PulteGroup reported fourth-quarter net income of $502 million, or $2.56 per share, compared with $913 million, or $4.43 per share, in the year-ago period. Adjusted earnings per share of $2.88 exceeded the Zacks Consensus Estimate of $2.78. Reported results include a pre-tax charge of $81 million related to the intended divestiture of manufacturing assets and land impairment charges of $35 million.

Home sale gross margin contracted to 24.7% from 27.5% a year earlier, reflecting the impact of the $35 million land impairment charge and increased incentive spending to offset cautious buyer sentiment. Homebuilding SG&A expenses rose to 8.7% of home sale revenues, up from 4.2%, despite a one-time insurance benefit of $34 million recorded in the period.

Fourth-quarter home sale revenues totaled $4.48 billion, down 5% from $4.71 billion, driven by a 3% decline in closings to 7,821 homes and a 1% decrease in average sales price to $573,000. Net new orders increased 4% to 6,428 homes, valued at $3.5 billion, while average community count rose 6% to 1,014. The backlog at quarter-end stood at 8,495 homes, representing $5.3 billion in future revenues.

For full-year 2025, PulteGroup delivered 29,572 homes, generated $16.7 billion in home sale revenues and achieved net income of $2.2 billion. The company ended the year with $2.0 billion of cash and a debt-to-capital ratio of 11.2%, after investing $5.2 billion in land acquisition and development. Share repurchases totaled 10.6 million shares for $1.2 billion, representing 5.2% of shares outstanding.