PulteGroup (NYSE:PHM) Issues Earnings Results, Misses Expectations By $0.23 EPS

PulteGroup (NYSE:PHM) posted its quarterly earnings results on Thursday. The construction company reported $2.56 EPS for the quarter, missing analysts’ consensus estimates of $2.79 by ($0.23), FiscalAI reports. The company had revenue of $4.61 billion during the quarter, compared to the consensus estimate of $4.34 billion. PulteGroup had a return on equity of 19.58% and a net margin of 14.93%.

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 Stock Up 3.5%

Shares of PHM stock traded up $4.26 during trading hours on Thursday, reaching $127.53. 1,108,929 shares of the company’s stock were exchanged, compared to its average volume of 1,850,321. The stock’s fifty day moving average price is $124.32 and its two-hundred day moving average price is $124.54. The stock has a market cap of $24.86 billion, a PE ratio of 9.84, a PEG ratio of 1.02 and a beta of 1.33. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 0.13. PulteGroup has a 1 year low of $88.07 and a 1 year high of $142.11.

PulteGroup Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, January 6th. Shareholders of record on Tuesday, December 16th were issued a $0.26 dividend. This is an increase from PulteGroup’s previous quarterly dividend of $0.22. This represents a $1.04 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Tuesday, December 16th. PulteGroup’s dividend payout ratio is presently 8.01%.

Institutional Investors Weigh In On PulteGroup

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Focus Partners Wealth increased its stake in shares of PulteGroup by 20.5% in the 1st quarter. Focus Partners Wealth now owns 12,517 shares of the construction company’s stock valued at $1,287,000 after purchasing an additional 2,128 shares in the last quarter. EverSource Wealth Advisors LLC increased its position in shares of PulteGroup by 197.1% in the second quarter. EverSource Wealth Advisors LLC now owns 1,212 shares of the construction company’s stock valued at $128,000 after buying an additional 804 shares in the last quarter. Guggenheim Capital LLC raised its stake in shares of PulteGroup by 12.9% during the 2nd quarter. Guggenheim Capital LLC now owns 8,519 shares of the construction company’s stock worth $898,000 after buying an additional 975 shares during the period. Baird Financial Group Inc. raised its stake in shares of PulteGroup by 8.0% during the 2nd quarter. Baird Financial Group Inc. now owns 29,060 shares of the construction company’s stock worth $3,065,000 after buying an additional 2,164 shares during the period. Finally, Cerity Partners LLC lifted its position in shares of PulteGroup by 17.6% during the 2nd quarter. Cerity Partners LLC now owns 41,677 shares of the construction company’s stock valued at $4,395,000 after buying an additional 6,240 shares in the last quarter. 89.90% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting PulteGroup

Here are the key news stories impacting PulteGroup this week:

• Positive Sentiment: Reported revenue topped expectations and some outlets flagged an EPS beat, giving investors a near‑term lift — Zacks reported Q4 EPS of $2.88 (vs. a $2.78 Zacks consensus) and revenues above estimates. PulteGroup (PHM) Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Brokerage consensus tilt remains constructive: some coverage shows a favorable broker view (consensus “Moderate Buy”), which can support buying interest amid mixed headlines. PulteGroup Receives Consensus Rating of “Moderate Buy”
• Neutral Sentiment: Street commentary highlights that spring selling-season guidance will be key — investors will be watching management comments and 2026 spring build/sales outlook on the conference call. Housing Market’s Spring Season Is Around the Corner
• Neutral Sentiment: Pre-earnings previews cautioned that affordability pressures and weak buyer sentiment still constrain growth — these are reasons investors remain cautious despite beats. PulteGroup Gears to Report Q4 Earnings: Here’s What to Expect
• Negative Sentiment: Company‑reported EPS was reduced by one‑time items: the official press release identified charges (divestiture and land impairments) that produced reported net income of $502M, or $2.56/sh — below some consensus prints and cited as a drag. PulteGroup Reports Fourth Quarter 2025 Financial Results
• Negative Sentiment: Media coverage and Reuters/WSJ noted quarterly profit and revenue declines and pointed to continued weak homebuyer demand — a reminder the operating environment remains pressured. Pultegroup quarterly profit, revenue fall as homebuyer demand remains weak
• Negative Sentiment: Zacks Research has been cutting forward estimates and moved to a negative stance on the name (multiple estimate reductions / “Strong Sell” commentary), which adds downside pressure for investors focused on analyst guidance. Here’s What Key Metrics Tell Us About PulteGroup (PHM) Q4 Earnings

Wall Street Analyst Weigh In

A number of research firms recently weighed in on PHM. BTIG Research assumed coverage on PulteGroup in a research report on Monday, December 1st. They issued a “neutral” rating for the company. Evercore ISI lowered their price target on shares of PulteGroup from $154.00 to $134.00 and set an “in-line” rating for the company in a research report on Wednesday, October 22nd. Weiss Ratings raised shares of PulteGroup from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, January 12th. Bank of America cut their price objective on PulteGroup from $145.00 to $140.00 and set a “buy” rating for the company in a report on Friday, October 10th. Finally, Wells Fargo & Company lifted their price objective on PulteGroup from $132.00 to $150.00 and gave the company an “overweight” rating in a research report on Wednesday, January 14th. Nine equities research 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’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $138.85.

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.