Q4 2025 Earnings Reveal Shifts in Mortgage and Homebuilder Sectors

Several leading mortgage, real estate, and homebuilding companies published their Q4 2025 earnings, providing insight into recent trends in these industries. The results show changes in loan volumes, profit margins, and home sales across major firms.

Newrez, a subsidiary of Rithm Capital, reported a net income of $53.1 million for the fourth quarter of 2025, translating to $0.09 per diluted share. The company’s pretax income, excluding mark-to-market adjustments, reached $249 million, with a 17% return on equity for the quarter and 20% for the full year. Newrez ended 2025 with a servicing portfolio totaling approximately $850 billion in unpaid principal balance.

During the same period, Newrez’s funded loan volume rose to $18.8 billion, marking a 15% increase from the previous quarter. The company also recorded a 200% year-over-year growth in non-qualified mortgage (non-QM) originations. These figures highlight a period of expansion in Newrez’s lending activity.

JPMorgan Chase reported that its mortgage originations climbed 29% in 2025, reaching $52.8 billion for the year. In the fourth quarter, originations increased 15% from the prior quarter to $16 billion. The bank’s home lending segment generated $1.24 billion in revenue for Q4 2025, while full-year mortgage revenue remained nearly unchanged from 2024 at $4.9 billion.

What the numbers show

• Newrez’s Q4 2025 pretax income was $249 million with a 17% return on equity
• JPMorgan Chase originated $16 billion in mortgages in Q4 2025
• PulteGroup’s Q4 2025 incentive rate rose to 9.9% from 7.2% a year earlier
• NVR’s Q4 2025 profit fell 20% to $363.8 million

PulteGroup’s gross profit margin for the fourth quarter of 2025 was 24.7%, a decrease from 27.5% in the same period the previous year. The company’s incentive rate increased to 9.9%, up from 7.2% in Q4 2024, and impairments totaled $35 million. These figures reflect changes in the company’s cost structure and pricing strategies.

NVR reported revenue of $2.64 billion for Q4 2025, representing a 5% decline compared to the previous year. The company’s profit for the quarter was $363.8 million, or $121.54 per share, which were decreases of 20% and 13%, respectively. M/I Homes delivered 2,301 homes in the quarter, down 4% year-over-year, with a profit of $64 million, or $3.91 per share, compared to $134 million, or $4.71 per share, in the prior year.

Hovnanian Enterprises posted a loss of $0.51 per share in the fourth quarter of 2025, after reporting a profit of $12.79 per share a year earlier. The company’s revenue dropped to $817.9 million from $979.6 million, and new home contracts declined 10.8% to 1,209 units. These results indicate a contraction in Hovnanian’s business activity during the period.

D.R. Horton’s net sales orders increased by 3% to 18,300 homes in Q4 2025. The company’s gross margin decreased to 20.4%, and pre-tax income in its rental segment fell 98% to $0.2 million. D.R. Horton also repurchased $670 million in stock during the quarter, reflecting ongoing capital management activities.

* This article is based on publicly available information at the time of writing.