"Emerging from the last quarter of 2025 unscathed was no small task, PulteGroup's Q4 2025 earnings call revealed, even as one of America's most margin-resilient and disciplined builders staged a strong defensive stand against weakened demand. Price pressures, regional slumps and an incentive-heavy environment painted a complicated picture for the nation's third-largest builder in Q4. Still, Pulte executives expressed a note of optimism that last quarter will be the floor."
"The builder's earnings reveal a mixed picture. New orders were up 4% year-over-year, and average community count rose 6%. However, its absorption pace fell slightly last year, its cancellation rate inched up by 200 basis points, closings slipped by 3% and revenues declined 5% year-over-year. Pulte's gross profit margin in Q4 was 24.7%, compared to 27.5%. James Ossowski, Executive VP & CFO at PulteGroup, laid much of the blame on a high incentive rate of 9.9%, up from 8.9% in Q3 and from 7.2% a year ago."
"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 realise gross margins of 24.5% to 25.0% for both the first quarter and for the full year of 2026, but recognise that the spring selling season will be a key driver of our year, h"
PulteGroup finished Q4 2025 managing price pressures, regional slumps and an incentive-heavy environment while positioning for a steadier 2026. The company plans to target a stronger customer profile, concentrate on core homebuilding, and sell completed spec inventory into the Spring selling season. Pulte is transitioning from a pandemic-era, spec-heavy strategy toward a build-to-order model while expecting elevated incentives and margin defense as lot costs rise and demand remains uneven. Q4 showed mixed metrics: new orders +4%, community count +6%, but absorption slipped, cancellations rose 200 basis points, closings -3%, revenues -5%, and Q4 gross margin fell to 24.7%.
Read at www.housingwire.com
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