childcare time off (days)

Maximum $ amount covered for fertility services

Fully paid maternal leave (days)

Fully paid paternal leave (days)

Fully paid adoptive leave (days)

Maternal leave in addition to regular time off (days)

Paid days off for volunteering

Best Workplaces In Construction

Founded

Sites

Best Workplaces For Women

Industry Vertical

# Work Sites

Sector

Industry

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

PulteGroup is one of the largest homebuilders in the U.S., having constructed over 800,000 homes since 1950. The company operates in more than 45 markets across 24 states through its portfolio of brands, including Centex, Pulte Homes, Del Webb, DiVosta Homes, American West, and John Wieland Homes and Neighborhoods.

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

PulteGroup (PHM): Company Profile, Stock Price, News, Rankings

legacy

PulteGroup

pultegroup

Thank you for standing by. My name is Jordan, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the PulteGroup, Inc., Fourth Quarter 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, press star one again. Thank you. I'd now like to turn the call over to Jim Zeumer. Please go ahead.

Thank you, Jordan, and good morning. I want to welcome everyone to today's call to review PulteGroup's Fourth Quarter operating and financial results. Joining me on today's call are Ryan Marshall, President and CEO. Jim Ossowski, Executive Vice President and CFO. David Carrier, Senior VP Finance. In advance of this call, a copy of our Q4 earnings release and this morning's webcast presentation have been posted to our corporate website at pultegroup.com. We'll also post an audio replay of this call later today. I would highlight that today's presentation includes forward-looking statements about the company's expected future performance. Actual results could differ materially from those suggested by our comments made today. The most significant risk factors that could affect future results are summarized as part of today's earnings release and within the accompanying presentation.

These risk factors and other key information are detailed in our SEC filings, including our annual and quarterly reports. Now, let me turn the call over to Ryan Marshall. Ryan?

Thanks, Jim, and good morning. I hope that many of you have had the chance to review our new investor presentation we posted to our website in early December. If you haven't seen it, I would encourage you to take a few minutes to review the deck, which is available on our website. The document is designed to provide a comprehensive review of the fundamental goals, strategies, and results of our company. The process of creating a completely revamped investor presentation afforded us the opportunity to revisit many of the core tenets against which we have been operating for more than a decade. I have to admit that it was gratifying to see that we have consistently operated in alignment with the strategies established in 2011 and how well they have helped us navigate through the housing cycle.

It is also gratifying to see that the underlying operating model has delivered such outstanding results. I would note that investors have recognized and rewarded us for this performance, as PulteGroup has ranked number one in total shareholder returns among homebuilders for both the past year and the past decade. This is a sustained record of success for which we are rightfully proud. PulteGroup's 2025 operating and financial results further demonstrate the value of our differentiated operating model that emphasizes diversification and balance across markets, buyer groups, and spec versus build-to-order production, as well as a highly disciplined approach to project underwriting and overall capital allocation. In a year that saw buyer demand and overall market dynamics be highly variable, I am pleased to report that our operating model helped us to generate annual revenues, margins, and earnings that rank among the highest in the 75-year history of PulteGroup.

Among the 2025 financial results that I would highlight, we closed over 29,500 homes and generated home sale revenues of $16.7 billion. We reported full-year gross and operating margins of 26.3% and 16.9%, respectively, and we generated cash flow from operations of $1.9 billion. I would also note that we ended the year with $2 billion of cash after investing $5.2 billion into the business and returning $1.4 billion to shareholders through share repurchases and dividends. I have talked about this on other calls, but a critical driver to Pulte's results in 2025 and prior years is our highly diversified business platform. With homebuilding operations now established in 47 distinct markets, we benefit from having a strong presence in the Midwest, Northeast, and Florida, where on a relative basis demand in many of these markets has held up better.

Relative strength in these areas helped offset pressure coming from the markets where overall home buying demand was softer, such as Texas and in many of our western markets. Beyond this broad geographic footprint, PulteGroup continues to benefit from having arguably the deepest and most balanced buyer base in the industry. At 38% first-time, 40% move-up, and 22% active adult, our 2025 closings were in line with our long-term targets. More importantly, our 2025 sales demonstrate the powerful impact such buyer diversification can have on our results. In a year in which demand was more challenged among first-time and move-up buyers, full-year signups among active adult buyers increased by 6% over last year and were up 14% in the fourth quarter over the fourth quarter in the prior year. In addition to the obvious benefit to our subsequent closing volumes, our Del Webb Communities routinely deliver our highest gross margins.

Del Webb has been and will continue to be an important driver of PulteGroup's superior gross margins and, most importantly, high returns. While I think we all view 2025 as a more challenging year than anticipated, PulteGroup still reported $2.2 billion of net income, the fifth most profitable year in our history, and generated $1.9 billion in cash flow from operations. Consistent with our disciplined capital allocation process, we used our strong 2025 financial results to invest in the future growth of our company, investing $5.2 billion in land acquisition and development. Inclusive of 2025, PulteGroup has invested a total of $24 billion in land acquisition and development over the past five years. We believe our disciplined land investment will enable us to routinely achieve community count growth in the range of 3%-5% in 2026 and in the years beyond.

As part of our keen focus on advancing a homebuilding platform that can consistently deliver strong financial results, as reported in this morning's earnings release, we have made the strategic decision to divest of our off-site manufacturing operations. ICG has proven to be a strong operator that can consistently deliver high-quality house shell components that has delivered many benefits to our extending homebuilding platform, but we have determined that our business and, in turn, our shareholders are best served by us focusing on our core homebuilding operations. After the sale, we will be able to benefit from any innovation in off-site manufacturing achieved by the building component suppliers, many of which are making significant investments in technology and innovation, while we focus on our core competencies.

Having recorded another year of strong results, PulteGroup enters 2026 in an exceptional financial position with $2 billion of cash and a net debt-to-capital ratio of -3%. We also control a land pipeline of 235,000 lots that will allow us to continue growing community count in 2026. As such, I am optimistic about the year ahead and PulteGroup's ability to capitalize on any opportunities the market may present. Now, let me turn the call over to Jim Ossowski for a review of our fourth quarter results. Jim?

Thanks, Ryan. Consistent with Ryan's comments, our fourth quarter performance capped another year of excellent operating and financial results, which I'm excited to review. We recorded net new orders in the fourth quarter of 6,428 homes, which is an increase of 4% over Q4 of last year. The increase in net new orders for the quarter reflects a 6% increase in average community count to 1,014 in combination with a 1% decrease in absorption pace to 2.1 homes per month. Reflective of the challenging demand conditions we experienced over the course of 2025, we realized a full-year absorption pace of 2.3 homes per month compared with 2.6 homes per month for all of 2024. For the fourth quarter, our cancellation rate as a percentage of starting backlog was 12%, compared with 10% in the prior year.

For the fourth quarter, net new orders among first-time and active adult buyers increased 9% and 14%, respectively, over Q4 of last year. Comparatively, net new orders in our move-up business declined by 5% in the prior year fourth quarter. By buyer group, net new orders in Q4 2025 were 39% first-time, 38% move-up, and 23% active adult. This compares with 37% first-time, 42% move-up, and 21% active adult in the fourth quarter of 2024. As we have discussed on prior calls, new community openings are helping to increase our active adult business as we grow that segment towards our targeted range, 25% of total unit volume. For our fourth quarter, home sale revenues totaled $4.5 billion, which is down 5% from the fourth quarter of last year.

Lower home sale revenues for the period reflect a 3% decrease in closings to 7,821 homes, in combination with a 1% decrease in the average sales price of closings to $573,000. By buyer group, closings in the fourth quarter were 37% first-time, 39% move-up, and 24% active adult. In the prior year fourth quarter, our closing mix was 40% first-time, 40% move-up, and 20% active adult. In response to the questions we have received, I would note that our Q4 closings included approximately 100 build-to-rent homes. Given our strategic approach to BFR, it has always been a small part of our operations and accounted for less than 2% of full-year 2025 closings. Our year-end backlog totaled 8,495 homes with a value of $5.3 billion, and we ended 2025 with 13,705 homes in production, of which 7,216 were spec homes.

Consistent with our stated strategy, our spec inventory is down 18% from the end of 2024. We have remained disciplined in managing spec starts as we rebalance our product mix and work to increase the percentage of build-to-order homes in our production pipeline. Given the number of homes under construction and their stage of production, we expect to close between 5,700 and 6,100 homes in the first quarter of 2026. We also have provided a guide for full-year 2026 closings in the range of 28,500-29,000 homes. Based on pricing in our backlog and the anticipated mix of closings, we expect the average sales price of closings to be in the range of $550,000-$560,000 for both the first quarter and full-year of 2026.

As Ryan discussed during his comments, given investment made in prior years and a land pipeline of 235,000 lots under control, we expect our average community count for all four quarters of 2026 to be 3%-5% higher than the comparable quarter of 2025. For our fourth quarter, we reported gross margin of 24.7%, compared with 27.5% in Q4 of last year. As noted in this morning's press release, our reported fourth quarter gross margin includes $35 million, or 80 basis points, of land impairment charges. In addition to these charges, Pulte's fourth quarter gross margin was impacted by a higher incentive of 9.9% of gross sales price. This compares with 7.2% in Q4 of last year and 8.9% in the third quarter of 2025. Higher incentives for the quarter were primarily the result of our effort to sell finished spec inventory as we closed out 2025.

We currently expect to realize gross margins of 24.5%-25.0% for both the first quarter and for the full year of 2026, but recognize that the spring selling season will be a key driver of our financial results this year. Embedded within our margin guide is the expectation that our house costs in 2026 will be flat to slightly down relative to 2025. On a year-over-year basis, we expect our lot costs in 2026 to increase by 7%-8% from 2025. Our reported gross fourth quarter homebuilding SG&A expense of $389 million, or 8.7% of home sale revenues, includes an insurance benefit of $34 million recorded in the period. Prior homebuilding SG&A expense of $196 million, or 4.2% of home sale revenues, includes an insurance benefit of $255 million.

We remain thoughtful in managing our overheads as we continue to identify opportunities to adjust spending levels while still meeting our high standards for build quality and buyer experience. For full-year 2026, we expect our SG&A expense to be in the range of 9.5%-9.7% of home sale revenue. Given the typical lower delivery volumes we realized in the first quarter of the year, SG&A expense in Q1 is expected to be approximately 11.5% of home sale revenues. In the fourth quarter, we reported other expenses of $99 million, which includes a charge of $81 million, resulting from the expected divestiture of our off-site manufacturing operations. For the fourth quarter, our financial services operations reported pre-tax income of $35 million, which is down from pre-tax income of $51 million in the fourth quarter of last year.

Financial services pre-tax income for the period was impacted by a number of factors, including lower ASPs and closing volumes in our homebuilding operations and a lower mortgage capture rate. Our mortgage capture rate in the fourth quarter was 84%, compared with 86% last year. PulteGroup's reported pre-tax income for the fourth quarter was $655 million. In the period, we reported a tax expense of $154 million, or an effective tax rate of 23.4%. Our effective tax rate benefited from renewable energy tax credits recorded in Q4. Looking ahead to 2026, we expect our tax rate to be approximately 24.5%. Our expected tax rate does not take into consideration any discrete period-specific tax events that might occur.

For the fourth quarter, we reported net income of $502 million, or $2.56 per share, which compares with a reported net income of $913 million, or $4.43 per share in the fourth quarter of 2024. For the full year, PulteGroup reported net income of $2.2 billion, or $11.12 per share. Our Q4 earnings per share was calculated based on 196 million diluted shares outstanding, which is down 5% from the prior year and reflects the impact of our systematic share repurchase program. In the fourth quarter, PulteGroup repurchased 2.4 million common shares for $300 million. Including our Q4 activity, we repurchased 10.6 million common shares in 2025 for $1.2 billion, for an average price of $112.76 per share. We ended the year with $983 million remaining under our existing share repurchase authorization.

In the fourth quarter, we invested $1.4 billion in land acquisition and development, which was evenly split between the two activities. For the full year, we invested a total of $5.2 billion in land acquisition and development, of which 52% went for the development of existing land assets. Inclusive of our Q4 investments, we ended the year with 235,000 lots under control. This is comparable with the fourth quarter of last year, but down on a sequential basis by 5,000 lots from Q3, as we continue to carefully review each land deal and make tactical decisions to exit select transactions. It is fair to say that the slower housing environment is beginning to have an impact on the land dynamics of markets around the country.

Depending on the market, the seller, and the underlying land asset, they're finding opportunities to renegotiate deals to adjust the timing, the price, or sometimes both. Our land teams have and continue to do an excellent job reviewing every transaction to ensure deals still meet our risk-adjusted return hurdles, given current prices and basis. Our local teams are also looking for opportunities to upgrade positions, which is land deals that were previously under contract, back to market. As Ryan mentioned earlier, we generated $1.9 billion of cash flow from operations in 2025 as we managed our housing starts, controlled land spend, and closed incremental homes in the fourth quarter. We will maintain the same disciplined approach in 2026 as we align investments into the business with buyer activity.

Given current market dynamics and our expected 3%-5% growth in community count, we are projecting land acquisition and development spend $5.4 billion in 2026. Assuming this level of land spend and the expectation that house inventory will increase commensurate with an increased level of build-to-order home sales, we expect 2026 cash flow generation to be approximately $1 billion. And finally, we ended the year with exceptional financial strength and flexibility, as we had $2 billion of cash and a debt-to-capital ratio of 11.2%. Adjusting for the cash balance, our net debt-to-capital ratio at quarter-end was -3%. Now, let me turn the call back to Ryan for some final comments.

Thanks, Jim. Appreciating the more challenging market conditions, I still look back on 2025 and say it was a good year.

As you heard repeatedly, demand was highly variable as consumers responded initially to movements in interest rates and later to a slowing economy, which pressured jobs and, as important, consumer confidence. All that being said, monthly absorption rates followed a typical seasonal pattern for the year and through the fourth quarter. The first few weeks of January have also demonstrated the expected seasonal increase in demand as we move from December into the start of the new year. It's too early to glean much in terms of the strength of the entire spring selling season, other than to say we remain optimistic. As was the case through much of the year, in the fourth quarter, we continue to realize stronger homebuyer demand in key markets in the Northeast, in many parts of the Midwest, and the Southeast.

Fourth quarter demand is seasonally slower, but on a relative basis, we saw positive homebuyer activity in markets that included Boston, the Northern Virginia D.C. area, as well as Chicago, Indianapolis, and Louisville, and then extending down into the Carolinas. Once again, I have to recognize the success of our Florida operations, which generated a year-over-year increase in fourth quarter signups of 13%. Beyond the strength of our land positions and our overall homebuilding operations throughout the Florida markets, data suggest that new and existing home inventories are generally stable to improving modestly. Obviously, a strengthening housing market in the state of Florida would be a huge boost to the industry. We closed out the year with our Texas and West markets continuing to experience sluggish demand trends, although we may be seeing some signs of bottoming in Dallas and San Antonio.

At this time, I would tell you that improvements in the pace of sales are likely the result of pricing actions as we work hard to find a clearing price and turn assets. This is particularly true with regard to finished spec inventory that we needed to clear. Looking ahead to 2026, the industry enters a new year with improved affordability as mortgage rates are almost a full percentage point lower than a year ago, and whether through price reductions or incentives, new home prices have reset lower while consumers benefited from another year of income growth as wages increased by upwards of 4%. A more financially capable consumer, in combination with an improved affordability picture, puts the industry in a much better position heading into the 2026 spring selling season.

Given these dynamics, I think consumer confidence will be a critical component to determining just how strong buyer demand will be in the months to come. Before opening the call to questions, I want to recognize and celebrate the entire Pulte team. Beyond the outstanding financial results, you continue to set the industry standard for build quality and customer satisfaction in 2025. You have been relentless in your efforts, and I am so proud of all that you've accomplished in these areas. Now, let me turn the call over to Jim Zeumer. Great.

Thanks, Ryan. Now, prepare to open the call for questions so we can get to as many questions as possible during the remaining time of this call. We ask that you limit yourself to one question and one follow-up. Jordan, if you would, prepare to take question and answer. Prepare to implement question and answer now.

Your first question comes from the line of John Lovallo from UBS. Your line is live.

Thanks, guys. I appreciate you taking my questions. And Ryan, we share your optimism heading into the year versus heading into the beginning of last year. I think the setup is a lot better. But maybe starting with just SG&A, you guys did a really good job of managing that in the quarter, despite home sales being down about 5% year-over-year. Can you just help us with some of the levers that you may have pulled and what else can be done on the SG&A front?

Yeah. You know, John, we didn't make a ton of kind of changes. I think we've always prided ourselves on being balanced and consistent. We put a lot of incremental investment into our people.

We're five years in a row now recognized as a top 100 best company to work for. We make incremental investments in quality and customer experience. So aside from that, we've really just tried to run kind of a balanced, thoughtful business, not be wasteful, but make sure that we're investing in the right places. We have made some targeted reductions in force in a handful of markets. We did that in the November timeframe of last year. Pretty small numbers overall, but it was focused in some of the markets that you might expect that were a little slower, Texas and some of the Western markets. Beyond that, John, I wouldn't tell you that there's anything that I'd call out as extraordinary.

Okay. That's helpful. And then I wanted to touch on ICG. I mean, we've been pretty big proponents of off-site construction and the benefits there.

I can understand not wanting to vertically integrate it, but I guess the question is, what is your view overall on just technology infusion into homebuilding as a longer-term solution to the chronic undersupply?

Yeah, John, I think that's the spot that I would highlight, is we are huge proponents of the innovation possibility and the ability to incorporate it into the homebuilding machine. And we've learned a lot over the last six years, gotten a ton of benefits in kind of what the overall housing operation has derived from the innovation that's happened there. We've just come to the conclusion that we think we're better off focusing on the core competency: buying land, entitling, developing, building homes.

And including ICG and whoever the eventual owner of that will be, combined with many of the other national off-site manufacturers, they're making a truckload of investment in innovation, and we think we'll be able to continue to benefit from those innovations, that innovation spending into the homebuilding operation without necessarily being a direct owner of it.

Your next question comes from the line of Michael Rehaut from J.P. Morgan. Your line is live.

Hi, thanks for taking my questions. Good morning, everybody. Good morning. First question, I'd love to get maybe dive in a little bit to the full-year gross margin outlook that you laid out on the call and appreciate that, given that it's maybe a step more in the direction of guidance than some of your peers are willing to do.

Wanted to understand the assumptions, particularly as you anticipate your first quarter gross margin. It seems like being sustained throughout the year, and what that means in terms of the progression of the year, because you would think land costs maybe continue to go up throughout the year as just kind of a long-term trend. So I was just wondering the components of that as you think sequentially throughout the year, how you're thinking about promotions, if promotions or incentives stabilize. They obviously rose throughout 2025, labor, materials, and if there's any positive impact from the divestiture of ICG.

Yeah. Hey, Mike, it's Ryan. Appreciate the question. And we take kind of the process of giving guidance very seriously, as I'm sure you can appreciate. We go through and we try to evaluate every element of every element of the P&L that contributes to the margin guide.

Our expectations are really to see ASP flat through the year. We've kind of given a guide that's the same for Q1 and the full year. We do expect our house costs to go down slightly. The sticks and bricks, Jim talked about that in his prepared remarks. We're anticipating land costs to increase in the range of 7%-8%. We'd expect to see the discounts remain elevated. We'd hope and we'd be optimistic that we can pull back just a tad on those discounts, but broadly, we think they're going to remain elevated. We've strived to keep our margins best in class. We'll endeavor to do that in 2026 as well. As you know, ultimately, what we're focused on is driving the best return on investment.

We manage kind of pace and price toward an outcome that gives us the optimal return for the shareholder. And look, we think it's worked. And it was the reason in my opening comments I said that strategy and the way we operate has generated the highest TSR, not only for the last year, but also the last decade. So I would say those are the big components of how we think about margin.

PulteGroup (PHM) Q4 2025 Earnings Call Transcript

Company Participants