#capital-allocation

#capital-allocation

It's a classic, almost predictable homebuilding I-told-you-so moment. The most important thing PulteGroup told the market on its Q4 2025 earnings call wasn't that it plans to divest ICG (Innovative Construction Group). It was why and what that why implies about the hard reality homebuilders keep rediscovering across cycles: Factories love steady pull-through. Homebuilding demand is volatile. During the call, CEO Ryan Marshall went out of his way to validate the asset while stepping away from ownership:

President Donald Trump rattled the defense sector yesterday by signing an executive order prohibiting contractors from issuing dividends or repurchasing shares until they prioritize investments in new facilities and machinery to boost production speed and quality. He specifically targeted RTX ( ) as the most egregious violator, accusing it of favoring shareholders over military needs and warning it could lose access to future contracts unless it ramps up capital spending.

Lennar announced on Tuesday that TPG Real Estate has acquired a majority stake in Quarterra, Lennar's multifamily vertical. Lennar will maintain a minority interest, but the deal signals a strategic recalibration as the builder's multifamily business struggled with a sizeable net loss last year. In fiscal 2025, Lennar's multifamily business experienced an operating loss of roughly $75 million, according to earnings reports released by the company.

United reported Q3 revenue of $15.23 billion, missing estimates of $15.29 billion but growing 2.6% year over year. Premium cabin revenue jumped 6% while basic economy climbed 4%. Cargo rose 3% and the loyalty program expanded 9%. Net income of $949 million declined 1.7% from the prior year, and adjusted EPS of $2.78 beat estimates of $2.67 by 4.1%. CEO Scott Kirby highlighted investments exceeding $1 billion in customer experience, including Starlink installations and enhanced inflight entertainment.

Capital carries memory. If our relationships with money are complex and connected to our emotional state, then fiduciary duty for impact must measure more than basis points.