8-K
Pultegroup Inc/Mi/ (PHM)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 29, 2026
PULTEGROUP, INC.
(Exact name of registrant as specified in its Charter)
| Michigan | 1-9804 | 38-2766606 | ||||
|---|---|---|---|---|---|---|
| (State or other jurisdiction | (Commission | (IRS Employer | ||||
| of incorporation) | File Number) | Identification No.) | ||||
| 3350 Peachtree Road NE, Suite 1500 | ||||||
| --- | --- | --- | ||||
| Atlanta, | Georgia | 30326 | ||||
| (Address of principal executive offices) (Zip Code) | Registrant's telephone number, including area code: | 404 | 978-6400 | |||
| --- | --- | --- |
____________________________________________________
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Shares, par value $0.01 | PHM | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company. ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On January 29, 2026, PulteGroup, Inc. (the "Company") issued a press release announcing its financial results for its fourth quarter ended December 31, 2025. A copy of this earnings press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated in Item 2.02 by reference.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
99.1 Fourth Quarter 2025 earnings press release dated January 29, 2026
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
The information in Item 2.02 of this Current Report on Form 8-K, including the earnings press release incorporated in such Item 2.02, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PULTEGROUP, INC. | ||||
|---|---|---|---|---|
| Date: | January 29, 2026 | By: | /s/ Todd N. Sheldon | |
| Name: | Todd N. Sheldon | |||
| Title: | Executive Vice President, General Counsel and Corporate Secretary |
Document
| FOR IMMEDIATE RELEASE | Company Contact |
|---|---|
| Investors: Jim Zeumer | |
| (404) 978-6434 | |
| jim.zeumer@pultegroup.com |
PULTEGROUP REPORTS FOURTH QUARTER 2025 FINANCIAL RESULTS
•Reported Earnings Per Share of $2.56
•Net New Orders Increased 4% to 6,428 Homes with a Value of $3.5 Billion
•Closings of 7,821 Homes Generated Home Sale Revenues of $4.5 Billion
•Home Sale Gross Margin of 24.7% Includes $35 Million, or 80 Basis Points, of Land Impairment Charges
•Invested $1.4 Billion in Land Acquisition and Development and Repurchased $300 Million of Common Shares in the Quarter
ATLANTA – Jan. 29, 2026 – PulteGroup, Inc. (NYSE: PHM) announced today financial results for its fourth quarter ended December 31, 2025. For the quarter, the Company reported net income of $502 million, or $2.56 per share. Reported net income for the period includes: a pre-tax charge of $81 million, or $0.31 per share, associated with the intended divestiture of certain manufacturing assets; pre-tax land impairment charges totaling $35 million, or $0.14 per share; and a pre-tax insurance benefit of $34 million, or $0.13 per share. In the prior year period, the Company reported net income of $913 million, or $4.43 per share, inclusive of a pre-tax insurance benefit of $255 million, or $0.93 per share.
“PulteGroup’s fourth quarter and full year financial results reflect our balanced and disciplined approach to the business as we continue to successfully navigate today’s continuously shifting market dynamics,” said PulteGroup President and CEO, Ryan Marshall. “Inclusive of our strong fourth quarter results, in 2025 PulteGroup delivered 29,572 homes, $16.7 billion in home sale revenues and net income of $2.2 billion. We finished the year with $2.0 billion in cash, after investing $5.2 billion in land acquisition and development in 2025.
“While lower interest rates and more favorable pricing dynamics have worked to improve the overall affordability of new homes relative to a year ago, lagging consumer confidence continued to weigh on homebuyer demand in the quarter. Given these market dynamics, we remain focused on intelligently turning our assets, generating strong cash flows, and further developing a land pipeline that can routinely support community count growth of 3% to 5% annually.”
Fourth Quarter Results
Fourth quarter home sale revenues of $4.5 billion were 5% lower than the comparable prior year period. Home sale revenues for the quarter reflect a 3% decrease in closings to 7,821 homes, in combination with a 1% decrease in average sales price to $573,000.
The Company’s reported fourth quarter home sale gross margin of 24.7% includes $35 million, or 80 basis points, of land impairment charges recorded in the period. Prior year fourth quarter gross margin was 27.5%.
Reported fourth quarter homebuilding SG&A expense of $389 million, or 8.7% of home sale revenues, includes the insurance benefit of $34 million recorded in the period. Homebuilding SG&A expense in the fourth quarter of 2024 was $196 million, or 4.2% of home sale revenues, inclusive of an insurance benefit of $255 million.
In the quarter, the Company reported Other Expense of $99 million which includes the pre-tax charge of $81 million resulting from the intended divestiture of certain manufacturing assets.
Net new orders for the fourth quarter were 6,428 homes, which is an increase of 4% over the fourth quarter of 2024. The value of net new orders in the period was $3.5 billion, which is comparable with the prior year. Average community count for the fourth quarter was 1,014, which is an increase of 6% over the prior year.
At the end of the fourth quarter, the Company’s backlog totaled 8,495 homes with a value of $5.3 billion.
The Company's financial services operations generated fourth quarter pre-tax income of $35 million, which is down from $51 million in the comparable prior year period. Reported pre-tax income for the quarter was impacted by lower closing volumes and average selling prices in the Company’s homebuilding operations, as well as a decrease in mortgage capture rate to 84%, compared with 86% in the prior year.
In the fourth quarter, PulteGroup repurchased 2.4 million common shares for $300 million. For the full year, the Company repurchased a total of 10.6 million common shares, or 5.2% of shares outstanding, for $1.2 billion, or $112.76 per share. The Company ended the quarter with $2.0 billion of cash and a debt-to-capital ratio of 11.2%.
A conference call discussing PulteGroup's fourth quarter 2025 results is scheduled for Thursday, January 29, 2026, at 8:30 a.m. Eastern Time. Interested investors can access the live webcast via PulteGroup's corporate website at www.pultegroupinc.com.
Forward-Looking Statements
This release includes “forward-looking statements.” These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that they do not relate to matters of a strictly factual or historical nature and generally discuss or relate to forecasts, estimates or other expectations regarding future events. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “plan,” “project,” “may,” “can,” “could,” “might,” “should,” “will” and similar expressions identify forward-looking statements, including statements related to any potential impairment charges and the impacts or effects thereof, expected operating and performing results, planned transactions, planned objectives of management, future developments or conditions in the industries in which we participate and other trends, developments and uncertainties that may affect our business in the future.
Such risks, uncertainties and other factors include, among other things: interest rate changes and the availability of mortgage financing; the impact of any changes to our strategy in responding to the cyclical nature of the industry or deteriorations in industry conditions or downward changes in general economic or other business conditions, including any changes regarding our land positions and the levels of our land spend; economic changes nationally or in our local markets, including inflation, deflation, changes in consumer confidence and preferences and the state of the market for homes in general; supply shortages and the cost of labor and building materials; the availability and cost of land and other raw materials used by us in our homebuilding operations; a decline in the value of the land and home inventories we maintain and resulting possible future writedowns of the carrying value of our real estate assets; competition within the industries in which we operate; rapidly changing technological developments including, but not limited to, the use of artificial intelligence in the homebuilding industry; governmental regulation
directed at or affecting the housing market, the homebuilding industry or construction activities, slow growth initiatives and/or local building moratoria; the availability and cost of insurance covering risks associated with our businesses, including warranty and other legal or regulatory proceedings or claims; damage from improper acts of persons over whom we do not have control or attempts to impose liabilities or obligations of third parties on us; weather related slowdowns; the impact of climate change and related governmental regulation; adverse capital and credit market conditions, which may affect our access to and cost of capital; the insufficiency of our income tax provisions and tax reserves, including as a result of changing laws or interpretations; the potential that we do not realize our deferred tax assets; our inability to sell mortgages into the secondary market; uncertainty in the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans, and related claims against us; risks associated with the implementation of a new enterprise resource planning system; risks related to information technology failures, data security issues, and the effect of cybersecurity incidents and threats; the impact of negative publicity on sales; failure to retain key personnel; the impairment of our intangible assets; disruptions associated with epidemics, pandemics or other serious public health threats (as well as fear of such events), and the measures taken to address it; the effect of cybersecurity incidents and threats; and other factors of national, regional and global scale, including those of a political, economic, business and competitive nature. See Item 1A – Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, for a further discussion of these and other risks and uncertainties applicable to our businesses. We undertake no duty to update any forward-looking statement, whether as a result of new information, future events or changes in our expectations.
About PulteGroup
PulteGroup, Inc. (NYSE: PHM), based in Atlanta, Georgia, is one of America’s largest homebuilding companies with operations in more than 45 markets throughout the country. Through its brand portfolio that includes Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods, the company is one of the industry’s most versatile homebuilders able to meet the needs of multiple buyer groups and respond to changing consumer demand. PulteGroup’s purpose is building incredible places where people can live their dreams.
For more information about PulteGroup, Inc. and PulteGroup brands, go to pultegroup.com; pulte.com; centex.com; delwebb.com; divosta.com; and jwhomes.com. Follow PulteGroup, Inc. on X: @PulteGroupNews.
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PulteGroup, Inc.
Consolidated Results of Operations
($000's omitted, except per share data)
(Unaudited)
| Three Months Ended | Year Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Revenues: | ||||||||
| Homebuilding | ||||||||
| Home sale revenues | $ | 4,477,903 | $ | 4,707,540 | $ | 16,743,522 | $ | 17,318,521 |
| Land sale and other revenues | 39,419 | 99,108 | 179,764 | 195,435 | ||||
| 4,517,322 | 4,806,648 | 16,923,286 | 17,513,956 | |||||
| Financial Services | 93,426 | 115,146 | 388,667 | 432,994 | ||||
| Total revenues | 4,610,748 | 4,921,794 | 17,311,953 | 17,946,950 | ||||
| Homebuilding Cost of Revenues: | ||||||||
| Home sale cost of revenues | (3,373,309) | (3,413,930) | (12,341,421) | (12,311,766) | ||||
| Land sale and other cost of revenues | (36,537) | (88,690) | (166,041) | (189,893) | ||||
| (3,409,846) | (3,502,620) | (12,507,462) | (12,501,659) | |||||
| Financial Services expenses | (58,409) | (64,471) | (231,887) | (224,086) | ||||
| Selling, general, and administrative expenses | (389,457) | (195,640) | (1,573,928) | (1,321,276) | ||||
| Equity income from unconsolidated entities, net | 814 | 1,625 | 4,147 | 44,201 | ||||
| Other income (expense), net | (98,611) | 22,040 | (91,502) | 61,749 | ||||
| Income before income taxes | 655,239 | 1,182,728 | 2,911,321 | 4,005,879 | ||||
| Income tax expense | (153,625) | (269,489) | (692,591) | (922,617) | ||||
| Net income | $ | 501,614 | $ | 913,239 | $ | 2,218,730 | $ | 3,083,262 |
| Net income per share: | ||||||||
| Basic | $ | 2.58 | $ | 4.47 | $ | 11.21 | $ | 14.82 |
| Diluted | $ | 2.56 | $ | 4.43 | $ | 11.12 | $ | 14.69 |
| Cash dividends declared | $ | 0.26 | $ | 0.22 | $ | 0.92 | $ | 0.82 |
| Number of shares used in calculation: | ||||||||
| Basic | 194,140 | 204,339 | 197,966 | 208,107 | ||||
| Effect of dilutive securities | 1,640 | 1,841 | 1,571 | 1,722 | ||||
| Diluted | 195,780 | 206,180 | 199,537 | 209,829 |
PulteGroup, Inc.
Condensed Consolidated Balance Sheets
($000's omitted)
(Unaudited)
| December 31,<br>2025 | December 31,<br>2024 | |||
|---|---|---|---|---|
| ASSETS | ||||
| Cash and equivalents | $ | 1,980,869 | $ | 1,613,327 |
| Restricted cash | 27,907 | 40,353 | ||
| Total cash, cash equivalents, and restricted cash | 2,008,776 | 1,653,680 | ||
| House and land inventory | 12,925,413 | 12,692,820 | ||
| Residential mortgage loans available-for-sale | 613,665 | 629,582 | ||
| Investments in unconsolidated entities | 167,342 | 215,416 | ||
| Other assets | 2,217,483 | 2,001,991 | ||
| Goodwill | 40,377 | 68,930 | ||
| Other intangible assets | 26,210 | 46,303 | ||
| Deferred tax assets | 49,157 | 55,041 | ||
| $ | 18,048,423 | $ | 17,363,763 | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
| Liabilities: | ||||
| Accounts payable | $ | 724,885 | $ | 727,995 |
| Customer deposits | 387,837 | 512,580 | ||
| Deferred tax liabilities | 448,493 | 443,566 | ||
| Accrued and other liabilities | 1,338,330 | 1,412,166 | ||
| Financial Services debt | 532,338 | 526,906 | ||
| Notes payable | 1,631,098 | 1,618,586 | ||
| Total liabilities | 5,062,981 | 5,241,799 | ||
| Shareholders' equity | 12,985,442 | 12,121,964 | ||
| $ | 18,048,423 | $ | 17,363,763 |
PulteGroup, Inc.
Consolidated Statements of Cash Flows
($000's omitted)
(Unaudited)
| Year Ended | ||||
|---|---|---|---|---|
| December 31, | ||||
| 2025 | 2024 | |||
| Cash flows from operating activities: | ||||
| Net income | $ | 2,218,730 | $ | 3,083,262 |
| Adjustments to reconcile net income to net cash from operating activities: | ||||
| Deferred income tax expense | 10,779 | 151,097 | ||
| Land-related charges | 126,914 | 34,572 | ||
| Goodwill impairment | 28,553 | — | ||
| Property and equipment impairments | 49,629 | — | ||
| Depreciation and amortization | 112,507 | 89,162 | ||
| Equity income from unconsolidated entities | (4,147) | (44,201) | ||
| Distributions of earnings from unconsolidated entities | 4,222 | 2,557 | ||
| Share-based compensation expense | 54,823 | 54,690 | ||
| Other, net | 311 | (13,460) | ||
| Increase (decrease) in cash due to: | ||||
| Inventories | (213,372) | (787,475) | ||
| Residential mortgage loans available-for-sale | 15,917 | (113,327) | ||
| Other assets | (293,904) | (489,623) | ||
| Accounts payable, accrued and other liabilities | (239,713) | (286,460) | ||
| Net cash provided by operating activities | 1,871,249 | 1,680,794 | ||
| Cash flows from investing activities: | ||||
| Capital expenditures | (122,716) | (118,545) | ||
| Investments in unconsolidated entities | (15,744) | (16,037) | ||
| Distributions of capital from unconsolidated entities | 63,743 | 9,179 | ||
| Other investing activities, net | (5,707) | 30,927 | ||
| Net cash used in investing activities | (80,424) | (94,476) | ||
| Cash flows from financing activities: | ||||
| Repayments of notes payable | (24,508) | (355,826) | ||
| Financial Services borrowings, net | 5,432 | 27,279 | ||
| Debt issuance costs | (1,446) | (1,534) | ||
| Proceeds from liabilities related to consolidated inventory not owned | 44,095 | 50,047 | ||
| Payments related to consolidated inventory not owned | (46,733) | (105,787) | ||
| Share repurchases | (1,199,996) | (1,199,999) | ||
| Excise tax on share repurchases | (11,550) | (9,691) | ||
| Cash paid for shares withheld for taxes | (24,339) | (18,597) | ||
| Dividends paid | (176,684) | (167,707) | ||
| Net cash used in financing activities | (1,435,729) | (1,781,815) | ||
| Net increase (decrease) | 355,096 | (195,497) | ||
| Cash, cash equivalents, and restricted cash at beginning of period | 1,653,680 | 1,849,177 | ||
| Cash, cash equivalents, and restricted cash at end of period | $ | 2,008,776 | $ | 1,653,680 |
| Supplemental Cash Flow Information: | ||||
| Interest paid (capitalized), net | $ | 17,248 | $ | 26,052 |
| Income taxes paid, net | $ | 698,756 | $ | 739,680 |
PulteGroup, Inc.
Segment Data
($000's omitted)
(Unaudited)
| Three Months Ended | Year Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| HOMEBUILDING: | ||||||||
| Home sale revenues | $ | 4,477,903 | $ | 4,707,540 | $ | 16,743,522 | $ | 17,318,521 |
| Land sale and other revenues | 39,419 | 99,108 | 179,764 | 195,435 | ||||
| Total Homebuilding revenues | 4,517,322 | 4,806,648 | 16,923,286 | 17,513,956 | ||||
| Home sale cost of revenues | (3,373,309) | (3,413,930) | (12,341,421) | (12,311,766) | ||||
| Land sale cost of revenues | (36,537) | (88,690) | (166,041) | (189,893) | ||||
| Selling, general, and administrative expenses | (389,457) | (195,640) | (1,573,928) | (1,321,276) | ||||
| Equity income from unconsolidated entities | 814 | 1,625 | 2,897 | 43,151 | ||||
| Other income (expense), net | (98,611) | 22,043 | (91,502) | 61,752 | ||||
| Income before income taxes | $ | 620,222 | $ | 1,132,056 | $ | 2,753,291 | $ | 3,795,924 |
| FINANCIAL SERVICES: | ||||||||
| Income before income taxes | $ | 35,017 | $ | 50,672 | $ | 158,030 | $ | 209,955 |
| CONSOLIDATED: | ||||||||
| Income before income taxes | $ | 655,239 | $ | 1,182,728 | $ | 2,911,321 | $ | 4,005,879 |
PulteGroup, Inc.
Segment Data, continued
($000's omitted)
(Unaudited)
| Three Months Ended | Year Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Home sale revenues | $ | 4,477,903 | $ | 4,707,540 | $ | 16,743,522 | $ | 17,318,521 |
| Closings - units | ||||||||
| Northeast | 451 | 464 | 1,649 | 1,518 | ||||
| Southeast | 1,559 | 1,413 | 5,598 | 5,697 | ||||
| Florida | 1,978 | 1,855 | 7,442 | 7,906 | ||||
| Midwest | 1,351 | 1,370 | 5,026 | 4,750 | ||||
| Texas | 1,022 | 1,167 | 4,352 | 5,452 | ||||
| West | 1,460 | 1,834 | 5,505 | 5,896 | ||||
| 7,821 | 8,103 | 29,572 | 31,219 | |||||
| Average selling price | $ | 573 | $ | 581 | $ | 566 | $ | 555 |
| Net new orders - units | ||||||||
| Northeast | 382 | 340 | 1,541 | 1,566 | ||||
| Southeast | 1,322 | 1,233 | 5,437 | 5,363 | ||||
| Florida | 1,705 | 1,510 | 7,068 | 6,909 | ||||
| Midwest | 1,025 | 1,088 | 4,829 | 4,860 | ||||
| Texas | 928 | 900 | 4,195 | 4,763 | ||||
| West | 1,066 | 1,096 | 4,844 | 5,765 | ||||
| 6,428 | 6,167 | 27,914 | 29,226 | |||||
| Net new orders - dollars | $ | 3,513,461 | $ | 3,507,496 | $ | 15,518,916 | $ | 16,493,524 |
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Unit backlog | ||||||||
| Northeast | 507 | 615 | ||||||
| Southeast | 1,751 | 1,912 | ||||||
| Florida | 2,421 | 2,795 | ||||||
| Midwest | 1,605 | 1,802 | ||||||
| Texas | 791 | 948 | ||||||
| West | 1,420 | 2,081 | ||||||
| 8,495 | 10,153 | |||||||
| Dollars in backlog | $ | 5,270,112 | $ | 6,494,718 |
PulteGroup, Inc.
Segment Data, continued
($000's omitted)
(Unaudited)
| Three Months Ended | Year Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| MORTGAGE ORIGINATIONS: | ||||||||||||
| Origination volume | 4,940 | 5,328 | 18,977 | 19,770 | ||||||||
| Origination principal | $ | 2,143,793 | $ | 2,342,489 | $ | 8,229,007 | $ | 8,340,836 | ||||
| Capture rate | 83.6 | % | 85.9 | % | 84.7 | % | 85.9 | % |
Supplemental Data
($000's omitted)
(Unaudited)
| Three Months Ended | Year Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Interest in inventory, beginning of period | $ | 131,564 | $ | 146,097 | $ | 139,960 | $ | 139,078 |
| Interest capitalized | 26,118 | 26,069 | 104,479 | 112,416 | ||||
| Interest expensed | (35,355) | (32,206) | (122,112) | (111,534) | ||||
| Interest in inventory, end of period | $ | 122,327 | $ | 139,960 | $ | 122,327 | $ | 139,960 |
PulteGroup, Inc.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
This report contains information about our debt-to-capital ratios. These measures could be considered non-GAAP financial measures under the SEC's rules and should be considered in addition to, rather than as a substitute for, comparable GAAP financial measures. We calculate total net debt by subtracting total cash, cash equivalents, and restricted cash from notes payable to present the amount of assets needed to satisfy the debt. We use the debt-to-capital and net debt-to-capital ratios as indicators of our overall leverage and believe they are useful financial measures in understanding the leverage employed in our operations. We believe that these measures provide investors relevant and useful information for evaluating the comparability of financial information presented and comparing our profitability and liquidity to other companies in the homebuilding industry. Although other companies in the homebuilding industry report similar information, the methods used may differ. We urge investors to understand the methods used by other companies in the homebuilding industry to calculate these measures and any adjustments thereto before comparing our measures to those of such other companies.
The following table sets forth a reconciliation of the debt-to-capital ratios ($000's omitted):
| Debt-to-Capital Ratios | ||||||
|---|---|---|---|---|---|---|
| December 31, | ||||||
| 2025 | 2024 | |||||
| Notes payable | $ | 1,631,098 | $ | 1,618,586 | ||
| Shareholders' equity | 12,985,442 | 12,121,964 | ||||
| Total capital | $ | 14,616,540 | $ | 13,740,550 | ||
| Debt-to-capital ratio | 11.2 | % | 11.8 | % | ||
| Notes payable | $ | 1,631,098 | $ | 1,618,586 | ||
| Less: Total cash, cash equivalents, and restricted cash | (2,008,776) | (1,653,680) | ||||
| Total net debt | $ | (377,678) | $ | (35,094) | ||
| Shareholders' equity | 12,985,442 | 12,121,964 | ||||
| Total net capital | $ | 12,607,764 | $ | 12,086,870 | ||
| Net debt-to-capital ratio | (3.0) | % | (0.3) | % |
10